by Clayton Moore
OK – The ECT will explain – just exactly how they intend to do it.
What the current Avon Town Councils wants…
A new “open-air” type Music Pavilion, located near Nottingham Lake in Avon.
For the time being…never mind that there is no reasonable/sufficient public parking (in Avon) for future concert goers…and also please ignore this same Council has wasted Millions of Taxpayer funds – on their lawsuit (just ended) with Avon developer – Traer Creek.
Problem for Avon Town Council: How to PAY for this proposed new concert Pavilion.
Taxpayers vs. Certificates of Participation
The Fair Approach: If the current Avon Town Council were “playing fair” the Council members would respect TABOR and put the question of Financing a new Town of Avon Bond on the November 2014, Ballot – in order to pay for this proposed new Pavilion. They’re not doing that.
The Cheating Approach: The current Avon Council instead wants to use a “financing vehicle” called “Certificates of Participation” that is expressly designed to “side-step” and remove the restrictions of TABOR – TABOR of course requiring a VOTE from the Taxpayers who will be forced to pay for the new Bond that finances the proposed multi-million dollar Pavilion.
C.o.P. Financing: In short, is a series of “one year loans” that is required to pay the debt service on the new Bond that pays for this Pavilion. Each year the Avon Council is required to approve that year(s) payment during their annual budget approval process. Note: This current Avon Council is requiring (read: legally obligating) future Town Councils – to approve payment into this debt – until the Bond is retired. If future Avon Councils don’t – their Bond will default.
From Town of Avon Finance Manager (and assistant Town Manger) – Scott Wright. W 970.748.4055 – SWright@Avon-dot-org
Currently Proposed C.o.P. terms (subject to change from this date – 17AUG2014)
C.o.P Term: ~10-15 years
C.o.P. Bond Secured by: Avon’s current RETT (Real Estate Transfer Tax – 2% in Avon today)
Total Loan amount: ~$2,000,00.00 at ~3% Interest
The Politics of it? – Recall (4) Avon Town Council Seats are up this November 2014. (2) of those 4 seats are being vacated by – Term Limited Avon Council members.
A reasonable question: Why won’t these Avon Council members put the question of financing the proposed Music Pavilion on the November 2014 Ballot so Avon Taxpayers can vote on it?
Interesting Note: That small paragraph/insert above? Written by none other than “Editor half the story” – Don Rogers – in his paper – May 15th 2014. Point is, while responsibility to be informed rests with the individual Taxpayer – it is also the job of the local media – to inform the Taxpayers of the Public Record information that effects “their daily lives”. This just one more example of the disdain the ECT has for the so called “reporting” in Roger’s – Daily Fishwrap newspaper. He and his reporters simply won’t tell folks what is really happening in their own Town(s) –yet is happy to insult them, just the same. Go ahead Don – just click on the insert paragraph above.