BOARD01205

• Board Meeting Date: 2/11/1981
• Description: CWCB Meeting
• Board Meetings - Doc Type: Meeting

The other major issue which the staff's review has raised

is the question of whether this District has the sort of

financial need which merits assistance from a subsidized state

program. While the letter referenced above from the District's

investment banker indicates that the District is "precluded"

from raising funds by issuing bonds, there are no legal impedi-

ments to doing so. This is because there is no statutory limit

on the bonded indebtedness of a metropolitan district, nor is

there any statutory limit on the mill levy rate or user charges

assessed by a district.

If the District is in fact "precluded" from raising funds

in the bond market, it is either because the property owners

in the District are unwilling to tax themselves at a high enough

rate to obtain what are admittedly, in today's market, high

interest rate bonds, or. because investment bankers are unwilling

to float a bond issue for the District in light of its present

obligations. If the latter situation is the case, it is unlikely

that this situation exists for want of relative wealth in the

area. Homes in the District obviously are in the $70,000 plus

category and the District projects that it will continue to

see significant increases in the number of dwelling units

constructed, thus increasing the District's assessed valuation

over time. If anything, it may be that those who have or are

developing land in the District are under-capitalized, thus

putting a disproportionate burden on the District to raise the

cash needed to provide certain services.

Furthermore, it does not appear to the staff that the cost

of bond money would place an inordinate burden upon the residents

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