TAXES - Lake Worth 2020 Bond Scheme - Lake Worth's "Baby"

Babies are expensive; no doubt about it.

Hey little kid, your parents will be paying for this debt long after you're out of puberty...and a few years after that, you will take over the tax burden...34 years total to be exact. You will probably be a married guy with children of your own. In the meantime, while you are a teenager, the roads will have to be resurfaced or they will ask for more money to pave the next 30% as they will be out of money once again. 

As someone said, "WE'RE GOING TO END UP OWING $200 MILLION WHICH INCLUDES ALL OUR OTHER DEBT IN THE END. RIDICULOUS FOR A CITY THIS SIZE AND FOR ITS MEDIAN INCOME... WE'RE LOSING ABOUT $10 MILLION PER YEAR IN VACANT HOUSES IN LACK OF UTILITY USAGE ALONE. NOT INCLUDING TAXES, SOME BANKS ARE NOT PAYING. THESE HOMES SHOULD BE TAKEN BY THE CITY... WE WILL NEVER SURVIVE WITH SO MANY EMPTY HOMES AND CITY SERVICES NOT BEING USED... WE WILL HAVE TO FORK OVER OUR CITY ASSETS BEFORE THIS IS DONE."

That's it, folks. Even a baby knows this is one wild idea to give Lake Worth management all of that money. This bond will be refinanced through the years and most likely it will NEVER be paid down during the lifetime of this baby.  If Lake Worth can't meet its obligations and needs to restructure the terms of its existing general obligation debt arrangement, it could be refinanced at a lower rate to them but you will probably be paying the same. Is there any guaranty that your rate will drop?

From time to time, municipal interest rates drop to a level where it may be advantageous to refinance the bonds and lock in lower interest rates, similar to the idea of a home mortgage refinancing. The process of refinancing the bonds is called a “refunding.” It's a big game and someone will make plenty of money off of you.

We have NEVER had an accounting on the Utility Bond of 2004 that was refinanced in 2008. Either way, right now the way the game is going, your property will be  collateralized  for over 30 plus years so that they can grab the cash. Thirty years is a long time. Some States don't allow more than 20 years such as Minnesota. And think about this--the date is from the issuance of the bonds...what if they don't issue the last part of the money grab until 2025?  What if they change it altogether and want ALL of the money upfront? We don't know what they're doing  because they don't know what they're doing.

Do you really want to do this to your kids?