Special Board of Aldermen 06-21-2021 Page 47
Mayor Donchess
It's not the payment, it’s the amount that will be borrowed to do those projects.
Mr. Teeboom So you are going to bond $11 million.
Mr. Griffin
Correct.
Mr. Teeboom Then why is it shown as an expense of $11 million? Bond only should show for the payment
for the year you spend that bond. Why it showing as an $11 million dollar expense?
Mr. Griffin
We decided as the presentation to couple the $11 million of infrastructure improvements to be bonded with
the — as | mentioned earlier in the revenue — bond proceeds Page 291 so they offset. We are not going to
have any capital projects paid by cash.
Chairman Dowd
Your time is ended.
Mr. Teeboom | am totally lost on this. | don’t understand how you can take debt payment which is $11
million dollar total debt and put it in as a one year expense.
Mayor Donchess
But he’s saying there’s an offset. He’s saying that elsewhere there’s a revenue item of that same amount
showing money coming in so that it balances out.
Mr. Teeboom The problem with this kind of approach Mayor and this is a real defect, this can’t possibly
pass (inaudible).
Mayor Donchess
This can’t pass what?
Mr. Teeboom That’s why you have made a million dollar difference, because you are bonding $8 million
dollars more, you are bonding $8 million dollars more this year than last year of capital improvements. But
at $8 million dollars more it is going to be spent over let’s say 20 years period of payback. You are showing
it as a one-time expense.
Mayor Donchess
There’s an offsetting revenue.
Mr. Griffin
Yeah as the Mayor indicates you have a choice. You can either leave the two lines blank, in other words
have 0’s where the $11 million is....
Mr. Teeboom What you typically do is you have and look at Solid Waste, typically have a table of all the
bonded expenses — the years you paid them, what the payments are in any particular year. And for 2022
you show the total payments for a bond. You don’t say the face value for the bond, you show the payment
