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Post date: Sep 9, 2013 1:59:51 AM
Bartlesville Mayor Tom Gorman has refuted the implication in recent ads by bond issue opponents that the conduit financing for the bond issue means the city would be borrowing money and that could increase homeowner taxes: "The proposed Educational Trust Authority is a form of financing that has been used for years across the state by more than 30 districts. It is legally well tested and efficient for the Schools and has no effect on the City's long term ability to issue or acquire debt. The City would NOT be responsible for the debt as has been implied. This City forms the Trust Authority which in turn is a conduit between the Schools and a bank for the Lease/Purchase arrangement. The Lease from the school is the encumbrance to the bank, not the City's 'guarantee'; please remember that the Trust is the conduit, not the City directly."
The conduit financing in the bond issue is a commonly used method to speed up construction projects. This is important for taxpayers since it means we could complete the projects while construction costs and interest rates on the financing are low. Students could also benefit from the facility improvements much sooner. Without the conduit financing, the projects would be delayed by years and we expect that would significantly increase their cost.
UPDATE:
David Austin interviewed Mayor Gorman to get more information about the conduit financing:
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