Health & Fitness
Capitola Needs To Borrow Money
Capitola needs to borrow money to pay our bills and meet our payroll. But this is a one time problem caused by the flood. After the borrowing our budget should be in the black.
The Capitola General Fund for 20010/11 is in the red. The insurance company has denied our claims. . Flood damage repairs cost $1.25 million. The cost to relocate the Pacific Cove Mobile Home Park folks is estimated at $1.25 million. Capitola needs to borrow money to pay our bills.
The cheapest way to borrow money is a bond issue. To repay the bond issue in ten years means we would not burden our children with our problems. The cost to repay the bond issue is $350,000 per year. On the same ballot for the bond issuance, there would be a measure to increase the TOT tax by 2 percent. The funds for the payback would come from the TOT tax generated by the new hotel on 41st Avenue, the 2 percent TOT tax increase and the opening of .
This should resolve the flood problem, which is a one-time event. Then we should once again be back on the positive budget path that existed before the flood.
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