Waxhaw commissioners are weighing whether to borrow or spend reserves to fund road and infrastructure projects over the next five years.

At a Tuesday, Aug. 25, work session, municipal advisor Mitch Brigulio of Davenport & Company walked the Board of Commissioners through how lenders and the bond market view the town's finances. Davenport has served as Waxhaw's municipal advisor since 2017.

Town Manager Scott Dadson framed the choice in an Aug. 13 memo to the board: pay-go, which draws down cash reserves; a blend of reserves and borrowing; or issuing General Obligation bonds outright. The board asked Davenport to assess whether the town has room for additional leverage and what effect new debt would have on tax rates.

The board reviewed a five-year Capital Improvement Plan (CIP) in April outlining approximately $12.75 million in planned investments, according to The Waxhaw Wall's recap of the April 14 meeting. Focus areas include transportation, pedestrian connectivity and long-term infrastructure.

The town's capital fund (Fund 120) held $20,708,700 as of July 31, according to a staff memo prepared for the work session. Three spending scenarios modeled for the first half of FY27 all keep the fund above the town's $5 million liquidity floor. The tightest point dips to roughly $15.9 million in November under a scenario drawing $3,094,000 for the Pine Oak signal, paving and Kensington projects.

No scenario breaches that floor.

Waxhaw already carries about $2.6 million in annual debt service across three instruments: a 2021 police-department loan, a 2022 Town Campus financing contract, and a 2023 promissory note for the Athletic Barn. A July 28 work session first introduced the five-year fiscal analysis, including potential tax-rate impacts. No vote was taken Aug. 25; the board was asked to provide feedback and direction.

Pulte on track for Tuesday, Sept. 1, CO release

In a separate agenda item, Development Services Director Kevin Robinson updated commissioners on the Preserve at Forest Creek subdivision off Rehobeth Road.

When the Board approved that development in 2020, a traffic signal at Rehobeth Road and NC-75 was required before any Certificates of Occupancy could be issued. In 2024, a town employee overrode that condition before leaving his job, and 25 homes received COs before the signal was installed, The Waxhaw Wall reported in April. Delays with CSX on the railroad crossing have stalled the improvement since.

Under an agreement reached in April, Pulte must meet four conditions before new COs resume: hire an off-duty officer for peak-hour traffic control at Rehobeth and NC-57, post a $2 million bond for intersection improvements, provide monthly written updates on signal progress, and deliver a draft tri-party agreement among Pulte, CSX and NCDOT to the town attorney.

Staff reported that Pulte has submitted regular updates, including a draft NCDOT/Developer Agreement on Aug. 6 and the NCDOT-CSX Master Agreement on Aug. 11. Town staff and the town attorney have reviewed and approved the text of both. Once the reimbursement agreement is executed and Pulte provides funds, CSX will issue a Notice to Proceed.

Staff's assessment: Pulte is on track to complete the required steps by Tuesday, Sept. 1, and begin receiving three COs per month. Combined, both phases would permit 36 COs over 12 months. One home has already passed final inspections and awaits its certificate.

Any delay in meeting the conditions pushes the start of the 12-month clock back, according to the staff report prepared for the Aug. 25 agenda.

The next regular meeting of the Waxhaw Board of Commissioners is Tuesday, Sept. 8, at 6:30 p.m.