Tuesday, October 6, 2015

Library funding or not, Half Moon Bay

Half Moon Bay Review/Carina Woudenberg, 10/1/15. "Library initiative heads to June ballot. Tax Protection Act would require 'super majority' council vote, 10/1/15.

Image result for Proposed design of Half Moon Bay Library
Proposed Half Moon Bay Library
"While there are no elections in the city of Half Moon Bay this November, a battle looms next year. The Tax Protection Act, a citizens’ initiative that challenges the city’s plan to use lease revenue bonds to fund a new library, has cleared bureaucratic hurdles with more than 700 signatures. It is headed for the 2016 ballot.

....  A lease revenue bond is a funding system usually put in place for projects that will generate income and pay for themselves over time. Opponents of the lease revenue bonds for the library, including David Eblovi (former City Council Candidate), have expressed concern with the fact that a public library is not a revenue-generating entity. Instead, the city plans to finance $5 million toward the $23 million project by paying off its long-term Beachwood debt 20 years earlier than originally expected.

Eblovi  says this funding proposal, while legal, doesn’t make good financial sense in a world in which no one knows when there might be another downturn. He suggests the matter is especially risky in a small town where the bulk of revenue comes from just a few key businesses such as the Ritz-Carlton, Half Moon Bay. Between sales tax and transient occupancy tax, Eblovi said the iconic hotel nets the city $2 million or more in annual revenue.Read article.

Related articleHalf Moon Bay Review/Mark Noack, 2/11/15, "City Council approves funding plan for library. City approves $8 million in bonds.

Reference, Half Moon Bay.  Half Moon Bay Library,  Facebook,  Friends of the HMB Library. Group 4 Architecture. Proposed conceptual design, YouTube, 2:12 minutes.  Core growth, community, and need to update the library:  Grant video, YouTube, 21:33 minutes.   Reference, Bonds.  Community College League of CA, Lease Revenue Bonds/Lease Purchases.  Investopedia, Revenue Bond.   Note graphic:  Conceptual rendering from both Half Moon Bay Review articles, courtesy of Half Moon Bay Library. 

Posted by Kathy Meeh

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