Municipal bonds are debt that must be repaid. The most efficient and dependable way to pay the debt is by raising taxes, which is why bonds issuance must be approved by voters.
For the 2013 bond referendum, the tax implication per $100 of assessed value of both real and personal property was:
Greenways and Trails Bonds = $4 million = 1.43 cents
Parks and Recreational Bonds = $2 million = 0.72 cents
Sidewalk Improvement Bonds = $2 million = 0.72 cents
Streetscape and Pedestrian Improvement Bonds = $6.5 million = 2.33 cents
Property Tax Impact
Voters chose to invest in all four projects, which totaled $14.5 million. Had the City embarked on all four investments at once, the property tax impact would have been up to 5.2 cents, or $52 per $100,000 of home value, each year.
Minimize the Tax Impact
However, Council’s intention was to minimize the tax impact on residents. The bond referendum gave the City seven years to issue bonds for these investments, with the possibility of a 3-year extension.
City Council chose to start with the Streetscape and Sidewalk Improvement bonds in 2015. In 2018, it took on the Parks and Recreational bonds. Greenway bonds will be issued in 2020.