Wednesday, February 22, 2017

TKC BREAKING AND EXCLUSIVE NEWS!!! CITY HALL SHOCK: KANSAS CITY BOND RATING EARNS NEGATIVE OUTLOOK!!!



Behind the scenes at 12th & Oak there's an ongoing war waged by City Hall to control information about Kansas City's rapidly worsening financial situation. Thankfully, our blog community consistently BREAKS NEWS about the real world economic tragedy confronting taxpayers.

To wit . . .

FIRST AND FOREMOST ON TKC: MOODY'S ASSIGNS NEGATIVE OUTLOOK FOR NEW KANSAS CITY BOND RATING!!!

Remember that most local news outlets don't understand this stuff or enjoy tax breaks to keep this information buried.

Here at TKC, we believe this kind data should be exposed given that it impacts residents throughout the city as much as any other news item, doggie story or tragic vigil. Probably more so . . . 



Accordingly, so that readers can check our work, we'll link and quote straight from the source despite the fact that the info remains buried by mainstream news. . .

Take a look:

Moody's Revises Kansas City's (MO) Outlook to Negative . . .

A horrific but accurate line of reasoning . . .

"The negative outlook reflects the growth of the city's pension obligation and, when coupled with the elevated debt burden, the increase of fixed costs outpacing revenue growth. Continued leveraging of the tax base or unabated expansion of the pension obligation will place downward pressure on the rating."

It gets worse, hidden in the presser is this passage that basically calls into question the TAX AND SPEND AGENDA of Mayor Sly's Administration . . .

Reason for the downgrade: "The risk of non-appropriation, the lack of pledged assets securing the debt, and the less essential nature of the projects financed."

Now let's explain a bit more about Kansas City on the precipice of financial oblivion . . .

Factors that Could Lead to a Downgrade

- Further leveraging of the city's tax base absent corresponding revenue increases

That means more borrowing . . . Very much like the GO BOND vote coming up.

- Continued growth of the city's unfunded pension liabilities

Of course 1st Responders deserve to be paid . . . But going forward, the reality is that there's no way to maintain the current pension system.

- Weak financial performance leading to a decline in reserves

The Trump Rally won't last forever . . . When hard financial times arise . . . KCMO is woefully unprepared thanks to the current leadership at City Hall.

And so . . .



The financial future of Kansas City continues to circle the toilet bowl of history as voters and taxpayers are encouraged to ignore news about dangerous City Hall fiscal policy and instead focus on pricey pet projects, social justice culture clashes and empty promises from elected leaders.

Developing . . .

31 Comments:

Anonymous said...

This is how Kansas City became Detroit five years ago.

Now Detroit is going somewhat better. But KCMO still hasn't learned any lesson from so many cities going bankrupt.

Grover said...

Trump needs to cut Fed funding for KC. FAST. No more money till Sly gets his house in order.

KC Future Times 2020 said...

200 homicides a year as Kansas City goes bankrupt.

Anonymous said...

Not so bad. Maybe we can make it up by charging for the streetcar?

Anonymous said...

3:55 So we charge $2.00 each trip. 500 people (maybe) a day? $1000.00 dollars! Woo Hoo. That won't come close to the operating costs daily.

Anonymous said...

omg, not good.

objectively, not good.

the bonds will be saleable but the rate will likely be higher.

what a grade card. embarrassing to take home to voters.

Anonymous said...

Any chance this could energize opposition?

Right now, the thing is accepted as a fait accompli.

Real KC said...

Kansas City = Broke

Anonymous said...

We better help city hall and vote NO on $800 million bonds in April.

Anonymous said...

The Star ran it last week...you know, WHEN IT ACTUALLY HAPPENED.

Sounds like you're avoiding the truth of your own shortcomings!!! Caught with your pants down, eh buddy???

Kc Tweeted said...

Star didn't do shit with it, no questions, no quotes, no facts. Good luck with keeping your newspaper afloat. Most people would rather read Facebook. Sorry Tony caught you sleeping at your desks.

Anonymous said...

Why didn't Troy tell us about the downgrade when he spoke this afternoon?

Jacknowledge said...

I for one look forward to ownership by our Asian creditors.

Anonymous said...

Looks like the bond rating professionals are finally paying attention to what amounts to borrowing at a high rate of interest from retirees.

Retro ROCKER said...

The city is lucky it was a mild winter the sale tax money keeps rolling in the city is loosing tens of millions of dollars the RED light cameras are gone there will be a lot of layoffs

Anonymous said...

Another negative rating from Moody's is really bad for Sly. He should have been on the ball and had them wait until May.

This just looks bad.

Anonymous said...

Too bad Sly is so bad with money. Otherwise he seems like a nice guy.

Retro ROCKER said...

The star will not dig deep no investigate reports if this was another city newspaper they would be all over it ALEX Jones would be outside of city hall with A BULL HORN

Anonymous said...

It really pisses me off to know my city pension is only a finite time. Not as originally touted as forever. The people responsible for its administration for the last 20 years needs to be taken to court along with the past 5 mayors and all city council involved. They have been derilect of duty and have willfully mis managed and improperly funded. Jail time plus their pension recended and added back to the pile.

Anonymous said...

+1 Class-action time?

Anonymous said...

Your pension was pissed away by the unions that you supported. Don't ask for tax payers to double fund what was promised to you. We get promised many things and get fucked all the time. Get in line. You bet it all on a sway back horse. Bad bet sucker.

Anonymous said...

if the downtown renaissance continues, a huge cohort of high-earning young and old people will improve tax rolls and, as a by-product, businesses and their taxes paid. it could reverse the trends.

the pieces appear to be in place for that.

it almost makes one say go ahead on the dazzling hotel so as to keep downtown momentum going.

Anonymous said...

YEAH! No more bucks for blacks. Cancel dem dollars for dem Dindus!!!

Anonymous said...

Take a serious look at where downtown property values have been going the past six years and all the lowered property tax deals downtown dwellers get.

Don't shit when you do.

Anonymous said...

Cough. Downtown Renaissance? Would that be the downtown renaissance of the record high murder rate? The ongoing decline of the Plaza? The P & L that loses tons of money every year? The 18th & Vine failure? The hilarity of the streetcar? Do say where this downtown renaissance momentum may be occurring...

Anonymous said...

with all those earning tax dollars from Kansas why do they need to float bonds?

Anonymous said...

Its time to sell that KCI Airport to the highest bidder!
I think it the only thing left without GO Bonds attached.

If those pensions fail.......
Talk about civil disobedience, it's a scary situation no doubt.

http://www.chicagobusiness.com/section/pensions said...

ANY city where blacks are an parasitic excrescence draining tax payers and demanding more and more freebies will fail.

Chicago is so, so fucked. We are too.

http://www.chicagobusiness.com/section/pensions

Bob said...

6:03, where in the story does it say that your pension plan was amended to provide less than a lifetime payout?

In recent years, the SEC has charged local governments with fraud for failing to disclose unfunded pension liabilities in their financials connect to a bond offering. If KCMO has a large unfunded liability, that alone could justify the negative rating.

Anonymous said...

Where is Mr. BullHorn with the Bull Shit? We need to have him yell the truth at us and help cover up this obvious attempt by a blog to ruin our MAJOR LEAGUE city.

Anonymous said...

"the less essential nature of the projects financed" aka Trophy Projects like the Power and Light District, widening roads all over town and adding virtually-unused sidewalks and bike lanes to them. Great for the corporate interests inside and outside of City Hall, bad for the planet and everyone else.