Agenda - 10-19-2004-7b - Laserfiche WebLink

Browse Search

heraldsun.com: printer-friendly story [back a5 sunald Voters will face choice on borrowing BY ROB SHAPARD, The Herald-Sun October 12, 2004 7:29 pm CI-iAPEL HILL -- When they go to the polls next month to choose their representatives at home, in Raleigh and in Washington, P.C., voters in North Carolina also will decide whether to amend the state constitution. While three constitutional amendments are set to be on the Nov. 2 ballot, the one drawing the most debate is called Amendment One, and would give local governments another way to borrow money for economic-development projects. The Chapel Hil] Town Council saw enough merit in Amendment One to pass a resolution last month in support of it, although at least one council member who voted in favor now has her doubts. The elected boards of Carrboro, Hillsborough and Orange County have not taken up the matter or passed similar resolutions. The Orange commissioners tentatively are scheduled to hear a presentation on Amendment One and talk about the issue at their Oct, 19 meeting. Supporters of'the amendment are hoping that the third go-round will be the charm. North Carolina voters voted down similar proposals in 1982 and 1993. If voters say yes this time, local goverrunents would be able to pursue "tax-increment financing" for certain projects, Critics say that one of the key drawbacks of the proposal is that if voters give approval now in very general terms, then they would be cut out of the decision when it comes time for communities to actually borrow funds for specific projects. Unlike the "general obligation" bonds with which many voters are familiar, taking on debt through tax- increment financing doesn't require approval by the voters. However, cities, towns and counties still would have to get their financing plans approved by the N.C. Local Government Commission, which also reviews plans for general-obligation bond referenda. Tax-increment financing wouldn't be the only option that local governments have for borrowing significant amounts of money without putting it to a voter referendum, Officials within Orange County have tapped some of those options in the past, such as two-thirds bonds and certificates of participation. North Carolina and Arizona are the last two states that don't allow tax-increment financing, or TIF. Supporters of the amendment tend to refer to the financial tool as self-financing bonds, although Chapel Hill officials have used both phrases in their discussions. http://www.heraldsun,com/tools/printfriendly.cfm?StoryID=532204 10/13/2004