2022 Transportation General Obligation Bond Referendum: PASSED
City of Gastonia residents will vote on a $75 million Transportation General Bond Obligation Referendum passed on the November 8 election ballot. The City Council approved the bond referendum at its August 2 meeting. Residents can take this online survey to share their comments about projects being considered for funding.
See a PowerPoint presentation with more details about the Bond Referendum.
What is a general obligation bond?
A general obligation bond is a common type of municipal bond that is secured by a state or local government's pledge to use available resources, including tax revenues, to repay bond holders. Basically, the purpose is to borrow money with a promise to repay it with interest on a specific date. These bonds require voters to approve them. Voter-approved bonds are the most affordable and most effective way to finance projects like these.
Why do we need a bond referendum now?
Our City Council has been considering these improvements to our City for a long time. The bond referendum, if approved, would allow the City to get ahead of projects that need attention now instead of waiting many years in the future.
What will the City's bonds be used for?
Potential projects that could be funded by the bond referendum:
- Street Repaving: $15-20 million
- Intersection Improvements: $20 million
- Safety Improvements Around Schools & Parks: $10 million
- Sidewalks and Pedestrian Safety: $5 million
- Roadway Manhole Cover Repairs: $2-5 million
- Planning and Early Engineering for Future Road Projects: $5 million
- I-85 Widening Utility Relocation and Design Enhancements: $10 million
How will the bonds be repaid and will my taxes increase?
City leaders believe that if Gaston County property tax valuations increase 20% to 25% than the current value, along with revenue from growth, this could pay for the bonds and may not require a property tax rate increase to residents. The City also wants to leverage federal funding with local match dollars.
When must the bonds be repaid?
The bonds must be repaid within 20 years.
When will the proceeds be expended?
The proceeds will be expended within 10 years from approval.
What other ways is the City working to help with these projects?
The bond referendum will pay for most of the improvements and the City is partnering with the US Department of Transportation and North Carolina Department of Transportation as well to work on many projects related to utility relocations and betterments along Interstate 85.
Will I have a chance to say what projects I think are good ones for the bond?
Residents can take this online survey to share their comments about projects being considered for funding.
The City has many existing needs to address, along with improvements necessary to facilitate continued growth and maintain the City’s valuable assets.