Money, money, money! Or: "We should just save up for things"

Right off the bat, Curmudgeon needs to let out that big sigh of relief

I know, I’ve been a-squawkin’ about what the council would do if it DIDN’T approve the certificate of obligation bonds for 2018, i.e., the city’s annual loans. Particularly, the part of the loans that would go to pay for the Business 190 median design.

I know, I’ve been a squawkin’ that we’d be in a world of hurt for the city’s budget if it had to make up the more than $300,000 or as much as $700,000 – or whatever it has paid for the design so far.

Well, the “CO” bonds were passed, so that’s covered.

BUT – and here’s a little somethin’-somethin’ for the median-haters. IF the median does not go through. Whatever remaining funds that were approved in the CO loans can go to “transportation” projects. That doesn’t mean it HAS to be spent right away at a certain point – but those funds will be available, should there be OTHER transportation projects, i.e., work on streets that needs to be done. Which, there is a bunch that needs to be done. So, the funds could be used for that IF the median project gets the axe.

Even with that provision, I don’t see why James Pierce Jr. voted against the bond issuance. I realize his vote was probably the “principle” of the thing, but as above, there is a provision for using that money. So, in voting AGAINST the bond issuance, he would rather the city be in the hole for $300,000-$700,000 in its budget planning process because of it? I realize his term is nearly up and we’re at the brink of election season, but this isn’t a wise move on his part.

But his vote was a much more quiet affair than the ridiculous grilling that Marky-E-Marc Payne tried to give the financial services guy, who might as well have been a Texas ribeye over an open flame.

Mark-E-Marc was very worried about what would happen if the city defaulted on its loans.

Also, he seemed to think that the city ought to save up for things and not just take out a loan because it’s something nice and we want it now.

Seriously, Marc, can you give someone credit?

Er, um, Mark-E-Marc, did you even LOOK at the project list that the bonds will fund?

We’re not talking trying to buy a 2018 Dodge Ram Pickup when we already have an adequate 2010 Ram.

We’re not talking a purchase “just because we want to buy it now instead of later.”

Seriously, folks, Mark-E-Marc sounded that he would rather the city only take out loans to buy things in an emergency.

Well, there’s been a lot of chitter-chatter about the city taking out loans every year, sometimes as much as $10 million. There’s been a lot of chitter-chatter about how much debt the city has.

Let’s take a look, first, at the projects that these loans will fund. Here we go, in the photo below. 

Under that, is the link to the WHOLE document. (Curmudgeon really wishes people were good at research instead of tossing around rumors.)

Curmudgeon has heard it said that "any" loans taken out by the city should be decided by the voters. Uh, well, the way people DON'T vote, it would be a wonder if the city got anything done. ALSO, judging by past history, the whims of the people can change.

Remember, last post, when I mentioned a RECREATION CENTER was put on the ballot for a vote in 2008, and, well, voters said NO, they did NOT want the city to take out a loan to fund a recreation center. And now, all we heae is there's nothing for kids to do. Well, the voters said no so...

And are we the experts on when water lines get replaced?

Curmudgeon can hear it now: "HELL NO, Y'ALL - WE DON'T WANT A $2 MILLION WATER LINE REPLACED! WE'D RATHER BUILD US A STEAKHOUSE WITH $2 MILLION! WOOO HOOO!" Okay, sorry, but that's about how it is sometimes....and I firmly believe that you, dear reader, are smarter than that. Let me pause and compose myself while you scroll down to read the items on the list:

Tax supported – self-explanatory and includes the transportation projects and the median design. These are typically 20-year loans.

Water/Sewer supported – This part of the bond funding is paid for by the city’s water and sewer fund, not taxes. (Matter o' fact, that's what's paying for our almost 2year old water meters - the water and sewer fund, not taxes.)

Anyhoo, the biggest item on the bond list is a 20-inch water transmission line replacement – the council has talked about this already and it’s a big project because it helps get our water to Copperas Cove. (How is this a “nice thing” that we should put off spending on, Mark-E-Marc?)

Next is the Rattlesnack (ha ha I bet they mean Rattlesnake) pressure plane elevated storage tank. Curmudgeon has not read up on this one.

Solid Waste supported – About $638,000 project that is part of the “capital outlay plan.” It will be paid back with Solid Waste funds. Not taxes. The city’s capital outlay plan – which you can find on the website – is a list of projects and a timetable for getting them done. This is one of them.

After that are Golf Course and Court Technology supported loans.Not paid for by "taxes."

And, here’s the link to the WHOLE document. Again, Curmudgeon merely wants to turn on the light and hold up the mirror. Grand total? Almost $10 million.

http://67.79.126.21:8085/docs/2018/CC/20180619_1285/7998_Proposed%202018%20CO%20Item%20Detail.pdf

Yep, $10 million is a lot of money to borrow. We all pause to take a collective gulp. We’ve heard horror stories of cities – larger ones – defaulting on their loans.

Well, the Mr. Kimball the financial guy refused to sizzle on Mark-E-Marc Payne’s grill.

Did anyone notice Mr. Kimball said that last year, Copperas Cove paid off $5 million dollars of its principal debt, and then is on track to pay of $6 million this year?

Also, there were NINE bidders who were lined up to loan Copperas Cove money?

They don’t just hand out $10 million to anyone, or any city, rather.

Did you notice, the financial guy, Mr. Kimball, said Copperas Cove has a smaller debt ratio than other communities?

Here is a link to the 55-page “advertisement” that went out to bidders to see who would like to loan Copperas Cove money. If you have insomnia, have at it. If you truly want to see the city’s financial position, have at it: 

http://67.79.126.21:8085/docs/2018/CC/20180619_1285/7998_2018%20CO%20Preliminary%20Official%20Statement.pdf

(This was taken from the city council agenda item and is available to EVERYONE, INCLUDING THE PUBLIC! The sweet ladies addressing the council during the hearing, were VERY WORRIED that no one else was seeing the figures and the numbers. Well, here are some of them! You just have to look for them.)

Look at the image below, taken from the above CO bond documentation:

Note, particularly, the column where it talks about the city’s funded outstanding debt. The city has LESS funded outstanding debt than it did in 2014, by about $500,000.

Let’s look at the documentation from the council meeting the other night, on the debt repayment schedule. This was also available to the council AND the general public. It shows how much debt goes down, year by year. The blue is debt the city already has, the pink is the new debt for 2018.

If you noticed that this is the tax-supported debt chart, you win a prize!

I don’t know what prize. Maybe I’ll get some Cove Curmudgeon caps. “I am Curmudgeon”.

Hmmm….. 

Peace, love, and bunnies, y’all! Thanks for sticking with me on this one. It was longish, but it’s important to note the information available instead of what you hear at the bar or the water cooler. Or both.