Rightly, there is much political discussion these days about government deficits and the bond ratings of these governments.

Transportation and housing bond measures on next week’s ballot in Raleigh have raised this issue.  When considering these bonds, we must make a distinction between deficit and debt.  Capital projects benefit a city for multiple years and shouldn’t be expected to be entirely paid for in the year the work is undertaken.  This is the definition of a capital expense.  Debt is the facility by which capital projects are financed.  These bonds create debt, but not deficits as the funding for their repayment is included in the referendum with minimal property tax increases.

Raleigh is often ranked the #1 city in the nation.  Bond financed infrastructure has helped achieve that ranking.  Raleigh city government has been able to maintain a AAA bond rating while keeping property tax rates and general obligation debt per capita among the lowest for North Carolina municipalities.

Political debate is essential, let’s just make sure it is at a meaningful level.   Vote yes for
Raleigh and approve the Transportation and Housing bonds on Tuesday!