Gracie and I were playing catch up on our websites. We decided to listen to the DeKalb City Council meeting via streaming to make best use of our time. About midway through the Committee of the Whole meeting I was in my truck headed for City Hall.
h/t Mark Charvat
I had just heard Tom Teresinski state that the TIF revenue forecasts did not support the projected additional costs of selling debt obligation bonds as TIF revenue bonds. So he and the rest of the council were leaning towards General Obligation bonds, as staff recommended.
Buyers of TIF Revenue bonds assume the risk that said revenue projections will perform at least to the level that their investment and interest will be paid. General Obligation bonds puts the taxpayers at risk if projected revenues fall short.
Revenue projections have consistently fallen short in recent years. Even property tax projections fell short this year.
If a potential TIF Revenue bond buyer came to the same conclusion Teresinski did, he wouldn’t buy the bonds. Because the project is under performing.
I got to the council chambers to watch the council approve the go ahead with the downtown project and the sale of some $12 million in General Obligation bonds during Committee of the Whole.
It made staying for the regular city council meeting, where the public can provide input and ask questions, rather pointless.