The other day in Re-re-financing we saw that the city council was going to vote on issuing new bonds to re-finance bonds that were issued in 2007. The bonds that were issued in 2007 were used to re-finance bonds that were issued before that. We haven’t been able to trace when they were originally issued.
Looking further into the issue the “Amended Continuing Disclosure Report For The Fiscal Year Ended August 31, 2014” showed us that:
The bonds that were issued in 2007 are being paid down at the rate of 3.2 million dollars a year in 2015 increasing to a rate of 5.7 million dollars a year in 2027. It unfortunately was not going to stop there. The final payment listed was going to be in 2032 for $32,795,000.
What they are doing is that they are selling bonds with slow payments in the early years and huge payments at maturity.
In fact, just looking at the final payments for some of the bonds they have already issued we can see that they are back-end loaded. Our children and grand children will have to pay these bills:
2032 $32,795,000 General Obligation Refunding Bonds, Series 2007
2032 $11,355,000 Combination Tax and Revenue Certificates of Obligation, Series 2007
2032 $12,395,000 General Obligation Bonds, Series 2007A
2033 $17,530,000 General Obligation Bonds, Series 2008
2034 $17,700,000 2009B Combination Tax and Revenue Certificates of Obligation
2034 $49,470,000 General Obligation Refunding Bonds, Taxable Series 2014
2035 $48,245,000 Taxable General Obligation Pension Bonds, Series 2007
2036 $19,150,000 2010B Combination Tax and Revenue Certificates of Obligation
2038 $10,520,000 Combination Tax and Revenue Certificates of Obligation, Series 2012
2038 $12,870,000 Combination Tax and Airport Revenue 2014
2040 $22,705,000 Combination Tax and Revenue Certificates of Obligation, Series 2014
There are many more. We left off the ones under ten million dollars.
The bonds above come to over $250 million that will be due in the 2030’s.
Remember that city council had to impose a franchise fee on our water utility just to cover a $3 million budget shortfall this year.
They simply will not have the money to pay off these bonds. What will they do? If we have city representatives that think the same way our current ones do they will re-re-re-re-finance the bonds.
At some point in time this will fall on our heads.
Don’t think for a minute that businesses being asked to move to El Paso have not figured this out.
We deserve better