Economic woes and the local bond issues

CHARLOTTE, N.C. -- Day after day after day, we've been hammered by bad news on the economy, so can we -- or should we -- spend almost a half billion in tax dollars on projects like a new park or greenway?

Mecklenburg County voters will see a proposal on the ballot in November to let the county borrow $250 million over 10 years in bonds. City of Charlotte voters will see three other bond referendums: $170.2 million would go to roads, $10 million is for affordable housing, and $47 million is for neighborhood improvement. All four bonds will be listed separately.

The parks bond will pay for community center improvements, new greenways, a new nature center, and to improve. Road money is designated for several road extensions, improvements, and new sidewalks. For a complete list of the projects planned, visit mycommunitybonds.com.

The advantage of bonds is that a community can fund projects without raising taxes. A municipality has to be cautious not to borrow too much. That puts its credit rating -- its bond rating -- at risk. The group that's pushing for the bonds says the needs aren't going away, even in tough economic times.

"Our kids need places to play soccer, our community needs better water quality, better air quality," said My Community Bonds Co-Chair Chris Perri. "The investment we make in parks bonds, and road bonds … is critical even as the economy softens."

There is a question of usefulness on the bonds as well. With the issues we're facing on Wall Street, will the money even be available?

"The credit crisis means there is less money to lend," said Robert Kravthuk, chairman of the political science department at UNCC.

In today’s market, he says other cities -- including New York -- have been unable to cash in their bonds in full. That situation is likely to improve, especially if the rescue package in Washington, D.C. passes.

Charlotte and Mecklenburg County could see a slight delay, Kravthuk explains, but shouldn’t be kept from doing the projects funded by the 4 bonds.

Charlotte and Mecklenburg County are currently rated AAA for bonds.