Thanks to Jim Carson who alerted me to the fact that the City Council is yet again talking about refinancing the TIF debt, and the consensus is that they will extend the debt out another 10 years past the expiration of the district. The reason?
The City is currently subsidizing the TIF to the tune of $500,000 a year and that number is going to go up to around $600,000. I’ve been saying this was going to happen for years and this isn’t a suprise, but instead of just biting the bullet and cutting spending, they want to extend the debt out so our kids can pay it back. Sounds just like Washington D.C. to me.
They are going to say they are going to stabilize the tax rate on debt because they want to issue another $8,000,000 in debt this year. Has anybody at City Hall heard of cutting spending? Maybe the powers that be at City Hall need to take a Dave Ramsey course. They are also saying that they could pay off the bonds early if the TIF ever turns around. Have you ever heard of a government entity not spending “found” money on another pet project?
What will this cost us? $800,000 $2.7 MILLION of extra interest. Maybe former Mayor Tandy can write a check to cover the difference.
Don’t believe me? Go watch the February 2nd City Council work session.