• Concerned Citizens of Lakeland TN
Friday, 25 January 2019 20:10

Bunker negotiates a 65% HIGHER interest rate! Featured

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Bunker negotiates a 65% HIGHER interest rate!

Summary

Wyatt Bunker is NOT a fiscal conservative like he claims to be.  He purposely negotiated for a 65% HIGHER interest rate than the one that was offered to him.

Why? It was so he could receive $2,500,000 in "extra" money.  This money was misrepresented to the public and it was only because of a FOI (freedom of information request) that we know the details of the CON (Capital Outlay Note) that was used to finance the middle school.

The purpose of the "extra" money was to build $3,500,000 worth of athletic facilities for the middle school.

Note in all the discussions about the financing it was always discussed that it would be $20,000,000 at a fixed interest rate.  It was NOT $20,000,000 and it was NOT a fixed interest rate.  

Bunker negotiates a 65% HIGHER interest rate!

Summary

Wyatt Bunker is NOT a fiscal conservative like he claims to be.  He purposely negotiated for a 65% HIGHER interest rate than the one that was offered to him.

Why? It was so he could receive $2,500,000 in "extra" money.  This money was misrepresented to the public and it was only because of a FOI (freedom of information request) that we know the details of the CON (Capital Outlay Note) that was used to finance the middle school.

The purpose of the "extra" money was to build $3,500,000 worth of athletic facilities for the middle school.

Note in all the discussions about the financing it was always discussed that it would be $20,000,000 at a fixed interest rate.  It was NOT $20,000,000 and it was NOT a fixed interest rate.  See the resolution below:

This decision resulted in millions of dollars MORE in interest for the city.

So now we are in an election year and we now have a Mayor that ignored the will of the people that didn't want to spend $50,000,000 on a bond, possibly broke the law on funding the middle school by borrowing more than he was approved for, who later broke the sunshine laws trying to figure a way around the laws that would allow people to vote on the $60,000,000 bond. And now he is telling everyone that the city can absorb the annual expenses of $1,600,000 in annual fire fees despite having only about $6,000,000 in income from ALL tax sources. (Remember its an election year) Not to mention the $4,462,231 in deficit spending from 2017-2019 according to the adopted 2019 budget. (See image below)

Wyatt Bunker's actions are first and foremost to benefit Wyatt Bunker's political career.  He carefully disguises them and he gives you double talk but the truth is in the facts and in the documentation of what happened.  The fire department is just another accomplishment to go on his resume.  It is NOT in the best interest of the community.  It is not the same level of service and safety and if you want a good indicator for how good his promises of savings are look at your water bill. (We have the highest sewer raters of any municipality - after he RAISED them).


Details and Supporting Data

$3.5 Million for the schools Athletic facilities

The following information is from a Lakeland currents article.  It leads the reader to believe that because of favorable interest rates, and earned interest on the loan proceeds that this city was going to use this "extra" money in addition to money saved for the school coming in under budget to fund a $3.5 million dollar project for athletic facilities.

Where did this "extra" money come from and how did we get it?

The BOC passed a resolution "authorizing not to exceed $20,000,000" for the purpose of building a middle school.

See image:

When they put this out for bid on the lowest interest rate they could find the lowest rate was 2.831841% see image below:

But at the last minute there was a change - then Mayor decided to negotiate for a "premium" (extra money) of $2,499,980.70

See image below:

But a lender isn't just going to give you an "extra" $2,499,980.70 for nothing in return, so what did the mayor give up?

He gave up the LOW interest rate for a higher average interest rate of 4.679% this is an interest rate that is 65% HIGHER than what was originally quoted.

What else did he give up? Even if we were to get another loan or want to pay off this loan early, we cannot without paying all the interest up to March 1, 2021

Here are the final numbers of the CON note:

Note how many years we will be paying 5% and you will then realize why it was so important for Mayor Bunker to get a new loan.

 

Read 98 times Last modified on Friday, 25 January 2019 20:54
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