When it comes to large capital projects, it is typical for public agencies to explore financing through a voter-approved bond measure. These bonds are attractive because they provide the requesting jursidiction with upfront capital necessary to complete projects, while ensuring repayment of loans over time through a dedicated tax base. This approach allows for construction of necessary capital improvements without signficant impacts to annual budgets, but it also requires voter approval.
A typical question we are asked is: How can I ensure my (county/city/district’s) bond will pass?
Our answer: You can’t. But there are ways to dramatically increase your chance of success.
Experience and research have shown us that successful tax and bond measures share common characteristics. Overwhelmingly, the measures that pass demonstrate a clear need for bond projects, effectively communicate community benefits, and are generally considered to be affordable. Among the strongest performers at the ballot box, we typically find a record of broad, authentic community engagement leading up to referral, and overall high rates of public trust in the referring jurisdiction’s stewardship of funds.
At Coastline, our approach with bonds and other tax measures is to help our clients maximize their performance in key metrics that lead to success. We focus on what voters value, how they prioritize decision-making, where they receive information on a local level and how to engage them in a meaningful way.
Informed, in part, by case study analysis from Hanover Research, we assess that local bond campaigns are typically won and lost on five core questions:
1. Has the referring jurisdiction demonstrated a substantial need for the bond?
2. Do voters perceive a direct benefit from the bond? (what’s in it for me?)
3. Are bond projects perceived by voters as essential? Does the bond include any non-essential, poison pill projects?
4. Does the referring jurisdiction have a record of sound management, and has it included community leaders at each step of the way?
5. Is the bond considered affordable by the community?
If the answer to all of these questions is yes, than we assess a bond to have a high likelihood of passage. Where answers are no, or unclear, we advise our clients to focus on shoring up weaknesses before referring a bond.