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VOL.95 OUftImAM,N.C..1UESUAY•Linty i i 21. I na'l ,
<br /> hr)• 17T.
<br /> ii.iljnilillt.Orilill 14 9:11Ct i14
<br /> Richard J. Komar
<br /> President And Publisher
<br /> W(Iltato E. N. Ifawklns Jon C.Plant Johrl 11.Adonis
<br /> •
<br /> Executive Editor Managing Editor Edttnn.rr l at'
<br /> )c Editor
<br /> ID 13
<br /> ?41:rill I lit . .:::
<br /> ,,,_ .... 0.
<br /> A I seat ieiiing Pei'ioi-i i iai ice
<br /> he city of Durham's strong
<br /> performance in invest- Strong I1Ves
<br /> •
<br /> (ilt( (hCCle r irilt income is he:u'tc •
<br /> Jng, but hardly,as Alaycir %Vin Cut- Helps 13u1 City i troth More
<br /> ley concluded, treason to discourage
<br /> an increasing tax base as a way to
<br /> pay for the amenities the city wants.
<br /> Last week, John Pedersen, the Invest in a nnn,lo'r of piniecls•–flue
<br /> city's finance and.management ser• Arts Cotutr-ii 1men-anon. the civic
<br /> vices director,issued a report show. center, the selirdi lcii renovation of
<br /> ing that the return from city invest- the Carolina TIeati e, the N.C. Nu-
<br /> ,
<br /> ments in the last fiscal year was the semi)of life and $r line e. the Little
<br /> equivalent of a 20.7•cent properly tax River It"::rrt t it', the, ;a:hrdulcd itn-
<br /> rate-1he best return among major pt•uvrnu•ni s:11 r'atui'Ii'; IIills llecrea-
<br /> cilir;s in North Carolina. Lion t'crrtn
<br /> Alayor Gulley said the report Growth has also ternable
<br /> seemed to say the"conventional wis• to absnt I) losses that would Il i ihave
<br /> don"--that an expanding tax base stun ter1 many cities—ilie(losing rif
<br /> through growth offsets the need for Erwin Mills anti r\mini i':a) 'Ii,havu'0
<br /> higher taxes—(vas "completely Co„ for iri'dann'. I'M!lore hint e. it
<br /> wrong." means that rt•qdrnts such as those
<br /> But the report hardly justifies forme In ir•Ioc;de lrec';iui t:of the loss
<br /> that conclusion or the poIRicol Met'it. of GTE Srnllli's iiill.,,,b, hrirtlgnar-
<br /> of a no-grnwlh policy. Ices Will root hate to lake a be:rlhnpi
<br /> For certain, the city should be on the-ale of iIi"it'h,nr.rs.And good(
<br /> thankful that its investments have 111 myth is car Of the f:rims cssttntial
<br /> been managed wisely and that they to haring.low Itrtei('St tates on bond
<br /> are producing a handsome return. Proj('tts. Even Imlay, the city would
<br /> But much of that income is based on be in iin position III Cmisitli•t' howls
<br /> short-lean investment of bond for a $ln million ha:r•ball par k us ith-
<br /> money. As the pond mono:y (lint is out r•ontiitu'd rxl,:trr•l,ri of its lax
<br /> currenll1, hell In investment no- base,
<br /> counts is spent on water, sewer, Liss than Ins rats:l n. the vniur
<br /> roads, parks and other public proj- lion of private promoly itdliio the
<br /> eels, the investment return will de- 1/..,up in thou limo o lint ham uas only
<br /> cline.Then the city will need either $22 million.The I':rpl•:cSec-wily of.
<br /> higher taxes or expansion to finance lice tower in duPOltr•it Uun lawn dtn1-
<br /> iLs public works. 'there's no third bled that—and People's Seem ily
<br /> choice.The slate and federal govern- helped rrcale the nnm,cnlum that
<br /> menls are not going to take up the brought flit' Sitnmillion (in rid Dote!suck. to dott7dnnit bin h mi.'Jhe hotel, in
<br /> Notably,the bonds were approved turn, climbed the pi" -.'Hilt• of the
<br /> • by Voters who, for the most part, public citric center. '1 urn piujet'ts on
<br /> were convince(( that Durham's ex- the boards nnu-, the Aiotaionu 'I•rr
<br /> paneling tax base would enable the bacon (.'n,
<br /> city to undertake the public projects Square,u lit tadd gin•:trlt-i$and lion a
<br /> without major tax increases, year in city iaxes—loollr.• million a
<br /> Expansion of the tax base, both help rcliur the Meals)for rrotther
<br /> through annexations,•t•hith the Cil,v thirds the city wants.
<br /> •Council has aggressively sought,and A decade ago, 1)n ham was flat,
<br /> new construction, has enabled the Growth,particularly in the city,was
<br /> . city to absorb ninny programs that paltry.That did not offer much hope
<br /> were formerly financed by slate and for the aotrnitles or lierrssilies.
<br /> federal governments.Cities that Of course,Durham dons not nerd
<br /> have not had that kind of tax-base or (tan( an•an)(hin:f:7,• Gem:th
<br /> expansion have had to have major policy. San,. f;r,u IIi—citr•h as flint
<br /> increases in faxes.In Chapel)(ill, which requires cspemive extension
<br /> town government faces an g5(H),(xl(1 of enter,
<br /> t cr deficit inW •s
<br /> SD.lgwhichmayrequite more than its mleiaul,rerusts
<br /> a 12 perceul prnprl ty tax in,t','r'nse.It Put I)w ham ltas inn,,. t�ill uu' turf`
<br /> n.
<br /> should he noted That('lapel hill has G,rtny tt ill t t ih,• fore
<br /> High reshit'ih,ii nil growth and has rausr it is;, ninon:e In ronify.'1 1.
<br /> the highest housing tolls in North inn�Inu ttr ii''Iu ' is annnmil}.'l hf
<br /> Carolina- Hinton^ is a tt•fltttinm of
<br /> that nt Ili. not t ra nn In 1■0 bat Ic•Grouttl has enabled Durham to -tn,tc.
<br /> a
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