General Obligation Bond
November 2026 Ballot Referendum
MELBOURNE BEACH STORMWATER AND ROAD INFRASTRUCTURE IMPROVEMENTS
Melbourne Beach’s stormwater system and roadways were built for a much less developed, quaint, little beach town. Many stormwater lines date back decades and are undersized for today’s loads, corroding or were sealed off entirely, leaving rainwater to flow into streets, yards and ultimately into the Indian River Lagoon.
At the same time, town-wide pavement assessments have revealed that there are several streets in town in dire need of re-pavement due to advanced cracking, rutting, and raveling that only worsens and costs more to fix, the longer repair waits.
The Town is evaluating the needs for infrastructure improvements across the town, and this information is provided as part of the Town’s ongoing assessment of stormwater and roadway conditions, services required and long-term capital planning.
WHAT IS BEING PROPOSED?
The Town of Melbourne Beach is proposing stormwater and roadway investment that would be prioritized by necessity first and then for preventative measures. These projects are intended to address time-sensitive issues while also preparing for the increased demand on our stormwater system and roads as population in the region continues to increase. The outcome would be to have less stormwater ponding on our roads/properties and streets that are freshly repaired and paved to minimize wear and tear on vehicles.
A sample of the types of projects to be addressed and respective costs can be found below.
WHY THIS MATTERS NOW
There are several areas of town where stormwater projects and road improvements/repairs can no longer be deferred and are cost prohibited to be funded through an annual budget process in a timely manner. To address these needs, the Melbourne Beach Town Commission agreed at its June 2026 Regular Town Commission Meeting to move forward with a $5.0 million General Obligation (GO) bond referendum.
If approved, the financial impact of the new bond should be offset to some degree as the Town no longer is levying taxes for their recently retired general obligation bond (for stormwater projects), which was paid off in July 2026.
Responsible borrowing allows the Town to undertake larger, longer-term projects without draining cash reserves or delaying improvements that will increase in costs each year due to inflation and other economic pressures. It can be compared to a homeowner who finances the purchase of a home with a mortgage instead of paying cash.
$5.0M
General Obligation Bond proposed
0.53–0.70
Mills, total, over a 20-year bond(1)
$10.92–$14.58
Monthly, per $250,000 taxable value(1)
- Based on current market conditions.
RESPONSIBLE FUNDING THROUGH A VOTER-APPROVED GO BOND
To responsibly finance this necessary infrastructure, the Town is pursuing a voter-approved General Obligation (GO) Bond that is regularly used as a funding tool for vital public infrastructure projects. General Obligation Bonds (GO Bonds):
Are transparent as they require voter approval
Allow the Town to address infrastructure issues now rather than wait as costs rise
Historically one of the most cost-effective financings available to a town for long-term capital projects
Are repaid over time through dedicated property taxes
Are backed by the full faith and credit of the town
The Town of Melbourne Beach does not have any other outstanding GO bonds.
In addition, by pursuing a GO Bond, the Town's financial reserves would not have to be utilized, which provides security for the town against uncertainties such as hurricanes, unforeseen needs, and economic uncertainties.
Funding through a GO Bond also spreads the costs to all who will benefit instead of those paying taxes now, since the life span of many of these capital projects is 15-25 years. Financing projects over time with a bond allows costs to be shared across all those who utilize that infrastructure instead of placing the entire burden on those living in the town today.
ESTIMATED TAX IMPACT(1)
0.53–0.70 mills
In total for a 20-year bond
$131–$175 / year
Or $10.92–$14.58 monthly, for a taxable assessed property value of $250,000
- Based on current market conditions.
FREQUENTLY ASKED QUESTIONS
What is a General Obligation (GO) Bond?
A GO Bond is a loan a local government repays over time, backed by its full faith and credit – meaning the Town pledges its ad valorem (property tax) taxing power to repay bondholders. Issuing a GO Bond requires voter referendum approval (a vote).
Why borrow instead of paying cash?
Large capital projects like these are difficult to fund from a single year’s operating budget. Bond financing spreads the costs over the useful life of the improvements, mitigating rising construction costs and asks the people who benefit from the infrastructure over time to help pay for it. GO Bonds are the most cost-effective bonds to issue (typically offering the lowest interest rate compared to other bond types).
What can the bond proceeds pay for?
Bonds can be used to pay for the capital projects identified – in this case stormwater and roadways. Bonds are sold to investors, and the proceeds are used to pay for capital projects. Bond proceeds cannot be used for day-to-day operating costs such as salaries.
Why do voters have to approve this bond?
General Obligation Bonds pledge the Town’s taxing authority and full faith and credit. Florida law requires a public referendum (vote) before it can be issued.
How much would this cost me?
For a home with a $250,000 taxable value, it is estimated to be between $10.92 - $14.58 per month (or $131 to $175 annually). (See Estimated Tax Impact above for more information.)
When would the Town receive the funds?
If voters approve the referendum, the Town will work with its Bond Counsel and financial advisor on issuance. Timing would be coordinated with the start date of individual projects.
What happens if the referendum does not pass?
The Town Commission would need to decide how to proceed: revisit the project list, pursue an alternative financing mechanism or fund projects incrementally through the annual operating budget as resources allow.
HAVE QUESTIONS BEFORE NOVEMBER?
Town staff can walk through the financing plan, ballot language or any projects you may wish to discuss at any Town Commission meeting/workshop or by request. Community groups and civic associations are welcome to request a short presentation.
Town Hall
507 Ocean Avenue, Melbourne Beach, FL 32951
(321) 724-5860
townmanager@melbournebeachfl.org