What is a general obligation bond?

A general obligation bond is a form of borrowing that provides government entities with funds to finance large capital improvements. This debt can be compared to a home mortgage that is repaid over time. The bonds are repaid with property taxes and therefore require voter approval. The city’s good credit ratings (AA- from Standards & Poor’s and Aa2 from Moody’s) allow the city to pay lower interest rates on bonds.


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1. What is a general obligation bond?
2. Why is the bond election being held now?
3. Why not postpone the election to May 2021 or another future date? 
4. Why issue bonds, rather than paying for projects with cash?
5. How will the bond proposition impact the city’s property tax rate?
6. Why doesn’t the city spend less on the golf course, NRH2O, parks and trails and more on fixing streets? 
7. How much was the city’s last bond election?
8. When was the last bond election for street improvements?
9. How were proposed projects for the 2020 bond election selected?
10. Why didn’t the city maintain these streets better? 
11. If approved, who will perform the street improvement work?
12. Will the Mayor’s construction firm benefit from this bond election? 
13. If the bond proposition is approved, when will construction begin?
14. Which streets will be reconstructed first?
15. How objective was the ranking?
16. Some of the proposed projects include all of the street, while others don’t. How were project limits determined?
17. If the bond proposal passes, what type of pavement will be used?
18. Will sidewalks be added?
19. How long will each project take?
20. How will you make sure construction does not take months or years longer than expected?
21. How many miles of streets does NRH have? Does the proposed bond program impact their maintenance?
22. When will other streets be reconstructed?
23. Who served on the 2020 Capital Program Advisory Committee?
24. I have additional questions, who should I contact?