Municipal Bond Sales

Overview

The Town sells bonds to borrow money to help pay for projects such as streets, sidewalks, parks, greenways, and Town government buildings. Borrowing for such projects enables future taxpayers to share the cost.

General obligation bonds require voters' approval. Other debt financing options include revenue bonds, certificates of participation, installment purchase contracts and state revolving loans.

 

Ratings

Town of Wake Forest general obligation bonds are rated AAA -- the best possible -- by three national credit rating agencies. 

The Town’s excellent bond rating communicates to businesses and individuals that Wake Forest is a healthy community. It signals current and potential investors that the Town’s financial future is strong and ensures Wake Forest’s interest costs will remain as low as possible. 

Financing TypeMoody'sStandard & Poor'sFitch
General Obligation BondsAaaAAAAAA

Series 2024A & 2024B Bonds

The ratings are associated with a $1.5 million General Obligation Public Improvement Bonds Series 2024A and estimated $22.1 million General Obligation Public Improvement Bonds Series 2024B planned for an October 1 sale for roadway and transportation, parks and recreation and greenway improvements. This represents the first issuance of the November 2022 GO Bond referendum approved by the voters.

 

Bond Logo

2022 Bond Referendum - Wake Forest voters approve four bond questions

On Tuesday, Nov. 8, 2022, Wake Forest voters approved all four questions on the referendum ballot for the Town of Wake Forest:

  • Question #1 concerning roadway and transportation improvements ($23.7 million) passed 14,940 to 4,617 (76% to 24%).
  • Question #2 regarding parks and recreation ($24.4 million) passed 13,783 to 5,808 (70% to 30%).
  • Question #3 concerning greenway improvements ($14.35 million) passed 13,226 to 6,327 (68% to 32%).
  • Question #4 regarding the downtown parking facility ($12.5 million) passed 10,873 to 8,586 (56% to 44%).

 

Buying Town of Wake Forest Bonds

The N.C. Department of State Treasurer handles Town of Wake Forest bond sales. Most bonds are sold competitively to the investment banking firm that offers the lowest interest rate. That firm then sells the bonds to individuals and institutions such as insurance companies. Individuals can buy Town of Wake Forest bonds from registered broker dealers. 

 

CUSIP Numbers

A bond's CUSIP is an alphanumeric identification code, usually nine characters, assigned to each maturity of a bond issue and is printed on the face of each individual bond. All municipal bonds are assigned a CUSIP number prior to pricing. 

 

Types of Debt

General Obligation Bonds (GO)

  • Description: Town's taxing power pledged; voter approval required
  • Town of Wake Forest uses: Streets, greenways, parks and recreation projects

Revenue Bonds (Rev)

  • Description: Specific revenue pledged; taxing power not pledged so no vote required
  • Town of Wake Forest uses: Electric system improvements

Installment Purchase Contracts (IP)

  • Description: Property that is financed used as collateral
  • Town of Wake Forest uses: Public facilities, rolling stock and equipment