Saturday, October 08, 2011

The real cost of the street bond

I hope they do get back to me, since this information is important in evaluating the wisdom of borrowing $248 million to take care of our streets. The numbers---$189,249,617 million added to the $248 million---in George Wooding's column in the Westside Observer need to be either verified or refuted by the City Controller, whose statement on page 41 in the Voter Information Pamphlet seems designed to conceal the real cost of Proposition B from city voters.

From: Rob Anderson rmajora@gmail.com
Subject: Bond Interest

Your statement on the two bond issues in the Voters' Guide for the November election is unhelpful in evaluating what those bonds will cost the city over time.

Can you say what the city will pay in interest over the life of each of those bonds? I'd like to see a dollar amount---even if only an estimate---for each of the two bonds instead of the tax rate information. In the state's November 2008 Voter Information Guide, for example, the Legislative Analyst told voters that the annual payments on the $9.95 billion bonds for high-speed rail would be $647 million a year. What would the estimated annual payment be for the street repair bonds?

From: Controller.CON@sfgov.org
To: Rob Anderson rmajora@gmail.com
Subject: Bond Interest

Mr. Anderson:

Specifically which bond issues are you referring to?

Thank you

From: Rob Anderson rmajora@gmail.com
Subject: Bond Interest

There are two bonds on the November ballot, Prop. A is a school bond, and Prop. B is the road repair bond. In your department's statement on Prop. B in the Voter Information Pamphlet (page 41), property tax rates are referred to but the overall cost to city taxpayers after the interest is added to the $248 million is not disclosed. Can you provide me with that information?

From: Rob Anderson rmajora@gmail.com
To: Controller.CON@sfgov.org
Subject: Bond Interest

George Wooding thinks that the interest on the street repair bond could be as much as $189 million over 24 years. Does that sound more or less right to you folks?

From: Controller.CON@sfgov.org
To: Rob Anderson rmajora@gmail.com
Subject: Bond Interest

Thank you. We will get back to you shortly.

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