Madison Mayor Dave C strongly argued that the city should exercise it's option to buy the Overture for 1$ and assume the responsibility of maintenance of the Overture rather than refinance the trust fund that would be responsible for maintenance which had as its assumption a return of 8% from the stock market backed by a city guarantee.
The Mayor was outvoted 15-5. (Click on the post for the Cap Times story) As the Cap Times points out, as a result of his leadership, Madison did get some concessions that will help. Further, light has been shown on how risky the arrangement is.
Lets put this in perspective. What if in your 401K you assumed an 8% return each year with no down years and if you did not get this, the city would guarantee it. HUH? You would think this was crazy. The taxpayers would be set up for the fall.
Looking at slowing home sales, rising interest rates, inverted yield curve etc...what prudent person would guarantee 8% with no downside risk. That was precisely Mayor Dave's point.
Hat's off to Mayor Dave and his courage on this issue. Some day this will be revisited. Stay tuned.
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