$13,285,000 more for the ball park

When the ball park bonds were originally sold the city told us they would make a large bullet payment of $17.4 million on the bonds in 2023.

We wrote about that in No Principles back in November of 2013.

No one should be surprised that city council knew that coming up with an extra $17.4 million dollars all at one time would not be possible.

The solution

The new management at the city has taken the steps necessary to keep us from having to cough up the money in 2023.

The April 11, 2016 meeting of the Downtown Development Corporation (city council in sheep’s clothing) gave permission to sell refinancing bonds.  The refinancing bonds will be used to buy back bonds that were issued in 2013 and thus eliminate the bullet payment.

Interest rates have gone down and money can be saved by locking in a lower rate through refinancing.

Unfortunately they felt the need to finance the $17.4 million also.

The result?

From the refinancing resolution:

the aggregate amount of payments to be made on the Series 2016 Bonds shall not exceed the aggregate amount of payments that would have been made on the refunded Series 2013 Tax Exempt Bonds had the refunding not occurred by more than $13,285,000, net of any issuer contribution

Even with the interest savings we still are going to pay up to another $13.2 million in interest because of the need to finance the $17.4 million bullet payment.

The problem here is that financing numbers did not work back in 2013.  The city put the $17.4 million in as a bullet payment to make it look like they financing was viable.

Does it ever end?

We deserve better

Brutus

7 Responses to $13,285,000 more for the ball park

  1. Anonymous says:

    Speaking of EPISD….”It;s all for the children, don’t ya know…”

    Like

  2. The Truth says:

    Another big outlay of tax dollars that did nothing to create good jobs for El Pasoans. The few good jobs were given to people from out of town. Locals get to hawk beer and peanuts and pick up trash for minimum wage.

    Liked by 1 person

    • Sad El Pasoan says:

      The peso devaluation is keeping a lot of Mexican shoppers away from El Paso. Too many stores are going out of business and many more will follow. Consequently, our unemployment rate is going to increase tremendously. SABER Research Institute estimated that Mexican nationals spent in stores and restaurants in El Paso $446 million in 2012. I wonder what the numbers are for 2013, 2014, 2015 and 2016. Our City leaders need to be realistic and understand that El Paso will probably be bankrupt in a couple of years.

      Like

  3. ManintheMoon says:

    El Paso the home of the grand,great white elephant sale,Progressive show room of what can be done conning and scamming the people’s tax dollars. Yep sure some one will say how offended they are that there are those who refuse to support such white elephant projects and how not supporting such brain dead non-sense, as they pat them selves on the back, is refusing positive change in El Paso as the bills and high cost roll in for such positive change. Well people how is the positive change working out for you now when you see your tax bill? Just more stupid in El Paso!

    Like

  4. And, to think of the names those of us who opposed that stupid ball park were called, as we tried – in vain – to warn everybody in sight that this was not a good deal for the taxpayers. Well, this old man, this opponent of “growth” at any cost, this obstructionist, now says (sadly): “I told you so.”

    Liked by 1 person

  5. mamboman3 says:

    And yet just recently there was the Times headline that they had SAVED millions on the financing by doing something or other…I can’t remember. I believe this TRUMPS those so called savings!!! We’re back to Carmen’s fuzzy math baloney.

    Like

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