Not Detroit

August 11, 2013

We have been told that the increase in our baseball park bond costs are due to the recent Detroit bankruptcy.

This article is of interest in that regard.  Detroit’s Bankruptcy Doesn’t Faze the Municipal Bond Market

Quoting from parts of it:

  • Strange as it may seem, Detroit’s bankruptcy filing—the biggest ever for a U.S. city—doesn’t appear to have unnerved the $3.7 trillion U.S. municipal bond market.
  • Localities from Washington State to Alabama to Massachusetts planned to sell $8.6 billion in debt during the first full week of August, the most since April.

Other market forces may have had an effect on bond prices since our Downtown Development Corporation decided to sell it’s bonds starting in the first week of may.

Is the Detroit issue a smoke screen being used to cover up what really happened?

Recently a blogger suggested that the delay in offering the bonds for sale was at the request of certain city council members who wanted to delay the bond issuance until after the election.

That does not make sense to me in that if I were part of the group ramrodding this I would want to make certain that the bonds were sold while I was still in a position to vote.

If the blogger is right someone or someones intervened to cause a delay in the sale of the bonds, thus costing us $17 million.  I would like to know who was involved if the allegation is true.

We deserve better

Brutus


Fat chance

August 10, 2013

Mock El Paso Times put me on to this story from KTSM.

The news anchor tells us that some of the people that submitted potential names for our new baseball team are getting calls from telemarketers.  The reason for the calls is to sell season tickets.

He then tells us ” Still no word yet on exactly how much those tickets will cost.”

The story just does not make sense.  How can they be trying to sell season tickets without telling us how much they will cost?

Then again

Thinking about this again,  that is exactly what has happened with the construction of the arena.  City staff told city council (and thus us) that the stadium would cost $50 million.  We are now north of $62 million.  The city manager recently told council that we will not know the cost until all of the bids are in.

We bought a stadium without knowing how much it will cost.

Lottery tickets

Then again buying season tickets now seems like more of a gesture of moral support than a prudent purchase.

We don’t even know that the arena will be finished.  The city manager told us the other day that if the financing bonds do not sell she will have to stop construction.

Also we do not know if the arena will be finished in time for next year’s season.  According to the city manager they have not even received all of the bids, much less contracted for the work.

If the costs go up again city staff will have to go back to council (sitting as the Downtown Development Corporation) to ask for more money.

Things could happen between now and then.  Buying the tickets now seems like the triumph of hope over reason.

Muckraker


Just comparing

August 9, 2013

Somewhere along the line I learned that being jealous is not good.  I should be happy when someone does well.

Congratulations Juarez!

Children’s museum

Our border neighbor is opening it’s brand new $23 million dollar children’s museum this Friday.

One board member (this person is also a member of the sports group in El Paso) was quoted recently as saying “We want to present (children) with something different from their daily lives and that they can dream big.”

The museum board president said “It is a temple of the city’s restructuring, where children will be learning and constructing a new city”.

Baseball park

Also, on November 19 of last year Juarez opened it’s brand new 12,000 seat baseball stadium costing  $15 million.  Their AAA team, the Indios will play there.

The famous entertainer Juan Gabriel performed at the opening.

It is located at the corner of Reforma and Sanders, an irony that none of us “crazies” could have made up.

Congratulations El Paso

Children’s museum

El Paso might eventually get a new children’s museum.  We voted to fund one in the quality of life bonds.  The city does not have the museum in it’s current roll out plan that covers the next three years, but don’t give up hope we might get one eventually.

Our museum is scheduled to cost $19.25 million.

We had one but it got torn down to build what is evidently our “temple of the city’s restructuring” — our new baseball stadium.

I guess our children’s big dream will have to be about the big debt that our local leaders are leaving for them.

Baseball park

We might get a new baseball park too.  If nothing else goes wrong ours will cost more than $64 million before financing.  Current estimates are that it will seat 8,000 to 9,000 people.

While we probably will not be able to afford Juan Gabriel (look at the city budget) we might be able to get our former mayor to play his guitar.

Greener grass

Lest any of you think that Juarez is getting a better deal here, I need to point out that while El Paso destroyed it’s city hall at a cost of over $70 million for it’s new ballpark, the poor people of Juarez had to tear down a brewery to make room for their ballpark.

We deserve better


Why my wife and I (2 staunch critics of EPISD for a long time) failed to attend a recent community meeting about EPISD

August 8, 2013

This is another post that we received when we made a call for other authors.

The author asked that I attribute it to DUSTY.

I got a note this past Sunday inviting me to a meeting about EPISD. The note is posted below, followed by my reasons for not going to it. Instead we stayed home and watched old reruns of the TV show THE FUGITUVE starring David Janssen. 

THE E MAIL INVITATION…..

 
Sorry to intrude on your Sunday.
 
Seems Monday afternoon was the consensus for us to convene. I’ve arranged to meet at the Federation of Teachers’  Union office located at 4024 Trowbridge at 5:30 PM. SBOE Rep Martha Dominguez has stated she doesn’t feel it necessary to meet with us. Susie Byrd has stated she is not available to meet as well. However, current EPISD trustee Isela Castañon Williams, and former trustee, Rocio Benedicto have tentatively agreed to meet with us. State Representative Marissa Marquez will be sending a representative as well. It would benefit us to include Bob Geske, Chuck Taylor, and other individuals interested in this effort—please forward this invitation to them, since I don’t have their contact information.
 
I was encouraged by the fact that TSTA representatives have expressed interest in getting involved as well. Their inclusion would certainly exhibit a unified show of community. I will be calling them to notify them of this meeting.
 
We’ve got a former superintendent, with connections to the US Department of Eduction that will be providing insight and some guidance as to how to proceed.
 
