Notes from Rick Current:
Wanted to consolidate the financial issues for Roads Committee in advance of the 20 June Town Meeting.
1. The town can initiate a General Obligation Bond or establish A Special Improvement District (SID).
There are no other choices for a town.
2. A General Obligation Bond is tax deductible an SID is not.
3. A General Obligation Bond is repaid by all tax payers through the establishment of a mill levy. Each
tax payer (in accordance with the law) would have the same mill levy. An SID can be structured with other repayment options (one time payment, early payment, etc.).
4. At the 20 June meeting Alan Matlosz, George K. Baum & Company, will make a presentation focusing on the requirements of a General Obligation Bond. Included in his presentation will
be an approximation of the cost to each tax payer. He will be using a working
figure of $3 million (for the project) and the assessed value of our properties/homes on file at Arapahoe
County. I?’ve asked him to apply the resulting mill levy to different values so that folks attending can see their annual cost for the project. He will also make clear that the mill levy is not a personal obligation?—it is an increase in property taxes that allows the owner of the property to realize
the tax advantages of the bond.
Additionally, Alan will provide a hand out explaining SIDs and will answer any and all questions. Our goal is to strike an even balance between full disclosure of all funding alternatives while simultaneously fulfilling the mandate we received from the town
in the 1999 Roads Survey?—people want a good deal, a smart deal, and a tax advantaged repayment scheme.
5. Following the 20 June Meeting formal contact will be made with all interested financial institutions
regarding their desire to do this deal and for how much. The total cost of the bond involves compensation to the investment banker who does the deal and the bond attorney who sees to the legal amenities. Their compensation rates vary as does the quality of service we can expect.
When we reach that point in the process I believe the Trustees will need to make the final call. Thus far we are committed to no one.
6. You have the handouts regarding election schedules (timing), the requirements of a General Obligation Bond, and the Homestead Exemption from Alan.
7. I see one final issue that may require some discussion. A bond created for 25 years passes on the cost of the roads to future tax payers. A shorter term bond, while costing more, gets it done. Let me start the discussion?….I see increased income for the town in about 3 to 5 years, therefore a longer term bond takes me to that place where the Trustees can reduce my mill levy or the mill levy of the folks who buy my house. Also, the less I pay now the better. More discussion on this topic is required.
Wanted to consolidate the financial issues for Roads Committee in advance of the 20 June Town Meeting.
1. The town can initiate a General Obligation Bond or establish A Special Improvement District (SID).
There are no other choices for a town.
2. A General Obligation Bond is tax deductible an SID is not.
3. A General Obligation Bond is repaid by all tax payers through the establishment of a mill levy. Each
tax payer (in accordance with the law) would have the same mill levy. An SID can be structured with other repayment options (one time payment, early payment, etc.).
4. At the 20 June meeting Alan Matlosz, George K. Baum & Company, will make a presentation focusing on the requirements of a General Obligation Bond. Included in his presentation will
be an approximation of the cost to each tax payer. He will be using a working
figure of $3 million (for the project) and the assessed value of our properties/homes on file at Arapahoe
County. I?’ve asked him to apply the resulting mill levy to different values so that folks attending can see their annual cost for the project. He will also make clear that the mill levy is not a personal obligation?—it is an increase in property taxes that allows the owner of the property to realize
the tax advantages of the bond.
Additionally, Alan will provide a hand out explaining SIDs and will answer any and all questions. Our goal is to strike an even balance between full disclosure of all funding alternatives while simultaneously fulfilling the mandate we received from the town
in the 1999 Roads Survey?—people want a good deal, a smart deal, and a tax advantaged repayment scheme.
5. Following the 20 June Meeting formal contact will be made with all interested financial institutions
regarding their desire to do this deal and for how much. The total cost of the bond involves compensation to the investment banker who does the deal and the bond attorney who sees to the legal amenities. Their compensation rates vary as does the quality of service we can expect.
When we reach that point in the process I believe the Trustees will need to make the final call. Thus far we are committed to no one.
6. You have the handouts regarding election schedules (timing), the requirements of a General Obligation Bond, and the Homestead Exemption from Alan.
7. I see one final issue that may require some discussion. A bond created for 25 years passes on the cost of the roads to future tax payers. A shorter term bond, while costing more, gets it done. Let me start the discussion?….I see increased income for the town in about 3 to 5 years, therefore a longer term bond takes me to that place where the Trustees can reduce my mill levy or the mill levy of the folks who buy my house. Also, the less I pay now the better. More discussion on this topic is required.
