Tax rate cap not included with Carmel’s 2017 budget

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  • Bob

    The mayor is quoted as saying, in part, “… but also because bond rating agencies look at that (ending operating balances) when they rate the city’s debt, which affects interest rates.”

    Did he happen to mention this affecting interest rates?
    “Rating Action: Moody’s Downgrades Carmel, IN’s Lease Revenue Bonds of 2005
    (Performing Arts Center Project) to Aa3 from Aa1”

    Or this?
    “Factors that Could Lead to a Downgrade
    Increases in the city’s already elevated debt burden
    Reductions in the city’s operating reserves and/or liquidity”

    SURELY he mentioned this?
    “Carmel’s lease revenue debt is secured by rental payments from the city. Carmel pledges its unlimited ad
    valorem taxing power (the Special Benefits Tax) to the Series 2005 lease payments. This pledge is not subect to Indiana’s Circuit Breaker taxing limitations but it is subject to abatement risk if the property is unable to be used.”

    © 2016 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and
    affiliates (collectively, “MOODY’S”). All rights reserved.

    Yeah, didn’t think so.

    • Mark

      Keep on him Bob!

      It is too bad the the writers for the Current just repeat what they are told.

      • 123SNL456

        Have to agree, especially when there is perhaps a personal business interest. It’s so much easier just to print what your given by the spin machine department of “Community” Relations.

        • Mark

          They should ask a question or 10.

  • Rick Smith

    By the election in 2015, the DLGF showed debt as $908,795,295.
    This was nearly double the $447M from 2011.

    According to DLGF as of 11/1/16 Carmel total debt; all sources is $1.238B
    This is a $300+M increase in one year.
    NOTE-in 2 years between EOY 2014 and Nov 2016 Lease Payments have increased by $258M to $819M, a 46% increase in less than 2 years.

    The Total Obligation increases by over 20% in 2017 from $44M in 2016 to $54.4M for 2017.

    https://uploads.disquscdn.com/images/53407194eca216e60007a93bb7e4b7c5afd3ae87a37fa1961eecedb419853b77.jpg

  • I believe the Mayor, as usual, has been less than honest about the numbers. I can’t remember the last time the City ended the year with $30 million surplus in its operating balance. There may be $30 million on hand in restricted funds but NOT the operating balance. Unfortunately for the Mayor the rating agencies are beginning to catch on! For those who will wish to say I am being mean…it is just like the Election, I tell you what the facts are not what you want to hear!