On June 10, 2008, on this blog, were a series of questions and answers regarding this waste of water user's fees.
According to the story buried on page A-4 of the 10/19/08 Democrat (read the entire story here) matters are even worse than they were in June. Instead of 2.5 Million it has now blossomed into $4.83 Million.
In these tough economic times, only projects that are absolutely critical should even be considered for funding. This is not one of those.
We urge the City Council to DENY the request for more funds and table the water tower.
*****Quote of the Day: When you can't make them see the light, make them feel the heat. Ronald Reagan
SALES TAX BALLOT MEASURE RAISES SERIOUS QUESTIONS!
Monday, October 20, 2008
Thursday, October 9, 2008
OPEN E-MAIL SENT TO SCHOOL BOARD TRUSTEES
THE FOLLOWING E-MAIL HAS BEEN SENT TO TRUSTEES:
Dear Trustee :
In this evening's meeting you will be selecting one of three options regarding the Blue Shield Building.
I urge you to vote for Option 1.
Due to the instability of the financial markets and the Real Estate Market and general economic downturn, you have a unique opportuinty to abandon the purchase of the building.
While people are losing homes to foreclosure, jobs are being lost, retirment desimated, the preception of buying this building sends the wrong message to the taxpayers.
I know that you and three other members of the board have voted in a block, and as of this morning the public believes you will do so once again.
The volitility in the Bond market puts into question the marketability of the Certificates of Participation as well as the interest factor.
The perception of your performace could change substantially with a vote for Option 1.
This is a golden opportunity to turn the Board around and you could be an integral part of this change.
Let's put an end to the turmoil surrounding this building, not just extend it far into the future
Dear Trustee :
In this evening's meeting you will be selecting one of three options regarding the Blue Shield Building.
I urge you to vote for Option 1.
Due to the instability of the financial markets and the Real Estate Market and general economic downturn, you have a unique opportuinty to abandon the purchase of the building.
While people are losing homes to foreclosure, jobs are being lost, retirment desimated, the preception of buying this building sends the wrong message to the taxpayers.
I know that you and three other members of the board have voted in a block, and as of this morning the public believes you will do so once again.
The volitility in the Bond market puts into question the marketability of the Certificates of Participation as well as the interest factor.
The perception of your performace could change substantially with a vote for Option 1.
This is a golden opportunity to turn the Board around and you could be an integral part of this change.
Let's put an end to the turmoil surrounding this building, not just extend it far into the future
Monday, October 6, 2008
School Board About to do it AGAIN
This Thursday, the School Board of Trustees will vote on three "Options" regarding the move of the District offices. The problem is that there should be a fourth option, that of staying where they are. The options, as they are presented, are HEAVILY loaded to make "Option 3" the only alternative.
After 20 years, the School District will have made payments of $12,050,450 and will still owe $7,290,000. The spin is in the estimated value of the Building which is $12,015,000. Even assuming that this estimate is true, the district is still in the hole $7,235,450 at that point. The real estate market is in a state of turmoil right now and even estimating a value is foolish.
The financing of this option by Certificates of Participation is assuming that they in fact can sell them at all. According to their own verbage "Invest bank are the conduit between issuers and investors. Also called brokers or underwriters such as Bank of America, Wachovia, Wells Fargo, Citigroup Global Markets, Inc., Pipar Jaffray, Morgan Stanley, and dozens of others". Any name in this list sound familiar? Interest rates are a slippery slope and "It is possible that the minimum amount would not be achievable (interest rates would need to increase approximately 98 basis points (0.98%) over current market for this to occur) May I suggest that this is a highly likely event in today’s market.
In light of the current financial crisis in our nation on a broader scale makes the relentless pursuit of the BlueShield building perhaps at a minimum terrible judgement, and at the maximum illegal activities which should be investigated.
It is now time to take the losses to date, abandon the process, and move forward without adding more cost to this ill-advised purchase.
After 20 years, the School District will have made payments of $12,050,450 and will still owe $7,290,000. The spin is in the estimated value of the Building which is $12,015,000. Even assuming that this estimate is true, the district is still in the hole $7,235,450 at that point. The real estate market is in a state of turmoil right now and even estimating a value is foolish.
The financing of this option by Certificates of Participation is assuming that they in fact can sell them at all. According to their own verbage "Invest bank are the conduit between issuers and investors. Also called brokers or underwriters such as Bank of America, Wachovia, Wells Fargo, Citigroup Global Markets, Inc., Pipar Jaffray, Morgan Stanley, and dozens of others". Any name in this list sound familiar? Interest rates are a slippery slope and "It is possible that the minimum amount would not be achievable (interest rates would need to increase approximately 98 basis points (0.98%) over current market for this to occur) May I suggest that this is a highly likely event in today’s market.
In light of the current financial crisis in our nation on a broader scale makes the relentless pursuit of the BlueShield building perhaps at a minimum terrible judgement, and at the maximum illegal activities which should be investigated.
It is now time to take the losses to date, abandon the process, and move forward without adding more cost to this ill-advised purchase.
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