JustWondering

San Diego taxpayers to be Chargers laughingstock?

The trick is understanding the loopholes and direct and indirect results. The so called "general fund" is the name of the fund which pays for most, but not all of, the day-to-day city operations. There are general fund departments, for example, police and fire. But there are many other "funds" within the city. For example, the water utilities is an "enterprise fund" department. Its operating budget comes from renenues paid by ratepayers. Then there are bonds....no city has a billion in cash laying around so for projects like this, so the city sells bonds ultimately GUARANTEED in this case by collected Transit Occupancy Tax or TOT. Currently TOT supports many city programs if the TOT falls short, then the money has to come from other city fund sources. One such source is the city's emergency fund. The bottom line here....two points ... This is a complex financial undertaking, the city's history or, if you like, batting record to use a mixed sport metafor, is dismal in such matters AND that's with using and paying for so called EXPERTS. Secondly, bonds are guaranteed by taxpayers, not politicians. If you fail to pay the bonds your credit rating goes in the toilet and all those infrastructure plans you were going to finance with new bonds just became way more expensive or just can't be done. We just went through several years of not being able to access the bond markets and have a billion dollar backlog of deferred projects. Those are some of the details conveniently left out of the Charger propaganda campaign.
— August 19, 2016 1:40 p.m.

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