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<br />When Can a Referendum be Beld? <br /> <br />It was determined that a referendum could be called and <br />conducted as part of the general election on November 4, 1980. <br />Some debate was had as to whether the bond issue would have <br />a better chance with a high voter turnout or a low voter turnout. <br />The possible effect of other miscellaneous issues on the general <br />election ballot was also a concern. <br /> <br />Who Can Vote? <br /> <br />This was determined to be a significant question. The City <br />Charter now provides that revenue bond issues must be approved <br />by a majority of those voters owning real estate in the City and <br />voting on the issue. However, after the enactment of the City <br />Charter, various law suits have established that such provisions <br />are unconstitutional, both U. S. and State. In other words, it <br />has been held, under "equal protection" judicial decisions, that <br />all registered voters in the City will be entitled to vote in a bond <br />referendum and that a majority of all those voting will have to <br />approve the bonds. <br /> <br />This matter can finally be resolved by amending the City Charter <br />and/or securing an attorney general's opinion that the referendum <br />should proceed in a way contrary to the Charter. In the latter <br />event, a "validation!! proceeding in the Circuit Court would be <br />necessary to guarantee the integrity of the financial obligation <br />involved. <br /> <br />What Determinations are Necessary <br />Prior to Referendum? <br /> <br />Calling a referendum by City Council initially requires an <br />ordinance, which specifies the amount of bonds to be issued <br />and a maximum interest rate to be paid. This fact places <br />inordinate pressure on a situation where a referendum is <br />proposed to occur several years prior to the construction of <br />a major capital project. <br /> <br />Interestingly, the ballot only has to specify the amount of <br />the bonds to be authorized, without reference to an interest <br />maximum. <br /> <br />CURRENT AND FUTURE FISCAL CONSIDERATIONS <br /> <br />Because the Ridgeway Hydro Project is a large one for a community of <br />Martinsville's size and will require a significant commitment of public funds, <br />the concern for the project.'s financial feasibility has always been paramount. <br />As has been described, the project has been analyzed repeatedly by members <br />of Council, City administrators, consultants and highly-qualified citizens. <br /> <br />Finally, however, a pronouncement of feasibility depends on one's view of the <br />future and one's estimates of how the four variable economic factors already <br />mentioned will interrelate with each other, beginning g'enerally at a particular <br />date some time in the future (the time of construction) and continuing over a <br />Ion g-term period (the life of the project). <br /> <br />-8- <br />