Bond FAQs
Questions related to timing of referendum & state of economy
Q: With the economy in a slump, what makes this GO bond a good idea for the city now? How will the city afford the debt service given the current economic situation?
A: As a result of the lagging economy, construction costs are extremely attractive because they are at an all-time low (adjusted for inflation), as are interest rates on GO bonds, which means the cost of borrowing the money for these projects is also at a historic low. The City will complete the debt service payments on bonds that were approved by voters in 1990 over the next several fiscal years. That money can be used to pay the debt service for the proposed GO Bonds.
Q:• With jobs being a national priority, why can’t the money from the soon-to-be-retired bond be used to keep City employees from losing their jobs in the workforce reduction effort or for employee cost of living or merit raises?
A: The City has a long list of projects and needs that require funding. If voters turn down the bond request, City Council will review and consider other needs and priorities in order to use the funds in ways that best benefit the City as a whole.
