The Greensboro City Council is looking for more money to spend.
At the first session of the two-day City Council virtual retreat on Thursday, Feb. 11, the City Council discussed issuing $16 million in two-thirds bonds in 2022, putting a $120 million bond referendum on the ballot in November of this year, and to pay for all that by raising property taxes by 3 cents.
The City Council hasn’t issued two-thirds bonds in a while according to Mayor Nancy Vaughan, who said, “We don’t typically do two-thirds bonds.”
Deputy Director of Financial Services Marlene Druga said, “It’s been 20 years or so.”
The way it was discussed, it was as if the city had not issued two-thirds bonds due to an oversight.
However, the reason the city doesn’t issue two-thirds bonds is because it became a major campaign issue and those who campaigned against issuing two-thirds bonds were elected, which the City Council at the time considered a good indication that the voters of Greensboro didn’t like the idea of two-thirds bonds.
The way two-thirds bonds work is that the city can issue bonds for two-thirds of the principal paid off the previous year. For example, if the voters approve a bond referendum for $100 million, and the first year the city pays off $10 million of the principal, the City Council can – with no additional voter approval – issue bonds for two-thirds of that amount, if no additional bonds were sold.
So, by paying off $10 million one year the city could in the next year issue an additional $6.66 million in bonds with no additional voter approval. By paying off principal one year and issuing two-thirds bonds the next year the $100 million in bonds can be increased pretty much without limit, because the city can issue new two-thirds bonds by paying off the principal of current two-third bonds.
So, the reason the city has not issued two-thirds bonds in decades is because the message from the voters was that, when they voted for a $100 million bond, they expected the city to borrow $100 million – not $166 million or more over time.
Even if the City Council does not issue the $16 million in two-thirds bonds that it could in 2022, it is still considering a 3-cent tax increase to pay for the $126 million in bonds approved in 2016 and the $120 million bond it is considering for November 2021.
It is also worth noting that, so far, the city has spent less than half of the $126 million in bonds passed in 2016. So far, the city has spent or encumbered $59.6 million of the $126 million.
The City Council needs to spend what they already have and stop the absolute wasteful spending on committees to study this and that (that never produce any positive results) They know exactly what can be cut and what is wasteful so stop it now…we cannot afford all the special services, extras, etc. they keep pushing on property owners!
Just in case the crime rate doesn’t scare off enough people, maybe a tax increase to support more senseless spending will.
Amen!!!
This is only the beginning folks.
It has been less than 90 days since the current Regime was put in to office and already we’re going to be taxed more for nothing more!
Ridiculous
Our City council members have been in office for three years since the most recent city election. We can replace them in November, but we won’t. We (collectively) aren’t very smart. We elect tax and spend control freaks and then complain that they tax and spend us broke and want to micromanage our lives. Electing Nancy Vaughan once was ignorance on our part. Electing her a second time was stupidity. Giving money to Yvonne Johnson for her to pretend to fight crime may have been stupidity the first time around, and certainly was the second time. Will we ever learn?
Seems to me it would make better sense to me to spend what you have ALREADY borrowed before you borrow more. These people seem to think the taxpayer have infinite pockets. Maybe we the taxpayers should hold them accountable for what they already have.
How much of the money collected from a tax increase is going to the “Cure the violence” fund? Crime has increased since the beginning of this worthless program. How much of our money will be allocated for this program in the next budget? Has Greensboro ever had a more irresponsible City Council is our lifetime?
No surprise here.. The property owners seem to always feel the brunt of these bonds if approved. Which is not a good balancing act. Typically I vote NO, and will do so in Nov if there is a bond on the ballot.
Why do the people in Greensboro keep voting in these Democrats,are you on something that does not allow you to pull the opposite of the D lever.The ball is in you court ,you can vote them out if you would .I am amazed that you will continue to put Democrats in authority when you know that the first thing they do is start lining people up to give the tax money to.Then they raise your taxes so they can give more away .Arn’t you people in Greensboro tired of the vicious cycle vote in Democrats then complain that we don’t like property taxes.We are gluttons for punishment.I think there is enough people that are tired of taxes.I exhort all that read this to start voting in the Republicans young people I don’t like people who think they are smarter than me and take extra money in taxes and spend it stupidly.Come on Greensboro,bye these people outside vote in a good group of Republicans and start enjoying no tax increases.OR maybe you love them to good to get rid of them ,I guess you will then have to put up with them and pay all the taxes due.
A yes vote for a tax increase, Is a no vote during next election.. Ms Highttower..
If the city spenders (council) would stop just giving “our” money away, they would have lots of money and no need to up taxes.