Tomorrow’s (June 23, 2015) city council agenda has items on it that would authorize the sale of about $200 million of bonds
The way it breaks out is:
$35,375,000 from the $473,250,00 quality of life bonds that we voted for in 2012. That will bring the total amount issued to $49,375,000. It only took three years to handle 8.3% of what we voted for.
$110,000,000 of refunding bonds. These bonds will be used to pay off bonds that we sold in 2007. The bonds that we sold in 2007 were used to pay off bonds we issued before that.
$62,000,000 in certificates of obligations. Council doesn’t think that we need to vote on these since they know a lot more about what is good for us than we do ourselves.
Debt policy
Council actually has a formal debt management policy. They passed it last week. In part is says:
“Bonds are generally issued with an average life of 20 years or less for general obligation bonds, certificates of obligation and revenue bonds but may be greater for some projects such as landfills and major utility facilities whose lives are greater than 20 years.”
Baloney!
The proposed bond ordinance says:
“the maximum maturity date for any Bonds issued to refund the Refunded Bonds shall not exceed December 31, 2033”.
Let’s see, 2015 to 2033, that’s 18 years.
Refund the Refunded Bonds
That’s 18 years for this sale. What they are re-financing is bonds that were sold in 2007. That brings us to 26 years.
Oh wait! The bonds that were sold back in 2007 were actually sold to refund bonds that had been issued prior to 2007.
Talk about kicking the can down the road.
We deserve better
Brutus
Posted by Brutus 

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