Half Moon Bay Review/Mark Noack, 7/24/14. "Library dream comes closer to reality. City reviews initial plans for building."
|Funding a city library is not complicated, choice of:|
Vote A: 2/3 votes, "general obligation" bond, property tax;
Vote B: 1/2 + 1 votes, "lease revenue" bond, general fund
Gary Kitahata, a finance consultant hired by the city, suggested the city’s best option would be to bring a bond measure before voters. A general obligation bond measure would require two-thirds approval from voters, and local residents would essentially be agreeing to add on a new charge to their property tax bill. On the plus side, the bonds had the lowest interest rate and were the most equitable of all funding mechanisms.
... The alternative was to issue lease revenue bonds, which the council could issue on their own through a majority vote. This would draw money from the general fund, but it would end up costing the city about 20 percent more in interest over the life of the bonds. General obligation bond would have the lowest interest rate, but it would require two-thirds approval from city residents." Read more.
Note photograph from UMAMI MART, (a food and drink report).
Posted by Kathy Meeh