The Texas Certificate of Obligation Act allows the voters to petition for an election if they don't want their city to borrow money and the city doesn't want to let the voters decide in a bond election to allow the City to borrow money.
Click Here to Read the Full Story.
Certificates of Obligation are an end-run around the will of the voters so that the City can borrow money and ignore the will of the voters in a bond election.
Fortunately for the citizens of Wilmer, the City's credit rating is a disaster and no reputable banker would even consider a loan. However, it will be the responsibility of the voters to make sure the city conforms to the will of the people. Start or sign a petition to make sure you have a voice and a vote when considering the City's future obligations that will have to be paid by yourselves, your children, and your grandchildren.
Tuesday, November 2, 2010
No End-Run Around the Voters
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3 comments:
Did prop 1 pass?
NAY most assuredly Proposition 1 did NOT pass by about a 2:1 margin.
BUT now that the voters have rejected the bond debt - that doesn't keep the City from borrowing these funds some other way (that's what Certificates of Obligation are).
My original post said no reputable banker would touch Wilmer's debt.
Front page April 3 Dallas Morning News is all about the financial woes of the financial firm selling Wilmer's bond package and making the case for the COs. Check out these links for more info.
Online Article is Here
Looks like we missed this last month
This one is from seven months ago
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