EDITOR:
For those who haven’t read the commission’s site promoting the new jail and half cent jail sales tax, I suggest you read it closely, especially for what is missing.
You won’t find the number $408 million, the total taxes to be generated over 20 years. Instead, you are told the project budget is $80-85 million.
You won’t find any discussion about the interest rate expected to be paid on the proposed general obligation (GO) bonds.
You won’t find any discussion about the county’s debt rating and how it impacts the bond interest rate.
You are told that the county’s outstanding debt is less than $10 million. You have to listen to the May 20 commission meeting video to learn that all this debt pertains to Neighborhood Improvement Districts (NIDs) funded by assessments on the underlying properties. The county is a cosigner on this debt.
¿Por qué decir $10 millones sin contexto? A modo de contexto, en 2005 el condado tenía obligaciones de deuda totales de $86 millones. El condado actualmente no tiene deuda directa.
El condado de Platte es supuestamente el condado de más rápido crecimiento en Missouri. Los datos del censo de 2020 muestran un ingreso familiar promedio de $71.000. Sólo el condado de St. Charles (St. Louis) es más alto. El ingreso per cápita es de $61.000, lo que convierte a Platte en uno de los seis condados que están por encima del promedio del estado de Missouri. Sólo el condado de St. Louis es más alto.
Hay tres tasas de interés propuestas en la proyección financiera: 4.5%, 5.5% y 7.0%. Una tasa libre de impuestos de 7.0% se traduce en una tasa impositiva equivalente a 11%+, es decir, basura de alto riesgo. El condado de Platte, sin deuda directa y con el segundo ingreso más alto de todo el estado, se considera de alto riesgo.
Con ingresos relativos tan altos, ¿por qué se considera al condado de Platte como un prestatario de alto riesgo para “la deuda más garantizada… que está garantizada dos veces… una por un impuesto sobre las ventas… y dos por la capacidad de imponer impuestos a los propietarios?”
Históricamente, el condado recibió una calificación AA por parte de los mercados de capitales. Las tasas de interés AA actuales a 20 años se aproximan a 3,8%, pero ¿lo mejor que podemos hacer es 4,5%? ¿Qué no le dice la comisión al público?
The answer lies with Zona Rosa and a 2007 2-1 commission vote to supposedly back Zona Rosa’s parking lot revenue bonds, which were to be funded by a 1% Zona Rosa sales tax. In 2018, when sales taxes were not sufficient to cover the bond payments, the county was asked to make payment. The 2018 commission took the position that the county was not liable because voters didn’t approve the debt, a position with which I was then and still am in agreement. In fact, the Zona Rosa bonds are certificates of participation (COPs), which are subject to annual appropriation. That the 2018 commission didn’t appropriate funds for COPs issued by a private entity caused the rating agencies to get their panties in a wad and lower the county’s debt rating. Call it a bond market temper tantrum. Responsibility for paying the Zona Rosa COPs was turned over to the courts. When the fight was over, the courts sided with the county. It seems that the county’s debt rating should have been restored at this point.
Back to the jail bonds. Question 1 seeks approval to issue GO bonds and requires a 4/7 majority in compliance with the Missouri Constitution. Why is there no disclosure or discussion about debt ratings and interest rates on the commission’s jail information site?
Este no es un asunto menor. Podría ser una cuestión de $40 millones. Piénsalo. Aparentemente a la comisión no le preocupa que los contribuyentes incurran en un costo de $40 millones debido a una rabieta.
I understand the concerns about the jail, but the jail has been a topic for over a decade. Yet it’s crickets when it comes to the county’s debt rating, the interest rate on debt, and $408 million of new taxes.
Taxpayers have a right to know what is needed to secure a AA debt rating. The county’s income and zero direct debt status warrant a AA rating. Placing a bond issue on a ballot before securing that AA rating is putting the cart before the horse.
The commission seems to be sending a message of desperation. That’s quite a message to send to the bond market, and sadly, to taxpayers.
--Gordon Cook Parkville