Wednesday, October 14, 2009

URA debt is debilitating

---

I am reading a lot in the paper about the city of Ketchum's financial situation. What concerns me (and others who have been paying attention) is the attitude of the mayor and council towards the $5.6 million debt they have incurred as commissioners of the Urban Renewal Agency. They use terms such as "reasonable debt" and "manageable." When asked how they are going to pay it off, they simply reply "refinance it." As far as I know, refinancing is not paying it off.

The operating costs of the URA for fiscal year 2009--10 are budgeted at $116,954. The interest-only payment on the $5.6 million debt is $255,238. The revenue, primarily from taxes, is $437,835. The properties and assets that the city has attained with the URA's $5.6 million loans do not generate revenue. That leaves only $65,643 net revenue in the 2009-10 fiscal year budget.

With no guarantees in the near future that URA tax revenue will increase to the $1 million annually that was dreamed about when taking out these loans, I have to question how the mayor and council can feel so comfortable about the city's financial situation in regards to the URA.

acheter viagra
buy viagra
comprar viagra

Anne Corrock

Ketchum