Showing posts with label refunding bonds. Show all posts
Showing posts with label refunding bonds. Show all posts

Tuesday, October 25, 2016

"Refunding Bonds" Removed from Wed. Agenda (10-26-16) and D. Thomas letter to Editor

Hi All,
Well,
The township CHANGED the online posted agenda for this WEDNESDAY,  Oct. 26, 2016  Board of Trustees meeting @ 7 PM.

They have REMOVED the REFUNDING of BONDS  from this agenda.  Hmmm.  Could it be because of my blog on this issue?

Or could it be because of a letter to the editor of the Birmingham Eccentric that was published in the print edition of the Sunday,  October 23, 2016 edition?   David Thomas,  (who lost to Leo Savoie in the August 2, 2016 Republican Primary for the Bl. Twp. position of Supervisor... by less than 500 votes)  was the author of that letter to the editor opinion piece.   (I could not find the letter online, so with permission from the author, the letter is copied at the end of this blog.)

Or was the issue of refunding the bonds removed because the township leadership and their NO BID contractors are getting nervous about how the township often conducts business?

Perhaps the feds are now looking at this municipality and contractors ?

At any rate,  the REFUNDING of the BONDS  is no longer an agenda item for Wed., Oct. 26.    To be rescheduled for a different meeting.

NEW AGENDA POSTED:
The "To Be Discussed at a Later Date"  notice is the only place on this website that notes the change... and even then,  does not even acknowledge the fact that the online agenda posting said something else previously.  Wonder what else gets changed electronically at Bloomfield Township without notice?


Reprinted with permission from David Thomas.

What Are Our Tax Dollars Paying for in Bloomfield Township?
Bloomfield Township has one of the highest property tax rates for a Michigan Township.  What are we getting for that? Special millages pay for Police and Fire; SAD’s pay for sewer and road improvements, and residents pay for trash pick-up. So what are we really getting for our tax dollars? 
This question is very relevant given the recent expose on the Rizzo trash hauling bribery case in Clinton Township.  No bid contracts were the basic issue of the investigation.
Presently Bloomfield Township has three executive positions that are costing the taxpayer approximately $430,000 plus cars, maintenance, gas, insurance, and perks bringing the cost of these positions to approximately $500,000 or more annually.  They were asked multiple times in Trustee meetings to put in place a procurement policy that requires competitive bidding for professional services and outside contractors.  Every time they refused to do it, often with smirks on their faces. What is more troubling, many of the beneficiaries of Township contracts were campaign donors to the Supervisor and others.
Last February the Trustees renewed the latest contract with Rizzo, without any competitive bidding.  After last Sunday’s revelations in the Detroit Free Press about the pay for play in Clinton Township the question has to be why? 
The bigger question is why should the public continue to pay these folks the big bucks when they are obviously not interested in doing their basic fiduciary duty.  I cannot think of a better reason to reduce their positions to part time with a stipend of $20,000 annually; no cars or benefits, and replace them with a city manager who will do the job properly.
In April 2015, the Trustee’s attempted to make the case for reducing the Treasurer’s job to part time.  The Supervisor tried to make the case by citing the fact that the Deputy Treasurer did most of the work and that the Treasurer did not have to put in a full 40 hours to do the job. Observing the vehicles in the Township parking lot each day; a case could be made that none of the leadership is there 40 hours a week.
Bloomfield Township will soon have an administration made up of three people who all have outside business interests, several with potential or direct conflicts of interest with running the Township.  We now have a unique time and legitimate reason to make these positions part time.
If the Trustees are not willing to do their most basic function; protecting the taxpayers hard earned money, then it is time to reduce their pay.  They have been acting cavalier with our tax dollars by placing a major multi-million-dollar contract that spans multiple years without getting at least 3 bids! 
Rizzo has provided very good service, but that alone does not exclude them from having to bid on any renewals. Having an effective purchasing policy and competitive bidding are cornerstones in helping to keep our taxes down.
Signed,
David C. Thomas
2945 W. Hickory Grove Rd.

