Virginia’s local governments are required hold a referendum in order to get the voters’ permission to issue bonds on behalf of the city or county. Bonds are usually used by governments to raise money for large capital expenditures when particular projects cannot be funded through general funds and tax revenues.
Let’s be perfectly clear: Bonds are debt. When they are sold, the issuing government receives an immediate influx of cash from the purchasers. But, like a bank loan, all of that cash must be repaid over time (plus interest). As such, bonds should be used sparingly, and only for large, unusual projects where funding them directly from the general fund is not possible.
Bond referendums almost always pass by a large margin in Virginia, in part because the voters do not fully understand what they are. Many are simply voting ‘for’ the agency or service that will benefit. After all, who wants to vote ‘against’ schools, parks, or transportation? We should, however, be more discerning and seriously consider whether the project in question warrants the associated increase in government debt.
The 2013 bond questions for Loudoun County are listed on the Loudoun County web site.