Wake Me Up Before You go GO
There are three types of bonds the City can issue.
- Certificates of Obligation “COs”
- General Obligation Bonds “GOs”
- Revenue Bonds
CO Bonds are not subject to voter approval and are usually supported by tax but can be combined with other revenue source.
GO Bonds are voter approved and tax supported.
Revenue Bonds are not subject to voter approval and are supported by a specific revenue stream e.g. water, sewer or drainage collections.
I think that the proposed $2.7M renovation of the Mayborn Center should be taken to the voters for approval or disapproval in the form of a GO Bond election. This is a discretionary expense that will generate minimal returns on investment. The professionally prepared, tax-payer funded Mayborn Center report very clearly creates low expectations for any type of boost to the local economy see my previous post. In fact, it’s best-case scenario shows that it will still require over $400K a year in taxpayer subsidies to keep the doors open. I have no problem issuing COs for necessary infrastructure like water and sewer line replacement, road construction (unless the dollars go into the pocket of Councilmen) or economic development projects. But it is the truly discretionary projects that I think should be voted on by the public. The Parks Bond is a great example of the voters giving a mandate to invest significant dollars in our parks system. The voters spoke, we acted accordingly and the projects are underway. Why should the Council deny the voters an opportunity to be heard in this case? After all whose money is it?