Lexington Tries To Repeat Louisville’s Disasters

Strategy, structure and action are all part of JCPS’s progress under superintendent Donna Hargens. [WDRB]

Norton Healthcare filed suit Friday in Franklin Circuit Court, asking the court “to declare (University of Louisville) threats against Kosair Children’s Hospital to be without legal basis.” [C-J/AKN]

Churchill Downs opened its historic gates on Friday to a rare September meet, an effort to keep top thoroughbreds to Kentucky rather than chase purses inflated by slot machine revenue in other states. [WHAS11]

U.S. Sen. Mitch McConnell, R-Louisville, on Friday announced that he has filed tax legislation to let Kentucky bourbon producers deduct interest while whiskey ages. [H-L]

Is this because you can’t fix stupid? Or is it just that some people LOVE the idea of murdering thousands of people? [WLKY]

Just what A Kentucky Newspaper needs: another failure from its parent company. As if losing all of its employees to WDRB wasn’t bad enough. [Gannett Blog]

Special meetings of two bi-state agencies have been called for Wednesday, Sept. 11, to finally set initial toll rates for the Ohio River Bridges Project. [Business First]

This is apparently worthy of a full-on news story. But it’s nigh impossible to discern why. [WAVE3]

Just what that downtown neighborhood needs: a homeless shelter expansion. Possibility City! [C-J/AKN]

In his second year as superintendent at Greater Clark County Schools, Andrew Melin has implemented a number of initiatives across the district, and some of them are already getting results. [News & Tribune]

Really, Lexington? Giving your councilcritters a mountain of cash for special projects? It’s like you haven’t paid a bit of attention to the mountains of corruption in Louisville. [H-L]

Louisville. Healthiest City In America. HAHAHA.

A day after he was picked up by police, Josh Young tells WDRB he has now been released from the Jefferson County Youth Center. [WDRB]

Nearly 49 million Americans live in food insecure households. But we’re allow Republicans to kill food stamp programs left and right. [NY Times]

Jesus H, when will Greg Fischer quit it with this “best in America” crap? Louisville is not and will never be the healthiest city in America. [WHAS11]

A spokesman for a company building a pipeline through Kentucky says the proposed route would avoid land owned by a group of Roman Catholic nuns who have been outspoken opponents of the underground line. [H-L]

The Kentucky-Indiana tolling body held a public meeting Thursday morning to discuss toll rates for the Ohio River Bridges Project. But that didn’t happen. [WLKY]

That’s right – teabagger Matt Bevin is now saying he is not and has never been a part of the Tea Party. [The Hill]

Some local teenagers caught up in a human trafficking ring are free and police say they have the adults responsible behind bars. [WAVE3]

With the needed money cobbled together from numerous sources, the iconic teepee-shaped Hogan’s Fountain pavilion in Cherokee Park will soon get a long-awaited new roof. [C-J/AKN]

A downtown management district is being proposed in Lexington to focus on beautification, location signs and other improvements. [Business First]

The Kentucky Center spent more than $100,000 on a project that was supposed to take the performing arts venue to the next level. [More WDRB]

An employee of the Clark County Government Building appeared for a hearing Thursday in Clark County Circuit Court No. 3 after being charged earlier in the week. [News & Tribune]

Does Everyone Get Rich Under Jim Ramsey?

The wife of slain Bardstown Police officer Jason Ellis is thanking the Nelson County community for the weeks of support. Amy Ellis released a letter early Thursday through the Fraternal Order of Police. [WDRB]

Two potential developments near the Ohio River in Jeffersonville received mixed responses from the City Council Monday night. [News & Tribune]

The premiums for coverage available on the health insurance exchanges created by President Barack Obama’s health care reform law will vary widely from state to state, according to a new Henry J. Kaiser Family Foundation analysis of data published by 17 states and the District of Columbia. [HuffPo]

Motorists may be about to find out how much it will cost to cross two Ohio River bridges being built between Kentucky and Indiana. [WHAS11]

Technical glitches still plague the display of new healthcare plans to be offered to millions of uninsured Americans starting in 26 days, including how medical charges and deductibles are listed, industry officials say. [Reuters]

Louisville police say they took Joshua Young into custody Wednesday after he took off from and evaded police at Schiller and Kentucky streets. [WLKY]

