Sunday, June 6, 2010

If Guilford County expects to spend 18% of its budget on debt service in 2012/13, where is the $87 million going to come from?

Based on estimates of future debt service
for all currently authorized general obligation debt and annual operating budgets,
the County will exceed its guideline for general obligation debt service
in fiscal years 2012 - 2016.

At its highest, debt service will peak
at just under18% of the operating budget in Fiscal Year 2012-2013.

Guilford County 2010/11 proposed budget
.
"The new [2010/11] budget totals $570 million
about $16 million less
than the budget the Board of Commissioners adopted last June for fiscal 2009-2010,
which totaled $586.1 million."

Scott Yost
Rhino
.
If 2012/13 debt service is expected to be $112,180,093
not including an additional $17 million just authorized,
and $112,180,093 x 100 / 18 = a $623,222,738 2012/13 budget,
with 2010/11’s revenues at about $536 million,
($570 million – at least $34 million of reserve spending = $536 million)
how is Guilford County going to come up with $87 million more in 2012/13
than expected for 2010/11?

If Guilford County revenues stay the same or fall through 2012/13,
could debt service end up at about 21% of the budget or more
especially if a couple of billion of commercial and high end real estate
assesed for tax valuation between 2005 and 8 gets revalued 20 -30% lower?

How big of a tax increase could Guilford County’s Commissioners inflict
onto the backs of the communities it serves
by not fufilling fiduciary obligations?
.
Is the Greensboro News and Record’s Editorial Board completely oblivious?
.
A little better budget
.
...Commissioners also added some funding in their final budget for the United Arts Council of Greater Greensboro, which of course returns benefits to city residents.

The bigger concern regarding the county budget is its impact on next year's budget.

It doesn't fund positions for additional detention officers…

…With continued economic uncertainty ahead, but a strong possibility that state funds will continue to diminish, it won't get easier to pass a Guilford County budget that doesn't curtail critical services.
June 5, 2010

1 comment:

Anonymous said...

Repaying debt of necessity must include then-current spending of less than income in order to have funds for servicing the debt. If plans are to maintain or increase spending, then debt repayment will require significant increases in income - MORE TAXES.

NEWSBUSTED at NEWSBUSTERS.ORG 2-18-2015