July 12, 2013

City finances

One of the main reasons I supported the Worcester Slots was the finances.  The City of Worcester needs the money and the unfunded pension and health liabilities is huge and may end up crippling the City of Worcester down the road.

Remember from my college days how it was literally said that Muni Bonds were one of the safest things you could ever invest in.   Tell that to the people holding Detroit muni bonds, click here.    20 cents on the dollar!!!

Insurers, including Assured Guaranty Ltd. (AGO), are on the hook for at least 95 percent of the $2 billion of unsecured Detroit debt that wasn’t issued for city utilities, data compiled by Bloomberg show. Kevyn Orr, the city’s emergency financial manager, proposes paying investors less than 20 cents on the dollar on those bonds as the auto-industry capital bleeds cash.

Kevyn Orr


Anonymous said...

20 cents on the dollar if they are lucky...

Harry T

Bill Randell said...

The revenues from a slots parlor was a missed opportunity.

One we should not have missed considering the unfunded pension and health insurance liability.

Jahn said...

Mr Orr has many financail Hattricks to score before Detroit will be anywhere near solvent

$.20 on dollar for Detriot BH'ers.....a mere coincidence that GM bondholders got about the same %'age?????

Jahn ish happy the slots went away. Pols wont touch this indebtedness.......never in a million yrs or if they do what they will propose wont amount to a few drunken WPI frat boys tinckling in the Wachusett Res. on drunken Spring Spree Day beer outing.

And didnt I read recently the $$$$$$ Obrien had proposed be applied to the indebtedness for last FY (June 2013) never happened or happened to a much less extent than planned?

Ya cant have these 80k salaries plus a full bennie package for what amounts to AT BEST 2/3's of a years worth of work for many city employees. Thats $120k annualized.meanwhile these particular city employees counterparts are making Mid 60's in the private sector with only a 401 k and these private sectors employees are 30-35 of theri health insurance.

How about being a teachers adie with a Family health insuarnce plan? Aides makes 16-18k in salary
and get health ins. & pension benefits totalling more than the 18K salary. Ass backawrds IMO

Bill Randell said...


The plan was to put some money towrads the unfunded liability. In the end none went to it.

Agree with you. Based on our current path, no way will we have the revenues to cover all these obligations.

That is why I wanted the slots. Now Millbury may get them and the revenue.


David Z. said...

The bottom line is that between the necessary infrastructure work in and around the proposed location in Worcester and the city's onerous commercial tax rate, it was never going to work in Worcester. The tax rate in Millbury is $16 and change without nearly as much infrastructure work.

Jahn said...

Isnt it really kind of looking like the slots are no where near close to being sited in Hillbury?

Addtionally the issue of the Lincoln RI slots being so close whcih was raised by T&G would seem to make a Hillbury slots site a long shot. Also isnt the LIncoln Slots just out of a bankruptcy or a re-org?