§ 159‑55. Sworn statement of debt; debtlimitation.
(a) After the bond order has been introduced and before thepublic hearing thereon, the finance officer (or some other officer designatedby the governing board for this purpose) shall file with the clerk a statementshowing the following:
(1) (See note) Thegross debt of the unit, excluding therefrom debt incurred or to be incurred inanticipation of the collection of taxes or other revenues or in anticipation ofthe sale of bonds other than funding and refunding bonds. The gross debt (afterexclusions) is the sum of (i) outstanding debt evidenced by bonds, (ii) bondsauthorized by orders introduced but not yet adopted, (iii) unissued bondsauthorized by adopted orders, and (iv) outstanding debt not evidenced by bonds.However, for purposes of the sworn statement of debt and the debt limitation,revenue bonds shall not be considered debt and such bonds shall not be includedin gross debt nor deducted from gross debt.
(1) (For effective date, seenote) The gross debt of the unit, excluding therefrom debt incurredor to be incurred in anticipation of the collection of taxes or other revenuesor in anticipation of the sale of bonds other than funding and refunding bonds.The gross debt (after exclusions) is the sum of (i) outstanding debt evidencedby bonds, (ii) bonds authorized by orders introduced but not yet adopted, (iii)unissued bonds authorized by adopted orders, and (iv) outstanding debt notevidenced by bonds. However, for purposes of the sworn statement of debt andthe debt limitation, revenue bonds and project development financing debtinstruments (unless additionally secured by a pledge of the issuing unit'sfaith and credit) shall not be considered debt and shall not be included ingross debt nor deducted from gross debt.
(2) The deductions to be made from gross debt in computing netdebt. The following deductions are allowed:
a. Funding and refunding bonds authorized by orders introducedbut not yet adopted.
b. Funding and refunding bonds authorized but not yet issued.
c. The amount of money held in sinking funds or otherwise forthe payment of any part of the principal of gross debt other than debt incurredfor water, gas, electric light or power purposes, or sanitary sewer purposes(to the extent that the bonds are deductible under subsection (b) of thissection), or two or more of these purposes.
d. The amount of bonded debt included in gross debt andincurred, or to be incurred, for water, gas, or electric light or powerpurposes, or any two or more of these purposes.
e. The amount of bonded debt included in the gross debt andincurred, or to be incurred, for sanitary sewer system purposes to the extentthat the debt is made deductible by subsection (b) of this section.
f. The amount of uncollected special assessments theretoforelevied for local improvements for which any part of the gross debt (that is nototherwise deducted) was or is to be incurred, to the extent that theassessments will be applied, when collected, to the payment of any part of thegross debt.
g. The amount, as estimated by the governing board of theissuing unit or an officer designated by the board for this purpose, of specialassessments to be levied for local improvements for which any part of the grossdebt (that is not otherwise deducted) was or is to be incurred, to the extentthat the special assessments, when collected, will be applied to the payment ofany part of the gross debt.
(3) The net debt of the issuing unit, being the differencebetween the gross debt and deductions.
(4) (See note) Theassessed value of property subject to taxation by the issuing unit, as revealedby the tax records and certified to the issuing unit by the assessor.
(4) (For effective date, seenote) The assessed value of property subject to taxation by theissuing unit, as revealed by the tax records and certified to the issuing unitby the assessor. In calculating the assessed value, the incremental valuationof any development financing district located in the unit, as determinedpursuant to G.S. 159‑107, shall not be included.
(5) The percentage that the net debt bears to the assessed valueof property subject to taxation by the issuing unit.
(b) Debt incurred or to be incurred for sanitary sewer systempurposes is deductible from gross debt when the combined revenues of the watersystem and the sanitary sewer system (whether or not the water and sewer systemare operated separately or as a consolidated system) were sufficient to pay alloperating, capital outlay, and debt service expenditures attributable to bothsystems in each of the three complete fiscal years immediately preceding thedate on which the sworn statement of debt is filed. For the purposes of thissubsection, the "revenues" of a water system and a sanitary sewer systeminclude:
(1) Rates, fees, rentals, charges, and other receipts and incomederived from or in connection with the system.
