Certificates of Obligation

Why Should We Care? Certificates of Obligations are like and ATM Machine from Your Pocket
Print this page Why Should We Care? The city recently authorized the issue of $12.8 million of Certificates of Obligation (CO) or "Obligation Bond." By the time the Bond is paid, it will have cost taxpayers $22 million. Why should we care? We should care because this use of CO's is a distortion of the original intent of CO's. CO's were intended to be used for emergency funding when there was not time to get a bond issue passed. We should care because the issuance of CO's obligates taxpayers for the debt the same as Bonds but voters do not get to vote for or against them. CO's treat voters like an ATM machine. Somebody writes a check on us and they take it out of our pocketbook without our consent. The recently coined phrase "Obligation Bonds" is an attempt to give an air of legitimacy to CO's that they do not have. CO's can never have the same standing as Bonds because they have not been approved by the voters. CISD put a $62 million bond obligation before the voters. They called it a $36 million bond because the principle obligation was $36 million. But the total cost to taxpayers is $62 million. It failed by 3% (60 votes). Before the vote was official (canvassed) the CISD Board voted to hold the election again. The "do-over" bond election passed by 1% (35 votes). Why should we care? We should care because the CISD Board gave our democracy a slap in the face. We live in a Republic, but a cornerstone of our great Republic is our democratic process. A long-standing principle of democracy is that after a vote is taken everyone abides by the vote. The CISD Board did not. It is time for a change. If you are tired of the excesses at City Hall and by the CISD Administration, you should vote Saturday, May 13. It is time for the voters to take back the authority they have allowed to be usurped by the politicians and bureaucrats. Vote May 13 in both elections. The best team to bring change on the CISD Board is Brad Parsons in Place 3, W. G. Dempsey in Place 4 (you must write in his name on the blank line), and Teresa Blackwell in Place 5. At City Hall the best team to effect change is Ted Reynolds as Mayor, Sonny Russell at SMD1 and Betty Zuspann at SMD4. Alden Nellis Cleburne, TX 76033 ,

Why Should We Care?

Certificates of Obligations are like and ATM Machine from Your Pocket

Why Should We Care?

The city recently authorized the issue of $12.8 million of Certificates of Obligation (CO) or "Obligation Bond." By the time the Bond is paid, it will have cost taxpayers $22 million. Why should we care?

We should care because this use of CO's is a distortion of the original intent of CO's. CO's were intended to be used for emergency funding when there was not time to get a bond issue passed. We should care because the issuance of CO's obligates taxpayers for the debt the same as Bonds but voters do not get to vote for or against them.

CO's treat voters like an ATM machine. Somebody writes a check on us and they take it out of our pocketbook without our consent.

The recently coined phrase "Obligation Bonds" is an attempt to give an air of legitimacy to CO's that they do not have. CO's can never have the same standing as Bonds because they have not been approved by the voters.

CISD put a $62 million bond obligation before the voters. They called it a $36 million bond because the principle obligation was $36 million. But the total cost to taxpayers is $62 million. It failed by 3% (60 votes). Before the vote was official (canvassed) the CISD Board voted to hold the election again. The "do-over" bond election passed by 1% (35 votes). Why should we care?

We should care because the CISD Board gave our democracy a slap in the face. We live in a Republic, but a cornerstone of our great Republic is our democratic process. A long-standing principle of democracy is that after a vote is taken everyone abides by the vote. The CISD Board did not.

It is time for a change. If you are tired of the excesses at City Hall and by the CISD Administration, you should vote Saturday, May 13. It is time for the voters to take back the authority they have allowed to be usurped by the politicians and bureaucrats.

Vote May 13 in both elections. The best team to bring change on the CISD Board is Brad Parsons in Place 3, W. G. Dempsey in Place 4 (you must write in his name on the blank line), and Teresa Blackwell in Place 5.

At City Hall the best team to effect change is Ted Reynolds as Mayor, Sonny Russell at SMD1 and Betty Zuspann at SMD4.

Alden Nellis
Cleburne, TX 76033 ,