Q & A's on the Lake Worth 2020 General Obligation Bond

Comment Up

QUESTION #1
From: Lynn Anderson
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.

ANSWSER #1:

From: LW 2020 [mailto:lw2020@LakeWorth.org]
Sent: Monday, August 11, 2014 5:13 PM
To: 'lynn113@
Subject: RE: Question on legality of bond usage

In response to your 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.

QUESTION #2

Thank you for your opinion.

Next question, why do we have a bond  counsel when this thing hasn’t passed?

ANSWER #2 

From: LW 2020 [mailto:lw2020@LakeWorth.org]
Sent: Tuesday, August 12, 2014 3:44 PM
To: 'lynn113@
Subject: RE: Question on legality of bond usage

I heard from the appropriate department regarding your question:

Lake Worth has always had a Bond Counsel, as do almost all governmental entities.  The firm only charges when it does work (ie if a bond is issued). 

QUESTION #3

Thank you.

My next question is, did your bond counsel, when it “opined,” charge you for that advice?

ANSWER #3

From: LW 2020 [mailto:lw2020@LakeWorth.org]
Sent: Wednesday, August 13, 2014 9:17 AM
To: 'lynn113@
Subject: RE: Question on legality of bond usage

The appropriate staff has responded back on your question:

The Bond Council did not charge for an opinion.  If a bond is issued, then there is a fee paid to Bond Counsel for all legal work necessary to issue the bonds.  If no bond is issued, then any advice given is without charge.