Finance
General
Obligation Bonds
Secured by the pledge to raise property taxes, if necessary
Voters must
approve at referendum
Not necessary to repay with taxes—Cary plans to use utility rates
for most, if not all of ’05 bonds
Not required to raise taxes
The Town of Cary has not raised taxes in more than 15 years, even after
bond referendums passed in 1994, 1999, and 2003.
Why General
Obligation Bonds?
Least costly financing option
-- Lowest interest cost
-- Lowest issuance costs
Estimated
Cost Impacts
-- Treatment facilities bonds to be repaid through utility rates:
-- Estimated additional $3.10 per month per 1,000 gallons of water used
by 2012, or about $22 per month per average Cary household (monthly
water consumption of about 7,000 gallons.) Since non-residential uses
vary so widely, we really can’t provide a meaningful average monthly
increase figure for this class of customers.
-- Open space bonds to be repaid over 20 years, either with up to 1
additional cent on Cary’s property tax rate or using part or all
of an existing $1 million annual appropriation from utility rates
Potential
Tax Impacts
As noted above, Cary plans to repay wastewater bonds by raising utility
rates, not taxes. As a point of information only, the amount of property
tax rate increase that would be necessary to pay back the wastewater
bonds is 8 cents over 25 years at the current assessed value. The open
space bonds would require up to 1 additional cent on the tax rate for
20 years.
See also
Finance FAQ