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Can't wait for CF"s usual excellent breakdown of the malfease that was unearthed at the latest council of ineptitude meeting (workshop) at Glendale City Hall.
I arrived home late and rushed to launch the stream. Computer takes its sweet ass time.
The stream launches just for me to hear the mayor state something to the effect that it was a depressing day and then adjourn the meeting. I may have to squeeze this into my weekend.
I didn't watch the workshop but the reports that Clark is keen to "look forward" and not "dwell on the past" seems a bit self-serving for a council member that is leaving imminently, leaving the carnage behind her.
Is there really any surprise that a small city of 250,000 is running into financial difficulties, after investing huge amounts in sports facilities and reaping almost no financial return? Piled on top of that, they just shoveled out another $50 million to cover the losses of a professional sports team over two years, and have now committed over $300 million to subsidize a sports team for the next 20 years. Something has to give. It seems that Beasley's approach was to rummage through various trust funds to pay the ongoing costs. Now, the wave is crashing on the shore and there are going to be some very tough decisions going forward. Luckily for her, Clark won't be around to deal with the fall-out. I wonder how often in the future we'll see the finger pointed at Knaack and Martinez for helping them get into this mess.
Can't wait for CF"s usual excellent breakdown of the malfease that was unearthed at the latest council of ineptitude meeting (workshop) at Glendale City Hall.
I just don't have the time to watch it. Happy holidays, enjoy the visionaries in action
Tomorrow, the Council of Dunces is going to deal with the next most immediate crisis: Arizona Industrial Commission works on a calendar year, not a fiscal year ending in June. Workers Comp Trust Fund and Risk Management Trust Fund must be at 55% confidence level by Dec 31, 2012.
Good News: Risk Management TF was at 90% confidence when staff stole made questionable transfers. They can skate until next FY with just a $489k adjustment.
Bad News: Workers Comp TF was not at 90% when they stole transferred from it. Departments have to come up with $1.4MM in the next 3 weeks. Good luck with that.
Approving the JIG subsidy in the face of Moody's telling them they'll be downgraded if they continue to provide irrational financial support to the team while ignoring the Industrial Commissions calendar year mandate is just another reason Glendale is so special.
Well, it all tells me the American economy finally topped out (that and getting laid off a couple weeks ago ). Spending money for the sake of spending money with no care on how it is being spent has caught up to governments globally, be they in Spain or in Glendale, Arizona.
We'll know it's bad when Coyotes fans call on the Mexican government to nationalize them to save the team.
Glendale spokeswoman Julie Frisoni said the rating will affect the interest rate the city can secure in the bond market but “the market is to our advantage right now and the projected savings is still expected.”
Glendale still owes $152 million of the $180 million it borrowed to open Jobing.com Arena in 2003. An additional $200 million is owed on Camelback Ranch Glendale, the city’s spring-training ballpark, as payments so far have only covered interest. Glendale staff has predicted the city could save about $28 million by refinancing a portion of its $1.1 billion debt load, easing the way out of a financial landmine. .
So far the CoG has only paid down $28M on the arena, only interest for Camelback ranch, and have a $1.1B debt load..... Sure sounds like a good idea to give Jamison $308M.
Can someone explain to me how they can save 28m$ by refinancing 1.1b$ of their debt now, with a lower credit rating???
"Clarkonomics".
The more relevant question would be how much better the financial scenario would be if they didn't have the recent downgrade, attributed in large part directly to the Coyotes' support. Remember, Skeete first presented a scenario that indicated that the COG would save millions in debt restructuring with the team, compared to without. He then went to a more "neutral" position of projecting that the presence of the Jamison lease would have no impact on the debt restructuring. Reality suggests that the Jamison deal has further damaged the COG's credit rating, meaning that a re-calculation of the scenarios (with or without the Coyotes) would make the "with" scenario look even less appealing.
But that's all water under the bridge. The outgoing council members who voted on the lease at the 11th hour before leaving because they know so much about what goes on in the COG finances have made their mark.
I thought maybe the going rate when they first financed this debt was much higher than now allowing them to save some money even though they are downgraded. They would, of course, save a lot more (if this was the case) with a better rating.
Does this stuff make the news at all in Glendale? Are citizens upset? Or are the major networks of information only covering what happens in Phoenix leaving people from Glendale oblivious to what is actually happening with their city??
I don't understand how people could not be furious knowing about that.
I thought maybe the going rate when they first financed this debt was much higher than now allowing them to save some money even though they are downgraded. They would, of course, save a lot more (if this was the case) with a better rating.
Does this stuff make the news at all in Glendale? Are citizens upset? Or are the major networks of information only covering what happens in Phoenix leaving people from Glendale oblivious to what is actually happening with their city??
I don't understand how people could not be furious knowing about that.
My guess is... in for a penny... in for a pound. They no longer care and just want it over.
At the end of the day.... if you are Wilie E. Coyote and you fall off a cliff and go splat , what difference does it make if you fall 100ft. or 1000 ft.
Because that's all we are talking about here for Glendale... the size of the splat.
Can someone explain to me how they can save 28m$ by refinancing 1.1b$ of their debt now, with a lower credit rating???
Interest rates in general are lower now than they used to be so depending on when the original debt was done its possible that you can do A2 debt today at a lower rate than AA3 debt a few years ago. I doubt it can be done now with the negative outlook (meaning another downgrade could happen at any point),
Can someone explain to me how they can save 28m$ by refinancing 1.1b$ of their debt now, with a lower credit rating???
Probably has to do with the overall state of the bond market.. other investments are seen as risky right now, so bond rates are lower than they would be under a healthy economy.
Interest rates in general are lower now than they used to be so depending on when the original debt was done its possible that you can do A2 debt today at a lower rate than AA3 debt a few years ago. I doubt it can be done now with the negative outlook (meaning another downgrade could happen at any point),
I think it's fair to say that a significant part of those savings are gone, but I took a quick look at a few Glendale bond quotes (Transportation Excise bonds) and they are still trading way above par (at 110-115). So they could still be saving some money, of course that depends on how much they can call the existing bonds for.
I think it's fair to say that a significant part of those savings are gone, but I took a quick look at a few Glendale bond quotes (Transportation Excise bonds) and they are still trading way above par (at 110-115). So they could still be saving some money, of course that depends on how much they can call the existing bonds for.
I think thats fair to say. What are the Transportation Excise bonds backed by? I think in they haven't factored in the impact of the downgrade.
Interest rates in general are lower now than they used to be so depending on when the original debt was done its possible that you can do A2 debt today at a lower rate than AA3 debt a few years ago. I doubt it can be done now with the negative outlook (meaning another downgrade could happen at any point),
Quote:
Originally Posted by Ernie
Probably has to do with the overall state of the bond market.. other investments are seen as risky right now, so bond rates are lower than they would be under a healthy economy.
Rates are one piece. What happened last time they tried to float bonds? The subscription fell way short.
). Spending money for the sake of spending money with no care on how it is being spent has caught up to governments globally, be they in Spain or in Glendale, Arizona.
