“Answer The Question, Please
Mid-September, Middletown Town Council approved $11.4 Million dollars of town debt for the “new library” building at 110 Enterprise Center. Shocking enough was Town Council’s announcement last year to move the library from the center of town, but now, for this debt, instead of a General Obligation Bond, Middletown Town Council decided to use a “Moral Obligation Bond.” Moral Obligation Bonds do not go to the voters for approval. This financial instrument is rarely used and many state leaders advocated for a constitutional ban of Moral Obligation Bonds after their use with 38 Studios.
At the October 20 meeting, Town Council was asked about their decision to use a Moral Obligation Bond. Town Council’s answer was that the bond debt will not affect the tax rate because the bond will be paid for with “Public Private Venture” (PPV) funds that the town gets for providing police and fire services. Town Council pointed out that Middletown used PPV funds to pay for the Police and Fire Station bonds, as well.
Middletown Town Council still owes Middletown residents an answer: The Police and Fire Station bonds were also paid for with PPV funds but were General Obligation Bonds that Middletown voters were asked to approve. So why is Middletown Town Council using a Moral Obligation Bond for the “new library” debt?”
Regards,
John Garagliano
Middletown, RI