Costs Blow Local Budgets

The New York Times finally catches up with what North Carolina local governments have been saying for the past few years namely that Building Costs Deal Blow to Local Budgets

State and local governments in many parts of the country are struggling to pay for roads, bridges and other building projects because of rising construction costs, adding another burden to budgets already stressed by the troubled housing market.

The problems have come as many governments pursue ambitious projects to improve roads and airports, build schools and upgrade long-neglected water and sewer systems. Many of the projects were conceived when money from property, sales and income taxes was steady and interest rates low, but officials say the ground has shifted beneath their feet.

As we said here back in November, Construction Inflation has long been rising faster than the Consumer Price Index, the general measure of inflation.

3 NC Counties Aim For Transfer Tax

According to a chart released by the North Carolina Association of County Commissioners, three NC counties have put a Transfer Tax option on the ballot for 2008. Gates and Pamlico voters will see the referendum at the May primary while Polk has scheduled a vote for November.

2008 Local Option Revenue Referendums
County	Revenue option	When	Outcome
Alexander	Sales	Jan. 8	Successful
Burke	Sales	Nov. 4
Caswell	Sales	May 6
Duplin	Sales	May 6
Edgecombe	Sales	May 6
Gates	Land transfer	May 6
Guilford	Sales	May 6
Henderson	Sales	May 6
Lee	Undecided	May 6
Lincoln	Sales	May 6
Nash	Sales	May 6
Onslow	Sales	May 6
Orange	Undecided	May 6
Pamlico	Land transfer	May 6
Polk	Land transfer	Nov. 4
Wayne	Sales	May 6
Wilkes	Sales	Nov. 4
Wilson	Sales	May 6

Hat tip: Drafting Musings

Standard & Poor's Praises Currituck

According to the Outer Banks Sentinel Standard & Poor's has raised its credit rating for Currituck County to reflect financing of the county's mainland water system.

Standard and Poor's recognized Currituck for ... closing out the past five fiscal years with operating budget surpluses and substantially increasing the county's property tax base.
Currituck County's high rating is also earned by additional factors, including a strong residential tax base, diverse revenue stream, high fund balance reserves and a prosperous tourism industry. Standard and Poor's also praises Currituck County's manageable debt burden and focus on a pay-as-you-go capital financing plan.
A majority of Currituck's revenues come through property taxes, sales tax, occupancy tax and real estate transfer tax.

Subprime Voted Word of the Year

Yesterday the American Dialect Society announced "subprime" as 2007 Word of the Year at its annual convention in Chicago. The Society's quarterly journal American Speech is published by Duke University Press. A press release issued Friday described how "subprime" also won a new category for real estate words and handily beat out common 2007 words like "waterboarding", "surge" and "Facebook" for the overall title.

“Subprime” Voted 2007 Word of the Year by American Dialect Society

HILTON CHICAGO—JAN. 4—In its 18th annual words of the year vote, the American Dialect Society voted “subprime” as the word of the year. Subprime is an adjective used to describe a risky or less than ideal loan, mortgage, or investment. Subprime was also winner of a brand-new 2007 category for real estate words, a category which reflects the preoccupation of the press and public for the past year with a deepening mortgage crisis.

2007 WORD OF THE YEAR WINNER:

• subprime, an adjective used to describe a risky or less than ideal loan, mortgage, or investment. 79 votes


• green- prefix/compounding form Designates environmental concern, as in greenwashing. 9 votes
• surge an increase in troops in a war zone. 1 votes
• Facebook all parts of speech. 11 votes
• waterboarding an interrogation technique in which the subject is immobilized and doused with water to simulate drowning. 1 votes
• Googlegänger A person with your name who shows up when you google yourself. 7 votes
• wide stance, to have a To be hypocritical or to express two conflicting points of view. When Senator Larry Craig was arrested in a public restroom and accused of making signals with his foot that police said meant he was in search of a anonymous sex, Craig said it was a misunderstanding and that he just had a wide stance when using the toilet. 2 votes

NEW CATEGORY: REAL ESTATE/MORTGAGE/LOAN WORDS WINNER:

• subprime Used to describe a risky or poorly documented loan or mortgage. 65 votes


• exploding ARM An Adjustable Rate Mortgage whose rates soon rise beyond a borrower’s ability to pay. 10 votes
• liar’s loan/liar loan Money borrowed from a financial institution under false pretenses, especially in the form of a “stated income” or “no-doc” loan which can permit a borrower to exaggerate income. 1 vote
• NINJA No Income, No Job or Assets. A poorly documented loan made to a high-risk borrower. 34 votes
• scratch and dent loan A loan or mortgage that has become a risky debt investment, especially one secured with minimal documentation or made by a borrower who has missed payments. 2 votes