Say goodbye to good credit Kansas City . . . TKC reported about the muni-bond crunch awhile ago but now things are getting worse.
The current global recession was caused by the credit crisis and sadly KC is thinking of overextending itself once again.
The following Internet e-mail is circulating like wildfire, KC news watchers will see it In The Star sometime later:
Already there has been news of a "negative outlook" for Kansas City muni bonds.
BUT WORD IS, IF THIS TOWN TAKES ON A MASSIVE DEBT FOR LIGHT RAIL THEN KC MUNI BONDS ARE DEFINITELY GETTING DOWNGRADED!!!
A brief explanation:
When Wall Street first tanked the muni-bond market froze up. KC wants to be like Portland but even that City had a hard time pushing its bonds in light of the credit crunch:
The Port of Portland is also playing the waiting game. It had hoped to borrow $140 million this month to build a second parking garage at the airport, a runway extension, a deicing system and part of a new headquarters building.Luckily, for Portland, the demand just might come because people are being encouraged to put more money in muni bonds given the bearish stock market.
It has since delayed the offering in hopes of more demand and lower rates.
BUT MORE INVESTORS WILL TRANSLATE INTO MORE COMPETITION AND SCRUTINY OF KANSAS CITY'S CRAPPY CREDIT!!!
In other words . . . It's a buyer's market and this town taking on even more debt to pay for light rail is going to be the last straw that gets Kansas City Bonds downgraded.
That's important because a muni bond downgrade makes ALL SUBSEQUENT DEVELOPMENT MORE EXPENSIVE!!!
Folks who think that this town will finally repair sewers AFTER light rail is pushed through might want to think again because when KC Bonds are downgraded after light rail passes, borrowing money will be nearly impossible. Without question:
MAYOR FUNKY IS MAKING KANSAS CITY CHOOSE BETWEEN LIGHT RAIL AND WATER INFRASTRUCTURE REPAIR!!!
I only hope Kansas City has the common sense to vote down the EXPENSIVE PROPOSAL THAT IS POISED TO (FURTHER) RUIN THIS TOWN'S CREDIT rather than simply opting to play with a toy train set.
Can someone please tell me when Funk turned into kay barnes?
ReplyDeletebig money
ReplyDeleteneeds more caps
ReplyDeleteYet another example of a campaign promise gone south.Remember the slogan on the signs: "A city that works for ordinary folks".
ReplyDeleteThe man who knows all about auditing, is willing to risk a billion dollars and kansas city credit to for helping those ordinary folks at HNTB. I am sure most of those engineers and city planners will still be driving their cars in from Johnson County to work, while you enjoy lower bond ratings, higher bond costs and no money for sewer repair. Hope you basement doesn't have sewer backups when it rains.
This blog is pathetic. A cursory review of the front page reveals that you like to write (almost exclusively) negative impressions about Kansas City. Sure, KC has its problems and an objective analysis would be great but I don't see how anyone can take your views seriously. You lose a ton of credibility when your refuse to provide any sort of objectivity to your opinions.
ReplyDeleteAs a downtown resident, I have a ton of frustrations about the city: crime increasing, homoginization of downtown nightlife, street decay, lack of walkable sidwalks for running/walking, sewers, etc. etc. However, there is no denying that the city has made significant progress in the past 5 years in terms of quality residential living and overall inhabitability. Sure there are trade-offs along the way, but the downtown has grown by leaps and bounds.
Reading your thoughts as you try to discuss the deterioration of the muni bond market is pretty pathetic. Everyone is aware of that, and that the cost will be higher for construction, etc. What you should be focusing on is whether or not and/or to what degree the increase in cost makes light rail on longer a viable option in KC. Surely you are aware of other economic externalities such as the reduction in use of finite quantities of fossil fuels and the reduction of urban congestion. Perhaps you've covered that already, but from your general tone I'm sure you gave up on light rail before it ever began.
anon @ 3:32 wrote, "there is no denying that the city has made significant progress in the past 5 years in terms of quality residential living and overall inhabitability. Sure there are trade-offs along the way, but the downtown has grown by leaps and bounds."
ReplyDeletefunk-n-stumper, get off the internets and leave tony alone, you ignorant asshole.
What is a stumper? Nice language. I'd love to continue to engage in a battle of wits with you Mr. Anon but I can see that you're clearly unarmed.
ReplyDeleteI think Tony can defend himself (well, maybe not), but its funny that he has a little helper person to defend his honor. Go move to JOCO if you hate KC so much. Oh wait, you probably don't even live here so you really have no standing to complain about it, right?
3:32 your analysis of Kansas City's municipal bonds is far too optimistic. Moody's has already given KC a "negative outlook" and the bonds are already a pussy hair away from being downgraded. Tony doens't know shit but he's making a good call. If KC takes on a billion dollar debt, don't look for Kansas City to be able to borrow money for anything else. Not sewers, not streets. Like so many subprime note holders, we'll be lucky to pay the interest on all of this debt.
ReplyDelete4:08, actually I didn't purport to give an analysis of KC's bond ratings but its obviously not a rosy scenario and I agree that taking huge debt to build light rail is not a great scenario, especially if it cuts off the ability to raise capital via long-term debt for needed projects such as sewers and roads.
ReplyDeleteI would like to see that Moody's article or rating for reference if you have a link. I see a lot of their info is pw protected. Thanks for the analysis.
And, as far as me being a stumper for Funk (if that is what is being implied), that is completely laughable. I think his first two years has been a debacle with little accomplished. So sick of hearing about his wife, the lawsuit and the bickering with council.
gee, you ARE new to this blog, dumbass.
ReplyDeletewhy do you assume anon is a "Mr."? - 'cause you're a sexist windbag? or 'cause you're a dude and you can't believe women like tony? (trust me, we do. a LOT.)
and "funk-n-stumper" is just a cute pet name for funkwaddle and wifey.
is your one brain cell so lonely that you had to come write on this blog, funkwaddle?
Mark Funkhouser = Asshole
ReplyDeleteRuss Johnson = Puppet of the Assholes and lapdog to the mayor
Kevin Collison & Brad Cooper = Pathetic A$$hole Star cheerleaders
Pat McLarney = Asshole
David Scott = Asshole
Kevin Klinkenberg = Asshole
Kite Singleton = Odious Asshole
John Dobies = Asshole
Mark Huffer = Asshole
Phil Scaglia = Huge Asshole
Freedom Inc = A collection of greedy Assholes
HNTB = See Freedom Inc
Urban Society = See HNTB
Why would anyone listen to these paid cheerleaders?
DEEP SIX LIGHT RAIL NOW AND FOREVER!
5:03.. yes I am new. I'm sorry to try to post half-way intelligent commentary on a completely biased, joke blog. I apologize.
ReplyDeletefunkwaddle? I have no idea what that means but I can only assume you are either Tony's mother or his sister.
And I assume if I would have left the title as "anom" and gender neutral you would have left me alone. Amirite?
The ATA issues the bonds for light rail, not the City. Which makes this entire post an irrelevant lie.
ReplyDeleteYou prove yourself an ignorant dumbass time and time again, Tony.
Part of the mis in bonding will be the ATA's location. If it is in a shaky bond market location it will be a problem. The ATA will of course be the group responsible but ask who pays if they can't.
ReplyDeleteAsk why the Millionaire soccer team owner and his partners are not able to sell the bonds they want to use to build a stadium and commercial business space at Bannister,
Ask why they are now working the back rooms of City Hall to get the city to lay down the fix and take over the responsibility.