How do bonds impact property taxes?

There are many types of bonds.  Among them are Capital Improvement and Working Cash.  Capital Improvement bonds are issued for large new construction projects like purchasing property and building a new school building.  Working Cash bonds are issued/sold to increase the fund balance in the Working Cash Fund. It is much like your savings account or slush fund.  It might be issued to get funding for a range of lesser projects like major maintenance repairs and improvements to government property.   

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Bonds are used by government taxing bodies to essentially, borrow money to meet a need and then later repay the money, over time, with interest.  It's like a citizen taking out a mortgage to build a new home or making a car loan.  Our property taxes are used to repay these bond debts.   More borrowing means more money is needed to pay the bond debt, therefore more of our tax dollars are needed.  Part of the property taxy levy is then used to pay the resulting debt service.  Your taxes will go up!

 

In St. Clair County, taxing bodies may issue bonds, potentially without the approval of the voters, by a method called a Backdoor Referendum.  This process involves publishing a Notice of Intent in a local newspaper, like the O'Fallon Weekly.  This starts a thirty day countdown during which at least 10 percent of the registered voters in their district must sign a petition to require that the bond issue be placed on the ballot during the next non-primary public election for approval by the voters.  If too few voters sign the petition, the taxing body may proceed with the bond issue without voter approval.