On November 8th, 2022, Fayetteville residents voted on a $97 million bond referendum that will fund public safety projects, streets and sidewalks, and housing opportunity initiatives. In this FAQ, we answer a series of questions about the Fayetteville Forward bond referendum.
What is the purpose of a bond referendum?
Under North Carolina law, a local government must hold a referendum for voters to approve prior to issuing general obligation bonds. The ballot measure, or referendum, must specify the general category of capital expenditure for which bond proceeds will be used, in this case there are three separate bond referendums on the ballot. The first is for Public Safety projects, including fire stations and a 911 communications center. The second is for Public Infrastructure projects, including streets and sidewalks. The third is for Housing Affordability initiatives. Because of the time between when a bond package is approved by voters and when projects begin construction, details of the project may evolve over time because of changes in actual construction costs or other issues that can crop up over the years. The question that the actual bond referendum, therefore, asks of voters is whether they authorize local government to issue a specific amount of G.O. bonds to finance projects within the general category identified on the ballot.
What is a bond referendum?
A bond referendum is a voting process that gives voters the power to decide if a municipality should be authorized to raise funds through the sale of bonds. A general obligation bond is a long-term borrowing option over a specific time period and carry the lowest interest rate of all financing options available to the City.
When is the Bond Referendum?
The referendum was held Tuesday, November 8, 2022.
Why use bond financing for these projects?
Citizens voted in favor of the bond financing question on the November 8, 2022 ballot allowing the city to have the authority to issue up to $97 million in general obligation bonds. Up to $60 million for Public Safety, up to $25 million for public infrastructure and up to $12 million for Housing Affordability.
How much would the city issue in bonds?
The city will have the authority to issue up to $97 million in general obligation bonds. Up to $60 million for Public Safety, up to $25 million for public infrastructure and up to $12 million for Housing Affordability.
How will taxes be applied?
Taxes are applied to all assessed value, which includes both real and personal property, such as your home, vehicle or boat. It is estimated that a property tax rate increases up to 4 cents per $100 value will pay for the general obligation bond. For a home price of $100,000, the property tax increase would be approximately $3.33 per month or just $40 a year. A homeowner with an average home value of $200,000 would increase their property tax by approximately $6.67 per month or just $80 a year.
