More Debt Analysis and Questions

As one would expect, the City's required debt payments are increasing faster then population growth and inflation.

This debt payment growth rate is just another indicator that the rate of debt growth in Georgetown needs to be slowed.  At 9.45% compounded annually the payments are growing slightly less than the debt growth rate at 10.48%, but, substantially above the 6% combined growth rate of population plus inflation.  Again, these rates are divergent and therefore unsustainable.

The city also has substantial funds from the 2008 bond election that have not been spent.  $81.5M was approved by the voters and approximately $23.1M has been obligated/spent so far.  The following chart from the City's Budget Overview presentation of 2/24/2015 indicates the bond funds that have not been issued.

The fact that $58,400,000 of bonds have not been yet issued raises several questions.  (1) Why haven't the bonds been issued for parks and roads?  (2) How long is the authorization to issue bonds good for?  (3)  Are there firm plans to issue the bonds and obligate/spend the funds on approved projects that are consistent with the restrictions established at the bond election?  (4)  Does the city have the engineering, financial and administrative staff to issue/obligate/spend these funds while taking on the $105M road bond projects and the $25M of other capital projects, and the replacement of the Austin Ave bridges?  Are we going to see a request for expansion of city staff?

So many questions!  Ask your City Councilperson.