There has been much debate on Key Biscayne regarding the upcoming referendum on whether the council should be able to utilize General Obligation (GO) bonds to fund critical resiliency projects. Some of these discussions have spread quite a bit of misinformation, fearmongering and confusion.
Those opposed to the GO bond argue that this process has been rushed, that it is a “blank check” for council, and that only “shovel- ready” projects should be submitted to the voters for approval.
These arguments are not accurate.
First, the village council has been discussing the possibility of a GO bond in order to fund much needed infrastructure projects for some time. Florida law requires that GO bonds be approved by the voters. Because GO bnds afford the best interest rates and payment terms, our council recognized that it makes sense to fund the proposed projects with GO bonds. Voter approval of this type of funding is a very preliminary step.
Another misconception is that a “yes” vote gives the council a “blank check” to use large sums of money as they choose. This is simply not true. The referendum is merely authorizing council to utilize GO bonds when the time comes to fund the planned resiliency projects. No debt will be issued as a result of the vote on the referendum. Rather, all projects and funding will have to go through the normal processes for approval and debt issuance, which requires a 5-2 vote of council. In addition to this, there will be an opportunity for public input on each project. And, GO bonds can only be used for resiliency projects…
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