Portland gets great rates on huge sewer bond borrowing
Apparently, the city's IOU gurus timed things well. The city's quite deft at racking up long-term debt; with this borrowing, Portland will be in hock in excess of $3.3 billion on long-term bonds and "interim" financing outstanding. We'll see -- and our kids will see -- how the city does at paying it off down the road.
UPDATE, 5:42 p.m.: Once again, the purchaser was Bank of America, and the true interest cost was 3.8586%. The 9½-year bonds will yield 2.69%; the 19½-year, 3.75%; and the 24½-year, 4.00%. Details here.
| Posted at 9:38 AM | Permalink |
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Comments (9)
Coincidentally, I just got my Portland water bill yesterday. $250 for 3 months. $70 for combined onsite/offsite "stormwater management."
WTF is that? I rent a f***ing townhouse. It didn't rain at all in July. Why am I getting billed seventy bucks for stormwater management?
Posted by tekel | August 11, 2010 9:43 AM
no problem, they'll just borrow another $3.3 billion to pay off the $3.3 billion in long-term bonds, I think it's called floating.
Posted by phil | August 11, 2010 10:21 AM
We were amused reading about pheasants inhabiting vacant spaces in failing Detroit, until were saw some at our own "urban renewal" vacant lots at NE 102nd and Pacific across from Fred Meyer. Reminded us of our own imminent demise from our fiscally irresponsible elected officials in City Council.
Posted by Harry | August 11, 2010 10:59 AM
Look at the bright side, Tekel. It's $70 down the rathole for you, but it's $70 that's going to make some fixie-toting hipster very happy. And after you're finished punching me repeatedly in the throat for that comment...
Posted by Texas Triffid Ranch | August 11, 2010 11:25 AM
I guess if you're gonna do it, do it now while rates are cheap. Then they can stick someone responsible with the re-fi five years from now when rates take off.
Posted by Steve | August 11, 2010 11:43 AM
Hey Steve...how about NOT doing it at all...for a change?
Posted by junior | August 11, 2010 11:56 AM
Our kids will all be living in another part of the country - they won't be able to afford Portland's high taxes and sewer rates, and they won't be able to find a job here. And if they're smart, they won't want to pay off all the debt that the current generation of local politicians and voters has racked up.
Posted by Pat | August 11, 2010 4:37 PM
The new sustainable business in Portland will be onsite Water and Sewer needs. It would be pretty hard to break the back of the city's rainwater monopoly unless a homeowner can install a huge onsite stormwater basin. Maybe new homes could be designed with lots of stairs and keep the rainwater footprint to a minimum. Will government allow a homeowner to manage his own waste and buy water from Culligan and disconnect from city mandates? Anarchy!!
Posted by dhughes609 | August 11, 2010 9:40 PM
dhughes609: . .Will government allow a homeowner to manage his own waste and buy water from Culligan and disconnect from city mandates? Anarchy!!
Most likely not!
Not with those in place making decisions now.
I am concerned that as they need more money or resources, there will be more resistance, that even more controls then will be implemented.
It isn't about what is best for us.
We are just the ones who keep feeding this losing situation.
In some states it is illegal to collect rainwater. We need to be ever watchful in this state over our rain and water. We would not want those who are not on the side of public interests to be in place 10 steps ahead of us.
http://www.naturalnews.com/029286_rainwater_collection_water.html
Posted by clinamen | August 12, 2010 4:02 PM