Kernersville board approves $16.3M loan for capital projects, establishes grant fund and adopts budget amendment

The Town of Kernersville Board of Aldermen approved a package of fiscal actions Jan. 28 that included awarding a $16,298,000 loan to Webster Public Finance Corporation to finance multiple capital projects, establishing a separate grant project ordinance fund for a North Carolina Office of State Budget and Management award, and adopting budget amendment No. 7 for fiscal year 2025–26.

Curtis Swisher presented the financing recommendation, saying the town solicited three lender quotes and recommended Webster Public Finance Corporation’s 10-year loan at a 3.84% interest rate. The loan is intended to finance improvements at Ivy Redmond Sports Complex (community pool and bathhouse), the Paul J. Senior Botanical Garden (renovations), a new roof at the old library, fencing at the public services yard, and police locker-room and restroom renovations at Town Hall. Swisher stated the projects were already adopted in the FY25–26 budget and this item determines the financing method.

The board opened and closed the required public hearing on the financing with no speakers in opposition and then approved the loan package by unanimous vote.

Following the audit presentation, staff told the board the audit recommended establishing a separate grant project ordinance fund for funds received from the North Carolina Office of State Budget and Management. Town staff said the town had received a prior OSBM grant of $1,800,000, has expended most of it, and needs to set up a project fund to account for approximately $315,000 remaining; the board moved and established the fund.

Staff also presented Budget Amendment No. 7, which increases special appropriations by $315,628 (to set up the newly established grant fund), adds $30,000 for professional services in fire/rescue related to an emergency signal at Highway 66/Station 42 (with staff noting a state reimbursement of roughly $200,000–$250,000 is expected), $14,150 for police door lock replacements, and $26,000 to carry forward an athletic officials contract in recreation. The board moved and adopted the amendment unanimously.

The board also approved the consent agenda—routine event permits, temporary road closure ordinances for parades and festivals, and county tax refunds—by a single unanimous motion. Staff said the projects financed by the loan were in the adopted budget and the loan determines the funding mechanism.