2021 Transportation Bond

During the November 2021 general election, citizens of Apex will have the opportunity to vote on a proposed transportation bond. The bond referendum, for an amount up to $42 million, will be used solely for transportation projects.

Bond projects were selected based on many factors, including the results of:

  • Citizen Satisfaction Survey – The 2020 survey of citizens identifies management of traffic and overall maintenance of Town streets as top priorities.
  • Advance Apex: The 2045 Transportation Plan – Advance Apex prioritizes the three major roadway projects proposed for bond funding and completing sidewalk connections that create safe bicycle and pedestrian routes to schools.
  • The Downtown Master Plan and Parking Study  – The Downtown Plan recommends creating multimodal connections to downtown, including improving pedestrian crossings over the railroad at Center Street and Chatham Street. 
  • Internal processes including staff and Council ranking of Capital Improvement Program projects, and formation of Council strategic goals
  1. Reliability
  2. Connectivity
  3. Walkability

Yellow Marker-padRoad Rehabilitation Projects: The Basics

    • Estimated Cost: $5 million
    • Addresses current backlog of streets in need of rehabilitation
    • Uses new pavement technologies to keep our roads functioning reliably for years longer

Project Description

pavement conditionThis one-time expenditure catches up on our backlog of streets in need of rehabilitation. Apex evaluates street conditions on an annual basis, with the goals of maintaining roadway conditions at the lowest cost, and providing a safe and reliable transportation system.

Without these funds, we would continue to lag behind on street maintenance needs, and the overall condition of streets would degrade. Maintenance costs over time would greatly increase, and reach an unsustainable level.

  1. Bond Financing and Repayment
  2. Project Timeline
  3. You've Asked

What is a General Obligation (GO) bond?

Bonds are a method used by towns and cities to finance major capital projects. They work similarly to your home mortgage, in that you finance a large purchase and pay it back over time. Because of the longer payback period (typically 20 years), the financial impact is not applied only to current residents, but also to citizens who move to Apex after the projects are complete and will also be potential users of the transportation infrastructure.

What are the benefits of paying for projects with bonds?

Since the Town of Apex has a very favorable bond credit rating, we can finance the repayment at a low interest rate. Bonds also enable the Town to complete major projects now, rather than wait until there is enough cash accumulated to pay for the project. Construction costs are currently increasing at a rate that exceeds the costs of borrowing, particularly in this area of the State. Building today can result in a significant costs savings and place the project in use much sooner. Bonds are sold competitively, resulting in the lowest possible financing cost at the date of the sale.

What is the impact on my property taxes?

An increase in property tax rate will be necessary to repay the bond debt. We anticipate an increase of 1.4 cents beginning July 2022, and another increase of 1.6 cents in July 2026. For the median home value in Apex of $327,800, this would result in about $98 more per year in property taxes if the full 3 cent increase was applied.

tax impact graphic

Why do residents vote on bonds?

GO Bonds are secured by a pledge of taxing power as voted by the citizens. Therefore, Apex residents will choose whether or not to authorize the 2021 Transportation Bond during this November’s general election.

What other types of financing can been used to pay for Transportation projects?

The town can apply for federal funds through various sources, primarily the Locally Administered Projects Program (LAPP). LAPP is a competitive funding program managed by the Capital Area Metropolitan Planning Organization that prioritizes projects in our region. Learn more about this program and other funding on this page.

What happens if the economy goes bad?

The referendum only provides the approval for the Town to issue up to a certain amount of bonds. However, the Town is not required to issue any debt. The Town Council must still approve each bond sale when the time comes to get started on each project. They may choose to delay, reduce the amount sold or not sell bonds at all depending on the financial climate at the time.