Grand Terrace Triples Debt Levels.

The Members of the Grand Terrace City Council attending the meeting today voted to extend the life of the Redevelopment Agency and Triple its allowable Debt Level.

WHY: Well they were convinced by city staff that there was no other way to run a city government. Fear of reverting back to County or being a non City motivated the council's vote.

This should be a warning to the Bond Purchasers in the Future and the State of California who is the effective underwriter. Grand Terrace is on the edge of non existence with out the additional debt bonds and the allotment increases that increased debt will bring the city.

That Debt comes with obligations, like building low and very low income housing. That Debt comes with obligations to comply with state law and regulations regarding Development. Grand Terrace City has not been real good about doing well in the past. Future investors should be warned Grand Terrace is on the edge... of non existence without additional debt.

Have any of you gone to the bank for a loan when you were desperate for the money, had no other way of getting it, or even have a questionable way of paying it back? Have any of you gone to the bank for a non necessity like a nose job, with the same economics of this city. You'd be escorted out of the bank. Lets hope the State Regulators, Bond Sales, and Investors know the facts about Grand Terrace.

The public was told that the City Staff (Inside City Hall) has taken a 10 Percent Reduction in their hours. This effectively is a greater than 10 percent savings to the city. The Mayor offered to have her gas stipend held back until such time the staff is restored to full time. She also offered 10 percent of her meeting stipend. No Other Council Member made such an offer in public. The Mayor after all is a former School District Employee, she has a full retirement with health care and is old enough to have medicare/medical. The City Council's benefit package includes CALPERS Retirement, Medical, Gas, and Meeting Stipend. For a few hours of work a week.

What is wrong with the above decision. Well, in the decision making process the City Staff did not present to the public or city council any other option. The Staff could have been very specific on a Must Do list of roads and Infrastructure improvements. This list and the other "Obligations Outstanding" should be the maximum debt funds asked for. Grand Terrace should not be so foolhardy and selfish to exceed the bare minimum for absolute necessities for the next few years. Empty New Buildings, or Empty Old Buildings do not add to the economy of Grand Terrace. Like a fancy sign, it creates a hole to pour more and more money down in one way or another.

The Citizens and the City Council have been ill served by tonight's decision. We may not survive as a City, but it was written so now they will make it so.