As of 2018 – McGregor is $26+ Million Dollars in Debt – Do We Need Even More Debt?
The Money borrowed is spent and the City will need even more money to complete the ongoing Utility work.
The Certificate of Obligation Bonds reads – the “per capita amount” for each taxpaying resident of McGregor is $5,074.00.
A Certificate of Obligation Bond – [CO] – is effectively a “Bank Lien” against private property in McGregor.
CO’s and GO’s – in Detail
General Obligation Bonds are the legitimate and expected method for asking Voters permission to acquire and allocate taxpayer money. In the yellow example [ref: above] McLennan County is asking voters to support the Waco Zoo by approving a $14,545,000.00 General Obligation Bond.
Since 1995 the City of McGregor has been using Certificates of Obligation which is best described as “Creative Financing” as a “workaround” to finance projects that are beyond the reach of the normal 10 million dollar City Budget. Certificates of Obligation are controversial because they circumvent voter approval and are considered a deceptive practice by many.
The City of McGregor is allowed 180 days [6 months] to report the 2019 Debt – starting October 1, 2019. Around or before the May 2020 [elections] the new 2019 Debt numbers will be revealed.
The Recap of All Debt – [Located] – Agendas | Budgets | Tax Rate portion of the City Council Annual Budget – [page 77]
The Money borrowed is spent and the City will need even more money to complete the ongoing Utility work. [Reference – Proceeds unspent – below]
The City has borrowed millions of dollars using Certificates of Obligation [CO’s] rather than General Obligation Bonds. Certificates of Obligation Bonds are intended as an emergency mechanism in case of disaster. The City has continuously used CO’s since 1995 circumventing Voter approval. People are saying – I didn’t Vote for all that spending?
What are your thoughts on the high level of debt and repayment of this debt?
Could this level of debt be the reason for your high water bills?
How have these expenditures improved your life?