Phoenix LXIV: Will You Still Need Me, Will You Still Read Me, on Thread LXIV?
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11-12-2012, 05:15 AM
Join Date: Jul 2010
Originally Posted by
Lovely. The $20 million that was required for the NHL's subsidy in 2012 was taken out of other funds (mainly water / sewer) and needs to be paid back. They are proposing to defer that repayment out of the General Fund until 2014 (thank you for the parting gifts Beasley, Clark and Frate). So, the current operating budget deficit is onerous, even without including this past year's NHL subsidy. If the lame duck council passes a "midnight ordinance" for Jamison's lease, then in 2014 alone, the incoming mayor and council will be saddled with a $35 million bill for the Coyotes' subsidies (2014 AMF and the 2012 subsidy).
If they manage to pull this off, it will be a remarkable feat. I have serious doubts that this will be allowed to proceed. I think that the real question is who will put the kibosh on this, and how.
Not to worry. In 2014 they'll just borrow from a few funds to finance the repayment to the funds! What happens to the lease after November 4, 2014 will be interesting.
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