The town’s Board of Commissioners met at 4 p.m. on Monday to discuss potential funding options for parks and recreation and street projects. During the meeting, Finance Director Drew Holland presented an overview to commissioners of two different types of bonds under consideration.
“There are two types of bonds: a general obligation (GO) bond, which requires a referendum, and a limited obligation bond for financing,” Holland explained. “Bonds are essentially another way for the town to secure debt, but repayment is based on taxing authority rather than collateralizing specific assets.”
Holland clarified that traditional bank loans require collateral — usually the asset being financed — which makes them unsuitable for the town’s needs. “The bank doesn’t want to own a street if we can’t pay for it,” he said.
No action was taken at Monday’s meeting. The board plans to select and vote on one of the bond options at its budget retreat on March 6. Holland outlined the process, timeline and differences between the two bond types:
- If the board approves a limited obligation bond, the process would take about six months, with funds becoming available around August 2024. This option offers flexibility, as it does not have a set timeline, Holland said. “With a limited obligation bond, there’s no strict deadline. If we’re not ready for the funding in August, we can push it back to fit our schedule,” Holland said.
- The other option is a general obligation (GO) bond, which requires voter approval through a referendum, which would appear on the November 2025 ballot. This process also includes public outreach to inform residents about the projects and potential tax implications.
“That’s the main difference,” Holland said. “If you want to do a referendum, we need to decide at the March retreat. With a limited obligation bond, we can start the process whenever we’re ready.”
Mayor Jessie Bellflowers asked how long it would take the town to receive the money, should voters approve a referendum. In response, Holland stated that after the election, funds would likely be available by spring or early summer 2026.
“So it’s about six months either way,” Bellflowers observed. “The process is what we need to focus on.”
Bellflowers said discussions about bonds in Hope Mills are not new. He recalled that when he first joined the board in 2017, commissioners had already recognized the need to expand parks and recreation and infrastructure projects.
“At that time, we had four funding options: increasing property taxes, seeking grant funding, pursuing state funding, or applying for federal funding,” Bellflowers said. “That brings us to this: bonds. This is the only way we can generate revenue to build anything in our community.
“What we’re asking for isn’t a want; it’s a need,” he added.
Holland also presented the board with various tax impact scenarios, illustrating how property tax adjustments could support the bonds.
“A one-cent increase in property tax generates approximately $140,000 in revenue for the town,” Holland said. “A two-cent increase brings in $280,000, and a three-cent increase would generate $420,000.”
Citing Zillow data, Holland noted that the average home price in Hope Mills as of February is $245,000, which represents an increase of about $10,000 from the previous year.
“With the current tax rate, the property tax on a home of that value is $1,250,” he said. “If we were to increase property taxes by five cents, it would add $122.52 annually, which equates to about $10.21 per month.”
Holland also reminded the board of an upcoming financial challenge: a reduction in sales tax revenue that will take effect in the next fiscal year.
“This year, we’re facing a sales tax reduction of over $1.8 million, which we won’t receive in the upcoming budget,” he explained. “Based on our current tax rate, it would take an increase of 13.82 cents to make up for that loss.”
As the board prepares for its upcoming vote, Mayor Bellflowers reiterated the importance of making a well-informed decision.
“There are two key questions,” he said. “First, does the board want to pursue a bond? That’s a simple yes or no. If yes, which type of bond? It’s either a limited obligation or a general obligation bond. Once we decide, the clock starts ticking.
“If we don’t go with a bond, how are we going to raise the money to meet the needs of this community? That’s the question that has to be answered,” Bellflowers asked as the meeting came to a close.
The next regular Hope Mills Board of Commissioners meeting will be at 7 p.m. on Monday, March 3 at the Hope Mills Town Hall at 5770 Rockfish Rd.
Electric went up insurance up eggs up water up . We are a community growing in retires. I think the town needs to wait until the cost of basic living stabilizes . When Apple moved into Knightdale many had to move because they could afford the tax hike. The worst part of this plan is not many would use it. We need trees paths the community can be apart of this. We put fake trees at lake how about real flower gardens in golf veiw park. Take one of the dog training spots and build the pickle ball. The parking is there everything is there. Sports at a sports complex and walking biking trails in a could be beautiful green space.