(2) Fees, rents, or other charges collected from other offices,agencies, institutions, and departments of the issuing unit at rates not in excessof those charged to other consumers, customers, or users.
(3) Appropriations from the fund balance of the prior fiscalyear from the fund or funds established to account for the revenues andexpenditures of the water system or sewer system pursuant to G.S. 159‑13(a)of the Local Government Budget and Fiscal Control Act.
Before the sworn statement of debt is filed, thesecretary shall determine to what extent debt incurred or to be incurred forsanitary sewer system purposes qualifies for deduction from gross debt pursuantto this subsection, and shall give his certificate to that effect. Thesecretary's certificate shall be filed with and deemed a part of the swornstatement of debt. The secretary's certificate shall be conclusive in theabsence of fraud.
(c) No bond order shall be adopted unless it appears from thesworn statement of debt filed in connection therewith that the net debt of theunit does not exceed eight percent (8%) of the assessed value of propertysubject to taxation by the issuing unit. This limitation shall not apply to:
(1) Funding and refunding bonds.
(2) Bonds issued for water, gas, or electric power purposes, ortwo or more of these purposes.
(3) Bonds issued for sanitary sewer system purposes when thebonds are deductible pursuant to subsection (b) of this section.
(4) Bonds issued for sanitary sewers, sewage disposal, or sewagepurification plants when the construction of these facilities has been orderedby the Environmental Management Commission, which Commission is hereby authorizedto make such an order, or by a court of competent jurisdiction.
(5) Bonds or notes issued for erosion control purposes.
(6) Bonds or notes issued for the purpose of erecting jetties orother protective works to prevent encroachment by the ocean, sounds, or otherbodies of water. (1917, c. 138, s. 19;1919, c. 178, s. 3(19); c. 285, s. 4; C.S., s. 2943; 1921, c. 8, s. 1; Ex.Sess. 1921, c. 106, s. 1; 1927, c. 81, ss. 13, 14; c. 102, s. 1; 1931, c. 60,s. 51; 1933, c. 259, s. 1; c. 321; Ex. Sess. 1938, c. 3; 1955, c. 1045; 1959,c. 779, s. 10; 1967, c. 892, s. 4; 1969, c. 1092; 1971, c. 780, s. 1; 1973, c.494, s. 7; c. 1262, s. 231; 1991, c. 11, ss. 2, 3; 1991 (Reg. Sess., 1992), c.1007, s. 41; 2003‑403, s. 4.)
§ 159‑55. Sworn statement of debt; debtlimitation.
(a) After the bond order has been introduced and before thepublic hearing thereon, the finance officer (or some other officer designatedby the governing board for this purpose) shall file with the clerk a statementshowing the following:
(1) (See note) Thegross debt of the unit, excluding therefrom debt incurred or to be incurred inanticipation of the collection of taxes or other revenues or in anticipation ofthe sale of bonds other than funding and refunding bonds. The gross debt (afterexclusions) is the sum of (i) outstanding debt evidenced by bonds, (ii) bondsauthorized by orders introduced but not yet adopted, (iii) unissued bondsauthorized by adopted orders, and (iv) outstanding debt not evidenced by bonds.However, for purposes of the sworn statement of debt and the debt limitation,revenue bonds shall not be considered debt and such bonds shall not be includedin gross debt nor deducted from gross debt.
(1) (For effective date, seenote) The gross debt of the unit, excluding therefrom debt incurredor to be incurred in anticipation of the collection of taxes or other revenuesor in anticipation of the sale of bonds other than funding and refunding bonds.The gross debt (after exclusions) is the sum of (i) outstanding debt evidencedby bonds, (ii) bonds authorized by orders introduced but not yet adopted, (iii)unissued bonds authorized by adopted orders, and (iv) outstanding debt notevidenced by bonds. However, for purposes of the sworn statement of debt andthe debt limitation, revenue bonds and project development financing debtinstruments (unless additionally secured by a pledge of the issuing unit'sfaith and credit) shall not be considered debt and shall not be included ingross debt nor deducted from gross debt.
