Here is my first question for Chokwe and Jonathan: What are you going to do about Harvey's little time bomb? It's ticking and the ticking is not going to stop. Take a look at this table JJ posted three years ago:
Porter Bingham advised, Harvey listened, and the City Council approved a $27 million bond refinancing which was more of a shell game than a legitimate financial transaction. The city received an extra $5.5 million a year through 2013. The city receives $1.9 million in 2014. A drop of $3.6 million in one year. Then the real fun starts. Jackson pays $957,675 a year for four years. The payment (from Jackson to the bondholders) escalates to $1.7 million for one year and then, (ready for this?), $4.5 million for four years. However, that is two to three administrations down the road so we have nothing to worry about, do we?
Translation: Jackson next year is going to have a $3.6 million hole in the budget, and a $2.8 million dollar hole the following year. Grand total of the black hole: $6.4 million in two years. Don't expect the media or the JFP to ask this question. They don't understand basic math and it would force the JFP to be critical of Harvey. However, someone needs to ask what they intend to do, as Jackson will find itself in a similar situation as the homeowners who enjoyed borrowed money on their homes at adjustable rates and lost them when the rates burned them. Earlier post on bond refinance. Includes fees.
31 comments:
Before I saw your table, I thought the time bomb was the sewer lines.
Jesus, Harvey's messed up Jackson but good.
Heres a good question...Who else is the FBI going to arrest in Madison County?
Was Chowke part of the council that approved this? If so he should have the answer. Remember not all of this can be placed at Harvey's feet.
Thank you for opening the can of worms KF. I've been wondering myself where Po Jackson, is headed with their choice of candidates. I've seen or heard nothing but "smoke and mirrors" during their campaigns. Have I missed any poignant points regarding budgets, organization, concrete goals, or resolutions to correct the errors Harv has made. I doubt if either candidate has the ability to resolve any of the mess. The only thing I've noticed is that they intend to replace the Po'Lice chief. Damn Frightening I'd say; definitely a personality contest.
Yup. My post was couched more in the question of "what are you going to do about this" because a six million dollar swing in two years is huge.
Neither are probably aware of the "swing", since they've probably not seen an operating statement. Their obvious solution would take the first flight to D.C. to beg for a grant, or loan to spend their way up.
This answer is not a complete solution to the problem but a start.
Step 1 - Layoff excess work force; keep your most efficient workers, get rid of the lazy ones.
Step 2 - Stop paying so much for consultants. Especially those that are related to you. Hire a company to the job...Period.
Step 3 - Increase police presence in high business areas and potential business areas. Having a traffic ticket quota on the I-55 speedway is not going to save the city. Moving more businesses in will.
Step 4 - Tax abatements in the early years for business and downtown residential development. Make these projects that are stalled happen.
Step 5 - Flush racism down the toilet; make decisions based on what generates the most cash flow to the city over time instead of trying to figure out if any crackers will benefit from your decisions.
Sorry if I offended anyone. I call it like I see it.
Downtown residential development won't produce enough tax revenue to hire someone to cut Ben Allen's lawn.
Well if you have watched ANY of the videos that Kingfish has posted then you are VERY aware of what Che-umpa Lumpa is gonna do and probably will happen... beg Uncle Bennie for the $$$. Then just like the monopoly game he will forever hold the Jackson card and literally own it.
As for Pretty Face Lee... not sure on that but is kinda funny the mud Harvey slug about business practices at Pretty Face and look at Ole Harv's!!!
Great post KF, and great points 8:56. However, if Chokwe gets elected???? The problems pointed out here will seem tiny compared to the ones he will bring about!
8:56 I think your solutions are too simplistic. If a person is qualified to be Mayor (NOT) they should have their own team/cabinet that would be held accountable in Marketing, Budgeting, department operations, etc. The politicos are so egotistical, that's not likely to happen.
I don't know the interest rate on these bonds (and didn't want to look it up) so my view is subject to being corrected based on the coupon on these GO bonds and the prevailing market conditions.
My first guess is that the interest rate on these bonds are higher than the interest rate City of Jackson could get now.
If so, my second guess is that when this obligation was entered into, nobody could have predicted the long run of effective 0% interest rates from the Fed. This means investors are starved for return and even GO Municipal Bonds from City of Jackson will generate significant investor interest possibly even at below investment grade (i.e. P.R. sales tax revenue bonds which are on the cusp between investment grade and "junk").
Assuming this bond deal was akin to the bond deal that left Jefferson County (B'ham, AL) bankrupt, they need to get out ASAP through a refinancing and retirement of this obligation if the bonds are callable.
I understand this post depends on some assumptions and I may stand corrected. However, this situation does not need to turn into a financial disaster.
Flim-Flam is the term that should be used.
Bingham LOVES greenhorns. He's licking his chops.
Government is about issues, not emotions, and elections used to be about who would be best at governing. Now the whole enchilada is emotion driven, and it's unlikely anyone beyond Kingfish's loyal readers are aware of the impact this debt will have on the city. It's way too much trouble to actually study the real issues in this election and make your choice accordingly. This race is about race, and the blackest candidate - ideology, not skin hue - usually wins among the black voters. Will Lee have enough northeast Jackson votes to overcome the Lumumba loyalists? I hope so...
