UPDATE: We have requested a briefing with the city on Friday. We will see what happens.
Munson and his minions are continuing to play games while using your tax money to fly in consultants from Minneapolis to tell you we are ‘causing problems.’
A ballot initiative to lower the sales tax in Sioux Falls could cost the city higher interest rates when it borrows money later this year, a financial consultant told city councilors Monday.
Once they figured out they couldn’t scare us with mumbo-jumbo lawyer talk (ironically a lawyer that are tax money paid for) they had to go to plan B and fly-in the financial consultant for the bonds and call out another boogy-man. Yeah, apparently it was too far for the consultant to drive, so she FLEW to Sioux Falls – Don’t get me started about that.
City councilors asked Cameron what would happen if the initiative were called off, and Cameron said she would recommend a competitive sale.
Funny, no one from the bonding office contacted us before Monday’s ‘surprise’. (watch the info meeting – Jan 26, 2009) They know nothing about our intentions or our progress. I think this was cooked up by Munson to get us to pull the plug. I find it extremely hard to believe that cutting $5 million from a $416 million budget would affect rates. Obviously $411 million is plenty to cover debt service on a $38 bond interest payments. I’m no accountant, but I am no dummy either. As one commenter in the Argus said;
How many times has Sioux Falls defaulted on an interest payment in the past 50 years? How many cities in the US have had their bond interest rates raised on them when they have given the taxpayers relief by reducing taxes? Another phantom boogy man from those who want to screw the taxpayer and aggrandize government.
But now we are up against the wall? Though you and I know this is total bologna, the propaganda machine over at City Hall has turned it up a notch. So what are our options? Well the way I look at it, even if we pull the plug, what prevents the bonding company from still seeking secondary rates? Well nothing. They can blame us either way because of the uncertainity.
I also find it ironic that this was ‘sprung’ on the council at the last minute, right when the city financial advisor, Rowenhorst was supposed to give his budget address, that he conveniently had to postpone to Wednesday. This ‘stinks’ all around. Not just for the initiative and the bond rates, but that our City government can’t give it’s citizens an economy update at a public meeting. Apparently the over 20 employees and multiple consultants the finance department has working for them didn’t have enough ‘time’ to get a report together . . . Yeah . . . right.
Ehrisman noted that the group has been collecting signatures since October, long before the council voted to authorize the bonds earlier this month.”This should have been brought up during the vote or before the vote,” he said.
That’s just it, why is the council voting on something they don’t have all the information on? Well, because they do it all the time. Half of them chose to raise our taxes without paying attention to the recession trend, than another majority decided to take out a bond, without knowing what rate they will be paying. I would have to say that is pretty incompetent.
So what’s the solution? Give in to City Hall? We’ll see.
Don’t forget the underwriter makes more if the bonds are sold to a dealer rather than competitive bids. This is just a smoke screen for the money men to make more money.
I am willing to bet that Munson takes a job with the bonding companies when his term is done. With all of the business he has steered their way he deserves a retirement check from them.
I have often thought that Munson is getting a golden parachute when he is done, be interesting to see from who?