Re: Lorton Workhouse Arts Center
Posted by:
archived3archived3archived3archi
()
Date: May 20, 2014 05:37PM
chuckhoffmann Wrote:
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> Section_8_Sharon Wrote:
> --------------------------------------------------
> -----
> > Why are we picking up the tab for this?
>
> Because the Lorton Arts Foundation's bonds were
> issued by the Fairfax County Economic Development
> Authority.
>
> The BoS knew that if they ever wanted FCEDA to be
> able to issue another centime's worth of bonds at
> anything other than a junk bond rating ever again,
> they had to bail the LAF out to keep the FCEDA
> goose shitting its golden eggs.
>
> The FCEDA is how the county gets money to build
> shit that they know they would never be able to
> get a bond referendum passed for. They have the
> FCEDA issue revenue bonds, which they don't have
> to get voter permission for, instead of the county
> issuing general obligation bonds, which they
> would.
>
> Also, since bonds issued by FCEDA aren't
> technically on the county's books, the county can
> maintain the fictional debt ratio that allows them
> to have a AAA bond rating and the concomitant
> lower borrowing costs.