Brent
03-07-2005, 02:10 PM
FOR IMMEDIATE RELEASE March 7, 2005
COMMENT ON THE RECORD ABOUT CARY CLEAN WATER BOND REFERENDUM
CARY, NC – Cary citizens are invited to share their thoughts about the Town of Cary’s proposed May 3rd bond referendum at a formal public hearing before the Town Council at its regularly scheduled meeting this Thursday, March 10th. The meeting begins at 6:30 p.m. and is being held in the temporary Council Chambers in the Herb Young Community Center on the corner of North Academy Street and Wilkinson Avenue in downtown Cary.
To continue preserving and protecting natural resources and to ensure that infrastructure to serve the community’s future is in place when it’s needed, the Cary Town Council voted unanimously in January to proceed with a $120 million Clean Water bond referendum for May 3, 2005. The ’05 bond referendum will ask Cary citizens to give the Town permission to use as needed a special type of financing—General Obligation bonds—in the amount of $10 million to preserve additional open space and $110 million to help pay for Cary’s share of new, regional wastewater facilities.
If approved, the $110 million in bonds for Cary’s portion of the $193 million regional treatment facilities will be repaid through utility rates, not property taxes—an estimated additional $22 per month for an average Cary household (monthly water consumption of 7,000 gallons) by 2012.
If approved, $10 million in Clean Water bonds will be used to help continue supporting Cary’s commitment to preserving open space, according to the Town’s detailed Open Space and Historic Resources Plan. Bonds for open space will be repaid over 20 years either with up to one additional cent on the property tax rate or using part or all of an existing $1 million annual appropriation from utility rates.
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 its 1994, 1999, or 2003 bond referenda. In fact, taxes in Cary have not been raised in well over a decade. Even so, the Town must advise voters that, in the current environment, it would take up to 9 cents added to the current tax rate to pay back the entire $120 million ’05 bonds over 25 years once all of the bonds are issued.
Cary citizens last approved the use of general obligation bond financing in 2003 to support $160 million in improvements to streets and recreation facilities. Those bonds cannot be used to pay for Cary’s share of regional wastewater facilities.
Visit the ‘05 Bond Referendum Web section at http://townofcary.org/bonds05/ for updated information or call (919) 469-4007.
###
PRIMARY CONTACTS: Bill Coleman, Town Manager, (919) 469-4002
Ben Shivar, Assistant Town Manager, (919) 469-4003
Susan Moran, Public Information Officer, (919) 460-4951
COMMENT ON THE RECORD ABOUT CARY CLEAN WATER BOND REFERENDUM
CARY, NC – Cary citizens are invited to share their thoughts about the Town of Cary’s proposed May 3rd bond referendum at a formal public hearing before the Town Council at its regularly scheduled meeting this Thursday, March 10th. The meeting begins at 6:30 p.m. and is being held in the temporary Council Chambers in the Herb Young Community Center on the corner of North Academy Street and Wilkinson Avenue in downtown Cary.
To continue preserving and protecting natural resources and to ensure that infrastructure to serve the community’s future is in place when it’s needed, the Cary Town Council voted unanimously in January to proceed with a $120 million Clean Water bond referendum for May 3, 2005. The ’05 bond referendum will ask Cary citizens to give the Town permission to use as needed a special type of financing—General Obligation bonds—in the amount of $10 million to preserve additional open space and $110 million to help pay for Cary’s share of new, regional wastewater facilities.
If approved, the $110 million in bonds for Cary’s portion of the $193 million regional treatment facilities will be repaid through utility rates, not property taxes—an estimated additional $22 per month for an average Cary household (monthly water consumption of 7,000 gallons) by 2012.
If approved, $10 million in Clean Water bonds will be used to help continue supporting Cary’s commitment to preserving open space, according to the Town’s detailed Open Space and Historic Resources Plan. Bonds for open space will be repaid over 20 years either with up to one additional cent on the property tax rate or using part or all of an existing $1 million annual appropriation from utility rates.
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 its 1994, 1999, or 2003 bond referenda. In fact, taxes in Cary have not been raised in well over a decade. Even so, the Town must advise voters that, in the current environment, it would take up to 9 cents added to the current tax rate to pay back the entire $120 million ’05 bonds over 25 years once all of the bonds are issued.
Cary citizens last approved the use of general obligation bond financing in 2003 to support $160 million in improvements to streets and recreation facilities. Those bonds cannot be used to pay for Cary’s share of regional wastewater facilities.
Visit the ‘05 Bond Referendum Web section at http://townofcary.org/bonds05/ for updated information or call (919) 469-4007.
###
PRIMARY CONTACTS: Bill Coleman, Town Manager, (919) 469-4002
Ben Shivar, Assistant Town Manager, (919) 469-4003
Susan Moran, Public Information Officer, (919) 460-4951