2026 General Obligation Bond - Farmland Preservation
Frequently Asked Questions
A General Obligation (G.O.) bond is a financing tool (typically 20 years) used by local governments to borrow significant amounts of money for long-term capital projects. These bonds are backed by the full faith, credit, and taxing power of the County. Because of this pledge, voter approval is required to authorize their use. Once approved by voters, the Board of Commissioners must formally authorize the issuance of the G.O. bonds before any project can begin. The bond sale is then coordinated with the North Carolina Local Government Commission (LGC).
A bond referendum is a public voting process that allows residents to decide whether a municipality should be permitted to raise funds through the sale of G.O. bonds.
Bond financing is often used for capital projects that are above and beyond the scope of the annual operating budget or are for projects that will benefit citizens for many years in the future. General Obligation (G.O.) bonds typically offer the lowest interest rate for a local government, because under this type of long-term borrowing, a local government like Henderson County pledges its full faith and credit (taxing power) to repay the debt over a specified term. While there are several ways to finance major capital projects - current revenues, capital reserve funds (setting aside money over time), and other bonds, G.O. bonds provide the least costly source of borrowed cash to fund major projects
A bond referendum gives voters the power to decide if a municipality should be authorized to raise funds through the sale of general obligation (G.O.) bonds. A G.O. bond is long-term borrowing tool (typically 20 years) in which a municipality pledges its full faith and credit (taxing power) to repay the debt over a specified term. Generally, G.O. bonds are the least costly financing option available to the town for potential bond projects being considered.
Under North Carolina law, a local government holding a referendum for the purpose of issuing general obligation (G.O.) bonds must specify general categories of capital projects for which bond proceeds may be used. Within these categories, a local government may identify specific projects that are intended to be funded by the bond proceeds - the "bond package." However, due to the lengthy process involved with identifying, designing, and implementing projects, as well as the lack of detailed cost and other project information available at the time of the bond referendum, the specific projects identified in the bond package may change over time. The question that the actual bond referendum therefore asks of voters is whether they authorize local government to use the G.O. bonds as a financing tool for the general category of projects up to the amount specified in the question.
Bond referenda can be held during a regular election when the polls are open across the entire jurisdiction affected by the referendum. Voters in Henderson County will be able to vote on the bond during the November 3, 2026, General Election.
To vote, you must be a registered voter and reside within Henderson County. - Early voting begins October 15, 2026 - Election Day is November 3, 2026
For voter registration information, contact the Henderson County Board of Elections at https://www.hendersoncountync.gov/elections or call 828-697-4970.
The County will share information through:
- Social media
- Board of Commissioners’ Meetings
- Website (including FAQs)
Absolutely no public funds may be expended for the purpose of advocating for or against a bond referendum. The County may only provide information to voters to assist them in making an informed decision.
Yes. The estimated tax rate increase is up to 1.01 cents ($.0101) per $100 of property valuation.
If voters approve the General Obligation bonds, the County will be authorized to issue up to $25 million in General Obligation bonds for open space (Farmland) preservation.
If the bonds do not pass, the County will not be authorized to use General Obligation bond fund money. Other funds sources may be sought to fund this project.
