Frequently asked questions
Jump to a question:
What are Bonds?
Bonds encourage investment in the City. The City hires financial advisors and underwriters who determine the value of the bonds that we can sell within a safe margin. We will issue bonds valued up to a certain amount, as approved by voters, and those bonds will be purchased by investors. The advisors and underwriters will monitor the market and recommend the sale of the bonds at the most appropriate time.
The investors who purchase the bonds earn interest on their investment. Each year, we pay the principal and the interest on the bond debt, and that interest goes to the investors. When we retire the bonds, we pay the investors back the face value of the bond.
Will the bond issue increase taxes?
No! The bond issue will simply continue the current 1% sales and use tax that was originally presented and approved in 2005, and extended in 2013 by voters.
What happens if the refunding is not approved by voters?
Ballot 1 question regarding refunding is the most crucial item on the ballot. If the refunding question is NOT approved, then none of the projects will be able to proceed. Even if the individual construction ballot question is approved by voters, it cannot be funded, and will not advance.
In addition, the voters do not pass the refunding question, there will still be a (1%) sales and use tax in place.
If the refunding question is approved by the voters, will all the projects be completed?
Each project area must be voted on individually by the citizens of Cabot. It is important to understand that for any of the project areas to be funded the first questions regarding the refunding bonds must pass. If the refunding question is approved, then the funding would be available for the projects that are approved by the citizens on the other ballot questions.
Whom do I contact for questions about the bond?
When is the special election?
Tuesday, August 10, 2021