Note where the C-1 Board increased the cost estimates used to justify the Bond.
More importantly, note how the ballot language – which will become the controlling law in this deal – clouds the source & use control of funding. The Board combined project estimates into ballot groupings, and then put everything under the funds flow from the BEST grants. Since the C-1 Board had analyzed the ballot language for some time before tonight -video- one could conclude that rigid internal control of Bond funds flow wasn’t an objective.
Also, the repayment cost of the debt of $3.8M is the real cost to the taxpayers. Focusing on the bond value as the measure of the impact of the debt, disguises the real cost of all the chosen projects. You need to add 40% to each project to estimate its indebted real cost. [Read more…]