Comments on: The public’s unanswered questions on Crestpointe http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/ Sun, 06 Jul 2008 03:59:42 +0000 http://wordpress.org/?v=2.5.1 By: Ray Kircher http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-998 Ray Kircher Fri, 25 May 2007 15:41:06 +0000 http://ellensmith.org/blog/?p=55#comment-998 Thanks for pointing out the responsibility of bond payments. What I take of it is the city is insuring the stores built on Pine Ridge; opening date to be determined later, then if nothing is successful leaving more empty storefronts, the recent 10-cent tax hike will help to cover the school rebuild projects? Is that right? What I am upset about is the .005 cent school sales tax referendum were to go to schools, now that vote seems to be a retail project fund in disguise. Thanks for pointing out the responsibility of bond payments. What I take of it is the city is insuring the stores built on Pine Ridge; opening date to be determined later, then if nothing is successful leaving more empty storefronts, the recent 10-cent tax hike will help to cover the school rebuild projects? Is that right?

What I am upset about is the .005 cent school sales tax referendum were to go to schools, now that vote seems to be a retail project fund in disguise.

]]> By: Ellen Smith http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-996 Ellen Smith Fri, 25 May 2007 15:17:59 +0000 http://ellensmith.org/blog/?p=55#comment-996 The city <strong>will</strong> meet its debt service payments, even if the tax revenue from Crestpointe falls short of the city's current expectations. Both the bonds for the high school and the bonds for Crestpointe would be general obligation bonds, backed by the "full faith and credit" of the city. Repayment comes from general taxes; the bonds themselves are not tied to any particular revenue stream, even though the City may have committed a particular revenue source (such as the local sales tax increase that was passed to fund the high school project) to their repayment. The city will meet its debt service payments, even if the tax revenue from Crestpointe falls short of the city’s current expectations.

Both the bonds for the high school and the bonds for Crestpointe would be general obligation bonds, backed by the “full faith and credit” of the city. Repayment comes from general taxes; the bonds themselves are not tied to any particular revenue stream, even though the City may have committed a particular revenue source (such as the local sales tax increase that was passed to fund the high school project) to their repayment.

]]> By: Ray Kircher http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-995 Ray Kircher Fri, 25 May 2007 14:55:59 +0000 http://ellensmith.org/blog/?p=55#comment-995 I agree the city has definitions for financial terms that do not line up with traditional meanings. This is the communication break down of this plan. To further complicate the issue, the timing of payments for the bond and for the school rebuild project would require further study to ensure both payments would be made on time. What is the city penalty for having late payments, and does Crestpointe have the possibility to open late leaving our school rebuilds project at risk? I believe this is the exit strategy for our city’s strategic plan: raise taxes, hold expanding on services, and build reserves just in case Crestpointe doesn’t deliver on time but doesn’t default on the collection of bond money. This I believe is the old way of spanking the newborn to get it to breath. GBT might be a developer and has the city council at their feeding trough, but Target will ensure what mistakes made by GBT will not risk the loss of the bond money to them. Target has more interest in their stores than to let any developer build for them, whenever it opens. I agree the city has definitions for financial terms that do not line up with traditional meanings. This is the communication break down of this plan. To further complicate the issue, the timing of payments for the bond and for the school rebuild project would require further study to ensure both payments would be made on time. What is the city penalty for having late payments, and does Crestpointe have the possibility to open late leaving our school rebuilds project at risk?

I believe this is the exit strategy for our city’s strategic plan: raise taxes, hold expanding on services, and build reserves just in case Crestpointe doesn’t deliver on time but doesn’t default on the collection of bond money. This I believe is the old way of spanking the newborn to get it to breath.

GBT might be a developer and has the city council at their feeding trough, but Target will ensure what mistakes made by GBT will not risk the loss of the bond money to them. Target has more interest in their stores than to let any developer build for them, whenever it opens.

]]> By: Ellen Smith http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-992 Ellen Smith Thu, 24 May 2007 20:47:36 +0000 http://ellensmith.org/blog/?p=55#comment-992 <b>Reply to Jim Nelson:</b> I meant to say "includes," but it looks like my wording was confusing. The city's "net gain" actually includes money to replace the interest that the public's money otherwise would have earned. That should not be considered "net gain." Reply to Jim Nelson: I meant to say “includes,” but it looks like my wording was confusing.

The city’s “net gain” actually includes money to replace the interest that the public’s money otherwise would have earned. That should not be considered “net gain.”

]]> By: Jim Nelson http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-991 Jim Nelson Thu, 24 May 2007 20:29:42 +0000 http://ellensmith.org/blog/?p=55#comment-991 Ellen, in your response to Question #6, you stated: "Thus, the stated “return on investment” to the taxpayers is inflated because it includes the return of interest that we otherwise would have earned on our own money." Did you mean to say "excludes" instead of "includes"? Jim Ellen, in your response to Question #6, you stated:

“Thus, the stated “return on investment” to the taxpayers is inflated because it includes the return of interest that we otherwise would have earned on our own money.”

