Argument in Opposition to Question 1

Is there a hidden problem with the city’s utility bond offering? Anticipating this offering the VBO submitted 16 questions to City Manager Chris Brady on 6/8/06. To date he continues to stonewall. These are simple, straightforward questions, and the public has a right to know the answers. How can the city ask voters to approve these bonds while keeping the answers hidden from view? If the city has nothing to hide, why no answers? Here are the unanswered questions:

1. What will be the total interest and transactional costs to the city over the life of the bonds?

2. Are these bonds being sold at public auction, to the underwriter offering the best price, or are they being sold through negotiation?

3. Or is the city acting as its own underwriter with the help of the financial advisor?

4. Does the city see each bid and accept the lowest from the underwriter and/or buyer?

5. Who will be employed to handle the bond transactions?

6. Who will be employed to provide advice and counsel on the bond transactions?

7. How much will each be paid?

8. How is each selected?

9. Were any of the above involved in previous bond transactions? If so, how many transactions by each?

10. How much were they paid?

11. How does the city avoid conflicts of interest?

12. How does the city insure that advice is independent?

13. How are underwriters chosen?

14. Have any of those associated with any previous bond issuances made contributions to any ballot issues or to candidates for office to the Mesa city council?

15. What are the bond covenants and payment schedules?

16. What are the reserve requirements and how will they be segregated?

Vote NO on Questions 1, 2, 3 and 4. Go to: http://www.vbo.org

Paid for by:

Valley Business Owners (and Concerned Citizens), Inc.

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