Updated 6 pm: Whatever the reason for the delay, it is not the bond rating. The Express Times reports the LCA claiming the third highest rating. http://www.lehighvalleylive.com/allentown/index.ssf/2013/07/lehigh_county_authority_to_sta.html#incart_river_default
Tuesday, July 30, 2013
LCA Water Lease Delayed
Sources tell me that the controversial $220 million water lease from Allentown to the Lehigh County Authority (LCA) has been delayed, at least until August 7. Because the LCA has no real assets, the only thing it can really pledge for payment is the ratepayer. I understand the bond rating is less than desirable.
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13 comments:
Just could be big news as The Emperor is already spending the Money
Wow. Did not hear about the rating issue, but with interest rates moving up the cost of the debt was going to be at least 1% higher than they thought.
Quote Terrell Owens, "Get yo' popcorn ready" - this is going to get interesting.
What about the new employees the City will be adding to police Stormwater discharge and to provided oversight on the Lease?
I read that PA Legislation has passed or will pass that allows municipalities to set up an authority to determine how much stormwater discharge is going into the public stormwater system and the municipality can assess a fee to cover the cost to maintain the system.
Maybe this is being done because Allentown is behind in their inspections to ensure that stormwater discharge is not going into the sanitary system.
Allentown is not "behind",just looking the other way.
The whole system of checks and balances is a big joke.
The system doesn't work because they don't want it to work.
The mayor is waiting for his campaign contribution
Isn't it interesting that LCA can claim that the A rating is what they were expecting, since all the details of the deal have been kept from the public?
Shouldn't they come clean with the public, and make public all relevant details about the lease? That would include projected bond costs, interest rate, rate hike projections throughout the next 50 years, etc. How else can the lease be fairly evaluated by the public and ratepayers?
I expect secrecy and deception from Allentown City Hall. Now it looks like LCA is in collusion to keep relevant facts from the public.
@ 11:55
No shit!
Did LCA need to delay issuing the bonds to buy bond isurance to get the A [THIRD BEST] rating. If,so the additional cost.
Express Times article also mentions that the bond isue will be for291.5 million dollars. will Allentowns LCAcustomers be responsible torepay 220 million or the 291.5 million dollars being borrowed.
"What about the new employees the City will be adding to police Stormwater discharge and to provided oversight on the Lease?"
Can you imagine the political opportunities for King Edwin to hand out these 20 patronage jobs to friends, campaign donors and children of rubber stampers (i.e. McConnell's son). I hope the press provides the names of the new employees so the public can have fun figuring out all the connections.
"Express Times article also mentions that the bond isue will be for291.5 million dollars. will Allentowns LCAcustomers be responsible torepay 220 million or the 291.5 million dollars being borrowed."
Every cent borrowed will have to be repaid by the ratepayers.
With interest - and a lot of it.
It's not uncommon for large bond issues to slip a bit. If it takes more than ten work days look for a problem.
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