The primary goal is to craft a letter requesting to be included on the August agenda to discuss the following:
 
*  The Board of Managers’ superintendent search process and community input
*  The request to move Public Forum to the beginning of school board meetings; in addition to removing speakers’ limitations
 
 
I look forward to our collaboration, and the action-oriented plan we derive.
 
 End of E mail

Initially I was intent on going and even took the day off in order to attend. My wife and I re-read the above E mail and began to question why we should go. The only reason I wanted to go was to tell off, in person, the former EPISD board members who were scheduled to attend. Other than that, I couldnt think of a single reason to go. My wife has been to many meetings over the years concerning EPISD and she said it is pointless because they do not listen, but rather promote an agenda that is already in place. Sort of like an infomercial.

MY REASONS FOR NOT GOING…..

Reason number 1 is obvious.

Why on Earth would we want to talk with Isela Castanon Williams and Rocio Benedicto?  They were part of the obscure the truth campaign that came out of EPISD Headquarters when the public started getting a whiff of what has been going on in our schools.  How can someone who was part of the problem be part of the solution?

 

Reason number 2 is simple.

The current appointed board lead by Dee Margo has no interest in community opinion. That is why they needed to be appointed in the first place. It’s doubtful that any of the current appointed board of managers for EPISD  could be elected to anything today. So why would they care what voters think?

Reason number 3.

Begging someone like Dee Margo to do the right thing is pointless. You saw how he voted in the Texas House for his 1 term. He voted against what his constituents wanted and got blown out of the water after one 2 year term. I would never grovel in person or in writing to someone like him. It would be like all those people who lined up to speak against the ball park in order to convince John Cook to do the right thing, it’s pointless and a waste of time.
 

Reason number 4.

The search for superintendent is supposedly already a done deal. Allegedly the appointed board wants Joe Wardy. The writing was already on the wall when Dee complained about the candidates that it’s search firm had found. I was initially encouraged when he said that, but I should have known a candidate was already chosen and now its just window dressing until the great announcement is made.
 

Reason number 5.

The time of public comment and the amount of time per issue is meaningless when the board doesn’t listen anyway. What’s the point? The most honest thing I have ever seen in El Paso politics was Steve Ortega and Beto O’Rourke playing with their cell phones while citizens were speaking on an issue. They didn’t care and didn’t pretend to care. Neither does the EPISD board…appointed or elected.
 

Reason number 6.

Asking the state of Texas to get involved was a mistake. The only thing that might have helped was asking for federal intervention. When the one former superintendent with connections with the DOE is not asked about how to get the feds involved in a takeover of the district, what’s the point? That is what we as a community should be asking for. At least with the feds it’s possible to get non El Paso political and politicallyconnected people involved in resolving the issues. That would make it possible to do a real investigation that would name names and not try and protect certain people. I am not saying it would happen, but at least it’s possible. The state of Texas has already shown with its initial TEA audit how lame and toothless they are.
 

Reason number 7.

 An article written earlier this week on this site stated it perfectly. Know thy place. We are  not a power player in El Paso and therefore our voice has no influence on policy.
 
 
DUSTY

Fitch analysis of the baseball bonds

August 8, 2013

Correction

I would like to start with a correction.  The other day in Not yet I wrote that city council was planning to discuss the email issue in executive session and that there was no item that allowed them to take action after the session.  I was wrong.  The agenda told us that they might take action after executive session and they did.  They delayed for another two weeks.

Bonds

Let me say again that I am personally in favor of building a baseball park.  I disagree with how ours was done and where it will be.

It turns out that selling our baseball park bonds to investors is not as easy as selling a bunch of baloney to our former city council.

Investors are allowed to make choices, unlike the citizens of El Paso.  They get to choose whether or not to buy the bonds while we did not get the right to choose whether to tear down city hall and build a ball park on the site.

Investors rely on bond rating services to analyze the risks and returns of bonds.  Relying on what the bond issuers say would be putting the fox in the hen house.

Fitch Ratings is a bond rating agency that issues reports about  bond offerings around the world.  I read their analysis of the El Paso ball park  bonds and point out the following from the report:

  • The bonds are scheduled to sell via negotiation as early as the first week in May.
  • HIGH OVERALL DEBT BURDEN: Overall debt levels are moderately high. The pace of principal amortization is slightly above average at just over 50%, but is projected to slow given the city’s debt issuance plans.
  • LARGE CAPITAL PLAN: The city’s capital improvement plan (CIP) and debt issuance plans continue to grow to support the city’s ongoing growth related needs and voter-approved quality of life projects. Balancing debt issuance with tax base growth and capital needs is essential to the rating given the city’s growth-related capital pressures and already above average debt service tax rate.
  • ESCALATING DEBT: Rapidly increasing debt burden without offsetting improvement in other credit areas could apply some pressure to the rating.
  • HIGH DEBT BURDEN AND LARGE CAPITAL PLAN  Fitch believes the city will need to balance ongoing capital needs against an already above-average debt service tax rate, slower tax base growth in the near term, and the area’s below-average socio-economic characteristics. The currently average pace of principal amortization is projected to slow in the near term as the city refinances a large bullet maturity and issues additional debt.

Ultimately Fitch rated the base ball bonds as A+, two steps riskier than the city’s AA rating.

Why didn’t they sell the bonds in May?  The bond prospectus was not even issued until June 27, 2013.  Were they planning changes even back then?  Lying to the bond market has federal repercussions.

City staff was forced to approach the Downtown Development Corporation (that’s city council in different clothing) and ask to raise the interest rate they could pay.  Investors did not want our bonds.  The hope is that if we pay higher interest we will be less ugly and someone will invest in the bonds.

I’m hard pressed to think of a single part of this whole city hall, ball park mess that has been handled properly.

We deserve better

Brutus