Taxpayers, here’s how bonds can affect you
Posted on Wed, Jul. 13, 2005
Carrie LevineWhat does borrowing money mean to voters?
It will cost them more money to pay the debt back with interest — resulting in tax rate hikes, service cuts or a combination.
For instance, county finance officials say a projected 2010 debt payment of $239 million would rise. The final payment amount will depend on how much voters agree to borrow in November. County commissioners could ask voters for any amount, as long as they don’t exceed the maximum they set Tuesday night — $607.5 million divided among four categories.
Because the county’s tax rate is influenced by several factors, both revenue and expenses, it is difficult to project the impact rising debt payments will have in future years.
But finance officials say the county’s debt payments have been driving recent budget and tax rate increases.
The county is scheduled to make $207 million in debt payments in 2005-06, and officials say the large payment was a major factor driving the 10.6 percent tax rate increase county board members passed last month.
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http://www.charlotte.com/mld/charlotte/news/local/12119194.htm