Larry wanted to take a more-conservative approach
On May 2nd, the Board of Supervisors voted 3-2 to approve the proposed budget for Fiscal Year 2017. Larry voted against it.
The budget does the following:
-Raises the debt ceiling
-Doubles our total debt
-Pays for all ‘big-ticket’ building projects all this year
Larry wanted to stagger the building projects over the next few years, so as to minimize debt exposure, and to allow commercial growth revenue to ‘catch up’ and provide income to pay for all of these new projects. He also wanted to leave the tax rate flat, and make cuts to the operating portion of the budget.
Here are the numbers: Bonds for building projects will add additional $54 million to our debt, bringing debt total to about $127 million (over $200 million, with interest). The tax rate is left at 90 cents, but since real estate assessments have gone up, this represents a 5-cent increase of over 5%. The debt ceiling will now be well above 12%, somewhere between 13 and 15%, depending on the bond rate when we lock in.