What is a Bond Referendum?

IT MEANS, YOU GET TO DECIDE: Voters will go the polls Nov. 6, 2018 to decide whether the Town will issue $40 million in transportation bonds, resulting in a 5-cent annual tax rate increase to provide critical road infrastructure to relieve traffic issues all through town.

General Obligation Bond Funding Explained

Bonds are a financing tool used by governments to borrow large amounts of money for big capital improvement projects like road networks, parks and water and sewer systems. Bonds are guaranteed – not by physical collateral – but by a government's authority to levy and collect taxes and utility fees. In other words, if the Town were to get behind in debt payments, the bank would not repossess a street or a park or a wastewater treatment plant... but it WOULD require a Town to collect enough from residents to pay its bill.

Because of this, the law protects citizens by giving voters a say in whether the government will issue bonds. General Obligation Bonds (G.O. bonds) are the least costly financing option available to the Town. Still, a 5-cent increase in the annual tax rate will be necessary to repay the transportation bond debt of $40 million over the next two decades.

Do Holly Springs residents want the Town to raise funds through the sale of bonds? We will find out the answer to that question with the Nov. 6 ballot.

The bond issue will raise funds to pay for an estimated $50 million or more in transportation improvements, including better turn lanes, widened roads, new roads, sidewalks and bike lanes. The projects are aimed at making a safer community, reducing traffic congestion, providing residents with easier access to amenities and preparing for the future in anticipation of continued economic and physical growth in Holly Springs.    

Why are we having a bond referendum?

Officials have determined there are about $100 million in transportation construction projects – mostly to State roads rather than city streets – that would help:

  • make a safer community;
  • reduce local and commuter traffic congestion;
  • build connections to help residents save time and have safer routes to places in Holly Springs;
  • invest in the future of the community connect Past transportation projects and how they were funded

Related Links

Wake County Board of Elections

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