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Taxpayers Alert: Lawsuit Delays Bond Savings

A judge ordered a lawyer who filed a lawsuit challenging the city's plans to refinance existing bond debt to publicly notify taxpayers about the suit. The refinancing plan was approved by the mayor and city council to allow savings of $90,000-$110,000 per month, or up to $22 million over 17 years, that could be used to fund services. However, the lawyer's suit will likely delay the refinancing and cause the city to lose $100,000 each month, similar to his two prior unsuccessful lawsuits challenging city bonds. The judge determined taxpayers should be informed given the significant impact on city finances.

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74 views2 pages

Taxpayers Alert: Lawsuit Delays Bond Savings

A judge ordered a lawyer who filed a lawsuit challenging the city's plans to refinance existing bond debt to publicly notify taxpayers about the suit. The refinancing plan was approved by the mayor and city council to allow savings of $90,000-$110,000 per month, or up to $22 million over 17 years, that could be used to fund services. However, the lawyer's suit will likely delay the refinancing and cause the city to lose $100,000 each month, similar to his two prior unsuccessful lawsuits challenging city bonds. The judge determined taxpayers should be informed given the significant impact on city finances.

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Office of Mayor

Kevin Faulconer
FOR IMMEDIATE RELEASE
June 4, 2015

Office of City Attorney


Jan Goldsmith
Contact: Matt Awbrey/Gerry Braun
(619) 453-9913/ (619) 533-4782

Judge: Taxpayers Need To Know About This!


City will lose $100,000 for every month that lawsuit delays bond refinancing
A Superior Court Judge on Wednesday ordered attorney Cory Briggs to make sure taxpayers
know about a lawsuit he filed that could have a significant impact on City finances.
The suit is similar to Briggs previous lawsuits that unsuccessfully challenged City of San Diego
bonds. This time, however, he is not suing over the issuance of new debt, but rather to stop the
City from refinancing existing bond debt at a lower interest rate and saving millions of dollars.
Briggs lawsuit will likely fail, as did his other two similar challenges.
But Briggs may succeed in delaying, or derailing, the implementation of a financing plan that
was approved by the Mayor and City Council and designed to allow greater spending on core
public services.
The refinancing plan, which was approved by the City Council in March, is nearly identical to a
home loan refinancing, something which thousands of San Diegans do each year to take
advantage of lower interest rates and reduce their mortgage payments.
Through this refinancing, the City will save $90,000 to $110,000 a month on its payments to
service the Petco Park ballpark debt.
Savings to the City could reach $22 million over the next 17 years.
Superior Court Judge Joan M. Lewis determined that the impact of the lawsuit on City
finances is of such significance that Briggs, despite his objections, must alert
the general public through the publication of a summons in the San Diego Union-Tribune.

Briggs had previously noticed the lawsuit with San Diego Commerce, but Lewis said the reach of
that little-known on-line publication was not sufficient given the jeopardy posed to the publics
interests.
This is a big issue for the taxpayers, Judge Lewis said, and I want to make sure people have
notice of whats going on.
In her arguments before the court, Chief Deputy City Attorney Meghan Ashley Wharton noted
that the proposed refinancing is a pure refinancing and does not involve any new City debt.
In filing his lawsuit, Briggs knew his action would indefinitely delay the refinancing, Wharton
said, as this is his third suit to interfere with City bond issuances in the past 14 months.
Briggs lost both of the earlier suits, but not until he had delayed by nearly one year bond
issuances for infrastructure projects, including libraries and fire stations in underserved
communities. This newest suit recycles claims made in Briggs previous failed lawsuits.
The savings from this refinancing can be used for infrastructure upgrades, street repairs,
library hours and public safety, Mayor Kevin L. Faulconer said. Delays to this plan will
effectively take away money that should be invested in our neighborhoods.
"Unfortunately, the law does not allow the city to recover the millions of dollars lost due to
the delay caused by this ridiculous lawsuit," City Attorney Jan Goldsmith said. "Judge Lewis
is right: taxpayers need to know about this."

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