We property owners have a right to know:
New City Bonds to be issued
1. What funds, fees, or taxes would be used to pay off the new bonds?
2. Would the City Attorney receive a commission on the new bonds and what percent would the commission be?
3. Would the new bonds be used to pay off current bonds?
4. What projects would the new bonds be used for?
5. Would the new bonds issued be under the 2% debt limit on the city?
6. Are these bonds a way to place the debt payments on the backs of our children?
Freedom Of Speech believes we should have the backbone to operate the city like a business and not put this debt burden on our children and grandchildren.
New Tax Laws
Key provisions of HEA 1001 include:
Prohibits issuing refunding bonds after June 30, 2008 that have a maximum maturity date longer than the maximum maturity of the bonds being refunded.
Prohibits the use of savings from a refunding for any purpose other than funding a reserve, reducing levies or reducing outstanding debt.
Provides that the local issuing bodies may use surplus bond proceeds or investment earning only to maintain a debt service reserve, to pay on other bonds or to reduce taxes!
The bottom line is this:
Freedom Of Speech would like to explain the deadline this new adminstration is trying to beat and NOT have to follow the NEW LAWS effective as of July 1, 2008:
Any bonds made on or after July 1, 2008 must be used to:
* reducing levies
* reducing outstanding debt
* to pay on other bonds
* to reduce property taxes
Bond prior to this date can be used to refinance other bond. Only with our Council's approval the new adminstration can borrow all the money they want.
Freedom Of Speech would like to ask why would taxpayers want more debt and higher fees?
The clock is ticking...
