June 2012
City Council approves annexation and formation of Improvement Area 17C and the Issuance of $20,000,000 in Bonds for Facilities etc. Reminder...not the City's debt. They are simply the Facilitator. Now we all know you cant borrow money for free but Im in a generous mood, so terms come to $40,000,000 repayment over 30 yrs (on the $20,000,000 original amount.) Which is a bargain at Banco de Ken.There are 216 lots in 17C. Does anyone see a problem here? If you dont see the problem just look at the Math below.
$20,000,000 divided by 216 = $92,592
More realistically 2-2.5 times that amount as only the principal is noted above.HOUSTON...we do have problem