Sunday, October 23, 2016

REFUNDING BONDS... saving money or more "no bid vendors" profiting? Also: financials and audit.

Hi All,
Meeting is not on regular day.
The Board of Trustees meeting is scheduled for WEDNESDAY, Oct. 26, 2016 @ 7 PM.    

The REFUNDING BOND issue is back on the agenda.  This entire process seems so wrong... but typical of the Savoie regime.  Where is competitive bidding?  Supervisor Leo Savoie and Treasurer elect Brian Kepes both appear to have conflict of interests and should not be doing business with Fifth Third Bank for our township.  Serious conflict of interest.  Should be investigated.  Should have competitive bidding as requested by Trustee Buckley and current Treasurer Devine at the 9/26/16 Board of Trustees meeting.  Looking at this 10/26/16 agenda (or at end of this blog). Savoie and Kepes doing what they want with whom they want and some Trustees most likely will go along for the ride and not vote in the best interests of the citizens.  My opinion based on past voting.    See my previous blog written after the 9/26/16 meeting about this refunding bonds issue.

$34,750,000  in 2007 for  Water and Sewer Bonds and Campus Construction Bonds  with  10 years of payments....mostly interest payments, as I pointed out.... (Mr. Savoie didn't know this, he thought the township was making level principal payments)   comes this resolution at the end of 2016  to authorize General Obligation Limited Tax Refunding Bonds for a combined total of $29,200,000.   How much are the payments to the vendors listed below and are there others to be paid?  Please take the time to listen to the Board of Trustees meeting from Sept. 26, 2016  and how the township and the public discussed this topic of rebonding, competitive bidding and conflict of interest.   Continue to listen to the program up to the board leaving for the closed session so you can hear the public comments.
https://vimeo.com/184514876
 FYI: 
(Closed session:  the Board did come back to make a motion and take a vote on the defined benefit pension plan:  continue to listen to end of video.) 
See also my blog on this pension topic @ http://bloomfieldtwphappenings.blogspot.com/2016/09/decision-for-173-retire-before-12216-or.html

Below are listed the "usual"  vendors collecting their fees with no known competitive bid process.  Note the words:  "appointed to act" .    


When will the millions of debt finally get paid? It was said that the debt will not extended beyond the original time frame.   Call date is May 1, 2018 @ par.   Length of terms: W&S to 2027 and Construction Bonds to 2032.  Actual total principal still mentioned:  $28,700,000/  and the bond is stated as not to exceed $29,200,000 (do they need $500,000 for vendors?). 

To me that means that the township over the first 10 years of the 20/25 years only managed to eliminate a total of $5,550,000  in principal. (Lots more in interest payments).
That means to me that the township will need to pay $28,700,000 in principal plus interest.... in the next 10-15 years if the debt will not extend beyond the original time frame. 

Trustee Brian Kepes said he was given the opportunity by Leo Savoie... to "try to save this community money".  I, for one, would like to see documents that show costs to do this deal and documents showing where and how the savings will materialize for the taxpayers.  Those documents are not in the board packet.  I don't trust our township leadership.  This is not open and transparent.  Go to:
http://bloomfieldtwpmi.minutesondemand.com/      Board of Trustees/  Board Packet/  2016/ Oct. 26

 Below are just SOME paragraphs from the resolutions.....



 

AND..........




 Check out the language for the new "not to exceed" % per annum for the different bonds (5%-6%). While I will agree that currently interest rates are at an all time low, why can't this resolution state a  "not to exceed"  % number  that is NOT more than the  % currently paying on the existing bond agreement? Why do these resolutions allow for the possibility of higher interest rate percentages?




AND MORE  REFUNDING BONDS:





s




 FINALLY.........

Take a look at the FINANCIAL and INVESTMENT reports ending Sept. 30, 2016  found in the BOARD PACKET @ http://bloomfieldtwpmi.minutesondemand.com/     Board of Trustees/ BOARD PACKET/ 2016/ Oct. 26

Take a look at the 2015 AUDIT @     http://bloomfieldtwpmi.minutesondemand.com/   Board of Trustees/ BOARD PACKET/ 2016/ Oct. 10