City Debt

Debt can serve several different purposes, it is useful in matching costs to acquire or maintenance an assets to benefits received from the assets; one year's debt payment equal one year's use.

It allows governments to build and acquire assets that the government would not otherwise be able to do.  It is also useful as an economic development tool.  In other words debt is not something that should necessarily be avoided or eliminated, but rather debt is something that should be used and managed effectively.  

Council and staff take managing debt very seriously as indicated with the new debt that was issued for the current street projects.  Council has directed staff not to include the yearly debt payment that is not paid for by special assessments in the Debt Levy (the debt levy is the part of the overall levy that is paid for by the property taxes) but instead to use Local Government Aid along with State Aid for those payments.

Current Outstanding Debt

The City has been reducing the outstanding debt in the last few years.  From 2016 to 2018 the City has decreased it outstanding debt by 26.91%.  The current outstanding debt for the City is $41,284,253.22 (Principal and Interest).