Control Board controlling bonds?

[BeFuddled]

From the politicswny.com website 2/24/04:

Thursday 10:00 a.m. in room 1417 of City Hall, staff from the Control Board, the City Comptroller, & Councilmembers, et al., will convene to discuss the Control Board's desire to pass state legislation which will provide them the authority to sell bonds for the City and Buffalo School District. The Control Board believes they can get a better interest rate than the City for bonds? Sources say, "City Comptroller Andrew SanFilippo is strongly against giving the Control Board this authority for obvious reasons."

The Control Board has heretofore never appeared before the Council at a City Hall meeting before, other than the Pitts - Baker sit down last year. The Control Board is seeking to rush this through claiming time is of the essence. It is an open ended question whether this will save the City a significant sum of money or not, the Control Board says approve this request and let's find out. The Comptroller says why give up this authority on the "if come" when the city doesn't have too.

There is rampant speculation out there on the true reasons for the proposal. Some speculate that by having the Control Board doing the bond work for the City, they will have additional reasons to be involved with the City for many years to come. There is also speculation that this is about providing bond business to friends of Pataki. The Nassau County control board was provided the authority to bond for Nassau. The difference being that things were so bad in Nassau that they could not sell bonds or they were at junk status. The City of Buffalo still has the ability to sell bonds on their own.

The other reason opponents are floating, Giambra, et al., believe the city comp.'s responsibilities can be merged with the county comptroller. This step, if taken, is a giant leap by those, if successful, whose intent it is to "X" out the city comp.'s office in Giambra's "Greater Buffalo" scheme. This another line item in Giambra's, No Handout No Bailout" Stay tuned this is big!


Some speculate that by having the Control Board doing the bond work for the City, they will have additional reasons to be involved with the City for many years to come.

I'm a little confused by this statement. I thought it was a given fact that the control board is here for many years, 35 or so? Does anyone have the exact number or what the agreement says?

[Curmudgeon]

The Control Board believes they can get a better interest rate than the City for bonds?
Absolutely. The cities credit rating is poor. The control board carrys the credit rating of the state. The cost to borrow money via the control board will be substantially lower.


The Control Board is seeking to rush this through claiming time is of the essence.
True. interest rates are at an historic low and will be rising soon, perhaps substantially.


The Control Board has heretofore never appeared before the Council at a City Hall meeting before, other than the Pitts - Baker sit down last year.
Perhaps the common council should appear before the control board. The board is the final authority regarding financial affairs.