Item 5.2 on the city council regular agenda for April 2, 2014 is just another bad deal.
The item introduces a proposed ordinance to refinance bonds (in the amount of $85 million) that were issued in 2005. The chief financial officer is to make the presentation.
Evidently she will claim that the city will save about one million dollars a year by doing this.
Never never land
The 2005 bonds were actually issued to refinance earlier ones, so they have already done this before with the same bond debt. Look at the first line under general obligations in the chart below.
What they are actually doing is extending the payout period from August 15, 2026 to December 31, 2039. Why? This way the principal payments are reduced and since they have to pay less against the principal hey can use the money to augment the city budget.
Who benefits?
Certainly not the taxpayers or their children. Bond counsel will get paid, the financial advisers will get paid, there will be money for those issuing the bonds.
The city will be able to take about one million dollars a year and use it to pay for other things. We know that they are having revenue shortfalls. This will help them a bit.
In the meantime they are using a trick that will cost us dearly.
We deserve better
Brutus
elpasospeak 
This is called, “robbing Peter to pay Paul.” It merely is taking the long route to going broke
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This is really stupid, especially when you consider the total interest and fees that will have been paid. This proves that the City is upside down financially. Note the lack of open, frank discussion about the City’s finances.
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Refinancing for a LOWER Interest rate is a common thing to do, but extending the length of a loan is what desperate businesses do when heading towards bankruptcy. Is the City of El Paso not required to use responsible business practices?
Yes, yes, yes. . . . I know they WANT to be like Houston and Austin and Dallas and have all new buildings and new ballparks and new fancy lighting downtown to attract the millions of people in town that make or have . . . more money than brains. . . but those people have mostly LEFT during the last 20 years when THOSE people found out that their children, their kids, could not get a decent job in El Paso and that they HAD to speak Spanish for all entry level jobs, and most others also.
This “Requirement to speak a foreign language” for 90% of the jobs in El Paso has sent them away. Even if they START their own business, they might attract English speaking customers but Hispanic customers go to where they SEE Hispanic managers, Hispanic ownership and Hispanic personal, even IF they don’t directly speak Spanish when they conduct a transaction.
Many Anglo / and non-Spanish speaking business owners are now hiding in their offices and only putting Hispanic personnel out on the sales floor.
Its been a long standing joke and conversation at the coffee shops and donut shops . . . where Anglo business owners talk with each other: “Well, why don’t we name our businesses “Juan’s Carpet Cleaning, (instead of John’s Carpet Cleaning) and “Manuel’s Auto Repair” (instead of Wendall’s Auto Repair) and the Big One that happened a long time ago: “Casa Ford instead of Lowenfield Ford.” (Used to be El Paso Ford in 1969)
You’d be surprised at the number of Anglo owned businesses that have accumulated mostly Anglo customers and the Hispanic run businesses accumulate mostly Hispanic customers (which is 90% of the population). Its very hard to run a business (and make a profit) when working with a customer base that is only 10% of the population. So, many have LEFT El Paso for English speaking cities.
Sorry, I got off topic, but one causes. . . . the other.
All under the topic of Brain Drain, Money Drain, Business Drain.
I warned, thru every social media, newspaper and direct emails to the City and its’s population that they cannot afford any more long term debt. And thru Comments, like this, so the City “leaders” could read, and understand long term debt.
This last Bond Issue with all the Quality Of Life and the Threats that if you don’t approve it, we will start a fake corporation to build this ballpark and have the fake corporation handle the details since we already signed the contract to build it with any financing whatsoever.
I warned that . . . YES, YES this sounds all good and fine. . . . for now, but next year there will be other projects that really NEED to handled, and the year after and the year after and all the city’s money, and income, will be tied up servicing this ONE Bond Financing. So all future projects are now officially OFF THE TABLE for the next 25-30 years !
Now, here they are wanting to refinance Bonds from 2005 only because they really don’t have the money to service the debt , and the NEW DEBT. )
And what they are doing will not reverse the Brain and Money Drain from the last 20 something years.
Yes, you can buy (finance) some diamond rings for your wife or girlfriend, (putting glitter lipstick on downtown) but does solve the problem? Since she is all “sparkly” now, does that mean she will take in more money?
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yep
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If that girlfriend is all sparkly now, I think you meant to say “does that mean she won’t take in more money in the future?” Of course not. She’ll want a matching necklace, earrings, a new wardrobe, a fur coat, a new car and all that other stuff that goes with the sparkly necklace. Just give her a little time.
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Homeowner 777 describe our local issues very well…So what are the solutions?
…the status quo is breaking the bank: starting with the feds on down!
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So why don’t all of you show up at CC and make these views known? Otherwise, CC just hears the same mindf**k over again from Wilson and the CFO who got us into this mess. It is common to roll over a bond issue for lower rates (the indenture usually only allows this after a specific period of time, like every 10 years). I agree it should not be for and extended repayment period or the city is just another title loan customer living loan to loan.
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Ive watched many of the City Council meetings, online and citizens at these meetings HAVE brought up all of the issues.
Sometimes at every meeting for weeks and weeks and the City Council just STARES out into space, does not say anything. . . and then the last time the final CC vote about this ballpark came about, they (except 2) pulled out their baseball caps, (already hidden, already decided in private) and put them on at the end of the meeting to show THEY were in solidarity with the Fosters, Hunts and Mountainstar. (not the citizens of El Paso)
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Vendidos! They’ve sold out. Besides their ethical turpitude, the saddest thing is that we, the taxpayers, will end up paying for their actions. .
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“Understanding history gives clarity of vision by which one may see through deceit.” — Tao Te Ching LXV, c. 500 BC
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Continuation of “I asked for 600 million and received 300, so I saved you 300. And yes, many still fall for that con. Also remember, there was a surplus, really, even though you still have outstanding debt. A nice business sleight of hand.
The bigger problem is they are discussing giving Wilson, a two year extension. Now isn’t the same person that was raring to leave because in her arrogance, fueled by Times propaganda, was positive Florida wanted her. Dallas didn’t want her either. They scoffed at her outrageous salary demands.
Odd, that El Paso is the only willing to pay unrealistic salaries because “you get what you paid for”. Yes, we’re still paying!
More frightening, the talk of hiring Wilson the Hun or Miami Vice Ortega as a county manager ! The same people that got the city in a mess. It has to be the sun.
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