Milton council approves bond reimbursement

Milton Town Council unanimously approved a measure that would allow the town to reimburse itself for funds used in the purchase of a 2-acre parcel between Magnolia and Broad streets that is earmarked for a future municipal building.

At council’s May 5 meeting, Town Manager Kristy Rogers described the resolution as “enabling language” and “a tool in the toolbox” that would allow the town to issue bonds to replenish the realty transfer tax revenue – $1.6 million – that is being used to purchase the 2-acre property, colloquially known as the Betts property, since a portion of the site was once the home of former Councilwoman Leah Betts. Rogers said the resolution was recommended by the town’s financial consultants.

Under the resolution, the town could only reimburse itself up to $1.7 million, and council is limited to a three-year window in which it could potentially seek to do a bond issue. The bonds would be tax exempt, and any bond issuing would have to pass via a public referendum. 

Rogers said the resolution would allow the town to recoup funds for the land purchase and engineering work only. 

Town Solicitor Seth Thompson said the resolution puts the town’s ability to recoup the funds in place now, before settlement takes place on the Betts property acquisition, as trying to do it after settlement would run afoul of Internal Revenue Service regulations. 

While council members agreed that the resolution was a useful tool, there was some consternation as to how it was written. The draft version that circulated before the May 5 meeting led to citizens expressing concerns on social media about whether town officials were being dishonest when they said the Betts property purchase was being funded by transfer taxes. 

Mayor John Collier said he resented the idea of being called dishonest and agreed with Rogers’ assessment that this was a useful tool in the town’s toolbox.

Public speakers, including former Councilman Sam Garde, expressed confusion about how the resolution was written, and sought clarification from council and town administration. Even Collier and Councilwoman Randi Meredith admitted to not totally getting the measure right away, as the resolution did not include a synopsis. 

“It is written in a very confusing manner,” Meredith said.