Monday, August 11, 2014

Is the use of funds from the General Obligation Bond even legal?

Comment Up:
The city answered the question

We question the city on the legality of this money grab of $63.5 million that will ultimately be $131 million by year 2049 to spend on "drainage and water and sewer facilities."  These uses are enterprise funds.  Is this legal? Enterprise funds would be on a Revenue Bond, not a General Obligation Bond.

OFFICIAL BALLOT CITY OF LAKE WORTH, FLORIDA

BOND REFERENDUM ELECTION – AUGUST 26, 2014
APPROVAL OF "LAKE WORTH 2020" BONDS FOR PUBLIC INFRASTRUCTURE PROJECTS WITHIN THE CITY.

Shall the City of Lake Worth be authorized to issue bonds to acquire and improve roadway, sidewalk, streetlight, streetscape, drainage and water and sewer facilities located within the City in one or more series not exceeding a total principal amount of $63,500,000, payable from an annual ad valorem tax maturing not later than 30 years from the date of each issuance and bearing interest at a rate not exceeding the maximum legal rate.

For bonds ___________ Against bonds______________

4 comments:

Lynn Anderson said...

The city answered--
In response to your below question:

The City’s Bond Counsel – Nabors, Giblin & Nickerson PA have opined that the proposed projects are a lawful expenditure of General Obligation bond proceeds.


From: Lynn Anderson [mailto:lynn113@comcast.net]
Sent: Monday, August 11, 2014 4:08 PM
To: LW 2020
Subject: Question on legality of bond usage

We question the city on the legality of this $63.5 million that will ultimately be $131 million by year 2049 to spend on drainage and “water and sewer facilities." These uses are enterprise funds. Is this legal? Enterprise funds would be on a Revenue Bond, not a General Obligation Bond.

So, I have now e-mailed the bond counsel.

Lynn Anderson said...

Well, I have opined that it might not be kosher.

And next question to the city, why are we hiring bond counsel when this thing hasn't even passed?

lake worth dee mcnamara said...

The info from the City's website that was removed after Mr. Woods' abrupt departure after only 5 1/2 months indicates that the City has $16.5 million dollars in reserve from the water and sewer payments that come from our monthly bills.

These are the proper revenue sources to pay for water and sewer upgrades but the City wants to scare and confuse citizens as to why they need the $63.5 million bond.

kkss21 said...

Just like Torcivia "opined" that this city does not have to pay attention to a vote of the people ? in my opinion we need a new set of "opiners" !