I'm not certain about this, but it would behoove all parties to look
carefully at the proposal: is the financing mechanism based on general
obligation bonds? Or on revenue bonds? Big difference. The former pledges
the full faith and credit of the city (say, property taxpayers), the latter
places the risk only on the bondholders themselves.
I presume this is a general obligation bond proposition because it's gone to
referendum. I would be very concerned that businesses have become exempt
from any obligation under such proposals, since they stand to benefit at
least as much as residents from the stability such projects bring to
economic community.
Andy Driscoll
--
"Whatever keeps you from your work is your work."
Albert Camus
The Driscoll Group/Communications
Writing/Graphics/Strategic Development
1595 Selby Ave./Suite 206
St. Paul, MN 55104
651-649-1188/Fax:651-645-3169
[EMAIL PROTECTED]
http://www.driscollgroup.com
> From: "Tim Bonham" <[EMAIL PROTECTED]>
> Reply-To: [EMAIL PROTECTED]
> Date: Fri, 20 Oct 2000 23:19:53 -0500
> To: "Multiple recipients of list" <[EMAIL PROTECTED]>
> Subject: Re: Library referendum
>
> At 08:53 AM 10/20/2000, you wrote:
>> Besides the tax
>> bite--actually the tax bite is not the isue for residents, it's an issue for
>> businesses--shortsighted though it be.
>> ...
>> Wizard Marks, Central
> Actually, Wizard, the tax bite from referendums like this is entirely on
> the residents; business property is completely exempt from these additional
> taxes. This is a little 'loophole' that the legislature gave to business
> interests a few years ago.
> Then business interests put pressure on elected officials to keep
> property tax rates down, often successfully. So then these elected boards
> use referendums (paid only by residents) to generate funds for needed
> things (like smaller class size) which should have been funded by an
> increase in the basic property tax rates (paid by both residents and
> businesses). So the net effect of this legislature change is a shift in
> the property tax burden from business property to residential
> property. [Plus a significant increase in the number of referendums being
> proposed!]
>
>