(2) The deductions to be made from gross debt in computing netdebt. The following deductions are allowed:
a. Funding and refunding bonds authorized by orders introducedbut not yet adopted.
b. Funding and refunding bonds authorized but not yet issued.
c. The amount of money held in sinking funds or otherwise forthe payment of any part of the principal of gross debt other than debt incurredfor water, gas, electric light or power purposes, or sanitary sewer purposes(to the extent that the bonds are deductible under subsection (b) of thissection), or two or more of these purposes.
d. The amount of bonded debt included in gross debt andincurred, or to be incurred, for water, gas, or electric light or powerpurposes, or any two or more of these purposes.
e. The amount of bonded debt included in the gross debt andincurred, or to be incurred, for sanitary sewer system purposes to the extentthat the debt is made deductible by subsection (b) of this section.
f. The amount of uncollected special assessments theretoforelevied for local improvements for which any part of the gross debt (that is nototherwise deducted) was or is to be incurred, to the extent that theassessments will be applied, when collected, to the payment of any part of thegross debt.
g. The amount, as estimated by the governing board of theissuing unit or an officer designated by the board for this purpose, of specialassessments to be levied for local improvements for which any part of the grossdebt (that is not otherwise deducted) was or is to be incurred, to the extentthat the special assessments, when collected, will be applied to the payment ofany part of the gross debt.
(3) The net debt of the issuing unit, being the differencebetween the gross debt and deductions.
(4) (See note) Theassessed value of property subject to taxation by the issuing unit, as revealedby the tax records and certified to the issuing unit by the assessor.
(4) (For effective date, seenote) The assessed value of property subject to taxation by theissuing unit, as revealed by the tax records and certified to the issuing unitby the assessor. In calculating the assessed value, the incremental valuationof any development financing district located in the unit, as determinedpursuant to G.S. 159‑107, shall not be included.
(5) The percentage that the net debt bears to the assessed valueof property subject to taxation by the issuing unit.
(b) Debt incurred or to be incurred for sanitary sewer systempurposes is deductible from gross debt when the combined revenues of the watersystem and the sanitary sewer system (whether or not the water and sewer systemare operated separately or as a consolidated system) were sufficient to pay alloperating, capital outlay, and debt service expenditures attributable to bothsystems in each of the three complete fiscal years immediately preceding thedate on which the sworn statement of debt is filed. For the purposes of thissubsection, the "revenues" of a water system and a sanitary sewer systeminclude:
(1) Rates, fees, rentals, charges, and other receipts and incomederived from or in connection with the system.
(2) Fees, rents, or other charges collected from other offices,agencies, institutions, and departments of the issuing unit at rates not in excessof those charged to other consumers, customers, or users.
(3) Appropriations from the fund balance of the prior fiscalyear from the fund or funds established to account for the revenues andexpenditures of the water system or sewer system pursuant to G.S. 159‑13(a)of the Local Government Budget and Fiscal Control Act.
Before the sworn statement of debt is filed, thesecretary shall determine to what extent debt incurred or to be incurred forsanitary sewer system purposes qualifies for deduction from gross debt pursuantto this subsection, and shall give his certificate to that effect. Thesecretary's certificate shall be filed with and deemed a part of the swornstatement of debt. The secretary's certificate shall be conclusive in theabsence of fraud.
(c) No bond order shall be adopted unless it appears from thesworn statement of debt filed in connection therewith that the net debt of theunit does not exceed eight percent (8%) of the assessed value of propertysubject to taxation by the issuing unit. This limitation shall not apply to:
(1) Funding and refunding bonds.
(2) Bonds issued for water, gas, or electric power purposes, ortwo or more of these purposes.
