IS IT TRUE we have never seen a “CCO Readers Pollâ€Â that was so lopsided in votes as the one we presently have posted?  …the present votes cast for the “NOâ€Â answer is extremely embarrassing to the DMD Director Kelley Coures and his boss Mayor Winnecke?
IS IT TRUE the Mayor put out a statement that none of the City’s loans for the arena or infrastructure improvements have been downgraded during his term? …his opponent Gail Riecken issued a statement that new loans are not graded as high as prior loans? …both candidates are correct?
IS IT TRUE when the City wants to take out a loan it works with a bank that issues municipal bonds? …those bonds are graded by a rating agency so that buyers know the likelihood of getting their money back plus interest, and the interest rate for the loan can be set based on the overall level of risk to the bank and buyers? …the higher the bond rating, the lower the interest rate on the loan taken out by the City? …when millions of dollars are being borrowed, a point or half point on the interest rate can equate to millions over the typical 20-25 years of repayment for a municipal loan?
IS IT TRUE in the years 2009 through 2013, the City was trending to double A bond ratings? …this means that they were rated for buyers and for purposes of determining the interest rate on the loan with the equivalent of a B grade if one were taking a high school test? …the state of Indiana has a triple A bond rating, which is the equivalent of an A on that same test? …in the last couple of years, the bond rating for the City has been trending to single A, which is like getting a C? …medium level bonds still get sold and are still considered good investments, but the municipality will pay a higher interest rate on its loan than if the bond were graded higher?
IS IT TRUE the candidates for the Mayor’s office are using the term “downgrade†in different ways? …Winnecke is stating fact that none of the existing loans have been downgraded from their double A or single A rating to something lower? …the outlook on some water bonds was adjusted from stable to negative in 2013, but that’s not a downgrade – it’s more of a shot across the bow? …water rates were raised in 2013, and the concern of the rating agency firing the warning shot was resolved? …an actual downgrade of a bond would be akin to a financial catastrophe for the City? …it would mean that some condition had arisen that endangered the original payment structure?. ..that is unlikely given all of the revenue sources pledged on every bond? …it’s no great feat to avoid an existing bond rating being downgraded? …it’s more along the lines of what we expect at a minimum from local government?
IS IT TRUE the Mayor is engaging in a distraction and an opportunity he sees to feign indignation? …his opponent Gail Riecken is stating just as much truth when she points out the newest round of borrowing for the City, the hotel and medical school, has not been as well received by bond rating agencies as loans taken out several years ago? …Representative Riecken is correct to point out the single A rated bonds are mediocre in the grand scheme of municipal bonds and a downgrade from the previously issued double A bonds for the City? …her concern is legitimate that the interest rates on these loans will probably be higher than if the bonds were rated in the higher categories of double A and triple A?
IS IT TRUE what the experts will say is that more local governments than not are languishing under an ever increasing mountain of debt but mostly related to essential infrastructure projects? …it’s no secret than many cities over 100 years old have a poor track record for maintaining roads, sidewalks, bridges, sewers and water lines? …what’s different about Evansville’s mountain of debt is that a significant amount comes from wants instead of needs?…at the end of 2014, the City’s outstanding debt was approximately 515 million? …120 million of the debt was the Ford Center? …interest payments in 2014 were 15 million while just over 11 million was paid in principal? …the hotel and medical school will add 77 million more to the total? …a project on North Main will put another 14 million on the bottom line? …any agreement with the EPA on upgrading the City’s sewer system is likely to total at least an additional 550 million in borrowing? …in the near future the actual future liability of the City of Evansville will surpass 1 billion? …the actual borrowing will occur slowly on the EPA project – an average of 92 million every 5 years, but the inescapable liability will very shortly start with the letter “B?â€
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The sewer bonds will have to be revenue based bonds. What that means is that the payments will be made from increasing the price of the sewer and water bills. The arena, hotel, and medical school bonds are paid from TIF, TOT, and backed up by general revenue as opposed to specific revenue as the sewer bonds will be. The ratings process is slightly different with revenue bonds as the revenue risks are lower. The interest rates on the sewer bonds may be better but the principle will be well over $550 Million adding a couple of hundred bucks to the monthly bills.
Joe: I thought that the hotel bonds will be backstopped by the city’s portion of the County Option Income Tax. Am I wrong about that. It seems as id this city can not interest investors in its bonds nowadays without that specific backstop.
Joe,
The hotel and IU bonds are revenue bonds guaranteed by the income taxes that are collected form each and every taxpayer that works and lives in Vanderburgh County. The revenue source is 16 m plus the Downtown TIF revenue of 6 m …in fact the sources of repayment on the Hotel is 6 + 16 = 22m . . so having a bond rating of A vs. AA on this bond is outrageous considering that we are putting up 22 million in revenue to secure principle and interest payments of 1.3 m . .absolutely ridiculous.
