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The city of Los Angeles is over $400 million in deficit. By 2015 close to 30% of its revenues will go to just paying for the pension system. LA is as corrupt as Chicago, but with a good tan.
That does not stop Phony Tony from collect parking lots for the city like Charlie Sheen collects "escorts".
"Operating the parking facilities is not a “core” mission of the City, and as such, any proceeds from the sale of the approximately 9,000 parking spaces can be used to pay every day operating expenses. At least that is the message that the City Administrative Officer delivered to about 200 Neighborhood Council budget representatives at the Budget Day gathering at City Hall on Saturday, October 16. But anybody with any financial sense knows that using the proceeds from the sale of revenue producing capital assets to pay everyday operating expenses is essentially flushing the money down the toilet. Rather, if the City is foolish enough to sell the parking facilities at a fire sale price, the money should be used to pay down expensive interest bearing debt.
The City is planning to use the net proceeds of $53 million from the “Parking Asset Restructuring” to balance this year’s exceptionally creative budget. This implies gross proceeds of about $175 million after adding back the repayment of related debt in the range of $125 million. This represents a price of less than $20,000 per space, a 68% discount from the per space “value” received by Chicago."
Why does the city own a single parking lot?
LA is why government is a fraud. Parking lots instead of cops and firefighters.
More...
That does not stop Phony Tony from collect parking lots for the city like Charlie Sheen collects "escorts".
"Operating the parking facilities is not a “core” mission of the City, and as such, any proceeds from the sale of the approximately 9,000 parking spaces can be used to pay every day operating expenses. At least that is the message that the City Administrative Officer delivered to about 200 Neighborhood Council budget representatives at the Budget Day gathering at City Hall on Saturday, October 16. But anybody with any financial sense knows that using the proceeds from the sale of revenue producing capital assets to pay everyday operating expenses is essentially flushing the money down the toilet. Rather, if the City is foolish enough to sell the parking facilities at a fire sale price, the money should be used to pay down expensive interest bearing debt.
The City is planning to use the net proceeds of $53 million from the “Parking Asset Restructuring” to balance this year’s exceptionally creative budget. This implies gross proceeds of about $175 million after adding back the repayment of related debt in the range of $125 million. This represents a price of less than $20,000 per space, a 68% discount from the per space “value” received by Chicago."
Why does the city own a single parking lot?
LA is why government is a fraud. Parking lots instead of cops and firefighters.
More...