Charlotte greenlights $110 million stormwater construction financing program

Charlotte greenlights $110 million stormwater construction financing programThe city will utilize a 36-month short-term draw program to provide interim funding for major and minor flood control projects before converting the debt to long-term revenue bonds.

The City Council authorized up to $110 million in short-term notes for stormwater projects currently in active construction or design.

The financing is structured as a short-term draw program lasting up to 36 months, which will eventually be converted into fixed-rate revenue bonds.

The North Carolina Local Government Commission is expected to review the financing on August 4, 2026, ahead of final City Council Bond Order approval.

The Charlotte City Council unanimously approved an initial findings resolution on June 22 to authorize a new construction period financing program of up to $110 million for stormwater infrastructure. The short-term notes will provide interim funding for major and minor flood control projects that are currently in active construction or design phases. The financing strategy is structured in two steps, beginning with a short-term construction period draw program that will last up to 36 months. Following this draw period, the debt will be converted into long-term, fixed-rate revenue bonds. According to the city's staff report, utilizing short-term tools such as Bond Anticipation Notes (BANs) will reduce overall interest costs, promote rate stability, and provide flexibility in the timing of capital spending. The $110 million financing package is fully supported by current stormwater revenues. Following the council's initial approval, city officials will submit an application to the North Carolina Local Government Commission, which is expected to review and approve the financing structure on August 4, 2026. The Charlotte City Council will then consider final approval of the related Bond Order at its August 10 business meeting.