dhyatt
03-11-2005, 09:57 AM
FOR IMMEDIATE RELEASE March 11, 2005
CARY COUNCIL ADOPTS BOND ORDERS;
MAY 3RD VOTE NOW OFFICIAL
CARY, NC – Down to the exact wording to appear on the ballot, Cary’s $120 million bond referendum is now set in stone for Tuesday, May 3, 2005. Following a public hearing last night, the Cary Town Council voted unanimously to approve the bond orders and officially call for the election now 53 days away.
In simple terms, voters will cast ballots on two issues--$10 million in general obligation bond financing for open space and $110 million for Cary’s share of regional wastewater facilities that must be built by 2011 to meet a State regulatory requirement.
However, what voters will actually see on the ballot will be a lot longer and more complex due to legal requirements. The ballot will read:
Shall the order adopted on March 10, 2005, authorizing not exceeding $10,000,000 OPEN SPACE BONDS of the Town of Cary, North Carolina for the purpose of providing funds, together with any other available funds, for acquiring and improving open space land inside and outside the corporate limits of said Town for park and recreational purposes, the conservation of land and other natural resources, or historic or scenic purposes, and the acquisition of any necessary land and rights of way, be approved?
Shall the order adopted on March 10, 2005, authorizing not exceeding $110,000,000 WASTEWATER SYSTEM BONDS of the Town of Cary, North Carolina for the purpose of providing funds, together with any other available funds, for improving the wastewater management system of said Town, inside and outside its corporate limits, including, without limitation, the acquisition and construction of all, or a joint ownership interest in, a wastewater treatment facility, pumping stations, mains and lines, interconnection with wastewater systems of other governmental units, and the acquisition of any necessary equipment, land and rights of way for the wastewater system, be approved?
Voting YES for both issues will give the Town Council access to a $120 million “line of credit” to be used as needed over the next seven years. The decision on just how much to use and when to move projects forward will continue to be decided each spring as part of the Town’s regular budget process.
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.
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PRIMARY CONTACTS: Bill Coleman, Town Manager, (919) 469-4002
Karen Mills, Finance Director, (919) 469-4110
Susan Moran, Public Information Officer, (919) 460-4951
CARY COUNCIL ADOPTS BOND ORDERS;
MAY 3RD VOTE NOW OFFICIAL
CARY, NC – Down to the exact wording to appear on the ballot, Cary’s $120 million bond referendum is now set in stone for Tuesday, May 3, 2005. Following a public hearing last night, the Cary Town Council voted unanimously to approve the bond orders and officially call for the election now 53 days away.
In simple terms, voters will cast ballots on two issues--$10 million in general obligation bond financing for open space and $110 million for Cary’s share of regional wastewater facilities that must be built by 2011 to meet a State regulatory requirement.
However, what voters will actually see on the ballot will be a lot longer and more complex due to legal requirements. The ballot will read:
Shall the order adopted on March 10, 2005, authorizing not exceeding $10,000,000 OPEN SPACE BONDS of the Town of Cary, North Carolina for the purpose of providing funds, together with any other available funds, for acquiring and improving open space land inside and outside the corporate limits of said Town for park and recreational purposes, the conservation of land and other natural resources, or historic or scenic purposes, and the acquisition of any necessary land and rights of way, be approved?
Shall the order adopted on March 10, 2005, authorizing not exceeding $110,000,000 WASTEWATER SYSTEM BONDS of the Town of Cary, North Carolina for the purpose of providing funds, together with any other available funds, for improving the wastewater management system of said Town, inside and outside its corporate limits, including, without limitation, the acquisition and construction of all, or a joint ownership interest in, a wastewater treatment facility, pumping stations, mains and lines, interconnection with wastewater systems of other governmental units, and the acquisition of any necessary equipment, land and rights of way for the wastewater system, be approved?
Voting YES for both issues will give the Town Council access to a $120 million “line of credit” to be used as needed over the next seven years. The decision on just how much to use and when to move projects forward will continue to be decided each spring as part of the Town’s regular budget process.
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
Karen Mills, Finance Director, (919) 469-4110
Susan Moran, Public Information Officer, (919) 460-4951