The Standard Examiner reported on Friday (February 20, 2009), in a reported titled, “South Davis Cultural Arts Center [theatre] now closer to reality,” that:
The city council also voted unanimously to move ahead with a plan to provide some security to the bonding proposal by pledging sales tas as a backup to the RDA bond plan. A public hearing will be held on March 17.
…Councilman Lawrence Wright wondered how the added pledge would add up for a city that already has pledged sales tax revenue to help provide security for the Utah Telecommunications Open Infrastructure Agency.
The reason for the the co-signing using sales tax is an attempt to get a better rate on the bond and Mayor Ron Russell assets it is very low risk. Of course, that’s not his, personal risk. Note: I was unable to find the above article on the web.
Basically, what this means is that taxpayers are, yet again, on the hook (now with a sales taxes, as well) should there be problems with the bond dedicated to a special interest project, the Mayor appears to have a personal stake in. I encourage Centerville residents to attend the March 17th meeting.
For more on the theatre (now dubbed, South Davis Cultural Arts Center) click here.