The Washington Post has been awarding annual Pinocchio Awards to the person in various disciplines who has told the biggest whopper (fib or lie) in the past year. The nominees are chosen and compared to the fictional Pinocchio, whose nose grew after each lie he told.Usually the winner from the political arena is a national or international figure.
If we had a local political nomination in Belmont, I firmly believe that someone would certainly nominate Eric Reed, a candidate for the City Council, who wrote this on his Web site:
"Would you give up over $5 million dollars if someone offered it to you? Well, by saying no to CSUS, the City Council did just that.
Think of CSUS as an investment that pays a set amount of money each period: $250,000 per year. Plus, CSUS was going to pay $1 million down. This kind of investment is known as an annuity and you can use an on-line calculator to determine its value. When I did that calculation, I got an answer greater than $5 million dollars. Yes, $5 million.
With the road repair budget $27 million dollars in arrears, with the need to turf the sports complex, build Davey Glen park or fix the sewers, why did the Council say no to CSUS? What would you do with this kind of money if you were running the City?" (End of quote)
Whether you are pro or con on the issue, you have to agree that the $1 million payment and the $250,000 per year were being deferred for at least 2 or more years (1 year after the first year of enrollment); this would calculate to be far less in present value.
Moreover, Reed failed to mention that the City of Belmont would have approximately $120,000 of additional associated costs to service the school and an estimated loss of $50,000 from secured and unsecured taxes. And the worst part of the offer is the annual payment of $250,000 is fixed forever (with a maximum 2% annual escalator) while the City's costs grow each year due to inflation and expansion. In time, the City's cost to service the school could exceed the school's payment, which would compound the substantial loss of taxable property,
As far as the money going to to City projects, what money? The schools, fire department, community college, hospital, library, etc. that lose tax revenue because the school is tax exempt have to be supported, and after the City's costs exceed the $250,000, the City and the taxpayers are stuck with the bill. Rather than an annuity, this could be an impediment to the progress and financial health of our City.
Anyone want to second the nomination of Eric Reed for the Belmont Pinocchio Award?
