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City Of Lake Elsinore

Council Members Plunge Us $20 Million In Debt

$14,000,000 For La Laguna Campground

Council members Natasha Johnson, Brian Tisdale, Steve Manos and Daryl Hickman voted in favor of borrowing 10 million dollars for improvements to the La Laguna Resort campground, paying $20 million ($19,840,000) over the next 31 years, pouring $14 million into the project. Bob Magee voted against. With 4 votes in favor and 1 vote against, the council approved this high risk venture.

Landscaping, cleaning and fresh paint would do wonders but our council members insist on spending big money on unnecessary purchases while saddling up taxpayers with a 31 year loan.

The Plan

The L.E.P.F.A. (Lake Elsinore Public Financing Authority) will borrow 10 million dollars from a bond underwriter, probably Stifel & Nicolaus (St Louis, MO), who will sell municipal bonds as investment to their clients.

The city and the L.E.P.F.A. will sign a contract where the city leases city assets to the L.E.P.F.A. for $1 a year. The city then rents those city assets from the L.E.P.F.A. for $640,000 a year. Those city assets are fire station 10, fire station 94, city hall, Summerlake Park, Rosetta Park and the La Laguna Campground. The $640,000 a year rent will be paid out of the city fund.

The L.E.P.F.A. will use the lease contract with the city as collateral to get the 10 million dollar loan. If the city defaults on the payment, the long term lease would be under control of the bondholder. This means the city will rent their own assets from investors who bought bonds.

Less Safety - Lower Home Values

The city will make the payment no matter what. If the income of the campground is insufficient to cover the payments (a certainty), the city will cut police & fire services, city maintenance, recreational activities, Lake water purchases (to slow down the evaporation of the lake) or city employees. Less police = less safety and more crime. Less maintenance = filthy and trashy city. This will bring your house value down. Our reckless council members put this risky campground venture on a higher priority than our home values and safety!

The New Diamond Stadium Disaster

City manager Grant Yates convinced our dupeable council members the campground will pay for itself and attract new businesses. Needles to say our council members are submissive and roll over on his command.

We've heard this before with the Diamond Stadium, built in 1993 and costing three times more than anticipated ($25 million) to build. Each year, $500,000 is still paid out of the city fund (your tax money) to pay off the remaining + $12 million by the year 2032.

Four Scenarios

The city has calculated this project on 4 scenarios, going from an average annual occupancy of 100% (which is impossible) to a worst case scenario of 40% average annual occupancy. There is no mentioning of a "the lake dried up" scenario or a "financial crisis" scenario like the one we had in 2008. The calculations were prepared by Jason Simpson, Director of Administrative Services and approved by Grant Yates, City Manager.

The city will use taxpayers' money to compete with private enterprise.

Two Possibilities

Either the council members and the city manager are careless with taxpayers' money or they are getting paid under the table by the contractors who will be appointed for the job.

Boat Launch & Campground Occupency

4 September 2016 (Saturday 10:40 hrs)
LABOR DAY WEEKEND!

A FULL summer Labor Day weekend. Imagine a weekend in the winter.

 

This is obviously a consequence of the algae problem in the lake, but it shows that Grant Yates and the council members (except Magee) are idiots. One cannot help but question if they are corrupt (receiving handouts from contractors under the table) to go ahead with a plan based on a financial feasibility calculation that has a 40% occupancy as a worst case scenario.

Campground, less than 5% occupancy.

Boat Launch, less than 0% occupancy.

20 July 2016 (Wednesday 10:40 hrs)

A FULL summer weekday. Imagine a weekday in the winter.

Campground, less than 1% occupancy.

Boat Launch, less than 2% occupancy.

18 July 2016 (Monday 10:00 hrs)

A FULL summer weekday. Imagine a weekday in the winter.

Campground, less than 1% occupancy.

Boat Launch, nowhere close to 5% occupancy.

15 July 2016 (Friday 10:30 hrs)

A FULL summer weekday. Imagine a weekday in the winter.

Campground, less than 1% occupancy.

Boat Launch, nowhere close to 5% occupancy.

4 July 2016 (Monday 11:00 hrs)
4th JULY WEEKEND

One of the busiest weekends of the year.

