General Obligation Bonds are used by governments to finance public capital improvements such as roads, buildings, public safety projects, parks and public facilities.
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In Cedar Park we use bonds to maintain existing assets, manage growth and meet anticipated future demands. General Obligation Bonds require voter approval and are category-specific, meaning we can only finance what voters approve in the ballot language and can't mix and match categories, once approved.
Bonds are repaid through ad valorem property taxes. An ad valorem tax is based on the assessed value of real estate or personal property.
No increase to the tax rate associated with this proposed bond program is anticipated.
Based upon the City's economic forecasting models and strong financial position due to paying off older bonds, the City projects that it can issue the proposed General Obligation Bond package of $158.8 million, which includes cost escalation, inflation and issuance costs over the five-to-seven-year program, without increasing the tax rate.
No. The bond initiative will be presented to voters in three categories:
If a bond category is approved by voters, the approved funding may only be used for the specific category listed in the specific bond question. For example, approved Parks funding may not be used for Public Safety projects.
The bond program is designed to be implemented over a five-to-seven-year period, by issuing multiple series of bonds as various projects are ready for construction. If bonds are approved by voters, some projects could begin right away; others could be more long-term. Some projects may take multiple years to complete due to design, right-of-way acquisition and utility relocations.