When is the election? November 8, 2022

What is a General Obligation (GO) Bond?

• General Obligation Bonds, often called GO Bonds, are municipal bonds that provide a way for state and local governments to raise money for capital projects.
• Go Bonds are an option used by cities to raise funds to pay for qualified projects.
• GO Bonds are backed by the City’s ability to tax and temporarily raise taxes if necessary, in order to pay bondholders.
• GO Bonds allow the City to improve, repair, reconstruct and expand the roads and storm sewer systems now and pay for them over time. According to the Missouri Constitution, GO Bonds must be repaid no later than 20 years from the date of issuance.

What will the GO Bonds be used for?

•  $30 million of the GO Bond value will be used to improve, repair, reconstruct, and expand Raytown streets, roads, bridges, curbs, and sidewalks.
• $7.2 million of the GO Bond value will be used to build, repair, modernize, and improve drains, pipes, and other necessary parts of Raytown’s storm sewer systems.
• The City is legally required to spend the money on the specified infrastructure mentioned in the (ballot) question.

Using GO Bonds to help fund infrastructure projects offers the greatest advantages to taxpayers:

• GO Bonds are secured by the City’s credit, resulting the lowest possible interest rate for financing capital projects, which is most advantageous to the taxpayers and the City.
• The cost of issuing bonds is generally lower as compared to other financing methods.
• Finally, issuing GO Bonds allows the City to complete larger projects more frequently.

Can the City of Raytown use existing taxes to fix its infrastructure?

• Yes, the City currently uses revenue from its Transportation Sales Tax. However, the Transportation Sales Tax currently generates approximately $500,000-$700,000 annually, which is only enough to cover 1% of infrastructure needs. 
• More than 40% of the City’s roads are in poor condition. At this rate, it would take an estimated 40 years to complete all the road and storm sewer repairs and reconstruction needed.

• Yes, last fall voters approved a local use tax. This tax only applies to some out-of-state and online purchases AND only collected when sales taxes are not collected.
• It went into effect March 2022 and is estimated to generate between $200,000-$400,000 annually.
• The amount generated will not be enough revenue to repair roads, but could be used towards maintenance, snow removal and other essential City services.

Where can I find more information on the specific projects related to the bonds?
At the Board of Aldermen meetings: Check the agendas that are posted (on our website) the Friday prior to the meeting. Meetings are held the first and third Tuesday of every month. Once the Board of Aldermen approve the projects that will be funded through the general obligation bonds, information will be posted on the City’s website.

Additionally, residents will have an opportunity to give feedback on the projects presented to the Board of Aldermen.

What happens is voters don’t approve Questions 1 & Question 2? What will happen if the GO bonds are not approved?
If voters elect not to approve Question 1 & 2 regarding the GO Bond issuance, then the City will not have funding to make road and infrastructure improvements. It will continue to save money until it has enough to improve roads and infrastructure as it has had to do in the past.

Why does the City need $37 million?

Based upon the recommendations from the professional engineering firm and surveyor, the construction cost to fix a significant portion of the failing infrastructure has been estimated to be more than $50 million. The City lacks the revenue to properly maintain the failing infrastructure and determined that a general obligation bond will provide the necessary funding.

Will my tax bill double?
It will not double your total tax bill. It will increase from a nickel (what you are currently paying to Raytown) up to .50 cents for every $100, depending on when the loans are disbursed. 

The good news: The money will be taken out in phases, keeping payments low and paid back over time.

I’m on a fixed income. This sounds like more than I can afford. Does the City have an alternative way to pay for repair and reconstruction of our roads?

Unfortunately, no. Our current budget allows for minimal maintenance.

The money collected from the transportation sales tax covers about 1% of repairs and reconstruction of roads and infrastructure. At this rate it will take an estimated 40 years to complete all the road and storm sewer repairs and reconstruction needed.

Information purposes only. Paid for by the City of Raytown, Missouri.