"The City Council approved a temporary financing method that will provide some of the funds for the $19 million [Aquatic Center] at the Greensboro Coliseum. And, like every other vote associated with the three-pool center, it was approved by the slimmest of margins.
$7 million @ 4% for 20.5 years = $12,740,000
if the $12 million is finananced @4% for 20.5 years = $21,840,000
Total Cost to taxpayers = $34,580,000
$760,000 in annual interest payments,
not counting principal repayment costs, operating costs or maintenence costs.
It passed five to four. Mayor Bill Knight and council members Mary Rakestraw, Trudy Wade and Danny Thompson voted no.
City Council also voted to spend more than $85 million of savings in three years
when the 2010/11 budget passed.
Appropriated fund balances
FY 2008/09 $33,421,883
+ FY 2009/10 $21,747,656
+ FY 2010/11 $30,464,269
Page 13, Adopted 2010/11 budget
It was a vote that might have ended in a tie, had Councilman Zack Matheny – who had been excused from the meeting because he was ill – not shown up right before the vote.
2008/9's net revenues = $410,080,337
2009/10's net revenues = $401,020,748
2010/11's expected net revenues = $393,327,363
City of Greensboro net revenue and appropriated fund balances
verbally confirmed by Rick Lusk, City of Greensboro Finance Director
“We just need to be looking harder at where we are spending money,” Knight said."
How much are swim parents going to pay
for parking, entrance and concessions
at next year's City Swim Meet?
Ponzi finance units must increase its outstanding debt
in order to meet its financial obligations.
A transition occurs over the course of an expansion
as increasingly risky positions are validated by the booming economy,
that renders the built in margins of error superfluous,
encouraging adoption of riskier positions.
Eventually, either financing costs rise,
or income comes in below expectations,
leading to defaults on payment commitments.