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beachFool

Beach Fanatic
May 6, 2007
938
442
>>>If Walton County approves a 75 million dollar loan or bond and we were to receive the Tiger Grant and then be forced to secure a Bank loan of 8.5 million you would carry the debt load in Walton County from $30,725 million to $113,725 million dollars.

This would raise the per capita debt from $555 dollars to $2106.00.<<<<


At the meeting last week, both Mr. Imfield and Mr.Kisela addressed this issue.

The proposed bond would not be an general obligation of Walton County but would be solely supported by sales tax revenue.

This may help clear up misconceptions.

http://www.msrb.org/msrb1/glossary/view_def.asp?param=REVENUEBOND

Revenue bonds are payable from identified sources of revenue and do not permit the bondholders to compel taxation or legislative appropriation of funds not pledged for payment of debt service

Unless the indenture allows it, Walton County taxpayers are not on the hook.
 

NotDeadYet

Beach Fanatic
Jul 7, 2007
1,422
489
Please help me out, Buz. The bond would be supported by what sales tax revenue??
Isn't our sales tax revenue all already spoken for?
Am I missing something here? :dunno:
 

beachFool

Beach Fanatic
May 6, 2007
938
442
The recommendation to the BCC is for an additional 1% sales tax to fund a 75M bond issue.

The security for the bond is the projected revenue stream and the underlying asset assuming debt payments could not be made.

According to Bill Imfeld and Grey Kisela the bond would be a revenue bond and not a general obligation of Walton County.

I have seen revenue bonds where the municipal body was a secondary obligator but I take Kisela and Imfeld at their word so the bond issue does not add to the debt burden of Walton County because we ain't on the hook.

I will certainly defer to a municipal accounting expert.
 

NotDeadYet

Beach Fanatic
Jul 7, 2007
1,422
489
Now I am really confused. I knew about the proposed 1% to fund the 75m. What I was asking
about is the additional 8.5m. Are we funding that with the 1% sales tax also?
(assuming it passes)
 

beachFool

Beach Fanatic
May 6, 2007
938
442
8.5 million was tied to other road construction but it was some type of grant and it was unclear if we would qualify.

The BCC rejected it.

On the other issue, the BCC approved language sending a 1/2 cent tax for voter referendum in April.
 

Bob Hudson

Beach Fanatic
May 10, 2008
1,066
739
Santa Rosa Beach
Buz Livingston:759938 said:
The recommendation to the BCC is for an additional 1% sales tax to fund a 75M bond issue.

The security for the bond is the projected revenue stream and the underlying asset assuming debt payments could not be made.

According to Bill Imfeld and Grey Kisela the bond would be a revenue bond and not a general obligation of Walton County.

I have seen revenue bonds where the municipal body was a secondary obligator but I take Kisela and Imfeld at their word so the bond issue does not add to the debt burden of Walton County because we ain't on the hook.

I will certainly defer to a municipal accounting expert.

Buz this document might be of interest to your understanding of how the accounting world looks at long term debt and how it is disclosed in financial reports and audits.
 

Attachments

  • DebtAccountingII.pdf
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buster

Beach Fanatic
Feb 19, 2006
285
47
SoWal
I appreciate y'all sorting this out.

WZEP AM1460

Dawn Moliterno was tasked by the commissioners to work on widening U.S. 331. Meetings she had with the FDOT District 3 Barfield resulted in finding out about a plan to add a second bridge and make it a toll bridge unless the county can come up with $75 million. Moliterno said the bridge is a bottleneck and must be fixed. The highway south of the bridge has four lanes. The second north to Highway 20 is under construction for four lanes.



A task force was created and recommended taking a sales tax increase off to the voters that is only for funding the needed $75 million and would sunset once it was paid.



Moliterno read a letter from Barfield saying the FDOT is experiencing a reduction in funds. The cost of a new bridge is $177 million and the FDOT has $102 million planned for the budget. The $75 million is required by the FDOT and once the bridge is built Barfield said they would work to get the rest of the highway to I-10 widened.



Moliterno said Barfield commented on the recent request for assistance funding from Escambia County for a bridge. Barfield says this is different since that bridge is a replacement of an existing bridge, not for a new bridge.



Commissioner Larry Jones noted the FDOT is looking for additional funds. He said he does not support a toll. Jones says the tolling is not an option. He said if the commissioners go to a referendum then it can pass or fail, but they will not accept a toll. Jones amended his motion to also ask the state to seek other funding if a referendum is turned down.



Several people spoke, some saying the toll is the way to go and some against the toll. Others spoke against either toll or tax. Bob Hudson thanked Jones for his motion, saying they can now concentrate on getting clear numbers. Several others spoke and understanding the whole issue seemed to be a problem.



J.B. Hillard charged that the commissioners went out and brokered a deal with the state to fund part of the bridge. He also questioned why the additional two lanes are needed now. Hillard said there are no numbers presented as to the need. He also said there is a need for four lanes to help north Walton, that south Walton is growing. Commissioner Comander said they have been working with the state, even begging and pleading, but to her knowledge there has been no deal brokered. Bonnie McQuiston asked the commissioners to tell the FDOT they want the original deal, to widen 331 to I-10. J.W. Adkinson talked against the increase in sales tax. Adkinson said he and others have worked hard since 1962 to get the road widened. He said he hopes Walton does not become the highest sales tax county in the state.



The motion to not use a toll to fund the portion FDOT is requesting from Walton and to continue to look for other funding passed. Jones also made a motion that if a sales tax is used, then is can not be changed or extended unless another referendum is passed by the voters. This also passed.



A question was asked about property needed to bring the new bridge to land. The FDOT takes care of right-of-way and their report shows they will take care of it. Lloyd Blue, said the FDOT has already acquired property on the south end.



Finance Director Bill Imfeld says they could use either bank borrowing or bonding. He said the one cent would pay off in 7 years and cost $14 million. If they go with ¾ of penny then it could be paid off in about 10 years. Half a penny would take about 18 years. The more years, the higher interest will be paid. He said they should not go below one half cent. The Walton Commissioners agreed to call for a special election referendum for half a cent. Commissioner Sara Comander said the choice should up to the voters of the county. The vote will be April 24th.
 

rocketman

Beach Comber
Jun 28, 2008
48
11
The Deal

Here's the deal....
No tax....No Toll....
The line has been drawn in the sand....Our bunch looks forward to the April referendum..... As an early retiree, I am opposed to anyyyy!!!! sales tax/toll. Again, I try not to traverse over the current bridge. Quite frankly, our family would rather go by boat from the north end....The question stills remains unanswered why our neighbors to the east continue to receive infrastructure improvement without increased taxation.

There are those of us who have lived here forever that have asked that this bridge be built many years ago. One can remember the old wooden bridge and all the trauma of the structure being decimated by the barges. I would love to hear from the local legislative delegation regarding the issue (that includes the Gaetz family).

Rock on,
Rocketman
 
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