Wednesday, August 6, 2014

From the City regarding assurances the bond money will spent as detailed in the bond plan

"The referendum to issue the bonds is the legal framework for the bond contract. In order to issue the bonds, the City will have to enter into a legal contract with lenders. The contract will contain legal covenants that are binding on the City regardless of any change in Administration or Elected Officials. The covenants would contain the project information and the city will have to follow those legal requirements in the spending of the bond proceeds. Bond proceeds cannot be spent on any items not contained in the covenants. The City’s auditor’s will audit the compliance with the bond covenants every year. If the City did not comply with the covenant that would be a default and there would be serious federal, state, legal, and financial ramifications."