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t~ <br />North Carolinians, for Jobs ear Progress <br />VOTE FOR AMENDMENT ONE <br />Questions &Answers <br />What is aself-financing bond? <br />It is an economic development tool used by conununities across America to attract jobs, <br />revitalize corrununities and neighborhoods, and increase property values, North Carolina <br />is one of only two states in the country that does not have this tool. <br />How are the bonds used? <br />Local govermnents issue the bonds to pay for public improvements, such as sheets or <br />water and sewer lines, associated with private investment in development districts, <br />What kind of developments? <br />development that can be supported by self-financing bonds include new manufacturing <br />plants, re-use of abandoned or vacant facilities, affordable housing, commercial <br />development in inner city areas, redevelopment of areas damaged by enviromnental <br />pollution or natural disasters. <br />Why are they called self-financing development bonds? <br />Bonds are paid off fiom additional tax revenues collected within a development district• <br />that has experienced higher property values as a result of public and private inveshnent <br />within that district. <br />Who creates the development dish°ict? <br />Local govenunents, following discussions with landowners, designate the boundaries of <br />the development districts. The districts don't go into effect until the State Local <br />Government Conunission has approved the development plan, <br />Will the property tax rate be raised to pay off the bonds? <br />No. The existing tax rate in the community and development district stays the same. <br />Who approves issuance of the bonds? <br />The Local Government Comrnission in the St<1te Treasurer's Office has final approval <br />authority.. The Cornnission is an independent non-partisan organization, North Carolina <br />is oue of few states in the country that gives such authority to an arms length state <br />conmussron and the only one that gives the state final authority on approval to issue <br />bonds.. Over many decades, the Corrrrnission has done an extraordinary joL of protecting <br />the financial strength of local connnunities. North Carolina has 25 percent of the AAA <br />financial rated communities in the country, far more than any other state. <br /> <br />