Did you mean to say “excludes” instead of “includes”?

Jim

]]> By: Ellen Smith http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-981 Ellen Smith Wed, 23 May 2007 17:29:02 +0000 http://ellensmith.org/blog/?p=55#comment-981 Cracker, I removed your taunts directed at a person who is identified here by a real name. Since you choose to hide your identity behind an alias, I see no need to give you similar protection. Cracker, I removed your taunts directed at a person who is identified here by a real name. Since you choose to hide your identity behind an alias, I see no need to give you similar protection.

]]> By: Cracker http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-979 Cracker Wed, 23 May 2007 16:50:18 +0000 http://ellensmith.org/blog/?p=55#comment-979 BTW, I'm not sure you got all of the taunts out of the exchange. Even handed is the way to go. BTW, I’m not sure you got all of the taunts out of the exchange. Even handed is the way to go.

]]> By: Cracker http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-978 Cracker Wed, 23 May 2007 16:48:09 +0000 http://ellensmith.org/blog/?p=55#comment-978 That makes perfect sense for reserve funds. You build them and you invest them until the time comes for you to spend them. In this case the project can repay them so that the nest will once again contain a golden egg. In most instances you would rebuild reserves from savings from the current tax revenues or increase the tax rate if necessary to speed the process. This also fits the earlier statements by Steve Jenkins at Mr O'Conner's request to describe how borrowed money is paid back by matching it with a revenue stream. The city is doing pretty standard stuff for CrestPointe. That makes perfect sense for reserve funds. You build them and you invest them until the time comes for you to spend them. In this case the project can repay them so that the nest will once again contain a golden egg. In most instances you would rebuild reserves from savings from the current tax revenues or increase the tax rate if necessary to speed the process.

This also fits the earlier statements by Steve Jenkins at Mr O’Conner’s request to describe how borrowed money is paid back by matching it with a revenue stream. The city is doing pretty standard stuff for CrestPointe.

]]> By: Ellen Smith http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-977 Ellen Smith Wed, 23 May 2007 16:08:08 +0000 http://ellensmith.org/blog/?p=55#comment-977 I believe that Ray is referring to the response I received to my question about the $8 million, asked during the "Appearance of citizens" session at the very end of the Council meeting. At the LWV forum on Crestpointe, Mr. Jenkins had made a statement suggesting that the $8 million was not needed for any city purposes, and therefore was available to be used for the Crestpointe project. I asked where this $8 million could be found in the FY 2008 city budget or multi-year model, as I had been unable to find it anywhere. Ray (who apparently was watching from home at that point) describes the response I received pretty much as I recall it. In subsequent discussion with Mr. Jenkins, I have ascertained that the $8 million is in fact the "nest egg" (my terminology, not his) established as part of the financing plan for the high-school rebuild project. As I now <em>think</em> I understand it, instead of continuing to invest this money in financial instruments, the City proposes to use it for the Crestpointe project, confident in the expectation that future property taxes from the shopping center will replenish the principal amount and that future sales taxes from the shopping center will replace the interest that the money would otherwise earn, all in time to make payments on the bonds for the school project. I believe that Ray is referring to the response I received to my question about the $8 million, asked during the “Appearance of citizens” session at the very end of the Council meeting. At the LWV forum on Crestpointe, Mr. Jenkins had made a statement suggesting that the $8 million was not needed for any city purposes, and therefore was available to be used for the Crestpointe project. I asked where this $8 million could be found in the FY 2008 city budget or multi-year model, as I had been unable to find it anywhere. Ray (who apparently was watching from home at that point) describes the response I received pretty much as I recall it.

In subsequent discussion with Mr. Jenkins, I have ascertained that the $8 million is in fact the “nest egg” (my terminology, not his) established as part of the financing plan for the high-school rebuild project. As I now think I understand it, instead of continuing to invest this money in financial instruments, the City proposes to use it for the Crestpointe project, confident in the expectation that future property taxes from the shopping center will replenish the principal amount and that future sales taxes from the shopping center will replace the interest that the money would otherwise earn, all in time to make payments on the bonds for the school project.

]]> By: Cracker http://ellensmith.org/blog/2007/05/21/the-publics-unanswered-questions-on-crestpointe/#comment-976 Cracker Wed, 23 May 2007 15:30:58 +0000 http://ellensmith.org/blog/?p=55#comment-976 Ray, that is really funny considering that this chart was the one <strong>he</strong> used in the League of Women Voters Forum on CrestPointe. Netmom has blogged his email distributing the chart giving specifics that you too can see at: http://www.citizennetmom.com/?p=368 <i>[Personal taunt removed by website owner.]</i> Ray, that is really funny considering that this chart was the one he used in the League of Women Voters Forum on CrestPointe. Netmom has blogged his email distributing the chart giving specifics that you too can see at: http://www.citizennetmom.com/?p=368 [Personal taunt removed by website owner.]

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