Hidden money

This is an example of why the voters should not approve massive multi-year bond issues:

The slide shows that EPISD has been selling bonds and putting the money into interest bearing accounts.

This is money that they don’t need at the moment but they sold them early to milk some interest money out of us.  Once they sell the bonds we start having to service the debt (principal and interest).

They then park the money in an account and get a lesser interest rate then what we are having to pay on the bonds.

The result?

According to the slide they have generated 8.6 million dollars using this technique.

Other EPISD documents indicate that they intend to use the money to cover cost overruns.

If the voters decide to approve the almost half a billion  dollars in bonds that the city is contemplating they should realize that even the city will need several years to spend the money.

The city could do precisely the same thing as EPISD.

We deserve better

Brutus

 

 

8 Responses to Hidden money

  1. John Dungan says:

    I’d say that the cost of the City’s proposed bonds, plus the total of current outstanding bonds would erase any chance of there being funds available to put into interest bearing accounts. But, then, that’s just me.

    Like

  2. Anonymous says:

    So sorta like money laundering. Put OUR money in one place, one account, so THEY can spend it some where else without accounting for the “some where else”. Are maybe a “Pyramid scam”? EPISD hasn’t changed since the days of Lorenzo Garcia. The days of Cabrera are no different. Inherent corruption. Need to put an FBI desk between the offices of Cabrera, the Board, his CFO. It’s NOT “For the Children”, El Paso voters, taxpayers, it’s a SCAM. Just like City Hall. Lie, deny, deceive.

    Like

  3. JerryK says:

    In some cases, bonds can be issued in what are called tranches. The problem with that approach is that there is more exposure to unfavorable interest rate fluctuations in the bond market. But in a generally falling rate market it can be a good idea.

    Like

  4. karen@luse.net says:

    I wish that chart had a list of the bond projects that were on the ballot related to that funding, and the ones that were completed.

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    • Dan Wever says:

      All Bond information, all projects. is on the EPISD web site. You just have to look for it, but understanding it is a different story. Good Luck

      Like

  5. Fed Up says:

    At best this is deceptive and dishonest. Some might call it fraud.

    Like

  6. You Have to Spend Money to Save Money says:

    If you want to defeat these bonds you have to find people willing to spend lots of money to inform the public and to counter the pro-bond backers because that’s what you are up against. Look at the money spent on the Quality of Life Bond advertising campaign and the EPISD bonds campaign.

    Like

    • Anonymous says:

      Maybe better to spend the money on a RECALL of Margo, the Clown Council. Just one big Society of Corruption. Tax, waste, spend, INCREASE taxes.

      Like

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