Debt Management - Basic Functions

Debt Management issues and monitors all State debt secured by a pledge of the State's taxing power, and helps to determine the amounts to be sold. Bond sales are scheduled at the most appropriate time for marketing. Plans for repayment of debt (maturity schedules), and bond offering documents are prepared with advice and assistance of bond counsel. Sales and actual delivery of bonds are conducted in addition to maintenance of State bond records and registration of bonds.

Another responsibility is the authorization and sale of revenue bonds for North Carolina Medical Care Commission, North Carolina Municipal Power Agencies, North Carolina Capital Facilities Finance Agency, North Carolina Housing Finance Agency, and the North Carolina Solid Waste Management Capital Projects Financing Agency. These entities carry out functions that are vital to the citizens of this State and which could not be provided at adequate levels without issuing debt. Authorizations for revenue bonds are given on the basis of feasibility studies in order to provide the lender with greater assurance that these bonds will be repaid. The outstanding record of debt repayment by these entities assures them of the lowest possible borrowing costs.

Assistance is provided to the State Treasurer in representing the State in all presentations to Moody's Investors Service Inc., Standard & Poor's Corporation, and Fitch Investors Service, the three national bond rating agencies used by the State and local governmental units in North Carolina.

Prior to approval, sale, and delivery of all North Carolina local government general obligation bonds and notes, counseling and assistance is given to local units in determining the necessity of the project, the size of the issue, and the most expedient form of financing.

After bonds have been sold, debt records of principal and interest payments coming due in current and future years are maintained for the State and all local governments with the exception of certain State agencies and institutions.