CURRENTS Next Issue Mar 2018 _Currents copy | Page 3
Currents
March 2018
3
Pompano Bonds
T
hat school, streetlight, or
public park in your neigh-
borhood was probably built with
the help of a general obligation
bond issue. Sold to raise funds
for works that benefit the entire
community, GO bonds are
backed by the full faith and credit
of the municipality, which allows
the state or local government to
raise taxes to ensure that the
bonds are paid.
While other investments may
pay higher interest rates, GO
bonds offer the advantage of
solid security, and many offer tax-
free returns as well.
Source: Morningstar.com
If residents approve the Gen-
eral Obligation or GO Bonds in
this month’s expensive and
unnecessary “Special Election”
the City of Pompano Beach Com-
mission will have a very large
slush fund.
As you can read, in section D
- the City is under no obligation
to fund any of the advertised
projects. Could the plans change
under new management?
Additionally, an undefined
amount of the proceeds will be
used to pay off current debts and
obligations. So how much of the
Venice paradise will materialize,
is anyone’s guess.
C. A portion of the costs of the
Projects may be paid or incurred
before the related Bonds are
issued, in anticipation of the
reimbursement of such expendi-
tures from proceeds of such
Bonds. Section 1. 150- 2 of the
Federal income tax regulations
requires the City to officially
declare its intent to use proceeds
of the Bonds to reimburse expen-
ditures paid prior to issuance
thereof as a prerequisite to the
proceeds being treated as used
for reimbursement purposes.
Accordingly, this Resolution shall
serve as evidence of the City' s
intent, within the meaning of Sec-
tion 1. 150- 2 of the Federal
income tax regulations, to issue
the Bonds for reimbursement, if
approved at the Referendum. The
applicable Bonds shall have the
applicable maximum principal
amounts specified in Section 3(B)
hereof and be issued with respect
to the related Projects as speci-
fied in Section 3(B) hereof.
D. Nothing in this Resolution
shall be deemed to require the
City to (i) issue any or all of the
Public Safety Projects General
Obligation Bonds, if same are
approved at the Referendum and/
or to apply proceeds of the Public
Safety Projects General Obliga-
tion Bonds ( or any series
thereof, if issued, to finance any
specific components of the Public
continued on page 4 >
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