The Municipal Election is November 2, and the citizens of Fuquay-Varina will have an opportunity to vote on two Bond Referenda to fund Parks & Recreation Projects and Transportation Projects.
What is a Bond Referendum?
A bond referendum is a voting process that gives voters the power to decide if a municipality should be authorized to raise funds through the sale of bonds. A general obligation (G.O.) bond is a form of long-term borrowing in which a municipality pledges the full faith and credit or taxing power to repay the debt over a specified term. G.O. bonds are generally the least costly financing option available to the town to finance major capital projects.
What Projects Are Being Proposed?
Transportation Bonds
The Town is seeking voter authorization to issue up to $20 million in general obligation (G.O.) bonds for various transportation projects to improve traffic flow and congestion in Fuquay-Varina. Projects would be prioritized based on the town’s robust growth and development.
If the Transportation Bonds are approved, G.O. bond funding can help leverage state and federal cash match grant requirements when trying to secure additional financing for various transportation related projects.
Historically, the town has been able to leverage bond funds to seek matching grants from state and federal authorities. Since the 2015 Transportation Bond was passed by voters, the town has received approximately $21 million in transportation grants.
Based on the current tax base, debt service on the Transportation Bonds could require the equivalent of 2.5 cents on the tax rate. However, it is the intention of the Town Board to mitigate the impact on the tax rate through tax rate base growth and utilize transportation bonds as a tool to leverage outside resources to assist in transportation improvements.
Parks and Recreation Bonds
Voters will also be asked to authorize issuance of up to $18.5 million in general obligation (G.O.) bonds for various Parks and Recreation improvements.
The Town has identified Parks and Recreation G.O. bonds as the primary funding tool for the Community Center North/Active Adult Center Project, from the 2020 Parks, Recreation and Cultural Resources (PRCR) Systemwide Master Plan. The project site is identified at Hilltop Needmore Town Park and Preserve, and the conceptual design identifies a gymnasium with an elevated indoor walking track, multipurpose and flexible classrooms for recreational programs, fitness areas, a kitchen, and a dedicated Active Adult Center specifically designed to meet the needs of residents over 55.
The total expected construction costs are $25 million. If the bond referendum is successful, the Town will finance construction of the facility, and the debt service and operating cost of the facility are anticipated to require up to a 4.5 cent adjustment to the tax rate. Town management and staff will work to mitigate the impact on the tax rate through tax base growth, leveraging grants and other funding sources, and competitive bid prices.
How and when would the bonds be issued?
If citizens vote in favor of the two bond financing questions on the November 2nd ballot, the Town will be authorized to issue up to $38.5 million in general obligation (G.O.) bonds. Once G.O. bonds are authorized by the voters in a referendum, the Town may issue them at any time during a seven-year authorization period. This can be extended by three years before expiration. Pay back of bonds would occur within 20 years after funds are borrowed.
Can I vote for one bond issue but not the other?
Yes. There will be two separate bond issue financing questions on the November 2nd ballot: Transportation Project Bonds and Parks & Recreation Bonds. Each will appear as a separate question on the ballot.
What happens if the bonds don’t pass in November?
If bonds do not pass, some projects may be postponed or eliminated. If the projects are critical, the Town Board could decide to fund them through alternative means to meet the need. General Obligation Bonds historically offer the lowest interest rates, which allows the Town to finance projects at the lowest possible cost to the taxpayer.
How quickly would projects begin?
If the Parks & Recreation bond is successful, town management anticipates authorizing construction drawings for the Community Center North/Active Adult Center in December 2021 and bid for construction in June 2022.
The Town of Fuquay-Varina encourages its citizens to vote. You can learn about voting, polling places and other election information at www.wakegov.com/elections.
