Rooney Valley News

The Solterra Board has on the agenda for Monday night January 13, the proposal to hire a financial person to prepare to issue bonds this year up to $31 million.

Without a vote of the residents.

Which is why we must take back our right to put this to a vote of all the residents.

The Board has already discussed the matter.  They meet secretly in executive sessions and work these things out.  We get the news at the meeting.  You will see how it works Monday night.

Here is the board packet for Monday night.  The proposal to issue new bonds begins at page 43:

01_13_2020 Regular Meeting – FRMD 1-3

Their decision to issue bonds is based on three false assumptions.

First, they state that the Service Plan approved by Lakewood in 2006 mandates that bonds be issued  in 2020.  No, it doesn’t.

Here is what the board  says in the report to the Board for Monday night:

“Recommend the FRMD approach Ehlers regarding engagement as a municipal advisor for 2020 and potentially beyond (annually renewable retainer engagement is an option). They should be well aware of the Service Plan calling for New Bonds to be issued in 2020.”

In fact, the Service Plan did not require new bonds in 2020.  The Service Plan approved by the City had attached to it a proposed financial model that was drafted for the developer in 2008.  It was an idea of how the financing might look but it was by no means and certainly not final or binding.  An example of how it might work.  It is noteworthy, none of the proposed dates has been followed up to now.

Here is the document from 2008 with focuses on the vague proposed schedule:

Here is the Service Plan.  The pages above begin at page 60.

Fossil Ridge Service Plan

“Demonstrates . . . How the debt could be funded . . . Assumptions . . . Timing based on assumptions . . .”  With a long list of assumptions.  This was an illustration of a proposed model.  No requirements.  No deadlines.

So, there is no deadline.  There is no requirement under the Service Plan to issue any bonds in 202o.  None.

Second, the board is afraid of Brookfield.  Here is what they say in the proposal for Monday night:

“as well as the ongoing efforts by Brookfield (including its financial and legal consultants) to push for new bonds (basically GO issuance up to total authorization of $70 million) as soon as possible.”

They have been afraid of Brookfield for over three years.  Go along to get along.

The majority of the residents were not afraid of Brookfield when they signed petitions to recall the Brookfield employees off the board three years ago.  All but one of the people currently on the board did not sign the petitions – they were afraid.  Still are.

All but one of the board members opposed the recall, act like it never happened and don’t want to offend Brookfield.  Brookfield who suppressed our vote for 11 years, took away our right to vote on future bond debt, who demands another $31 million without explaining what they did with our money that paid for lots (usually funds the infrastructure) or what they spent $31 million on, in addition to the $29 million we have already paid.

It is time to stop being afraid of Brookfield.  There is nothing to be afraid of.

Restoring our right to vote on future bond debt is not something to be afraid of.

The third false assumption is that the board members should make this decision instead of the residents.

Here is the last line in the proposal for Monday night:

“Consider asking them [bond issuance consultant] to provide two different proposals:  (1) 2020 Bond Issuance only (likely to not include some of the items in Other Services above)   (2) 2020 Bond Issue plus annually renewable retainer engagement.”

The state, the county, the city all have to get permission from the residents to increase taxes or go into greater tax debt by issuing bonds.  Brookfield’s attorney lives in a district where she gets to vote.

But we don’t.  Because Brookfield took that right away from us in 2006 when they “voted” to eliminate the right of future residents to vote on bond debt.

We can change that with another ballot issue repealing their ballot issue.

For now, send a message to the board Monday night.  Do not take any steps to issue new bonds.  That is not their decision.  It is our decision.

The Service Plan does not mandate new bonds.

There is no reason to be afraid of Brookfield.

And, most important, Brookfield should not benefit from, and the Board should not be complicit in, issuing new bond debt based upon stealing our right to vote.

John Henderson