By: Diane Benjamin
Since Mayor Transparency is comparing Bloomington to surrounding cities in an attempt to raise the Sales Tax, let’s compare debt.
The chart below is from Bloomington’s Budget – Book 2 – Page 62 http://www.cityblm.org/Modules/ShowDocument.aspx?documentid=8223
Part of this debt is for the NEVER used #5 Fire Station – see page 50
General Obligation Bonds, Series 2007 – Fixed Rate. The City issued $10,000,000 General Obligation Bonds, Series 2007 in 2008 for the purpose of the construction of Fire Station #5, McGraw Park, and Sewer improvements throughout the City. The City pays debt service expenditures from dedicated revenues in the General and Sewer Funds through the property tax levy. Principal payments ranging from $155,000 to $670,000 are due each June 1st from 2009 to 2032. Interest ranges from 4.00% to 4.50% and is due semi-annually in June 1st and December 1st. The Fiscal Year 2016 principal and interest payment is $695,331.
Normal doesn’t think it’s citizens are in enough debt, so they want to spend at least another $60,000,000. Bloomington is considering more BIG borrowing to fix roads and sewers claiming borrowing now is cheaper than waiting. Just based on debt, where would you want to live? Does Bloomington’s Quality of Life spending matter?
There is another factoid. Bonds seem to have been issued to pay for bonds that were due. Not the best–actually awful–financial management. The expense for the sewers to Kickapoo Creek Subdivision, for example, should have been shared with Armstrong developers–the City lost millions on that subdivision and it continues to put financial stress on the City’s Infrastructure and Solid Waste. The City is being sucked into a black hole from which there is no return–even, or especially, with more tax increases.