CAÑON CITY AREA METROPOLITAN RECREATION AND PARK DISTRICT BALLOT ISSUE # 6B:  POOL DEBT FINANCING

SHALL CAÑON CITY AREA METROPOLITAN RECREATION AND PARK DISTRICT DEBT BE INCREASED UP TO $24.8 MILLION, WITH A MAXIMUM REPAYMENT COST OF UP TO $44 MILLION, AND SHALL DISTRICT TAXES BE INCREASED UP TO $1.68 MILLION ANNUALLY IF NECESSARY, BUT ONLY AFTER THE APPLICATION OF DEDICATED SALES AND USE TAX REVENUES RECEIVED FROM THE CITY OF CAÑON CITY TO REPAY THE DEBT, ALL FOR THE PURPOSE OF FINANCING THE COSTS OF CONSTRUCTING AND EQUIPPING A NEW COMMUNITY RECREATION POOL TO REPLACE THE DISTRICT’S PRIOR SWIMMING POOL WHICH WAS PERMANENTLY CLOSED, SUCH DEBT TO CONSIST OF THE ISSUANCE AND PAYMENT OF GENERAL OBLIGATION BONDS WHICH SHALL BEAR INTEREST AT A MAXIMUM NET EFFECTIVE INTEREST RATE NOT TO EXCEED 5.5% PER ANNUM AND BE ISSUED AT SUCH TIMES AND PRICES (AT, ABOVE OR BELOW PAR) AND IN SUCH MANNER AND CONTAINING SUCH TERMS, NOT INCONSISTENT HEREWITH, AS THE BOARD OF DIRECTORS MAY DETERMINE, PROVIDED THAT ISSUANCE OF DEBT AUTHORIZED BY THIS BALLOT MEASURE SHALL BE CONDITIONED UPON PRIOR VOTER APPROVAL OF A BALLOT MEASURE AUTHORIZING THE CITY OF CAÑON CITY DEDICATED SALES AND USE TAX; SHALL AD VALOREM PROPERTY TAXES BE LEVIED, IF NECESSARY, WITHOUT LIMIT AS TO THE MILL RATE TO GENERATE AMOUNTS SUFFICIENT IN EACH YEAR TO PAY THE PRINCIPAL OF, PREMIUM IF ANY, AND INTEREST ON SUCH DEBT BUT ONLY AFTER THE APPLICATION OF DEDICATED SALES AND USE TAX REVENUES RECEIVED FROM THE CITY OF CAÑON CITY; AND SHALL THE DEDICATED REVENUES RECEIVED FROM THE CITY OF CAÑON CITY AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES AND THE PROCEEDS OF THE BONDS CONSTITUTE A VOTER-APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?

What does this language mean?

This would allow the Cañon City Area Recreation and Park District to go into debt to sell General Obligation Bonds in the amount of $24.8 million to replace the Icabone Swimming Pool.  The debt would be paid off over a period of 25 years at an interest rate of no higher than 5.5%.  It is anticipated the interest rate will be closer to 4% when the bonds are sold, so the repayment cost will end up being lower than what the ballot language says.  The 5.5% number is used to meet TABOR requirements. Rather than using property tax to pay off the bonds, the District would use the revenue from the .30% sales tax question from the City of Cañon City.  The Recreation District is simply asking for permission to go into debt to construct a new swimming facility.  Once the bonds are paid off, this will also sunset.