The City of Asheville will hold a public hearing about taking out $50 million in debt this Tuesday. According to the advertisement, funds will be used for streets, greenways, the Civic Center, City Hall, the city’s responsibilities for the new parking deck at 51 Biltmore Avenue, refinancing of other debt, and more.
The City is going to pay for the projects with Certificates of Participation, stating it is not particularly interested in letting the public vote for the following reasons:
- The cost of a special election necessary to approve a general obligation bond financing, as required by the laws of the state, would result in the expenditure of significant funds.
- The time required for a general obligation bond election would cause an unnecessary delay which would thereby decrease the financial benefits of the projects and refinancing the prior contracts.
- Revenues produced by the projects are insufficient to permit a revenue bond financing.
If you’re worried the city might incur extra costs for going into debt (and putting a lien on City Hall), the following comfort is offered:
The city does not anticipate a property tax increase to to pay [sic. They really meant to toupee.] installment payments falling due under the contract, but will, to the extent required, increase property taxes if necessary to pay installment payments falling due under the contract in any fiscal year during the term of the contract
Lastly, how is the fiscally-conservative portion of the public that can’t afford a lawyer or time off work to do due diligence, supposed to know if Civic Center improvements pertain to the purchase of two mighty pieces of questionable art or improvements to unsanitary indoor plumbing; or if investment in a greenway is the inflated purchase of ROW from a stubborn property owner or provision of infrastructure in an area saturated by cyclists and pedestrians?
