Unfinished Business

Fortunately I have the means to print out stuff at my office.  You can still find the CAFR 2012 up on the website, but unless I'm losing my mind, the 2014 budget is nowhere to be seen.  Ms. Taylor could you direct me please because the last time I found it, it was under Council Agenda's...there is only the 10.3.2013 work session posted.  Now where would I find the 2014 budget that I found last time?  
 
Next, I asked the Mayor to respond to my question about what functions he attended last June at the Muni Association Meeting in Savannah (see former blog).  Still no response.  All we taxpayers would like to know is why did you spend $1,706 on the trip, $292 per night for the room, when Steve Kennedy, City Manager, spent less than $100 per night for his room?  And Steve expensed the gas not the mileage?  And Steve reimbursed the City for a meal he bought for his wife.  Yes, yes, you spent more time in the City, but why jam us for over $300 for mileage, on top of the $1,706?  Why not take a City vehicle?  How do I know all this?  Simply spend a few dollars on an Open Records Request and you get a lot of information.  Remember, I don't deal in innuendo, just the facts.

Next item.  Bonds.  You know I missed something in the financials and just re-read something interesting.  Gina Auld, maybe you can answer this Monday night...hope you are there.   We have long term bonds that stretch to the horizon paying 4.25% interest....did anyone think to call these bonds in and re-issue at lower rates?  Only two things, maybe three, could be the answer:

1.  We have too much debt on the books and are rating is not quite high enough for the best rates?  - Doesn't seem that way from the financials, the ceiling is 10% of assets I believe, and we are down around 1-2%.

2.  They are non-callable bonds?

3.  Nobody is watching?

Hope someone from the City can get back to us on that.  

Finally, here's some interesting reading taken right from the financials:

Additionally, in December 2009 the KURA issued $2,800,000 of Series 2009 Revenue Bonds.  The bonds bear interest at 7.00% and are payable each February 1 and August 1 starting in 2014 through 2034.  The proceeds from the bond issue were used to acquire land for future development, as well as the issuance costs.  The Revenue bond debt service requirements to maturity are as follows:

 Fiscal Year Ending September 30,2013 (Note 8, page 42 CAFR):


                       Principal           Interest           Total Payment
2013:              $145,000         $237,771         $382,771        
2014:              $215,000         $229,670         $444,670        
2015:              $220,000         $219,096         $439,096      
2016:              $230,000         $208,150         $438,150      
2017:              $240,000         $196,656         $436,656  
2018-2022:      $830,000         $819,646         $1,649,646  
2023-2027:      $660,000         $607,950         $1,267,950    
2028-2032:      $925,000         $333,025         $1,258,025     
2033-2034:      $465,000         $  33,076         $498,076            

Total:                $3,930,000      $2,885,040      $6,815,040

7%?  Seriously?  Did someone not bother to look at what interest rates were in 2009??  They were not 7%.  That's some seriously expensive land we must have bought and I think the taxpayers would be interested to know what the "issuance costs" were.  Translation:  What'd we pay the underwriters of the bond for the privilege of borrowing money?

So here is a question?  We have cash on the books that is spent only by the vote of the taxpayer (See page 15, Voter Restricted funds).  So, the City can only invest in government bonds and Treasury bonds.  Is any of that money earning 7%?  Who among us doesn't look at their free cash and say: I'm earning nothing in the bank, but I have this loan costing me 7%....maybe I should pay that off since I can't earn 7%?  

Here's the City's dilemma....Other Post Employment Benefits....under-funded Pensions....Storm Water....and my favorite...The Museum and Gardens.  It is called Leadership my fellow voters and you have to look to "him" who is at the helm of the ship to ask what direction we are headed?

Wake Up Kennesaw.