EPISD bonds–story changes again

Back in EPISD bonds–the story changes we pointed out that EPISD officials were saying one thing to the newspaper and another to the bond advisory committee.

Using the same slide and reading the December 20, 2016 bond order we can see yet another instance where they have failed to tell the whole story.

The chart below shows their plan to issue bonds in 2017 at 3.9%.

episdbondelectionscenarios

According to the December 20, 2016 bond order “the maximum true interest cost of the Bonds shall not exceed 5.00%”.

Further, the chart shows numbers assuming a “AAA” interest rating.  According to a recent article in the Times, Standard and Poors has the district at an “AA-” rating and Fitch just upgraded the district to “AA”.

The district authorized both the superintendent and the deputy superintendent of finance and operations (aka “fuzzy math lady from the city”) to sell the bonds.

If the bonds are sold with an interest rate of 4.5%, over the 25 year life we will pay $189 million in interest on the original $200 million to be sold in this issuance.

We deserve better

Brutus

9 Responses to EPISD bonds–story changes again

  1. Anonymous says:

    Brutus,

    Will this change the annual tax increase per $100K of home valuation due to the bond?

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    • Brutus says:

      EPISD is planning multiple bond sales. This first one is for $200 million of the $667 million. We won’t know the total until they have issued all of the bonds.

      Brutus

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      • Reality Checker says:

        Would you buy or build a new house or a building for your business without knowing how much it is going to cost?

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        • Well not if I could FORCE somebody , anybody else to pay for whatever I want and not be concerned about COST, because somebody else WILL pay for it. Not MY concern how much it cost. That’s how the POLITICIANS, Public Officials in El Taxo look at it. The “Society of Corruption”.

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  2. […] Brutus over there at ElPasoSpeak makes some good points with deeper implications, in this post titled EPISD bonds-story changes again. […]

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  3. We should not be surprised. More “Misrepresentation”, okay LIES. In the “Society of Corruption” in El Taxo nothing is ever the way they say it is. EVERYTHING cost MORE, EVERY building project is ALWAYS late, has cost over runs, has an incapable contractor, and the “original estimate” is misleading or THEY lied to US about the cost. But then THEY can always have Central Appraisal to “Re-evaluate” property “Values”, which of course will be INCREASED and always followed by ANOTHER tax increase. “Oh no, we didn’t increase taxes, your property “values” were just INCREASED, okay, okay “Re-fabricated”.

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  4. Reality Checker says:

    No one in the media or these governmental entities ever talks about the amount of interest to be paid and total cost of a bond before the vote. When they do reference it, they gloss right over it or bury it in the fine print. In the case of facilities like the ballpark and arena, they also never talk about the ongoing maintenance and both direct and indirect operating costs, which must be covered by taxpayers.

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  5. Anonymous says:

    … and so it continues. Keep up the good work, Brutus. This is the only local coverage of this.

    Like

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