WPCNR MR. & MRS. & MS. WHITE PLAINS VIEWS. July 15, 2005: John Carlson, Candidate for Common Council shares bond rating concerns:
John,
You wrote an interesting article. You touched the nerve of responsible, concerned citizens. The City's financial condition is one of the reasons I am running for Common Council. I want to use my corporate banking experience to help stop the decline in the City's bond rating.
According to Moody's, the City's long-term debt level is now $74.5 million. This isn't Monopoly money! This level of debt works out to $1,400 per resident or $3,800 per household. The taxpayers have to cover the interest charges on this debt year-after-year. Furthermore, as long as the City keeps running operating losses, we're stuck with this level of debt. The debt will have to be refinanced since it is unlikely that any portion could be be repaid. Interest rates are going up, not down. This debt burden makes it more difficult for seniors to stay here and more difficult for first-time home buyers (ie, our children) to afford White Plains.
The City has run operating losses for the past 3-years. If the Federal budget deficit bothers us, so should the City's. I am committed to restore the City's fiscal intregity.
On a technical matter, I should point out that Moody's rates the City's underlying, general obligation debt "Aa1" not "1-A".
Sincerely,
John Carlson
The CitizeNetReporter thanks Mr. Carlson for catching the Aa1 error.
