Why would the County want to issue bonds to pay for the capital plan?
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The issuance of bonds is a widely used method to finance capital construction costs. Bonds allow the County to borrow money and repay it – with interest – over 20 or more years. The situation is similar to taking out a mortgage to buy a house. Most people do not have enough money to pay cash for a house, so they borrow money and repay it with interest, while living in the house.
An alternative method would be to increase taxes and use pay-as-you-go property tax revenues to finance construction projects directly. However, this method would not sufficiently fund new school construction and renovations to accommodate Wake’s rapidly growing enrollment.