WPCNR MR. & MRS. & MS. WHITE PLAINS VOICE. August 15, 2006: A reader says the Urban Renewal IDA deal is pure genius:
When will taxes decrease? Due to inflation and constantly rising union pay increases and related health care expenses, the only opportunity to keep taxes stable are to try and raise the revenue side.
By one estimate, state and local governments owe their current and future retirees roughly $375 billion more than they have committed to their pension funds. This Urban Renewal Agency financing does exactly that with the $969,000 in Ginsburg fees. We have in the past lost millions in fees to the Westchester County IDA, while the city does all of the project legwork. Local municipal expenses are not going to drop in the foreseeable future, especially as federal and state aid money dries up with their respective budget deficits.
I have seen readers here lament the status of the Moody’s WP bond rating, which incidentally is still excellent. That is why investors will buy the WP bonds. They will also buy the bonds due to their income tax incentives. As far as the risk, what does MBIA (Municipal Bond Insurance Agency?) exist for? U.S. municipal bond defaults are extremely rare.
Face it, the Ginsburg financing is a win/win for WP
WP CITIZEN.