Campground, under 40% occupancy.

Boat Launch, nowhere close to 40% occupancy.

3 July 2016 (Sunday 17:00 hrs)
4th JULY WEEKEND

One of the busiest weekends of the year.

Campground, under 40% occupancy.

Boat Launch, nowhere close to 40% occupancy.

2 July 2016 (Saturday 11:30 hrs)
4th JULY WEEKEND

One of the busiest weekends of the year.

Campground

Boat Launch

26 June 2016 (Sunday 11:30 hrs)

A beautiful summer day.

Campground

Boat Launch

Camp Anywhere For Free

Allowing free camping all around the La Laguna campground while hoping to make money on the La Laguna campground is as dumb as it gets.

Park your RV anywhere you want, for free. Why pay to stay at the campground?

Pitch your tent by the lake for free and launch your sailboat for free. Why pay for the boat launch?

This is a better spot than what is on offer on the La Laguna Campground. Why pay?!

The city invites you to pile your trash on the beach. Council members do not care. Taxpayers will pick up the cleaning bill.

Toxic Algae Scenario

2 August 2016 (Tuesday 10:30 hrs)

This worst case scenario is NOT included in the city's business plan.

There is nothing in place today to stop algae growth in the future.

Who wants to swim in Lake Guacamole?

Would you go to La Laguna campground by this lake?

Dry Lake Scenario

This scenario is not included in the city's plan.

This worst case scenario is NOT included in the city's business plan.

There is nothing in place today to stop the lake from drying up.

Lake Drying Up - 26 June 2016

Lake Drying Up - 4 September 2016

Lake Drying Up - 26 June 2016

Lake Drying Up - 4 September 2016

No comment needed.

Clearvoyant

Our cosmic council members are clearvoyant. They can look into the future through their crystal ball. They are 100% sure there is ZERO chance of an economic recession or the lake drying up in the next 31 years. Please contact them for your lottery predictions.

November Elections

Remember Natasha Johnson and Steve Manos in November and VOTE THEM OUT for squandering our tax money and having a higher priority for a campground than for our police and our safety!

La Laguna Staff Report

Read the La Laguna Staff Report in detail.

Sign The Petition

Sign the online petition.

The Nightmare Team
Lake Elsinore Deserves Better

Steve
Manos

Robert
Magee

Natasha
Johnson

Brian
Tisdale

Daryl
Hickman

e-mail city council

Tell them what you think!

Let's Wake Up Lake Elsinore

Leave A Comment


 

JC 24 March 2017 - 21:57:29 hrs

Also... has anyone taken the sample on the lake? Curious to know what the Algae is.
I'm willing to pay for the test out of my own pocket.

JC 24 March 2017 - 21:55:37 hrs

Can anyone tell me how much water has come up since the rain the last few months?

d'Amileau 25 July 2016 - 15:48:03 hrs

This appears to be yet another boondoggle by our elected city leaders. I have never camped in our city, nor will I ever and I don't believe I am alone in that idea. The very optimistic Break even point, not to mention ROI is not based in reality and this plan should be tabled.

Dreams are not real. The cost for this Dream is very real.

We need individuals that will strategically plan progressive growth that stimulates business interests to support the current citizens and businesses. There are organizations and businesses that would like to invest in LE, but cannot due to our leaders and city staff that have other Dreams.

Time to wake up.

Marcie 2 July 2016 - 14:19:59 hrs

I could not agree more with Gary. Shall we the tax payers also pay for a Chipolte restaurant since they can't get them to come to town? There is no other point to make beyond his. I don't care how run down that place looks, the city has no business in the private sector or competing against those who did invest.

Gary 27 June 2016 - 09:06:14 hrs

It is wrong for the city to own and run a retail business which competes against private enterprise. It can lease it to private parties to operate it. The city should govern not compete.

Terri 17 June 2016 - 21:01:29 hrs

I am speechless!!!! The lake area is infested with drug addicts and homeless people. This idea is preposterous. I want to know more about this and hope our council members aren't stupid enough to push this through. Using parks, FIRE stations as collateral. Really??? Stop spending our money council and manager and clean up our city and fix the roads. (slams head on table)