The Town of Clayton has the authority to borrow up to $2 million for its electric system. Instead, the town will phase in the borrowing it needs to build new infrastructure throughout the town limits.
This past week, the Clayton Town Council issued $650,000 in electric system revenue bonds, which the town pledged to repay with money customers pay for electricity. Town Manager Steve Biggs said the money will pay for infrastructure in several new and expanding housing developments.
The town applied for the borrowing power earlier this spring. The state’s Local Government Commission approves municipal borrowing requests.
Most of the new and ongoing housing developments need the framework for electricity service. Dale Medlin, head of Clayton’s electricity system, has said the town can typically stretch its budget dollars to pay for new or improved infrastructure, but that’s hard during a period of aggressive building.
Biggs said the $650,000 will pay for new infrastructure at East Village, a townhouse community next to The Arbors at East Village apartment complex in northeast Clayton; Bristol at Cobbletone and Creekside Commons, two residential communities behind Burger King off of U.S. 70 Business; and improvements in the Glen Laurel subdivision off of N.C. 42 East.
Biggs couldn’t say when the town would issue the next round of bonds. “When we can show them how we are going to create a revenue stream to pay off the additional debt, we can sell the rest,” he said, referring to the Local Government Commission.
Clayton, like a number of North Carolina towns, operates its own electricity-distribution system. The town will finance the borrowed money through Carter Bank & Trust.
Dunn: 919-553-7234, Ext. 104