
Article VII, Section 10, of the Constitution of Virginia requires local governments to obtain voter approval to issue bonds. Voters in Loudoun County, Virginia, will be asked to consider three bond referendums on this year’s ballot.
Bonds are debt. When they are sold, the issuing government receives an influx of cash from the purchasers. Like a bank loan, that money must be repaid by the taxpayers over time with interest.
Bonds should be used only when necessary. Most projects should be funded directly from the general fund (i.e., from the “money in the bank”). We should only incur public debt when a specific project is very important, but too large to fund directly.