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MARCH 2-8, 2016 UCW 17 ELECTION GUIDE 2016 ELECTION 2016: YOU DECIDE Local Parks & recreation Bond Vote The referendum includes projects for existing facilities as well as new facilities. Brentwood School, Clark Park, Dorothy Gilmore, Massey Hill, Martin Luther King, Mazarick, Seabrook parks would receive $800,000. The budget includes $3 million for splash pads at Cliffdale, E.E. Miller, Gilmore Therapeutic, Kiwanis, Massey Hill, Myers Recreation Centers and one to be determined. The Cape Fear River Park/ Downtown Riverfront project would receive $5.2 million. Skateboard parks, both novice and advanced would receive funding for $1 million. A sports field complex at exit 49 of I-95 is slated to receive $9 million in funding and $6 million is dedicated to new tennis facilities at Mazarick Park. Two senior centers, one in east Fayetteville and one in west Fayetteville would share a budget of $10 million. What is the purpose of a bond referendum? Under North Carolina law, a local government must hold a referendum prior to issuing general obligation (G.O.) bonds. The bal - lot measure, or referendum, must specify the general category of capital expenditure for which bond pro - ceeds will be used. The proposed use in this case is for "Parks and Rec- reation improve- ments." A local government may identify specific projects that are intended to be funded by the bond proceeds – the "bond package." However, due to the lengthy process involved with identifying, designing, and implementing projects, as well as the lack of detailed cost and other project information available at the time of the bond referendum, the specific projects identified in the bond package may change over time. The question that the actual bond referendum therefore asks of voters is whether they authorize local government to issue a specific amount of G.O. bonds to finance projects within the general category identified on the ballot. What is a bond referendum? A bond referendum is a voting process that gives voters the power to decide if a municipality should be authorized to raise funds through the sale of bonds. A general obligation bond is a long-term borrowing option that pledges the city's full faith and credit (taxing power) to repay the debt over a specific term. G.O. bonds carry the lowest interest rate of all financing options available to the city and some project, a baseball field for example, can only be financed with G.O. bonds. When is the Bond Referendum? The referendum will be held Tuesday, March 15. For election information visit http://www.co.cumberland.nc.us/elections.aspx Why use bond financing for these projects? General Obligation bonds carry the lowest interest rate of all debt alternatives available to cities. Just like all debt, using G.O. bonds allows projects to be com - pleted earlier at a lower cost and lower tax burden then paying cash. It also allows users of the new facilities to contribute to the debt repayment over time. How much would the city issue in bonds? If citizens vote in favor of the bond financing question on the March 15 ballot, the city will have the authority to issue up to $35 million in general obligation (G.O.) bonds. The actual amount issued will depend on future decisions by the Council based on the actual bid prices received after detailed design of each project is completed. How will taxes be applied? Taxes are applied to all assessed value, which includes both real and personal property, such as your home, vehicle or boat. Given the condition of the economy, is now the right time to vote on these par - ticular bond initiatives? The economy has recovered to the point that construction costs and interest rates are beginning to rise. It will never be less expensive than it is now. These proj- ects represent a significant invest- ment in Fayette- ville's quality of life that is designed to address gaps identified by the business communi- ty making our city more competitive and stimulating the local economy. Fayetteville is fiscally sound with extremely low debt, the lowest by far of the ten largest cities in North Carolina, and is prepared to execute this plan if supported in March. If the bond referendum is approved, how quickly will the projects begin? The city will have seven years (can be extended to 10) to issue/sell the bonds. Construction of all projects must begin within that period. Preliminary work has already been completed on some of the projects. Under the current schedule, resi - dents should see something initiated every year of that period, but all projects will not be completed until 2024. What happens if the bond doesn't pass in March? In a strictly legal sense, approval of the bond referendum is necessary for the city to utilize a specific kind of debt to support the development of recreation projects. It is not possible to get traditional debt financing to support the construction of a park, ballfield or similar recreation project. The city would have to save up funds and use cash to build all of these projects which would take much longer. In a politi - cal sense, however, many members of council consider the referendum a test of the community's interest in these projects and may interpret a negative vote as direc- tion not to fund projects of this kind at all. Learn more about the Parks and Recreation bond referendum at: http://fayettevillenc.gov/government/city-departments/parks-and-recreation/2016- parks-recreation-bond-referendum-copy Bond Tax Implication Tax Rate Property Value Monthly Contribution Annual Contribution Life-of-Debt Contribution Monthly Equivalent: $0.0135 $75,000 $0.84 $10.13 $202.50 Can of Soup $0.0135 $100,000 $1.13 $13.50 $270.00 Snack Bag of Chips $0.0135 $125,800 $1.42 $16.98 $339.66 2 Liter Bottle of Soda $0.0135 $150,000 $1.69 $20.25 $405.00 3 Cookies $0.0135 $200,000 $2.25 $27.00 $540.00 Large Cup of Coffee Median Home Value for the City of Fayetteville (2009-2013)