CARY, NC – To continue making steady progress on improvements to roads and parks, the Cary Town Council has decided to call for a $150 million bond referendum on April 8, 2003.

The ’03 bond referendum will ask Cary citizens to give the Town permission to once again use as needed a special type of financing—general obligation bonds. This type of financing enables governments to borrow money at low interest rates, opening the way for projects to be completed faster and at lower costs than with other sorts of financing options.

Cary citizens last approved the use of GO bond financing in 1999 to support $139 million in improvements to the water system, parks, streets, and sidewalks. A dozen of those projects have been completed, and nine others are underway.

While the focus will be on improving roadway capacity and constructing parks and recreation facilities, exactly which projects might be funded by the ’03 bonds is still being evaluated by Town staff who are reviewing the Town’s 10-year Capital Improvements Plan, the Comprehensive Transportation Plan, and the draft Parks, Greenways, and Cultural Resources Master Plan. Projects chosen would be completed at various intervals over the next seven years.

Over the next five months, Cary citizens will have a number of opportunities to learn about and give input into the ’03 referendum. While plans are still being finalized, the Town will likely hold two public information sessions in January at which staff will present information and ask for feedback on the draft list of roadway and parks projects that could be funded with the bonds. They will also discuss the GO financing alternative and why it makes sense for these projects in Cary over the next seven years.

Following the input sessions, staff will prepare the final bond orders and present them to the Town Council who will hold a formal public hearing on the orders, probably in February. The bond orders are the specific words that describe each bond in detail and appear on the actual ballot.

Between February and April, Town staff will take their Q&A on the road, making presentations to members of Cary civic organizations, professional groups, and homeowner’s associations.

Voter authorization for governments to use GO financing is required by state law since the government must agree to use its ability to tax if necessary as collateral for the loan. The law does not require governments to use tax revenues to pay back the bonds, nor are governments required to raise taxes because of the bonds.

The Town of Cary did not raise taxes after either its 1994 or the 1999 bond referenda. In fact, taxes in Cary have not been raised in well over a decade. Even so, the Town must advise voters that it would take at least seven cents added to the current tax rate to pay back the entire $150 million ’03 bonds if and when they are all used.

"Just what the annual tax implications of the bonds might be will depend on how much money we borrow, how quickly we borrow it, and what revenues we have to pay it back as the debt payments become due," said Town Manager Bill Coleman. "We don’t start paying the money back until we get the projects underway, and the projects will be timed to come on at different times over the next seven years according the our highest priorities."

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