Letters to the Editor • DATE April 13, 2012
By Dan Daily, Sioux Falls, SD. Whistle Blower and Constitutional Democracy Advocate in a city with Marxist Leaders
Readers and Bloggers:
I used to submit letters to the Argus. Pre 1994 (Home Rule & Munson) they were sometimes printed. After, it was rare and they were much modified. I sometimes read a Jonathan Ellis article when someone leaves a newspaper behind. Someday, Gannett will discover the Argus is a propaganda machine not unlike channel 16. It will be the end.
I’m sure this letter would never make it into the Argus. Here goes.
The city of Reno NV is suing Goldman Sachs. They issued bonds portrayed as safe that became toxic. Reno, known as the biggest little city in America, is the size of Sioux Falls. They were to build a $110mil events center that inflated into $300mil. The securities somehow became more associated with distressed redevelopment debt (parking garages and such), a sophisticated pyramid scheme. Falling revenues forced the city to dramatically cut staff by a third. For Sioux Falls, cut the third that lives outside city limits. The suit alleges misrepresentations and omissions. Reno hired a private firm with lead attorney named Peiffer (interesting parallel). Goldman eventually told Reno to issue $330mil high risk ‘Auction Rate Securities’ that ultimately fizzled. A councilwoman stated ‘they knew these were bad and they sold them to our city anyway’. Auction Rate Securities have low interest but depend upon financial institutions to keep the pyramid rising. Fundamentally, it’s like lending you more on your house than it’s worth with little or no credit qualification. Reno has ‘Trench Debt’ and penalties with no ground broken for an events center. There’s a $47mil forbearance and $8mil penalties. Reno faces default forcing bankruptcy.
Source:Â Reno Gazette Journal – April 12, 2012
As long as we get Justin Bieber and the Summit League tourney, who cares?!?
Exactly. It is the city’s debt, not mine. Roll the dice.
http://www.youtube.com/watch?v=XT72CgEJQNQ
I will agree with one thing. ALL city employees should have to live in the city limits. If they are going to make their dime from the city (really, the taxpayer) they should buy property in the city and incur most of their expenses in the city.
I’ll never understand this mentality that believes city employees should live within the city limits. That makes no sense. The vast majority of the city funds come from sales taxes, so it doesn’t matter where someone lives provided they spend some of their money in town. Heck even if they drive over to Minnesota to buy clothes in order to save some money on tax or if they head to that casino in Iowa rather than stuffing 20s into a phonebooth casino here in town it really shouldn’t matter.
Second, why should the city be any different than private industry? Do you think Tom Walsh requires Burger King employees to eat all of their meals at BK? Does Dave Billion fire anyone who buys a car from Vern Eide? Does Miles Beacom require every employee of Premier Bankcard to carry one of those awesome credit cards with a 79.9% APR? No.
For elected officials I’ll agree they need to live in the area they represent, but for regular employees I fail to see why it should matter. That is just petty thinking from petty people.
And in case you are wondering, no I’m not a city employee nor do I have any personal connection to the issue.
Im wondering how much bond money has come in that Huether has directed otherwise. With home rule the mayor has all the power and all the blame. Public funds fraud will be his ticket into Leavenworth.
I’d not expect this scheme from a business person. From a credit card crook, definitely.
Default or the deterioration of our infrastructure? A projected $36 Million extra spent the first year plus another projected 3% increase on top of that every following year? What if this doesn’t happen? Sioux City only achieved $18 Million in extra spending in the city for the entire following 6 years after completion of their events center.
The problem lies within how this was presented to the city. It was unethical to throw out these types of numbers. The citizens of Sioux Falls sure have something coming to them and I don’t think Justin Bieber is the solution.
Tax increases are inevitable. But were not going to stop our tax incentives to corporations here in Sioux Falls. The burden is going to be placed on the employees of these low wage subsidized companies and that my friends is the epitome of the 20 year era of growth we have been known for.
The Hyperion Project is in the best interest of far Southeast South Dakota and of course The state of Iowa as they subsidize ecerything, because they can (taxes are unbelievably high in Iowa).
But nobody wants to listen to a 26 year old who is interested in politics. Its not about you or me. Its about the elite in Sioux Falls and to that I say I’m sorry I couldn’t make it to represent you, the people.
Yes Kyle, Hyperion which could refine our oil from the west, started at a 10Bil project now 16Bil… Same expense growth for your event center. Good luck Sioux Falls, the West will eventually rule you and city limits won’t be an issue.
But nobody wants to listen to a 26 year old who is interested in politics. Its not about you or me. Its about the elite in Sioux Falls and to that I say I’m sorry I couldn’t make it to represent you, the people.
Kyle… your running against Jamison was a longshot. He’s from a district that, in large, cares mainly about access to justin bieber. Jamison also dares to question this administration. He garnered votes from both the valley girls, and the l3wis’s of the world. Stay involved Kyle and try again in ’14 against diamond jim or tex golfing in the at large contests. De found out running with the money from the city’s elite does not always guarantee victory when ALL of the city’s citizens have a voice.
Kyle – age discrimination goes both ways. Class warfare is not the answer either. Focus in the ideas.
For clarification;
http://www.reno.gov/Index.aspx?page=353
During the 1990s just about all of the trains that went to and from Northern California ran through the heart of downtown Reno. That was a lot of train traffic, until they buried it.
Kyle – Thank you for running! I hope you run again for something else, in the meantime, you are welcome to be a South DaCola foot soldier.
Ruf – I don’t think Kyle was participating in class warfare. Pointing out the advantages the rich have over the poor and working poor in SF is not warfare. It’s the truth.