Fayetteville-Cumberland Parks and Recreation
What is a Bond?
A bond is a financing tool that the City can use to finance large projects. The citizens of Fayetteville can vote to approve the bond package which will pay for the projects. Bonds also allow the City to pay for the projects over a period of time, instead of on a “pay-as-you-go” basis.
Bonds are generally considered safe investments that can provide a steady stream of income. In this case, Fayetteville is considered a secure investment: it currently has an AA2 credit rating. An AA2 rating is usually the second highest rating given. This is an excellent time to move forward with these projects because:
- interest rates are at historical lows, which means the projects will cost less overall
- land and construction costs are relatively low
- constructing these projects will create jobs in our community
- many grant opportunities come with a matching funds requirement so the bond funds would already be available
The cost of the bond package is $54 million with $45 million coming from bonds. The City will raise the property tax by 2.25¢ until 2033. Once the debt is paid, the tax will dissolve.
COST FOR PROPERTY OWNER AT 2.25¢ TAX RATE
Property Value Tax Per Month Annual Tax
$75,000 $1.41 $16.88
$100,000 $1.88 $22.50
$150,000 $2.81 $33.75
$200,000 $3.75 $45.00
*Based on average real property taxable values
If your home was valued at $100,000, the tax would equal to one cup of coffee or one gallon of milk per month.