Let's talk finance for just a bit this morning and because Kansas City politicos keep running up the tab @ City Hall.
To wit . . .
CITY HALL TOUTS A NICE BOND RATING BEFORE ANOTHER BIG KANSAS CITY BORROWING SPREE!!!
Meanwhile . . . KANSAS CITY TOP ECHELON INSIDERS REMAIN SKEPTICAL . . .
TKC EXCLUSIVE MONEY QUOTE FROM A TOP KANSAS CITY FINANCE LEADER: "It's all well and good for now. But the second that interest rates rise, even modestly, look for the chronically overextended (like Kansas City) to take a major hit. It's really just a question of time. This restructuring that is being advertised has all the structural integrity of a house of cards."
So, here's the good news from the City amid an ongoing spending spree courtesy of Mayor Sly James and the City Council . . .
Also . . . TKC EXCLUSIVE TIDBIT for the smarter local denizens . . . We hear the people @ Fitch aren't as excited about Kansas City's economic future.
City’s pension reform impresses credit agencies
Special obligation and general obligation bond ratings affirmed
Moody’s Investors Service and Standard and Poor’s Ratings Services have affirmed the ratings for the City of Kansas City, Mo.’s outstanding special obligation bonds at A1 and AA-, respectively, both with a stable outlook.
“Staff and elected officials have worked collaboratively to ensure that Kansas City is nationally recognized and the affirmation of the City’s credit ratings is no exception,” said Mayor Pro Tem Cindy Circo. Alongside City staff, Mayor Pro Tem Circo participated in the recent credit rating agency presentations and played a valuable role communicating the City’s recent accomplishments to them.
The ratings also apply to the upcoming issuance of special obligation bonds to be priced on March 11, 2014 in the maximum amount of $124.5 million. The bonds will be issued in three series to fund the Downtown Streetcar Project, City building improvements to meet the Americans with Disabilities Act’s requirements, traffic signal replacements at 15 intersections, and a new enterprise permitting software system designed to streamline permitting processes and improve the customer experience. In addition, the City plans to restructure a portion of the outstanding debt originally issued to construct public infrastructure in the Power & Light District downtown.
At the same time, Moody’s and Standard and Poor’s affirmed the ratings on the City’s general obligation debt at Aa2 and AA, respectively, both with stable outlook. In its report, Moody’s cites the City’s recent pension reform efforts as a credit positive and credits the City with “strong managerial oversight” of its financial position. This week, Moody’s featured the City’s recent pension reform in its Credit Outlook publication.
Standard and Poor’s views the City’s management conditions as “very strong” indicating that “practices are strong, well-embedded and likely sustainable.” Standard and Poor’s also acknowledged that the City is “taking steps to better fund its pension while keeping the budget in balance.”
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TKC, Fitch will downgrade soon. You heard it here FIRST.
ReplyDeleteHey, it's the equivalent of December before Christmas in Sly's terms in office and all the gift bags can barely fit into the trunk. And the streetcar hipsters, Chamber swells, consultants, law firms, engineering companies, and assorted hangers-on can hardly wait to keep opening their presents. By the time the January bills come due, Sly will be out of office and settling into some nice cushy gig and the taxpayers will be facing payments as far as the eye can see.
ReplyDeleteJust like the P&L District and all the other under-performing renaissance miracles in KCMO.
As was said by an economist long ago: Going broke happens slowly; then quickly.
The Quick Trip clerk on Southwest Pkwy does not constitute a top finance official.
ReplyDeleteShit, you can say whatever you want on the internet.
if the city is doing so fucking well how is it we cant control the crime? we have a fat middle aged black man in a bow tie who still uses his street name "sly" when he introduces himself to the public, a local congressman that is having his paycheck garnished for tax evasion, a city councilor stealing everything from money to staplers and sending out porn on his city cell phone of himself and despite his claims of extortion from another party nothing is done, a city councilor who spends more time visiting china and brags about trying to pimp the city for citizenship in exchange for business relocation and the mayor pro tem .. a nail technician ... this is kansas city my friends and to not forget what a bond is .. well...thats not free money from the bank .. they pay that back through parking and moving violations, tickets fines etc ...so when you say a-ok to a bond? do not fucking cry when you get a ticket for driving 1 mile over the speed limit you useless fucking rubes
ReplyDeleteMexican high finance would include bartering a taco for cup of Westport coffee... nothing more
ReplyDeleteSo does this mean racists like Kansas City's debt load?
ReplyDeleteDoesn't make much sense but nothing else does on the Internet anyway.
These bond companies just want sell more debt to the city. This like the tobaccco companies saying you can continue to smoke today because you don't have cancer.
ReplyDeleteIs Schulte in prison yet?
ReplyDeleteI agree with comparing the city as having the structural integrity of a house of cards. If you was to look close at that deck of cards you would see it contains nothing but Jokers.
ReplyDeleteKansas City has earned NOTHING under the Sly James administration. He's bullied his way through just about everything and his time is almost up. #thereisaGOD
ReplyDelete"Borrowing spree" my ass! This is more like a legal stealing spree. The kind that's been going on for years in this fucking cow town. You dumb fucks are just not smart enough to do anything about it, so on it goes. Is your ass sore yet??
ReplyDeletethere's no reason to trust those bond ratings. the industries are all tied to together and theres lot of corruption in the boardroom. meanwhile circo and james and co are doing their gods work, cutting pensions and spending on stupid projects.
ReplyDeleteDetroit is the model city for spending loving politicians in KCMO & KCK. Once out of office, on to high paying gigs as re-payment for jobs well done. Taxpayers left with debt and useless projects that will NEVER pay for themselves. KCMO & KCK borrowing power increases, our lives continue down the toilet. Reports on financial worthiness are bought and paid for too.
ReplyDeleteLegends, race track, P&L District, 18th & Vine Ponzi schemes WILL NEVER be paid off - get used to it. They're useful money pits.
Tony,
ReplyDeleteIf you want to be a real jounalist why don't you find out how often the city goes back to the refinance window. Monthly, quarterly, yearly? Future interest rates will have a big impact on free cash available.
Kansas City needs to be downgraded because of out deferred maintenance. That's billions that's going to need to be repaired.
ReplyDeleteTony is not a Journalist. that takes integrity.
ReplyDeleteWhat a fucked up program. KC renovates the pension programs and gets permission from lenders to rob it's citizens.
ReplyDeleteI am old enough to remember when Chicago (yes, Chicago) was a AA rated bond, except that anybody in the municipal bond industry knew it was not.
ReplyDeleteBack then, KCMO traded like a AAA bond because of its wonderful Finance Director, who took no backtalk or political posturing from anyone.
Sad to see that it has changed so drastically. When KCMO sells bonds, let's see how they are priced. I will bet that they are in the BAA range, even with these great ratings.