Nobody had much to say about Councilmember Barret Lane's post
about Indianapolis' financial situation yesterday.
Here is even more context to the relevancy of Indianapolis' situation
and ours: Indianapolis has the fourth highest debt
service/expenditure ratio for a AAA rated city at 18.5%.
Minneapolis? We're number five at 18.4%. Indianapolis was
recently put on financial warning in regards to the security of their
AAA bonding status (they also have had their legislature making
changes to the property tax base and have used TIF a lot in their
downtown).
Will anyone be willing to say when we have incurred too much bond
debt? As I understand it, if passed, the library referendum would
increase the city's total debt to 1.39 billion (up from 1.25 billion at
the end of 2000). Is our AAA bond rating just not worth the wait for a
new library (the two or three year wait until we can pay the bond debt
down)? Is AA bond status (and the higher interest it brings over
time) good enough for Minneapolis?
It's vital that Minneapolis have a first class central library downtown,
and improved branch libraries. But if any supporter of the library
referendum can make the case that the increased bond debt
reflected in the referendum will not affect our city's bond status (in
the context of our region's projected slowing economic growth),
they should speak up.
Gary Schiff
Powderhorn Park
Ward Nine
www.garyschiff.org
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