Quincy Quarry Weekly Fish Wrap: Rejected!

— News about Quincy from Quincy Quarry News with commentary added.

Stop the madness!
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Quincy Quarry Weekly Fish Wrap: Rejected!

In the second display of most unexpected as well as gobsmacking showings of spinal rectitude by the Quincy City Council in as many months, at least two councillors only properly called a halt to the council’s review of Quincy Mayor Thomas P. Koch’s FY 2022 several budgets requests totalling just short of $395 million. 

Their rationale: the mayor’s budget is crucially predicated upon a $475 million bond offering ask by Mayor Koch so as to fund the well-past merely woeful shortfall in the city’s employee pension fund.

Drink the Kool-Aid!!!
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That and how formal consideration of the half a billion-dollar bond ask is not scheduled to be formally considered until a June 14 council meeting and thus AFTER when the Koch Maladministration was scheming to see its budget request reviewed and then its approval rubber-stamped.

In short, as most everyone hates the heavy-handed assumed close high-pressure closing tactic used by automobile dealer sales reps, at least a couple of Quincy City Councilors had a basta moment over the maladministration and its minions on the city council so trying to slip taxpayers a half a billion-dollar banana into where the sun don’t shine.

Up in smoke?
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Problems with Mayor Koch’s half a billion Pension Obligation Bond ask include – in no particular order – the following.

The ask would essentially double the amount of the City of Quincy’s outstanding debt obligations.

The half a billion-dollar ask is not only unduly high risk given the way that it is structured, but it is also no more than but a kissing cousin away from a circa 2006 subprime mortgage-backed derivative.

Follow the money – always follow the money
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The plan would double the time frame to pay off covering the woeful pension shortfall from the current mandated deadline of 2037 by kicking the can out to 2052 in a fashion akin to refinancing a mortgage with 15 years to go via going long with a new 30-year mortgage.

Wicked way down the road as well as then some yet.

Actually, a lot some yet.

That and so come at no small interest expense over the proposed 30-year bonds.

Kochonomics in action!
Image via The Margaret Street Church of Christ

Further, given that the planned scheme would rollover of the city’s woefully pension obligation into 30-year bonds would give rise to a one-time savings of $21 million in a way that is ultimately the same as rolling over one’s personal credit card balance over to a new card featuring a six months of low to no interest rate promotion.

And yes, Mayor Koch’s FY 2022 budget not only proposes to spend the $21 million in so grifted savings on this, that, and the other, his koched-up budget ask still ends up running $6.5 million higher than last year’s final budget.

A long-suffering Quincy taxpayer
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That and again includes providing over at least $2.4 million to help out losing money hand over fist to Quincy College even if it is supposed to be self-funded from its tuition revenue.

In turn, whether or not Mayor Koch’s City of Quincy AMEX Gold Card might instead be canceled remains to be seen until later this month.

Needless to say, count on Quincy Quarry News to keep its evergrowing of legions of loyal readers advised as to how this financial food fight plays out in the coming weeks to potentially even months.

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