The rating agencies do not have real time data. It is just like a dot on graph. Of course, they have historical data to rely upon but Winnecke’s performance in 2015 is not on the radar and the 2014 audit will not be issued until AFTER the election. Of course, we have Umbaugh CPA;s writing fiction to the agencies. Why, since Winnecke has been in office they have received millions of dollars in fees . .would you write a nice piece of fiction if you were paid millions. Nowhere do you see the “Spending Plan” but Sinister Schaefer tweeted that “the Plan” would be the budget . .utter nonsense. In 2013, the S&P reports rated us AA- trending negatively and now A Stable which means the graph line has flattened until the rating agencies have the 2015 audit which will not be available until October of 2016. Remember the agencies were fooled by Bernie Maydoff for years. Winnecke has no honor and will deceive the people. At the end, our once financially secure community will go the way of the nearly 200 muni’s in Bankruptcy but Winnie will be on his patio in Tucson, AZ sipping his 10:00 am bloody mary saying, “WHAT A BUNCH OF SUCKERS”
Soon, the evidence that Chief Bolin deliberately manipulated the internal records in the attempt to hide his gross negligence in the Milan raid denying Ms Milan justice. In addition, the document will reveal that other police officers verified that the Chief was on site at the time of the raid countering Chief Bolin’s statements that he was not on site. Well, not only will he be guilty of perjury but obstruction of justice according to the briefs filed in the Seventh Circuit. AND TO SHOW YOU HOW ARROGANT HIS BOSS HAS BECOME, THEY ARE CONTEMPLATING FILING AN APPEAL TO THE SUPREMES. Of course, they know this will go nowhere only to extremely delay Ms Milan’s day in court and proper restitution. BUT THEY GET THE DELAY AND OF COURSE AFTER THE ELECTION. They are BAD people!!!
Nothing will come of it. He would’ve been charged already. Republicans protect their own and corruption runs deep in our right wing court system.
I wonder how Hillary will fare with a democrat run DOJ.
Small potatoes compared to crimes from the Bush admin. Having your own email server or outing and undercover CIA agent among many other things. Hmmmm that’s a tough call.
Dens won’t charge one of their own no matter how egregious the transgression. Thankfully Bush was able to protect us in spite of the criminally stupid liberal democrat policy suggestions of the time. Unfortunately, we currently have a democrat controlled government that has a distinctly opposite worldview at this time.
Does the word “classified” mean anything to you? As president she would be prime for blackmail. You are surveying so naive as to believe foreign governments are not in possession of state secrets she had on her email. She also took huge donations for her foundation while S of State.. I’d lay odds there was some quid pro quo. How do you like those potatoes?
How long do you think before Wayne Parke starts blessing us with his predictable “drive by” ranting that the CCO is in the bag on the bond rating story, even though simple mathematics and logic allow us to see the bond rating issue will cost taxpayers millions?
On January 1, 2912, Winnie inherited $397 million of debt and now has $650 million. He inherited $600k in lease obligations and now has ran those obligation over 1 million. Walked into office with 117 million in total moneys and at the end of the first three years of his administration has only 71 million. Where did the 47 million go. At this pace, our cash on hand will have declined by 60 million at the end of his term. These are published numbers. IF HE SHOULD BE RE-ELECTED, JUST THINK 12O MILLION, but obviously lay-offs and severe reductions in service will happen before his departure to Tuscon, AZ.
Similar comments could be made about our president’s tenure except those numbers are unfathomable.
Do you wonder why your property taxes keep rising even though you voted successfully for property tax caps?
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PROTECTED TAXES………(protected from “circuit breaker” property tax caps)
https://in53.wordpress.com/tag/protected-taxes/
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2 September 2015
NOTICE
Pursuant to Indiana Code 6-1.1-20-5, notice is hereby given the the Board of School Trustees of the Evansville-Vanderburgh School Corporation has preliminarily determined to issue bonds in the aggregate amount of $5,000,000. to fund the following proposed renovation of and improvements to all facilities within the School Corporation including the purchase of equipment and security improvements throughout the school district.
Dated: September 2, 2015
Andrew Guarino
Secretary, Board of School Trustees
Evansville-Vanderburgh School Corporation
(Courier and Press: September 2nd and September 9th, 2015)
Yes, but you know it’s all about the kids. Their usual line.
Strong School funding is critical to a productive, efficient, developed growing society. US investment in education started with the founding fathers and is a primary reason the United States is the leader of the world. Anti-education funding people are idiots. (I own lots of land and business property and am not involved in education in any way. Other than funding it, and I do that gladly.)
Agreed, Mr. Becker, but I find it increasingly frustrating that seemingly no amount of money is enough to properly educate our nation’s children. A school system can be extremely well funded on a per student basis and still have abysmal graduation rates and test scores. There is a point of diminishing returns, and we need to find it in education (as well as health care, and military spending, and…).
I don’t have kids, but certainly don’t begrudge my property taxes going towards education – – an educated populace is in my best interest, whether I have kids or not. The answer to our current educational crisis always seems to be ‘spend more’, and it’s obviously not working. Our society seems able to only mange to do one thing consistently, and that’s take naturally bright, inquisitive, hopeful 5 year-olds and turn them into ignorant, lazy, belligerent gang-bangers in the short span of 12 years. I would like to see some kind of return on my investment in these children, and I don’t think that makes me (or most people) anti-education.
In my fight against the blight, declining property values, and lack of interest in some of the neighborhoods the condition of the Evansville inner city schools keeps popping up as part of the cause. Parents these days want the best for their children and given the choice will pick a neighborhood where the schools are the strongest. They also flee from neighborhoods where the school has a poor record. More money does not fix the problem. Better management would. If a school is not performing there needs to be some turnover in personnel.
If you cant fire the bad ones – at least recommend them for promotion in another state.
@ Mr. Lumley:
” Parents these days want the best for their children… ”
Based on what I see in the AO of my fire station (and in vast swaths of Evansville generally) I think parents by and large don’t give a shit about their children.
Did you notice in the link provided that it shows EVSC’s 2013 supposed circuit breaker losses at a little over $5,000,000.?
If EVSC was “down” by a similar amount for the current budget, it looks like they are going to make up for it in one quick bond issue. There is no forcing a school corporation to be fiscally responsible for the taxpayers money, the Indiana legislature deliberately supplies them with enough loopholes to insure they can continue to overspend while their students under perform.
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