Let’s get out of debt

December 16, 2019

In response to “Constructive’s” comment the other day, one of the things the city could do is to stop issuing debt, even if that means that we need to go without for a while.

The city’s 2020 budget will see us spending $52,850,000 in principal payments on debt and $61,066,101 for interest.

That comes to $113,916,101.

They plan to collect $325,181,058 in property taxes.

Yes 35% of what they collect from property taxes will have to be spent on things that we already have.

That’s before they sell the bonds for the multi-purpose performing arts center and the public safety bonds.

We deserve better

Brutus

 

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What’s next?

December 15, 2019

Way back on November 12, 2019 city staff presented this slide in support of their request for $100 million in certificates of obligation:

Notice that staff assured us that the “Issuance will comply with debt management policy’s maximum debt rate of 35 cents per $100 valuation”.

Well the slide is misleading in at least two ways.

The title implies that the $100 million is what city staff will ask for in 2020.

We now know that they are asking for another $46 million.

Will that keep us under the 35 cent maximum?

Well it looks like they have a problem.

They are forecasting their need to be up to 39.5 cents in 2026.

No problem, really

Their solution is to propose raising the rate to 40 cents per hundred at the Tuesday, December 10, 2019 city council meeting.

Is this incompetence or is it outright lying?

We deserve better

Brutus

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Open line Saturday

December 14, 2019

What’s on your mind?

We deserve better

Brutus

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Call for ideas

December 13, 2019

A reader named “Constructive” made this comment the other day:

Here’s an idea for a future post. Invite commenters to list the services and expenses local government should cut.

That could be a good idea.

Let’s think about it over the weekend and then respond.

We deserve better

Brutus

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Not really $100 million

December 12, 2019

The city is required to make certain disclosures when it intends to issue certificates of obligation.

This came from their notice of intent to issue $100 million in certificates of obligation:

In accordance with Texas Local Government Code Section 271.049, (i) the current principal amount of all of the City’s outstanding public securities secured by and payable from ad valorem taxes is $1,189,489,193.84; (ii) the current combined principal and
interest required to pay all of the City’s outstanding public securities secured by and payable from ad valorem taxes on time and in full is $1,818,279,445.84; (iii) the estimated combined principal and interest required to pay the certificates of obligation to be authorized on time and in full is $173,780,312.50; (iv) the maximum interest rate for the certificates may not exceed the maximum legal interest rate; and (v) the maximum maturity date of the certificates to be authorized is August 15, 2045.

According to the city the $100 million will turn into $174 million by the time we pay the bonds off.

We deserve better

Brutus

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