(3) Bonds issued for sanitary sewer system purposes when thebonds are deductible pursuant to subsection (b) of this section.
(4) Bonds issued for sanitary sewers, sewage disposal, or sewagepurification plants when the construction of these facilities has been orderedby the Environmental Management Commission, which Commission is hereby authorizedto make such an order, or by a court of competent jurisdiction.
(5) Bonds or notes issued for erosion control purposes.
(6) Bonds or notes issued for the purpose of erecting jetties orother protective works to prevent encroachment by the ocean, sounds, or otherbodies of water. (1917, c. 138, s. 19;1919, c. 178, s. 3(19); c. 285, s. 4; C.S., s. 2943; 1921, c. 8, s. 1; Ex.Sess. 1921, c. 106, s. 1; 1927, c. 81, ss. 13, 14; c. 102, s. 1; 1931, c. 60,s. 51; 1933, c. 259, s. 1; c. 321; Ex. Sess. 1938, c. 3; 1955, c. 1045; 1959,c. 779, s. 10; 1967, c. 892, s. 4; 1969, c. 1092; 1971, c. 780, s. 1; 1973, c.494, s. 7; c. 1262, s. 231; 1991, c. 11, ss. 2, 3; 1991 (Reg. Sess., 1992), c.1007, s. 41; 2003‑403, s. 4.)
§ 159‑55. Sworn statement of debt; debtlimitation.
(a) After the bond order has been introduced and before thepublic hearing thereon, the finance officer (or some other officer designatedby the governing board for this purpose) shall file with the clerk a statementshowing the following:
(1) (See note) Thegross debt of the unit, excluding therefrom debt incurred or to be incurred inanticipation of the collection of taxes or other revenues or in anticipation ofthe sale of bonds other than funding and refunding bonds. The gross debt (afterexclusions) is the sum of (i) outstanding debt evidenced by bonds, (ii) bondsauthorized by orders introduced but not yet adopted, (iii) unissued bondsauthorized by adopted orders, and (iv) outstanding debt not evidenced by bonds.However, for purposes of the sworn statement of debt and the debt limitation,revenue bonds shall not be considered debt and such bonds shall not be includedin gross debt nor deducted from gross debt.
(1) (For effective date, seenote) The gross debt of the unit, excluding therefrom debt incurredor to be incurred in anticipation of the collection of taxes or other revenuesor in anticipation of the sale of bonds other than funding and refunding bonds.The gross debt (after exclusions) is the sum of (i) outstanding debt evidencedby bonds, (ii) bonds authorized by orders introduced but not yet adopted, (iii)unissued bonds authorized by adopted orders, and (iv) outstanding debt notevidenced by bonds. However, for purposes of the sworn statement of debt andthe debt limitation, revenue bonds and project development financing debtinstruments (unless additionally secured by a pledge of the issuing unit'sfaith and credit) shall not be considered debt and shall not be included ingross debt nor deducted from gross debt.
(2) The deductions to be made from gross debt in computing netdebt. The following deductions are allowed:
a. Funding and refunding bonds authorized by orders introducedbut not yet adopted.
b. Funding and refunding bonds authorized but not yet issued.
c. The amount of money held in sinking funds or otherwise forthe payment of any part of the principal of gross debt other than debt incurredfor water, gas, electric light or power purposes, or sanitary sewer purposes(to the extent that the bonds are deductible under subsection (b) of thissection), or two or more of these purposes.
d. The amount of bonded debt included in gross debt andincurred, or to be incurred, for water, gas, or electric light or powerpurposes, or any two or more of these purposes.
e. The amount of bonded debt included in the gross debt andincurred, or to be incurred, for sanitary sewer system purposes to the extentthat the debt is made deductible by subsection (b) of this section.
f. The amount of uncollected special assessments theretoforelevied for local improvements for which any part of the gross debt (that is nototherwise deducted) was or is to be incurred, to the extent that theassessments will be applied, when collected, to the payment of any part of thegross debt.
g. The amount, as estimated by the governing board of theissuing unit or an officer designated by the board for this purpose, of specialassessments to be levied for local improvements for which any part of the grossdebt (that is not otherwise deducted) was or is to be incurred, to the extentthat the special assessments, when collected, will be applied to the payment ofany part of the gross debt.
