Katherine Brezler Statement on TFA Concept

eHezi Archives 18 Comments

Brezler_Katherine I agree with Senator Jeff Klein in saying I am not interested in putting collective bargaining in jeopardy within New York, or anywhere, at any time. Our unions’ purpose is to protect our employees and keep them safe. They must be allowed to continue their mission. The current paradigm for the Transitional Financing Authority is proposed to bond out debt for our sales tax revenue in Yonkers. I don’t believe in the necessity to create such authority. I do believe efficiencies can be found within our current municipal budget to make up for the gap we are currently experiencing. Having said that, our current administration feels that they are compelled to create such authority.


 

Since the compulsion is to make a TFA, a Water Authority that can bond out its own debt is a more sensible fix. Our city has a limited amount of debt obligation it is able to bond out. However, creating an authority able to issue its own debt, separate from the city’s, advances us the capital needed to save the employees of Yonkers.

 

If we use the TFA model proposed by our current administration, our bonds will be far more risky and less attractive to investors. Because the future of our economy is difficult to quantify, estimating a revenue on sales tax is like taking a leap into a projected unknown. And frankly, in this economy, we need to minimize the risks we are willing to take. Speculating on said revenue stream is little more than that–speculation.

 

Our water consumption, however, and the revenue from it, has been far more stable. A TFA Water Authority bond will entice more investors to buy because of the lowered risk. Make no mistake about it, I do not feel that our city actually needs to take our more debt. I feel efficiencies we all believe our government is capable of, can be found within our municipal budget. But if this administration feels a TFA is our only means for borrowing more money against our future, let us minimize our risk and not again get locked into a bad decision. Let us make the best decisions for our great city. Our decisions today, affect the generations to come and should be done very thoughtfully, while minimizing risk to Yonkers residents. 

 

Katherine "Kat" Brezler's candidacy is focused on representing Yonkers' 5th Council District. She is running under the Democrat Party line.

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eHeziKatherine Brezler Statement on TFA Concept

Comments 18

  1. ok, so the council just needs to vote on the mayors budget and be done with it. This is getting too time consuming.
    Todd

  2. Katherine,
    Do you know what happened in the city council meeting tonight? June 13th. I tried tuning in and nothing was being shown.
    Thanks,
    Todd

  3. Thanks Katherine for your response. I did read the link you sent to me. I hope this can be worked out. But if I can make a suggestion. It might be helpful for the city council and mayor to start the budget process earlier in the year say Jan. I know the city’s budget is dependent on what the state budget is, but I think the city could make projections as to what the state aid will be. If the projections are off, then just revise the budget appropriation later. I am not sure this would be legal since the state comptroller has to approve yonkers budget. But, if we could get started on these things sooner, we would not be running up agaisnt these deadlines all the time. In this economy, I would be conservative on what the state would provide.
    Regards,
    Todd

  4. “However, creating an authority able to issue its own debt, separate from the city’s, advances us the capital needed to save the employees of Yonkers.”
    With all due respect, the debt from this authority “separate from the city’s” will still be paid for by residents of the city. I am not going to pretend to fully understand exactly what all this TFA BS is about, but it sounds a lot to me like we are being promised free money, which tends to make me skeptical. If this is such a great savings at no cost, and truly isn’t borrowing to pay operating expenses, then why hasn’t it been done before now??
    I am sorry, and again with all due respect, but as a mayoral candiate, you would do well to focus on the potential financial burdens being placed on residents rather than simply focusing on saving employees of Yonkers. “saving the employees of yonkers” sounds like a slogan for someone running for union president.
    I am willing to pay my extra 5% this year – someone else should come up with the rest.

  5. Todd,
    I do not believe we can refinance at a lower interest rate if our city’s rating is going down, which makes our rates increase. The way I understood the resolution the projected sales tax revenue was going to be used to pay the bonds. I believe the unions have come to the table with many ideas have you seen the statement by Pat Puleo on this site?
    http://yonkerstribune.typepad.com/yonkers_tribune/2011/05/open-letter-to-yps-superintendent-bernard-pierorazio-by-pat-puleo.html
    The Water Finance Authority could have revenue bonds. Rates would be set on projected revenues and costs. Bonds could also be issued for infrastructure updates.
    I believe there are efficiencies in our municipal budget that would help close the gap and keep us from borrowing more money.

