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In an editorial this morning, the Union-Tribune claims that City Attorney Mike Aguirre wants to "kill" a $103 million bond issue Mayor Jerry Sanders has proposed. Actually, Aguirre has said that under state law and the San Diego charter, this proposal should go to a vote of the people. That doesn't mean it would be killed, but don't tell the U-T. Also, Sanders's proposed offering has a variable rate of interest. With inflation ready to rise significantly, the City could face a double-digit rate of interest on this kinky proposal. And there is no relationship between the collateral the City would put forward and what it proposes to construct. Under this deal with a large bank, the City would put up its main police building as collateral. If the City could not pay, the banks could seize that building. "You only pledge these kinds of assets when you are in pre-bankruptcy mode," says Aguirre. The City may well be in such a mode. But voters should learn about that. They won't find out on the Union-Tribune's editorial page.
In an editorial this morning, the Union-Tribune claims that City Attorney Mike Aguirre wants to "kill" a $103 million bond issue Mayor Jerry Sanders has proposed. Actually, Aguirre has said that under state law and the San Diego charter, this proposal should go to a vote of the people. That doesn't mean it would be killed, but don't tell the U-T. Also, Sanders's proposed offering has a variable rate of interest. With inflation ready to rise significantly, the City could face a double-digit rate of interest on this kinky proposal. And there is no relationship between the collateral the City would put forward and what it proposes to construct. Under this deal with a large bank, the City would put up its main police building as collateral. If the City could not pay, the banks could seize that building. "You only pledge these kinds of assets when you are in pre-bankruptcy mode," says Aguirre. The City may well be in such a mode. But voters should learn about that. They won't find out on the Union-Tribune's editorial page.