Raleigh voters to decide on $203 million in bonds Nov. 3

Raleigh voters will decide Nov. 3 whether the city can borrow up to $203 million for housing and transportation, through two separate bond questions worth $101.5 million each. Voters can approve one measure and reject the other; neither has passed.

The City Council adopted both bond orders May 19. If voters approve a measure, it would authorize the city to issue general-obligation bonds for that measure’s purposes. The city says its current Debt Fund plan can support $203 million in borrowing every four years without an additional property-tax increase. The ballot disclosure estimates a $0 annual increase for each $100,000 of taxable property value under that plan.

That estimate is not a guarantee against future taxes: the bond orders authorize the city to levy taxes sufficient to pay principal and interest. The Debt Fund receives sales- and property-tax revenue, which can fluctuate and affect its borrowing capacity.

Planned housing and transportation spending

The housing bond is intended principally to benefit people with low and moderate incomes through programs within Raleigh’s corporate limits. The city’s planned uses are $57.6 million for housing development and preservation; $10.4 million for homebuyer assistance and preservation goals; $21.5 million for major-project development; and $12 million for homelessness response.

The homebuyer assistance is aimed at eligible buyers earning at or below 80% of area median income. Other planned work includes programs intended to help seniors remain at home, redevelopment of city-owned sites and the Wake at Home response, which connects people living outside with housing and services.

The transportation measure covers improvements inside and outside city limits, including streets, sidewalks, bicycle lanes, greenways, traffic controls, and bus and train facilities. The city plans $51.5 million for three road projects, $40 million for adopted transportation plans and programs, and $10 million for neighborhood traffic management and partnerships.

The road projects are Marsh Creek Road and Trawick Road-West, Ebenezer Church Road, and general-purpose lanes along the Southern Bus Rapid Transit corridor that are not eligible for federal funding. The plans and programs category includes the Big Jump walking and biking network and the Comprehensive Safety Action Plan.

Financing estimate and voter decision

The city describes these amounts as planned uses, not guaranteed allocations; funds may be redirected to other eligible purposes under each bond order. If voters reject a measure, the city says it may seek other funding, but projects without available funding would not proceed.

WUNC reported that the proposals follow Raleigh bond initiatives passed in 2017 and 2020. It also reported criticism from John Locke Foundation president Donald Bryson, who said routine borrowing to finance government priorities is not costless, even when the city has borrowing capacity and says no additional tax increase is needed.

Voters will answer the housing and transportation questions separately on Nov. 3.