(3) The net debt of the issuing unit, being the differencebetween the gross debt and deductions.
(4) (See note) Theassessed value of property subject to taxation by the issuing unit, as revealedby the tax records and certified to the issuing unit by the assessor.
(4) (For effective date, seenote) The assessed value of property subject to taxation by theissuing unit, as revealed by the tax records and certified to the issuing unitby the assessor. In calculating the assessed value, the incremental valuationof any development financing district located in the unit, as determinedpursuant to G.S. 159‑107, shall not be included.
(5) The percentage that the net debt bears to the assessed valueof property subject to taxation by the issuing unit.
(b) Debt incurred or to be incurred for sanitary sewer systempurposes is deductible from gross debt when the combined revenues of the watersystem and the sanitary sewer system (whether or not the water and sewer systemare operated separately or as a consolidated system) were sufficient to pay alloperating, capital outlay, and debt service expenditures attributable to bothsystems in each of the three complete fiscal years immediately preceding thedate on which the sworn statement of debt is filed. For the purposes of thissubsection, the "revenues" of a water system and a sanitary sewer systeminclude:
(1) Rates, fees, rentals, charges, and other receipts and incomederived from or in connection with the system.
(2) Fees, rents, or other charges collected from other offices,agencies, institutions, and departments of the issuing unit at rates not in excessof those charged to other consumers, customers, or users.
(3) Appropriations from the fund balance of the prior fiscalyear from the fund or funds established to account for the revenues andexpenditures of the water system or sewer system pursuant to G.S. 159‑13(a)of the Local Government Budget and Fiscal Control Act.
Before the sworn statement of debt is filed, thesecretary shall determine to what extent debt incurred or to be incurred forsanitary sewer system purposes qualifies for deduction from gross debt pursuantto this subsection, and shall give his certificate to that effect. Thesecretary's certificate shall be filed with and deemed a part of the swornstatement of debt. The secretary's certificate shall be conclusive in theabsence of fraud.
(c) No bond order shall be adopted unless it appears from thesworn statement of debt filed in connection therewith that the net debt of theunit does not exceed eight percent (8%) of the assessed value of propertysubject to taxation by the issuing unit. This limitation shall not apply to:
(1) Funding and refunding bonds.
(2) Bonds issued for water, gas, or electric power purposes, ortwo or more of these purposes.
(3) Bonds issued for sanitary sewer system purposes when thebonds are deductible pursuant to subsection (b) of this section.
(4) Bonds issued for sanitary sewers, sewage disposal, or sewagepurification plants when the construction of these facilities has been orderedby the Environmental Management Commission, which Commission is hereby authorizedto make such an order, or by a court of competent jurisdiction.
(5) Bonds or notes issued for erosion control purposes.
(6) Bonds or notes issued for the purpose of erecting jetties orother protective works to prevent encroachment by the ocean, sounds, or otherbodies of water. (1917, c. 138, s. 19;1919, c. 178, s. 3(19); c. 285, s. 4; C.S., s. 2943; 1921, c. 8, s. 1; Ex.Sess. 1921, c. 106, s. 1; 1927, c. 81, ss. 13, 14; c. 102, s. 1; 1931, c. 60,s. 51; 1933, c. 259, s. 1; c. 321; Ex. Sess. 1938, c. 3; 1955, c. 1045; 1959,c. 779, s. 10; 1967, c. 892, s. 4; 1969, c. 1092; 1971, c. 780, s. 1; 1973, c.494, s. 7; c. 1262, s. 231; 1991, c. 11, ss. 2, 3; 1991 (Reg. Sess., 1992), c.1007, s. 41; 2003‑403, s. 4.)
