Monday, August 18, 2014

Lake Worth's one talent: Obfuscation

Comment Up

On May 22, the District 1 meeting was held at the Osborne Center to "educate" the voters.  An information sheet was given to Peter Timm by Mr. Wood, our then Finance Director, that said that this GO bond, if passed, will cost $131,013,442 for its 30 year duration. I wrote Mr. Wood the following day and asked-- Can Finance please confirm this figure. Do you have an interest rate established or any cost particulars? Who is the bond writer? Bond writer cost? Attorney costs? Bond adviser costs?  Any other  costs associated with getting this bond?

Mr. Wood responded to me saying the following: "We are using an estimate of 5.50% at this time to determine the overall cost of the 2020 program.   We are using a cost of issuance for the total amount of the issue of $63,200,000 (note: the figure changed a few weeks later as has this entire plan to $63,500,000) to be $900,000.  This amount is inclusive of these items you listed. No detail costs can be established until there is an authorization to move this program forward."

This interest rate is low and certainly not even logical considering that we have no bond rating and our city is in the shape that it is in and they have told us that the borrowing will cost us over double the principal amount. This same information sheet then appeared on the city's web site until recently.  Of course our finance director was in the city's employ until recently as well.

Since they are obfuscating the facts, then what else are they hiding?

No trust; no bond.

2 comments:

  1. Lynn I am with you, these new taxes are a sin and no right. They have so many snowed. Especially the renters, I am voting NO. I spoke to a few people I know in the city recently, renters, and they said they voted yes to this. It is sad that renters can even vote on this issue. It should be for only property owners only. Most renters have no clue the costs of insurance, taxes, upkeep, most renters live in dumps here, they just think this will help the city get better. Renters are clueless, these higher taxes threaten many of us older folks who now have to pay higher taxes when we retire taking a toll on our retirement and SS. It just is not right.

    ReplyDelete
  2. The lies and desperation, all very sad, I am voting Noooooooooo to this referendum!

    ReplyDelete