Bond Issuance Mishap to Cost Brookfield Taxpayers

The bonds sold to finance a project to extend a water line down Federal Road were mistakenly sold tax-free, meaning the issue will cost the town, the News Times reports.

According to the report, the town owes the IRS $289,000 and will have to spend an additional $150,000 to swap the tax-free bonds for taxable ones. The errors were made in 2010 and 2013. 

The burden falls on property owners along Federal Road, who will pay for the error in the form of a benefit assessment, the size of which has not been determined, the paper reports.

First Selectman Bill Tinsley said the town administration was “thoroughly culpable” for the mistake.

It is unclear who is to blame for the error, the paper reports. Howard Lasser, a member of the Board of Selectmen at the time told the paper unless the issue had been taken across an IRS agent, the problem would not have been identified.

Read the full story at the News Times.

Image via Shutterstock

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