Carmel City Council approves waterworks bonds sale to seek lower interest rate

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  • Rick Smith

    Article has lots of verbiage but little real substance. How about… Old interest rate? new interest rate? associated transaction fees, $500,000 or more in annual savings based on???

    Why is this smart? If the fear is interest rates are about to go up why would Pedcor offer a lower rate? Same concern about an interest rate increase was raised in 2012 bailout meetings. The 4 S’s (yes, Carol Schleif played for the other team) were blamed for not “saving the money” sooner.

    Is it a way of freeing up more funds by stacking the deck and having the existing debt financed by Carmel/Pedcor? How do they benefit and why is this attractive to them.

    It would not be the first time the Mayor has shuffled the cards. In fact this is playing out a lot like 2010-2012.

    2010 to 2012
    2010 Mayor plans Stop Sign removal as an issue for a campaign promise
    2011 Mayor and his slate say – ‘Finances are great’, Mayor has two opponents and easily wins election
    2012 Finances are in the toilet we need a plunger and a bailout to clear the mess?

    Result – City initiated a Special Benefit Tax that will be implemented if the city were to default on it’s bonds. It would result in a new tax to all property owners, would be exclusive of your property tax cap
    and it would immediately result in a likely significant devaluation of property in the city.

    2014 to 2016
    2014 Mayor has one opponent and again rolls out Plan to remove Stop Sign
    2015 Finances are great, Mayor says ‘NO NEW TAXES’ in debate and on Facebook
    2015 Mayor claims TIF assessed value is up $32 million over projection; April 29, 2015
    2015 Mayor and his handpicked City Council sweep election
    2016 First 10 business days of New Year Carmel Council ok’s ~$250,000,000 in new obligations.
    2016 Tax rate goes up 19%

    Finances are wonderful but through no fault of the cities CEO we need to raise taxes 19%? How did we not see this coming?

    It is great that we will save $500K/year it is ironic that in the 8 years since the original bond was taken out we have only paid principle down $4 million. Ironic because that would be $500K/year we have paid toward debt service. Could it be that at that rate of repayment it would take another 40+ years to retire this debt?

    Sounds like a WIN-WIN!

    • 123SNL456

      You left out the magical mystery “financial” plan, The much touted plan, created by Mayor Brainard and Sugar Daddy Curt Conrod – is spoken about frequently, but has never been seen – the whole thing is reminiscent of a snipe hunt.