I just got a River City Renaissance Project newsletter with my utility bill.
Second paragraph is asked the question: How will MC Taxpayers Be Affected?
Answer: No General Obligation Bonds repayable with debt service property tax will be sold. Other forms of funding have been put in place to cover the cost of the project.
This is a bald-faced lie.
I have an email from a city finance department top employeee dated 10/2/17 that states the $14.4M bond issue WILL carry the full faith and credit of the City and that a tax levy will be possible to fund the semi annual debt service payments.
He gave the same answer to the arena bonds. General Obligation bonds are eligible for tax levy debt service support.
These are General Obligation Bonds to be sold if approved by 60% of voters on Nov. 7th.
THE CITIZENS ARE THE BANK IN THIS DEAL.
Then the lie is repeated on the back page bottom section.
“No general obligation bonds repayable with debt service property
tax levy will be sold to support this project”.
Somebody in MC City Hall is lying to the citizens on this legal issue.
Who is the author of this newsletter?
Did they show it to the City Finance Director?? Pending interim City Administrator?
The Project Cost chart is a elementary school level exercise to fool the public. NO dollar Estimates of any of the listed revenue sources. Treats the MC citizens like a bunch of naive first graders.
The $9.5M of state funding will be strictly from sales tax on the Gatehouse hotel room sales and any other NEW business facility that gets built within this little 25 acre Urban Renewal District in downtown MC. As of now can you name any new businesses coming? No?
Even at best the state $9.5M will only cover the 20 year cost of interest on these $26.5M of new General Obligation Bonds we are voting on Nov. 7th. That leaves the $26.5M for these other sources with the check marks, but NO figures, to fund.
PLUS the City debt service tax levy when these unknown check marks prove insufficient to do so.
Mason City residents: Demand the Opinion letter on these two bond sale amounts from the City’s Bond Counsel Attorney in Des Moines, NOW. That will set the record straight.
This lying has to be called out and ended.
A Concerned Citizen
Mason City, Iowa
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