LETTER: Variable-Rate Financing Reckless, Irresponsible
November 16, 2013
(EDITOR’S NOTE: The following letter from Jack Forgosh was read by the Town Clerk at a special meeting of Town Council November 14. Town Council subsequently voted to accept the recommendation of financial advisor Davenport & Company to borrow $1.215 million at a variable interest rate. Mr. Forgosh has given permission to reprint his letter in the Wave.)
DEAR MAYOR SULLIVAN AND COUNCIL MEMBERS,
I just learned of your intention to refinance a municipal loan based upon the recommendation of David Rose at Davenport & Company.
I am a seasonal resident of Cape Charles and I hope to become a full time resident in a few more years. While I am not privy to all of the details of our financing, I can tell you with a very high level of confidence that the fixed rate available to the Council and our residents is at historic lows. I understand the appeal of lowering monthly payments by extending the duration of this loan; however, the risks of a rate increase after 10 years outweighs the short-term savings on our principal and interest payments.
The primary saving is not the difference between a 2.65 percent rate and a 3.1 percent rate but rather from the time extension from a 15-year loan via Sun Trust to a 20-year loan via PNC.
The probability that loan rates [in 10 years] will be higher than the current 2.65 percent is a probability approaching 100 percent. There is also a reasonably high probability that interest rates for this loan, 10 years from now, could easily be reset in the 6-10 percent range. Nobody truly knows where rates will be 10 years from now; however, this Council has the opportunity to refinance the debt of Cape Charles at these historic low rates. [Read more…]
SATURDAY 11/16 — Holiday Show Reception at Stage Door Gallery
Saturday, November 16, at 6 p.m. the Stage Door Gallery will have the opening reception for their Holiday Show. [Read more…]
SUNDAY 11/17: Beethoven Sonatas at Palace Theatre
Join Arts Enter Cape Charles in November for a classical music concert series featuring ten sonatas of Beethoven for piano and violin, presented by Dora Mullins and Stefan Dulcie. Each concert will take place at the Historic Palace Theatre, 305 Mason Avenue, Cape Charles. [Read more…]
Buy Tickets Now for Museum Oyster Roast November 30
On November 30 the Cape Charles Historical Society will hold its 16th annual Oyster Roast from 5-9 p.m. at the Museum. [Read more…]
Eastern Shore SPCA Calendar Features Rescue Animals
Animals either currently at or recently adopted from the SPCA Eastern Shore no-kill shelter in Onley are the stars of a calendar published by the organization as a fund raising project.
Coby, an adorable Yorkie/Shih Tzu mix, heads off the local parade of pets in January, followed by alternate months of fascinating feline and personable pooch pin-up stars. December showcases the friendship between Arizona and Colorado, two domestic short hair kitties who developed a strong bond during their year and a half at the shelter and actually ended up being adopted together.
The full color wall calendar is on sale now for $10 at the shelter (located just south of Nandua High School on Route 13 in Onley) and will be available for purchase as well at all shelter events. All proceeds from the calendar will benefit the animals at the shelter.
The calendar may also be purchased at Eastern Shore Pets at Four Corner Plaza in Onley and Clay Werks at 4253 Lankford Highway in Exmore. Mail order copies are available for an additional $3 shipping and handling charge by calling the SPCA Eastern Shore shelter at 757-787-7385.
The project was made possible by generous support from Atlantic Animal Hospital; J.T. Holland State Farm; Nancy, Chessea, and Shelby Maxwell; Parksley Livestock Supply; SEA Consulting Group; and Shore Bank and from the following local businesses who sponsored specific months: Harry W. Drummond, Inc.; Clay Werks, Ltd.; Mallard’s Restaurants and Catering; Lloyd’s Shore Pharmacy; Eastern Shore Pets, Inc.; Little Italy Ristorante; Onancock General Store; Thornton Services, Inc.; Crockett Gallery and Studio; kb foto+design; Willie C. Randall, Edward Jones Financial Advisor; and WESR.
SHORE THING: A$K the Mayor
By GEORGE SOUTHERN
Cape Charles Wave
November 14, 2013
Before I started causing trouble in Cape Charles, I was causing trouble in Northern Virginia. Over the years we lived in the City of Alexandria, the County of Arlington, the County of Fairfax, and the City of Falls Church. Each of those municipalities offers many attractions, but there is one thing none of them has that Cape Charles does have: double taxation.
That’s right. In Virginia, if you live in a city you pay city taxes; if you live in a county you pay county taxes. Only in towns is there an opportunity to pay double taxes.
There is a little town in Fairfax County with the prestigious name of Vienna. One day I called the Town of Vienna’s information officer to ask: Why does it cost the taxpayer 22 percent more to live in Vienna than just outside the town line in Fairfax County? She immediately answered: “Access — you can call the Mayor on a Sunday afternoon.”
Vienna’s real estate tax rate is 22.88 cents per hundred dollars. Cape Charles, at 27.74 cents, is 17 percent higher. So – if you see where I’m going with this – shouldn’t my mayoral access be mighty good here in Cape Charles?
I had a question for Mayor Sullivan last July. The Town Gazette had just published a “Message from the Mayor” (click here to read) stating that “the Water and Sewer Fund broke even over the last three fiscal years.” I asked the Mayor how that could be, when the 2013 budget showed that the Water and Sewer Fund required a transfer of $172,500 from the General Fund. The Mayor deigned not to answer my question. (Perhaps I should have called her on a Sunday afternoon.)
So I asked our Town Manager, Heather Arcos. To her credit, she said she would check and get back to me. The next day – well, let the emails tell the story: [Read more…]
Post 56 Raises $7,000 for Victim of Vicious Assault
November 14, 2013
The American Legion Post 56 dinner/fundraiser for a young woman assaulted in Oyster was a huge success. The Post will present the victim with a check next week for more than $7,000.
Post 56 held a spaghetti and seafood dinner November 9 at the American Legion Hall in Cheriton (click here for story) to support their “Neighbor from the 180th” who was brutally assaulted in October in Oyster.
The event drew a large and festive crowd of nearly 300. More than 280 meals were served, and the kitchen staff reported over 48 pounds of dry spaghetti were cooked in addition to several gallons of red sauce and over 1,500 clams. [Read more…]
Chess Club Every Thursday at the Library — All Ages Invited
Chess Club: Thursdays, 4-5 p.m. upstairs at the Cape Charles Memorial Library.
Come learn and play chess! Free of charge, all skill levels welcome, basic sets and instruction provided. Adults welcomed too. Contact the Library at 757-331-1300 or Stefanie Hadden at [email protected] with questions.
