Financial Director Issues Statement On Ballot Language Allowing For 40-Year Bond
Walter Thomas, finance director for the City of West U., has issued a statement in response to concerns about the proposed ballot language that allows for a 40-year bond for the proposed $13.8 million bond referendum in November.
Council approved the first reading Monday of the ordinance calling for a bond election to finance renovations at Colonial Park and the West U. Recreation Center.
“I understand that there was some concern over the proposed ballot language including an authorization for bonds with a 40 year maturity,” said Thomas. “I believe this language was proposed because it offers the maximum amount of flexibility in constructing the bond issue available by law. The longest amortization period the city has used in my tenure has been 22 years.
“Recent issues have been 20 years or less. For instance, the 2003 YMCA Certificates longest bonds mature in 17 years from the date of issuance. While the term of the longest bonds is normally market driven, I would expect that we will see bonds maturing in 20 years or less.”
Councilman Michael Talianchich raised concerns about the possibility of such a lengthy bond at Monday’s council session.