If the school bond referendum passes, the City’s credit rating will be crucial to the cost and even ability to issue $120 million in bonds for a new GMHS and to finance other approved CIP items. Because of the historically large debt contemplated, credit rating agencies will focus intensely on the City’s ability to meet future debt service obligations and its flexibility to manage future revenue or expenditure shocks. The strength of the City’s financial position and outlook is even more critical in light of a recent finding that Virginia is in a relatively weak position to withstand financial shocks from a national recession, whichRead More →

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John Leimone, long time Falls Church resident and PhD economist with extensive experience in macroeconomics, budgets, financial markets and financial risks, has studied the $ 120 MM bond referendum plan and identified the following issues: Problem: Justification of huge cost and 65 % increase in student capacity of proposed “community school” has not been clearly demonstrated. a.  Demonstrable unreliability of  longer term projections of school enrollment & failure to address recent negative demographic trends. b.  No independent Request for Proposal (RFP) to pin down costs & to separate basic needs from merely desirable features (e.g, a “competitive” gym already available in MEHMS.) c. No comparisonsRead More →

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Below is the statement read by Mr. John Leimone to City Council during public comment on Monday, July 24, 2017.  Mr Lemoine has worked as an economist at the Federal Reserve Bank and the International Monetary Fund. I strongly support the VPIS recommendation in the well-argued letter to you (City Council) to postpone any decision on a GMHS referendum until citizens have been thoroughly and honestly briefed on all aspects of this project, which because of the costs involved, poses an existential threat to the City’s future financial stability. Underlying this position are at least 4 major concerns: The Council and City Manager have glossedRead More →

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