Bill, Obama's term(s) have proven your theory. If you have assets in Jackson, or Hinds Co., get ready for a huge discount in value either through the market or taxation.
All you toothless inbred Rankin County hillbillies disgust me. I am so much better than you because I am white, I reside within the city limits, and I have black neighbors. Can't you see how progressive I am as I drive my Mercedes to Walker's and sit outside, conspicuously reading my JFP? Imbeciles.
Such paltry finances are minuscule compared to the glory of electing a progressive African American like Mr. Lumumba. I will proudly cast a vote for him (I'm white, did I mention that?) and usher in history!
Jackson's finances are easily solved. First, let our glorious president (I voted for him!) and Representative Thompson (I supported him, and I'm white!) know of our progressive election and they will shower the city with money. Second, levy a tax on any non resident who sets foot in Jackson. Third, demand all private school students at JA, First Pres, Belhaven, Millsaps, and any other establishment in the city add a city services tax to their tuition. Fourth, bump the restaurant and lodging tax that worked so well for the convention center by about 5%. Finally, sue Barnes & Noble, Sam's Club and any other business that left Jackson on grounds of racism.
I am so much more enlightened than you. When my neighbor Daun'tre was robbing me at gunpoint last week, I happily turned over my purse. After all, I have the privilege of white success and he is oppressed by white racists like you hillbilly Rankin County residents. You probably would have called the cops.
I'm SO much better than you! Now I'm off to Babalu for martinis with Todd and Donna! Toodles!
Suzy from Fondren, you sound like a real idiotm, with anger management issues. Don't drown on your Babalu martinis.
ding! ding! we have a winner!
Don't drown on your Babalu martinis.
Sorry pal, NO one can drown on those weak ass drinks.
Is Mr. Kangaroo posting now as anonymous?
The city attorney, Teeuwissen, and Anthony Simon were law partners at one time. Its a hair better ethical arrangement than Melton's city attorney when she cashed in a her bond deal.
The SEC went after Harrisburg in another state for shady muni-bond dealing.
When a city is on the ropes due to poor governance and/or flight of industry or wealth, they always get much better terms when they return.
Should the former lovers not return, the foreign capital will bite. The State is offering $60k per job to the Japanese tire maker.
Jackson, regardless of mayor, will give away the store to a casino or Disney if Lampton, Speed, or the successors to David Watkins haven't closed the deal with Jonathan Lee.
The Jackson haters on here are relentless. Why not applaud Jackson for giving Lee the most votes instead of cheering for Lubumba to win to satisfy your sick racist attitude for jackson to fail?
The parody of your Fondren dweller is getting old.
Translation: Jackson next year is going to have a $3.6 million hole in the budget, and a $2 million dollar hole the following year. Grand total of the black hole: $5.6 million in two years.
Hey K.F. My math is different.
Next year (2104) $3.6 million hole (the "free money" flow decreases from $5.4 million to $1.9 million). Following year (2015) the "free money" flow becomes repayment of "free money" in the amount of $957,000. 2015 ADDITIONAL budget hole of $2.86 million. Total drop in budget funds due to this comparing 2013 to 2015 is $6.4 million.
From a public spending perspective (things government can give away to the citizens, or things government can fix when they break) this is a cumulative effect. Year 2014 budget hole is $3.6 million. Year 2015 budget hole is $6.4 million. Net cumulative budget hole those 2 years is $10 million.
Years 2016 through 2018 are the same. Net cumulative budget hole is $29.2 million between 2014 and 2018.
You are right and I need to correct to $6.4. damn. even worse.
"The State is offering $60k per job to the Japanese tire maker."
What the hell does that mean, 9:13? The state doesn't 'offer' private sector jobs. And your computation is way off unless you're including Dick Hall's buffet expense account, the cost of asphalt and jet fuel for Phil's several groundbreaking jaunts.
The incentive package is what the State of Miss. thru the Governor offers these manufacturing companies. Its a number that MBJ or CL published. Pew or other think tanks have published similar figures.
The parody of your Fondren dweller is getting old.
What's really getting old is the tired old calls of racism. For people who claim intellectual superiority, you liberals haven't a shred of originality. You keep spitting out the same baseless, detestable claim. Put those enlightened, evolved brain cells to work rather than killing them with H&M craft beers and come up with something different.
I think everyone commenting here has a stake, and hopes for the best outcome for Jackson, otherwise they wouldn't be commentors. They all have the privelege of expressing an opinion. It's not baseless to have real concerns about the local politics, and the lack of qualified candidates. Truth is, none us really know what they are thinking and how they will govern. The only thing we have to judge on is their history. SOME FOLKS SHOULD HAVE TO BE ABLE TO READ AND WRITE, TO QUALIFY TO VOTE. UNFORTUNATELY, MANY ARE UNQUALIFIED IN MY HUMBLE OPINION.
So somehow it was necessary 1:02 AM to shout your last two mundane sentences?
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