Proposed City Bond 2018 Proposed Bond 2018 | Page 3

BOND 2018
FREQUENTLY ASKED QUESTIONS
What is a Bond Program?
A bond is a form of debt that provides local government with
funds to finance large capital improvement projects. A Bond
Program includes both the authority to issue bonds and a listing
of the purposes for which the funds may be used. General Obli-
gation Bond Programs, such as the City of Corpus Christi’s 2018
Bond Program, require voter approval.
Does the proposed 2018 Bond Program anticipate an
increase in the City property tax rate?
Proposition A of the 2018 Bond Program does not require an
increase in the City’s property tax rate. However, the other Prop-
ositions each require an increase in property tax (see the box on
this page). If all Propositions are approved, property taxes are
expected to increase a total of about 2 cents.
How does this Bond Program impact my utility bill?
Utility bills will be impacted by the two Street Propositions (A and
B) because the underlying utility work for street projects is not
included in the Bond Program costs. If Proposition A is approved,
it would increase an average residential customer’s utility bill by
about $2 per month. Proposition B would increase an average
residential customer’s utility bill by about 82 cents per month if
approved.
Why do you issue bonds to pay for City projects rather
than pay for projects with cash?
Bond financing funds large-scale capital improvement projects
and allows the City’s operating budget to focus on annual and
ongoing costs such as personnel, operations and public service
programs. By issuing bonds, we can invest in those projects
more quickly and avoid deferred maintenance costs.
How are bond projects selected?
The projects in the 2018 Bond Program were vetted and ap-
proved by City Council. With any bond program, City staff initially
studies the City’s inventory of infrastructure throughout the com-
munity and develops a list of potential projects. These projects
are presented to Council for review and discussion. A final list of
proposed projects is determined based on these discussions.
$96 M BOND 2018 SNAPSHOT
Proposition A
Streets
$ 52.0 Million
23 Projects
No Tax Increase
Proposition B
Additional Streets
$ 22.0 Million
14 Projects
1 Cent Tax Increase
Proposition C
Parks & Recreation
$ 5.6 Million
7 Projects
1/4 Cent Tax Increase
Proposition D
Libraries & Cultural
$ 3.9 Million
4 Projects
1/5 Cent Tax Increase
Proposition E
Public Safety
$ 11.3 Million
7 Projects
1/2 Cent Tax Increase
Proposition F
Public Health
$ 1.1 Million
1 Project
1/20 Cent Tax Increase
What are you doing to get projects done faster?
Six (6) projects in Proposition A were pre-designed to allow con-
struction to begin soon after the 2018 Bond Program is approved
by voters.
3