Bond Overview and FAQs
These are commonly asked questions about how bonds work, how they are selected, and how they affect the community.
What is a General Obligation (GO) Bond?
General Obligation Bonds are a financing tool the city uses to pay for large capital projects, such as new roadways and affordable housing developments, over 20 years rather than as a large upfront payment. They function similarly to a home mortgage: the city borrows the funding needed to pay for the projects, then repays the amount borrowed plus interest over the life of the loan. The city has a “AAA” credit rating, the highest rating available for cities, which allows the city to receive lower interest rates when borrowing for these projects.
Why does the city issue bonds?
The cost of large capital projects such as new roadways or bridges exceeds the city’s ability to fund these projects on a cash or “pay-as-you-go” basis. Bonds allow the city to pay for these projects over a longer period of time that more closely aligns with how long the project will be used.
What kind of projects will these bonds support? How are these projects selected?
The 2026 Bonds will support a variety of transportation, neighborhood and housing projects. Projects typically originate from a City Council-adopted action plan or master plan, guided by council’s Strategic Priorities and community engagement. City staff prioritize and recommend these projects for inclusion in the city’s Capital Investment Plan based on feasibility, cost-effectiveness and data tied to the community's current needs. City Council then reviews and revises the final list of projects in the city’s annual budget process. A full description of the projects and programs included in the 2026 Bonds and how they are selected can be found here (link to Planned Projects for the 2026 Bonds).
How does the city repay the bonds?
The city pays for the principal and interest on GO Bonds using revenue from the sales taxes, property tax and other local sources each year. As part of the annual budget cycle, the city dedicates a portion of these revenues to paying for both past bonds and planned future bonds. By dedicating revenue to future bonds, the city can plan capital projects without planning a future tax increase.
Will the bonds increase my taxes?
No. The city has budgeted to repay the 2026 Bonds and the Planned 2028 and 2030 Bonds with no proposed or planned tax increase, as these bonds are already factored into the city’s current budget and property tax rate. Said another way, the city can afford these bonds using the revenue it already receives.
The city just raised property taxes; was this to support the bonds?
No. The 1.89-cent property tax increase adopted in the fiscal year 2027 budget was dedicated entirely to public safety enhancements, including 10% pay increases for police officers and firefighters.
What happens if the bonds are not approved?
If the bonds are not approved, the city would have to either: 1) delay projects for inclusion in a future bond package, or 2) if an assessment determines that a project planned for funding through the 2026 Bonds is too important to delay, council may determine to fund that project using other sources pending funding availability.
The City Council of the City of Charlotte, North Carolina introduced the following bond orders of the City at its June 22, 2026 meeting: Bond Order Authorizing the Issuance of $280,000,000 General Obligation Transportation Bonds of the City of Charlotte, North Carolina Bond Order Authorizing the Issuance of $125,000,000 General Obligation Housing Bonds of the City of Charlotte, North Carolina Bond Order Authorizing the Issuance of $20,000,000 General Obligation Neighborhood Improvement Bonds of the City of Charlotte, North Carolina Section 159-55.1 of the General Statutes of North Carolina requires the City's finance officer to file with the City Clerk after the bond order is introduced and before the public hearing on the bond order, a statement of disclosures stating the following: (1) an estimate of the total amount of interest that will be paid on the bonds over the expected term of the bonds, if issued, and a summary of the assumptions on which the estimate is based, (2) an estimate of the increase in property tax rate, if any, necessary to service the proposed debt, and (3) the amount of two-thirds bonds capacity the unit has available for the current fiscal year, if any.
Statement of Disclosures(PDF, 315KB)
The City Council of the City of Charlotte, North Carolina (the “City”) introduced the following bond order of the City at its June 10, 2024 meeting: “Bond Order Authorizing the Issuance of Not to Exceed $70,000,000 General Obligation Refunding Bonds of the City of Charlotte, North Carolina” related to a proposed refunding of certain general obligation bonds of the City. Section 159-55.1 of the General Statutes of North Carolina requires the City’s finance officer to file with the City Clerk after the bond order is introduced, and to post on-line on the City’s website, a statement of disclosures stating the following: (1) an estimate of the total amount of interest that will be paid on the general obligation bonds over the expected term of the bonds, if issued, and a summary of the assumptions on which the estimate is based, (2) an estimate of the increase in property tax rate, if any, necessary to service the proposed debt, and (3) the amount of two-thirds bonds capacity the unit has available for the current fiscal year, if any.
Statement of Disclosures(PDF, 96KB)
The City Council of the City of Charlotte, North Carolina introduced the following bond orders of the City at its June 10, 2024 meeting:
Bond Order Authorizing the Issuance of $238,300,000 General Obligation Transportation Bonds of the City of Charlotte, North Carolina
Bond Order Authorizing the Issuance of $100,000,000 General Obligation Housing Bonds of the City of Charlotte, North Carolina
Bond Order Authorizing the Issuance of $61,700,000 General Obligation Neighborhood Improvement Bonds of the City of Charlotte, North Carolina
Section 159-55.1 of the General Statues of North Carolina requires the City's finance officer to file with the City Clerk after the bond order is introduced and before the public hearing on the bond order, a statement of disclosures stating the following: (1) an estimate of the total amount of interest that will be paid on the bonds over the expected term of the bonds, if issued, and a summary of the assumptions on which the estimate is based, (2) an estimate of the increase in property tax rate, if any, necessary to service the proposed debt, and (3) the mount of two-thirds bonds capacity the unit has available for the current fiscal year, if any.
Statement of Disclosures(PDF, 377KB)