The City does as much as we can each year to maximize the annual capital improvement budget, but our infrastructure needs are greater than what annual funding can support. GO bonds offer the City a cost-effective financial tool to address a large number of both deferred maintenance and new infrastructure projects over the course of several years.
Additionally, the City only issues GO bonds when a need has been identified. If the proceeds aren’t needed, like when a project doesn’t move forward, the City won’t issue the bonds. By borrowing the money upfront for large capital projects like road construction, the City is also able to lock-in construction prices upfront, which minimizes inflation in project costs. And lastly, funding large projects over a number of years through the repayment of debt increases taxpayer equity. Texas’ population is expected to double in the next two decades and new residents are moving to Boerne every year. If the City were to pay for large projects each year with current taxes, then current taxpayers would be the only ones paying for growth. By matching a project’s funding to the number of years it will be in service, every generation of taxpayers who uses that asset can help pay for it.