Lies about light rail financing and the city’s bond rating
Fact: KCATA will be issuing its own debt for light rail construction financing and that debt will have no impact on the city's current debt load or it's bond rating. Period.
Don't believe us? See it in print here (Article III, Section 7).
Don't be fooled by salacious blog posts prompted by whispers from the opposition. The City is NOT on the hook for any light rail debt. It's no different than KCI having its own bond rating.
In fact, the city's bond rating is still doing very well. Any many are touting bonds as a recession-proof investment.
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Now you’re just lying to people.
You know that more than half of the funding isn’t secure for this light rail initiative yet. Of course the ATA will issue bonds but KC has picked up the tab in funding local construction and will pick it up once again for a major project like this . . . This will impact the local bond rating that already has a negative outlook.
As for your comments on bonds - Either you don’t know what you’re talking about or you’re being purposefully misleading. Investing in bonds is great in bad economic times FOR BUYERS. For groups SELLING bonds, like Kansas City, there will be more scrutiny and competition.
TKC runs a satire blog, I don’t know why your assumptions about the local bond market are so laughable.
Nevertheless, thanks for linking my blog!!!
dude. i “get” that its satire. that doesn’t mean it’s good satire.
KCATA will issue the bonds and city will not be on the hook for that debt. period. your post was incorrect.
tony…
these bond payments would have a guaranteed source of revenue (the tax). things like the power and light district and the water project do not (which you failed to mention in your post…would be much more relevant than portland, but then that wouldn’t do much to add to the emotional fodder you use to sensationalize).
this should not affect the bond rating of the city.
Then why did we take a wait see on the $200 million on the water & sewer bonds?
northlander…
water and sewer bonds weren’t sold now because of a very challenged credit market. light rail bonds won’t need to be sold for another 4-5 years when construction is due to start. you don’t stop making plans for the future — plans that will put us on a path to become less energy-dependent — because today’s outlook is troublesome. you make the plans, recognizing that market considerations *could* affect when you actually carry out the plans.