Bombshell: The GO Bonds Will Last Until 2055
The City is describing the general obligation bond (GO bond) placed before voters on the April 4 ballot as a 20-year effort. The city website reads as follows:
For a household with a $140,000 home and a $15,000 car, the property tax would average an additional $8 in the first year, rising to an [sic] $160 average additional payment in year 20, the final year of the bond program.
The Kansas City Star described the machinations at City Hall thusly:
The council is trying to craft a plan that can win voter approval to borrow $800 million over the next 20 years to address the city’s huge infrastructure needs.
This suggests that what is before voters is a 20-year effort. It isn’t.
The city is suggesting not a single 20-year bond for $800, but a series of twenty 20-year bonds for $40 million each, with the last one being issued in 2036 and paid off over the subsequent 20 years. The first bond would be issued in FY 2017 and the last one in FY2036. Property owners would not finish paying off the final bond until FY 2055.
If City leaders want voter support for a 40-year tax increase, the best way to get it is to make clear to the public exactly what they’re asking for. This is a multi-decade commitment!