In August of 2013 the city sold $60.7 million dollars of bonds at par. These bonds were offered in two groups, $45.1 million in tax-exempt bonds, and $15.6 million worth of taxable bonds. The city evidently received a premium of another almost $4.3 million on the bonds, presumably because of the high interest rate we were willing to pay.
The tax-exempt bonds were sold but the taxable bonds were not. The underwriters had to buy them.
We paid $1.7 million dollars for the privilege of selling these bonds.
Hotel Occupancy Tax
According to a June 26, 2012 presentation from the city’s chief financial officer we can expect to get about $2.4 million each year from the increase in the Hotel Occupancy Tax. You will remember that we were told that this tax along with lease payments from the sports group as well as revenue generated from the 77 games each year would pay for the ball park.
A document available on the city web site tells us that the cost to finance the bonds in 2014 will be $3,052,205.14 for the tax-exempt bonds and $1,091.175.50 for the taxable ones, totaling $4,143,380.64. Those numbers go up slightly in 2015.
I guess the city has been right in telling us that we will have to use general fund revenue to make up the difference.
Those numbers do not include any payment of the principal.
The city’s presentation shows that they plan to make modest principal payments on the taxable bonds starting in 2019. They will start making serious principal payments in 2024 with an ever increasing payment until those bonds are paid for.
No principles
As for the tax-exempt bonds, this chart tells what the city has done to us:
They are planning a “large bullet payment” of $17,455,000 in 2023. The amortization chart is below:
They optimistically talk about the potential of using “excess” Hotel Occupancy Taxes and of the potential of lower market rates. We have already seen HOT taxes coming in under their projections. As for lower interest rates in the future I think that we all know the answer.
Better future
We are not even planning to begin paying for the tax-exempt principal until 2023. Where will that money come from?
We deserve better
Brutus
elpasospeak 
When are we going to get it through our thick heads? We all work for Foster. Hunt and the people in city government. We’re just not on their payroll. It’s our job to pay the bills for the things they want as they build the Foster and Hunt real estate empires.
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Everyone invite your relatives to visit El Paso and put them up in a hotel:)
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Spend time with relatives or pay higher taxes. Tough call.
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I know we are preaching to the choir on this whole issue. We KNEW this would happen to us, but the former mayor, council, and Ms. Wilson had to get their way and pass this entire boondoggle. Here we are, fellow citizens, and based on the Stadium contract, the city can’t even hold events for profit without the “Chihuahua’s” permission. My word, fellow citizens, we have been screwed by the Hunts and Fosters. The big donations they make to the city do not make their actions against their fellow El Pasoans any less repulsive. I wish the two families would just go away, pay their debt to El Paso by paying off the stadium, destruction of City Hall, and the purchase and remodeling of our new City Hall buildings. To the Hunts and Fosters I say, “The ends don’t justify the means!” You don’t pass the smell test.
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Yep. Do the math. Take the true, total cost of the stadium plus the event day operating costs, add to that the tax rebates given to Foster’s Fountains and hist downtown properties as well as Hunt real estate development projects. Subtract from that their total “charitable” donations in recent years, and check the difference. Some people have quietly donated money for years and never asked or agreed to have their names put on buildings. Maybe the Fosters and Hunts putting their names on so many things is part of a strategy to make certain they get the credit so they can get rewarded for their good deeds.
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