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THE FOLLOWING LETTER FROM CROTON UNITED'S PAUL STEINBERG APPEARS IN THE 1/29/15 EDITION OF THE GAZETTE:
To
the editor:
Plans
for revenue generation from the Gouveia endowment and property as set forth by
Mayor Weigman and Trustee Pugh are risky on both investment and legal grounds.
Mayor Weigman proposes to borrow at the village General Obligation (GO) bond
rate and invest the Gouveia money. He says this is smart because the difference
will produce net revenue.
What the Mayor describes is properly called an "arbitrage bond" and
it can result in the IRS declaring Village GO bonds to be taxable. This would
have serious consequences, including potentially locking the Village out of the
credit markets.
Mr. Pugh goes even further and is seeking a 5 percent return on Treasuries, or
possibly investing in the stock market. READ THE REST HERE https://www.facebook.com/notes/croton-united/croton-united-member-paul-steinbergs-129-gazette-letter-regarding-the-gouveia-ac/402212069935830
Shouldn't this be forwarded to someone up the food chain? Like our village auditors or the people that issue our bonds?????????????????????
ReplyDeleteCrickey... what are these people smoking in thinking up these schemes?
ReplyDeleteAnd are they going to use the same opaque, private process for awarding a B&B opportunity as they used to give the environmental school access (at what annual net to the Village) to a publicly owned, paid for, and subsidized by tax dollars (or lack thereof)? I agree - who up the food chain needs to hear about this? Westchester County DA? NYS Attorney General? Good investigative reporter looking to do a good story? All of the above?