When bonds are issued, property taxes are usually increased for citizens to pay the debt and to support the higher cost of operations for new facilities. In addition to actual costs associated with the payment of bonds, new facilities must have new funding for staffing, maintenance and operations. It may also cost more money to operate improved and enlarged facilities. Bonds are typically used for major capital projects that are above and beyond the scope of the annual budget. The bond process is similar to a family's decision on how to purchase and finance a home or a vehicle.
Bonds allow for the projects to be paid for over the life of the projects.
The City Council sets priorities based on capital planning and citizen feedback and selects bond issues and amounts. The City of Greensboro files an application with the N.C. Local Government Commission for the authority to issue bonds. The City Council holds a public hearing to receive citizen input on the proposal to issue bonds. Based on citizen comments, Council may remove items or lower dollar amounts. The Council then submits its action to the Voting Rights section of the U.S. Justice Department for clearance.