Oh wow, the craziness never, ever ends in Kentucky. The Internal Revenue Service says the executive director of a medical department at the University of Louisville wrote checks to himself possibly in excess of $2 million since 2007. [H-L]

Building changes downtown are pushing the homeless population into local neighborhoods and onto doorsteps. Now, police and politicians are working to keep both the homeless and homeowners safe. [WAVE3]

Really, how the hell does UofL get by with so many damn embezzlers?! People with that kind of money rarely behave that way. Should have sent up crazy red flags from day one. [C-J/AKN]

Norton Healthcare Inc. has responded in writing to a contentious legal letter sent by the University of Louisville about a week ago. [Business First]

This sounds like something Louisville would love to do. More cities are sweeping the homeless into less prominent areas. [NPR]

It’s UofL Foundation Bond Offering Funtimes

What would you think if the University of Louisville Foundation issued a $39 million bond for construction of a new building?

Moody’s Rating

Issue: Taxable Fixed Rate Bonds, Series 2013; Rating: Aa2; Sale Amount: $39,000,000; Expected Sale Date: 8/14/2013; Rating Description: Revenue: 501c3 Unsecured General Obligation

Opinion

Moody’s Investors Service has assigned a Aa2 rating to the University of Louisville Foundation’s (ULF or the foundation) $39.0 million of Series 2013 Taxable Revenue Bonds. The outlook is stable. We have also affirmed the ratings on the foundation’s rated debt. The Aa2 rating and stable outlook reflect ULF’s strategic importance to the University of Louisville (Aa2 negative), solid balance sheet with moderate leverage and strong gift support, offset by dependence on investment income.

-SNIP-

STRENGTHS

* The University of Louisville Foundation has a strategically important role to the University of Louisville (Aa2 negative), supporting the university’s academic mission, research activities, property acquisition and management, and fundraising.

* The University of Louisville’s Aa2 credit profile as one of Kentucky’s leading public universities, with stable enrollment (fall 2012 full-time equivalent enrollment of 18,992) and a comprehensive array of undergraduate and graduate programs, including a school of medicine, law school, and school of business.

* Solid management team providing sound fiscal stewardship and dedication to short and long-range planning and endowment oversight practices, as demonstrated by successes with the ULF $1 billion capital campaign ($832 million received as of 7/31/13) and an office building real estate joint venture at UL’s ShelbyHurst campus, that is currently fully occupied and providing alternative revenue streams.

* Good balance sheet, with total financial resources of $737 million at fiscal year (FY) end 2012. Expendable resources of $343 million cushion pro forma debt an ample 2.9 times. The foundation recorded strong liquidity of 585 monthly days cash on hand as of June 30, 2012.

Is it good that this bond is issued for the UofL Foundation so it remains super-secret and is devoid of transparency?

Yes, Of Course MSD Would Be Paid First

If Louisville went bankrupt, would those bad swaps by MSD be paid first?

On Aug. 16, attorney Jerome Goldberg filed an objection — on behalf of David Sole, a STOPC organizer — to the city of Detroit’s motion that would exempt a large part of Detroit’s debt from the bankruptcy judge’s scrutiny. Emergency Manager Kevyn Orr had entered into a “Forbearance Agreement” with some large banks on July 15.

The objection states: “The Interest Rate Swaps on Pension Obligation Certificates entered into by the City of Detroit with UBS and SBS/Bank of America constitute a drain of hundreds of millions of dollars to the banks from the City’s budget with nothing positive for the City in return. Basically, the Interest Rate Swaps obligate the City of Detroit to pay UBS and Bank of America 6.323% interest on $800 million in bonds, when the actual rate on the bonds is only 0.6056%.”

The objection continues: “The banks, who … presented this ‘deal’ as a beneficial one for the City, pocket the difference between the interest paid to them and the actual interest rate on the bonds, as clear profit, amounting to at least $45.1 million a year [states] … Orr’s May 12, 2013 Financial and Operating Report or $160 million since 2009.”

In Detroit, the bad LIBOR swaps with the banks are getting in front of pensioners and bond holders, as you can see.

Since no one in Louisville pays attention to the pension disaster(s) facing the city and the state, you can bet the same thing could easily happen here.