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Attorney and bond counsel outline options for pool financing, sales tax ballot language
Summary
Gilmore & Bell reviewed defeasance options for the city's 2020 Refunding Revenue Bonds and advised that bond defeasance does not alter the existing sales tax, which would continue until its 2034 sunset if a new ballot question fails; the council requested two sample sales tax ballot questions for review.
Kevin Cowan of Gilmore & Bell reviewed the process for defeasing the 2020 Refunding Revenue Bonds tied to the La Cygne swimming pool and emphasized that defeasance of those bonds is separate from the city’s 1% sales tax. Cowan told council members that the sales tax would continue to be collected until its sunset date of 2034 if a new ballot question does not pass.
Cowan discussed how ballot language can allocate portions of a sales tax to different uses and stressed the importance of balancing specificity and flexibility in wording. He suggested including a sunset period so future governing bodies can reestablish purposes as priorities change. Mayor Debra Wilson and the council asked questions about implications if a sales tax question fails; Cowan said, "yes" the sales tax would continue as defined until 2034.
The council requested two sample sales-tax ballot questions from Gilmore & Bell to review at the next meeting before any decision on placement of a question on a ballot.
