MoCo Looking to Cut Debt

[Anonymous]

In 2016, voters were told the CC needed to raise property taxes to fund school construction.



"Riemer, who is proposing reducing spending guidelines by $10 million every two years over the next six years, said Friday it’s important that the council find a sustainable approach to the growing debt.

He said the challenge will be doing so without hurting future school construction plans.

He said one reason the County Council felt it needed to raise taxes in 2016 was because the county continued to add significant debt. By reducing the amount of bonds issued each year, the county whittle down its debt-service payments, Riemer said"


http://www.bethesdamagazine.com/Bethesda-Beat/2017/As-Debt-Service-Payments-Grow-County-Council-Looks-To-Limit-New-Capital-Bonds/

[Anonymous]

The issue isn't one of total debt per se, it's the unsustainable spending increases where the council EVERY year has to vote to go beyond the stable spend rate.

It actually in some ways makes sense to add debt now at such low rates, as long as it is tempered with some way to scale back future spending.

[Anonymous]

Anonymous wrote:The issue isn't one of total debt per se, it's the unsustainable spending increases where the council EVERY year has to vote to go beyond the stable spend rate.

It actually in some ways makes sense to add debt now at such low rates, as long as it is tempered with some way to scale back future spending.

Good point. Its really about decreasing deficit spending. It would be a good idea to refinance existing debt, though I have not been too impressed with the county's ability to handle projects. Case one was the Silver Spring transit center debacle. As this article points out, they seem to have mismanaged the recent RE tax increase given the apparent, persistent need for school construction funds.