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Dear Editor:
On Oct. 7, 2020, Carmel closed on two bonds to retire earlier refinancing bonds, with an expressed purpose of “refunding” $170.6 million outstanding balances.
In the Carmel Redevelopment Authority annual financial report for 2020 Debt Statement reports the ending principal balance on those two “refunded” bonds as of Dec. 31, 2020 as $0.00.
But, the Authority’s combined cash and investments statement tells a different story. It lists receipts from the 2020 bonds totaled $188 million, of which $477,550 was disbursed and added $189.8 million to the Dec. 31, 2020 end cash and investments total. (Presumably the $188 million earned interest from October to December.)
Glaringly, however, both statements seem mutually contradictory. How can the receipts not be disbursed but the earlier bonds be paid off?
Inquiries to the Authority remain unanswered.
However, the three D’s emerge:
- Either a big Deficit in Authority total spending over total receipts.
- Or, a potential technical Default on holding money borrowed for a purpose not executed.
- Or, there’s always the never-ending City Hall Deception.
Take your pick.
Bill Shaffer
Carmel