UPDATE: So why are we not using reserves for the Aquatic’s bonds?

I have been hearing rumors for weeks about some of the things in the bonds. I guess they may be released to the public tomorrow at the weekly presser (10:30 AM at city hall). Not sure though.

What I found out tonight (ironically a day before the big reveal) that several of the rumors were just that, rumors and nothing solid.

But this is what I do know. The city is considering buying a private fitness center with a pool and other fitness amenities like weights, basketball and racquetball.

I am NOT saying who it is, because as I mentioned several times, it is still a rumor, but seems more doable since the fitness center would be a nice fit for the city, but I am not sure why we are putting private facilities out of business to have the taxpayers subsidize them? I can see the cost savings buying an existing facility, but do we really need to?

NO.

And look at this private facility that just opened. Forty thousand square feet! I am assuming they are doing this facility to make a little revenue, so why does the city want to compete!?

Also, during the informational, Jensen asked finance (we have 37% in reserves) why we are NOT taking like $20 million out of the reserves and put towards the bonds so our interest payments are less. I was told just the bond payments and NOT the subsidies will cost us $5.7 million per year for the the next 20 years! Add subsidies for the refrigerated ice, and these facilities and you are looking at about $8-9 million per year.

And when will the council talk about the yearly subsidies? One councilor told me the administration still hasn’t given that info to the council. WHY!?

This is why I often am humored when our finance director comes to the microphone saying we need to preserve property tax increases and keeping the food tax otherwise we won’t be able to plow snow and fill potholes.

Baloney.

You have around $80 million in reserves. Why are you hoarding it? Some said the mayor wants to sit on the reserves for a downpayment on a new convention center. Who knows. When you collect taxes and there is more money coming in then you are spending, you either need to 1) spend it instead of bonding or 2) give refunds to people. I like #2.

Someone asked me why do you think the administration doesn’t want to knock $20 million off the loan? I said, it is because the city didn’t come up with the $70 million amount, ‘someone’ else did. My readers are smart, I’m sure you know what I mean.

I also find it amusing that the council is talking about the bond process publicly, released the amount, hired bond counsels, etc., yet they can’t tell us what is in there? Weird.

UPDATE: Looks like Don Swanson (parks director) explains a portion of the bonds, without mentioning the purchase.