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IT ONLY TOOK 17 DAYS!
Don Smith,
(July 15, 2003)
IT ONLY TOOK 17 DAYS!
Anchorage's new Mayor only needed 17 days to begin suggesting ways to start spending in a big way. He announced at a meeting of the ACVB last Thursday how he wanted to see the Municipality of Anchorage committ itself to build a new Convention Center. Last April, Anchorage voters said NO to a highly financed proposal that would have spent $100 Million on a new Center. The current 38,000 sf Egan Center was built as part of Project 80's with a grant from the State of Alaska. The center - with no debt - has never been able to even pay for it's operation and maintenance expenses.
Mr. Chairman & Members of the Assembly
I'm speaking here this evening to express some concerns about the municipality of anchorage's financial future.
Consider what might happen - as early as next april.
The reason i'm here tonight - bringing this topic up - is because after the 2003 april election anchorage property owners collectively owe $1,582,915,000!!! That's almost $1.6 billion dollars of debt. That amount represents 8.1% of our entire municipal assessed property value of $19.5 billion.
Each Anchorage family's share of this debt is now approximately $23,000. ($1.6 billion divided by 70,000 families)
I'm concerned that our recent run-up of debt - $210 of $267 million just this april is getting way too high.
I'm also convinced that few residents have any idea that this community owes Wall Street and other investors almost $1.6 billion.
I'm here tonight to suggest that we evaluate our debt load and consider slowing it's rate of growth.
I noticed that a bond sale last year only received a double a (aa) rating and required the municipality to purchase insurance to bring it up to a triple A(AAA) bond rating. This rating can only go down as we add more and more debt.
My suggestions to you tonight include the following:
The Municipality of Anchorage and the Anchorage school district should hold off or reduce the amount of future debt that is placed before the voters. I believe that we need to pay off some of the existing debt!
If there are to be bond issues on the ballot, then we should require that the total of all municipal general obligation and revenue debt be printed on the ballot. This would make voters aware of what their vote on a new bond issue really means.
Municipal law should be changed so that no public money can be spent to advertise or educate voters about bonds. the school district, while it follows current law, spends thousands each year with very questionable mailers, newspaper, tv and radio ads. positive or negative campaigns should come from "private" sources. The news media should be the outlet for facts - pro or con - about our bond issues. also, the league of women voters produce a great election fact sheet each year.
Bond issues should stand alone - each issue should have it's own vote. The idea of a $125 million dollar bond issue for a variety of projects should never be allowed. I understand the politics of lumping projects together, but it's wrong!
No bonds should be offered that pay for routine repairs, maintenance or basic supplies like computers.
I sincerely believe that we need to get better control on the way we, as a community, handle our long term debt.
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