What are bonds?
Municipal bonds are debt securities issued by states, cities and counties to fund capital improvement projects such as roads and highways and other projects for the public good. When a government body sells a municipal bond, they are receiving a loan to complete these large projects which must be repaid over time, much like a homeowner pays a mortgage. With less funding coming from the state and federal government, bonds are one of the only remaining methods available to local governments to complete major projects necessary for a growing city.
What does this mean to City of Wilmington taxpayers?
This fall, voters will have the opportunity to decide whether the city can borrow money to begin $55 million in transportation projects. The City of Wilmington will need to sell $44 million in bonds to finance the 38 proposed transportation projects, which total an estimated $55 million. The remaining $11 million would come from existing funds. Voters will decide the future of these projects by voting for or against the transportation bond referendum on the November 4 ballot.
The bond would be repaid by increasing the City of Wilmington's property tax rate by 2 cents. This means that the average homeowner of a $200,000 home would pay $40 more per year, or $3.34 a month.