Q. What is a bond referendum?
A. A bond referendum is a voting process that gives voters the power to decide if a county or municipality should be authorized to raise funds through the sale of bonds. A general obligation (G.O.) bond is long-term borrowing in which a county or municipality pledges its full faith and credit (taxing power) to repay the debt over a specified term.

​

A bond referendum is used to afford building costs and maintenance of special projects throughout the county. Funds pay for expenses such as maintenance repairs, building additions and technology upgrades.

​

​

Q. Why use bonds to finance improvements to Durham Public Schools, Durham Technical Community College, Durham County's Main Library, and Museum of Life and Science?
A. The County budget cannot accommodate an immense number of projects at one time. Bonds provide a long-term borrowing process that will allow the County to spread the cost of projects over the life of the targeted improvements.

​

​

Q. How much would the county issue in bonds?
A. If citizens vote in favor of the four bond financing questions on the November 8, 2016 ballot, the county will have the authority to issue up to $170 million in general obligation bonds.

 

​

​

Q: Will supporting the $170 Million General Obligation Bond referendum increase property taxes?

 

A: Yes. The County dedicates a portion of property and sales tax receipts and other revenues to its overall capital finance program. Without this financing plan and a decline in the existing County debt, the County would need a 4.7 cents property tax rate increase to support the additional $170 million General Obligation bond program.
 

However, because of the County’s overall capital finance program, its use of various revenue sources, and the planned spacing out of debt incurrence, only a 2.5 cents tax rate is needed to support overall debt service growth including $170 million in General Obligation bond expense. The below table reflects possible rate increases for various property tax levels. If the bond referendum is approved, the 2.5 cents tax increase will begin in fiscal year 2017-18.