  6. Katherine,
    I thought the administrations proposal was to use the TFA to refinance existing debt and then use the savings from a lower interest rate to go to the schools in order to help plug their 40 million dollar deficit. The projected savings would generate 20 million for the schools. The other 20 million would have to come from somewhere. The city council voted to include a wage freeze and a cap on overtime in order to get the remaining 20 million. I understand the unions don’t like the wage freeze and overtime caps, but what is the alternative to this? Would the water bond proposal you proposed close this gap? Also, is there a way to close this gap without having to borrow more money or having to lay off teachers etc?
    Regards,
    Todd

  7. Yes, potentially all rates on bonded revenue streams will rise in order to cover the cost of borrowing. Water bonds can be created to pay for much needed infrastructure updates. I believe preventative maintenance is always cheaper than tertiary care. The current monies collected by this administration’s proposed TFA bonds must be spent on capital needs. Having this money, frees up current allocated funds slated for capital needs projects in the municipal budget, shifting the monies to pay for operational budgetary costs. This treats the symptom, but does not cure the disease.

  8. “I agree with Senator Jeff Klein in saying I am not interested in putting collective bargaining in jeopardy within New York, or anywhere, at any time.”
    You can agree with whom you like, you are not an elected official and never will be. You would still rather borrow which also increases our debt, be it Water or TFA. It’s all voodoo, a favorite of the City of Yonkers. Baffle them with bullshit. The public are most at fault because they don’t demand more from the media and demand REAL CHANGE, pun intended…from the pigs at the City trough.
    There is not one candidate running for Mayor who will do anything to change the image of this shitty city. NOT ONE. It’s all sad and a waste of time.

  9. Dear Katherine,
    If we changed the TFA to a water bond, would this not potentially cause our water rates to go up? I assume we would have to pay back the bond holders with water rate revenue since the created water authority is issuing the bond. Water bonds are typically issued for the purpose of financing water infrastructure projects to improve our water supply. Correct me if I am wrong but I think this is correct.
    Regards.
    Todd

  10. LOL..you ARE kidding, aren’t you? Fighting dems? YOu mean we don’t have the harmony in the Republican party? Carlo Calvi sniping at Martinelli, Martinelli sniping at Murtagh (Murtagh, whose nastiness transcends not only all party lines but all forms of life)? Or perhaps you mean our illustrious mayor, who has screwed every taxpayer in the city of Yonkers? Yeah, we want to be like you. We may have a Weiner but you have Shepherd!

  11. I love when stupid democrats infight !!!! Hey I head anthony weiner is looking for a job, maybe he can run for yonkers council !!!!

  12. Corky…please learn to read…I in no way weighed in on the sanctity of the party selection process. I know more than most, how most parties do not even have a philosophy anymore let alone a set of values. But, to make a statement which implies that one is the party choice may have a certain influence over those who do place import on such endorsements.

  13. Dear John – lighten up. The “Democratic Party” in Yonkers often doesn’t know who they’ve chosen because they are nothing more than names on proxies. The crew to whom you refer is better known as The Machine. Ms. Brezler should take it as a point of pride that she was not chosen. Their preference is yes men and poverty pimps and toadies.
    Don’t get all high and mighty with the young woman. Not a good way to represent your “party”.

  14. Dear Dear John,
    While Hezi wrote the line describing my candidacy, I do not take issue with it. I am a democrat seeking the 5th council district seat. I have many signatures from democratic constituents in my district who feel that I should be the chosen candidate on September 13.

  15. Excuse me, Ms. Brezler, but if the tag line to this “release”, i.e. you are running on the Democrat Party line, is a quote from you, you are totally misleading the public. You are not the candidate chosen by the Democratic Party. While you and anyone else cn mount a primary for this line, your statement implies that you are the party nominee. Not a good way to start a campaign.

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