LBReport.com

Opinion / Common Sense

Fourth in a Special Series: How Council Is Asked To Squander MILLIONS Annually In Civic Center Deal

by Terry Jensen


(November 2, 2014) -- City staff is making a big deal out of telling taxpayers that the City doesn't want to borrow money to fix City Hall or build a new Civic Center. They want you to believe it shows fiscal discipline to build a new building and not fix the current building. They claim they can produce a new Civic Center without costing taxpayers more than they're currently paying.

Former Mayor Foster, Mayor Garcia, Vice Mayor Lowenthal and those likeminded want you to believe it demonstrates fiscal discipline to use a "Public Private Partnership" so they won't have to borrow money.

OH REALLY! What the Council is being asked to do is worse.

Most of you know the difference between a fixed rate mortgage and a variable rate mortgage. The interest rate on a fixed rate loan never goes up. It is clearly the better loan as the payments stay the same until the loan is paid off. In contrast, the interest rate on a variable rate loan can go up every year and so do the payments.

So what do you think the city staff proposes that Councilmembers do? Yep. Instead of borrowing at low interest rates THAT NEVER GO UP they want Councilmembers to approve signing a lease with payments that GO UP EVERY YEAR FOR 40 YEARS.

That $12.6 Million payment that city staff says is all taxpayers will pay annually actually escalates to $13.01 Million in the first year ballooning to $14.24 Million at the end of year 5 and will be over $23 Million annually in 25 years . By the end of the deal's term, the annual payment can easily grow to over $30 Million. And if inflation rears its ugly head, the payments could be even larger.

That's money that the City won't be able to use to provide taxpaying Long Beach residents and businesses with police, fire, parks and libraries or infrastructure..

So instead of having a free and clear City Hall, Library and park within 20 years with money to spare thereafter (I can show them how), Garcia, Suja and various enablers want taxpayers to pay MORE every year for 40 years. Such a deal!

And it gets worse. Stay tuned


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Previously in Mr. Jensen's Special Series on Civic Center:


Previously on LBReport.com: Common Sense by Terry Jensen (continuing series):

  • No. 27: Third in a Special Series; Open letter to Councilmember Stacy Mungo and 5th District Residents (And Anyone Who Cares About Long Beach)

  • No. 26: Vincenzo Cristiano and the Best Dish Washer Nino's Ever Had

  • No. 25: Second in a Special Series: Civic Center: "A Once in a Lifetime Opportunity" OR "Just Another Stupid And Expensive Idea"?

  • No. 24: First in a Special Series: Civic Center: "A Once in a Lifetime Opportunity" Or The Biggest Boondoggle in Long Beach History?

  • No. 23: What Is City Mgm't Trying To Hide From Council And Taxpayers On New Civic Center, And Why Are They Hiding It?

  • No. 22: Double Standard Accepts Defeat As Victory

  • No. 21: March of the Lemmings: Public-Private Partnership Proposed For New Civic Center

  • No. 20: Long Beach: Why Are Stupidities Tolerated, Mediocrities Applauded And Priorities Bewildering?

  • No. 19: Public Private Partnership Isn't Panacea, May Invite Higher Cost To Rebuild Long Beach Civic Center

  • No. 18: Accountability

  • No. 17: Good Or Bad Deal For Taxpayers? Info & Answers Needed Before Council Leases Parking Spaces To 6th/Pine Owner

  • No. 16: New Taxes? Get Serious First

  • No. 15: Important Questions Not Asked, Answers Needed Re Uncollected Parking Ticket Revenue

  • No. 14: Using Bad Technology To Excuse Bad Management

  • No. 13: Ruling By Obfuscation, Enabled By Mayor & Council

  • No. 12: Mystery Holiday Moves Mayor To Propose Canceling Jan. 3 Council Meeting

  • No. 11: Public Officials Shrugging Public Costs Of Project Labor Agreements

  • No. 10: Outsourcing City Hall

  • No. 9: Lack of City Hall Credibility, Not Residents' Complaints, Deters Quality LB Developments; Restoring Trust Requires Accurate Information & Respectful Partnership b/w Residents & Officials

  • No. 8: Council Grants Permit With Conditions Requiring What City Hall Already Basically Requires & Residents Deserve

  • No. 7: Facing A De Facto Precedent Proposed at 2nd/PCH

  • No. 6: Put Redevelopment In Council's Hands, Make LB Elected Officials Accountable (For A Change)

  • No. 5: Suppose Our City Officials Had Applied These Efforts To Assure World Class Kroc Center Instead Of For This, This & This

  • No. 4: Council Majority Either Didn't Know, Or Knew But Didn't Disclose, Amount Of Taxpayer Dollars Potentially Up In Smoke On Med MJ Vote

  • No. 3: City Hall & Its Boosters Created Budget Mess (Quit Blaming Recession); Proposed Proportional Cuts Don't Prioritize; Council Needs To Define Core Items & Cut Others

  • No. 2: Costs vs. Benefits: Council's Costlier-Than-Necessary Seawall Fix = Decaying Belmont Pier & Other Shoreline Assets

  • No. 1: Santa, Call LB City Hall: Taxpayer Leased Vacant Bldg. (New Home To Daisy Lane Xmas Displays) Invites Annual Public Review of All City Owned/Leased Properties And Zero-Based Budget



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