Even if the bond rating myth were really true, it wouldn't be for long.

What else is Blackmer going to say on the way to his new job? Finances are a mess?

The only thing that will stop them is the market telling them to get lost via high interest rates.

My facvorite is 10 CoP FTEs for each person staying constant over 10 years. So obviously increasing employee efficiency is not a high priority.

Timely post.

Yesterday Moody's assigned a "negative outlook" to all local governments in the US and indicated that bond ratings of many local governments could be downgraded in the months ahead.

Local governments most at risk of having their bond ratings downgraded by Moody's are: localities with industries such as real estate, auto manufacturing or financial services; localities which are relying on falling revenues such as real-estate transfer taxes or sales taxes; localities with volatile variable-rate debt and localities with a high proportion of fixed or legally mandated costs.

So, Portland may have a AAA bond rating today, but what about tomorrow or next week or next month?

Read all about it at nytimes.com or bloomberg.com.

Sorry, Jack, I missed your link to the NY Times piece.

Maybe this explains the "rush-rush nature" of the stadiums deal you find so suspicious. Could it be that the city is trying to beat the clock before bonds are downgraded?

Blackmer's obstructionist inertia on the police oversight Citizen's Review Committee is another reason to be pleased with his departure. When it comes to bureaucratic infighting it looks like denying reality is the real secret to survival.

It looks like the city is trying to beat the sine die clock at the legislature, not the bond market.

In addition to amendment of the Major League Stadium Fund , HB 2531, a bill has been introduced to authorize tax increment financing for the Oregon Convention Center Headquarter Hotel, SB 813.

There is also HB 3250 relating to underdeveloped property increment financing. It would allow cities to enter into agreements with property developers to convey city-owned property to developers at below market value, or no cost, and use the incremental increase in the property taxes on the developed property for econonomic development. I don't know whether this bill will play a part in the Rose Quarter development if it becomes law.

If I were still a Portland Taxpayer, my blood would be boiling. But since I am not, I can find all this extremely amusing: That your city government can shove through whatever insane deal they want without a vote and even when they dont' get the votes for something they cook up a scheme to thwart the will of the people as well as defy all economic and business common sense. This city is right up there with Chicago and New York when it comes to blatant corruption and crime networks pulling the strings disguised as public servants and respectable businessmen. I can't WAIT for the other shoe to drop when Portland goes into municipal bankruptcy. By then, all the greedy buffoons will be long gone with hundreds of millions in their pockets and cushy jobs with developers and sports team owners...

""This city is right up there with New York...""

What??

I almost spit out my fancy coffee!

To quote the late-great Phil Hartman imitating the late-great Blue Eyes: "New York would find pieces of Portland in it's stool!"

Hey Mayor Creepy - Are you going to promote Amy Ruiz to the City Auditor position??

So. . . when Moody's downgrades City's across the US, but keeps Portland at a AAA rating; and when investors and banks keep buying Portland's bonds at low interest rates; and when Portland does not declare bankruptcy during the worst economic crisis in TWO generations. . . is that going to have any impact on how you all view the finances of the City?

Please stop lying. Six percent interest on long-term debt is not a low interest rate.

Eventually, they will need bankruptcy, for the pension problem alone. In the meantime, they can continue to cut basic services -- closing police precincts and fire houses, leaving potholes untouched and parks to rot, among many other instances of neglect.

No, the finances of Portland are not healthy, by any stretch of the imagination. Thanks for playing.

Six percent on a 30-year mortgage may be bad this week, but historically speaking it's pretty good. I'm not sure which bonds you're referring to, but Portland's getting lower interest rates than most other municipalities (and even lower than many corporate bond issuances). If you think six percent is too high, that's more a reflection of the national market than it is Portland's finances.

Sure revenues are down, but from what I can tell Portland's cutting less than 5% for next year, compared to 10-15% for Mult. County and more than 20% for the state.

If you really think I'm lying, will you post something in two years saying that you were wrong if the city keeps it's bond rating, keeps selling bonds at competitive rates, and doesn't declare bankruptcy?

Say Contrarian: Have you actually looked at corporate Bond Rates vs. Mini Bond Rates since last year? Munis are paying only a bit above the pittance the US Treasury is paying. While AAA and AA corporate bonds are paying 2-3 times the muni rates. And worst of all, many of the big pension funds and insurance companies that used to buy munis are hurting financially and not buying much this year.

I trust Moody's ratings as much as I trust Sam Adams and Randy Leonard -- which is to say, not at all. And the fact that other cities are being almost as stupid as Portland doesn't impress. But even so, none of them are quite so dumb as to be funding their police and fire pensions at 0%. And the fact that the city keeps increasing its debt load at interest rates like 6% or 7% is scary, even when weasels throw words like "competitive rates" around.