Frequently Asked Questions About the Durham County Bonds Referendum
What is a bond referendum?
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.
The County currently has a S&P Global Ratings “AAA” and Moody’s Investors Service “Aaa,” General Obligation Bond credit ratings (the highest ratings possible). Durham County is offered the lowest possible interest rates on bonds.
Why use bonds to finance improvements to Durham Public Schools, Durham Technical Community College, and Museum of Life and Science?
The annual Durham County budget cannot accommodate massive cash payments to support large scale projects, similar to how many homeowners cannot afford to pay full cash for a home. Bonds provide a long-term borrowing process that allow the County to spread the cost of large, expensive projects over the life of the project (usually 20 years or more) making each year’s annual bond repayment cost affordable for the County and its taxpayers.
WILL SUPPORING THE $550.2 MILLION GENERNAL OBLICATION BOND REFERENDUM INCREASE PROPERTY TAXES?
Yes. The County dedicates a portion of property and sales tax receipts & other revenues to its overall capital finance program. Because of this, only a 2.5 cents tax rate is needed to support the debt growth.
HOW WILL THE USE OF BOND FUNDS BE MONITORED? HOW CAN THE PUBLIC STAY ON TOP OF PROJECT SPENDING?
Monitoring the use of bond proceeds is a shared responsibility between Durham County Government and the entities receiving bond funds including Durham Public Schools, Durham Technical Community College and the Museum of Life and Science. Durham County Government will highlight bond spending details if the 2022 Education Bond is passed by residents. Quarterly updates will also be shared on bond project status to governing Boards. This information will be posted on the Durham County website.
WHAT IS THE COUNTY’S ROLE IN COMMUNICATING ABOUT THE 2022 EDUCATION BONDS?
The County can only provide information to voters on the facts related to the bonds. No public funds may be expended for the purpose of advocating for or against a bond referendum. Durham County Government information can only present the facts to help voters make informed decisions.