AG 1993 10 04 - Laserfiche WebLink

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A.' The portion of the bond package for universities would be used for construction and renovation of classroom buildings, laboratory buildings, research facilities, libraries and physical education facilities. Other uses may include continuing education centers, student cafeterias and activity facilities including sports facilities, administrative office buildings and land acquisition. The bonds could also be used to pay for capital improvements at the North Carolina Center for Public Television and to make grants to nonprofit corporations and agencies for making capital improvements to the Area Health Education Centers. Some of the projects include a Fine Arts and Mass Communications Building at Elizabeth City State Uni- versity, phase I of a science and mathematics complex at Appalachian State University and an engineering graduate research center at N.C. State University. Of the $310 million, $12 million is set aside for other critical needs identified by the Board of Governors and $6 million is earmarked for the LrNC Center for Public Television facilities' improvements. A. Finally, the parks component of the bond package provides money for capital improvements in the form of repairs, renovations, new construction and land acquisition for existing state parks and recreation areas. .. Why are these projects, especially water and sewer and the community colleges, important? A recent survey of the current and projected water and wastewater needs around the state found nearly $5.9 billion worth of unfunded projects in water and wastewater supply, treatment and distribution. Counties alone reported $1.95 billion in water supply, treatment and distribution needs, and $10.6 million in treatment, collection and interception needs. Compare that $5.9 billion in needs to the number of projects f'manced by the North Carolina Revolving Loan and Grant Program (43 for a total of $17.2 million in 1993) and you will see the growing gap be- tween needs and available resources. State-of-the-art infrastructure and a highly motivated, well-educated and trained workforce play a signifi- cant part in retaining and attracting business and industry to an area. .. Will my taxes go up? No, the issuance of these bonds will not require any increases in state or local taxes. In developing the bond package, the General Assembly made every effort to assure that the annual payment on these bonds could be handled within the existing revenues of the state. In fact, the General Assembly reduced the size of an initial proposal ($989 million) for state bonds to make sure that there would be no need to increase state taxes. Two other points should be kept in mind. 1. These bonds will not all be issued at the same time.'The State Treasurer, who is responsible for the ac- mai sale of the bonds, will closely monitor conditions in the bond market and collection of state revenues before recommending any sale. 2. Approximately $134 million of the $145 million in bonds issued for water and sewer projects would be made available in the form of loans to local governments for water and sewer projects. The annual loan re- payments by local units will be derived from water and sewer fees, not taxes. iShouldn't we postpone this decision until economic conditions improve? Why act now? The State Bond Referendum is timely given the extremely Iow interest rates of General Obligation Bonds and the strong financial reputation of the State of North Carolina. The State continues to enjoy a low debt service and a Triple A bond rating, which is the envy of many in the nation. Paid for by the NCACC 1993 State Referenda Committee