The Town of Cornelius is in good financial health. However, the Town does not have enough cash available to pay for all of these capital projects while still sustaining the high level of service our citizens expect, and while maintaining fund balance levels that are in line with the Town’s Fund Balance Policy. Using a debt instrument, such as bonds, allows citizens to pay for substantial capital projects over the useful life of the assets. Another consideration for using multi-year financing instead of cash is the equity factor: future citizens of Cornelius pay for a portion of the new projects that they will benefit from.
Also, since all of the identified potential projects are partnerships with NCDOT and occur within NCDOT right-of-way, the Town does not have any collateral to obtain pay-as-you-go financing. This means that bond debt is the only financing available for these projects.