Yes, no problem here. Nothing to see, just go about your business as usual – move along.
Meanwhile, from the Financial Review Team http://www.freep.com/assets/freep/pdf/C4201112219.PDF
Annual [[Short-Term) Deficits
Detroit has an inadequate budget process that produced the following “Annual Deficits” [[Year, then Actual Deficit in Millions): 2005 [[$115.4), 2006 [[$173.7), 2007 [[$115.6), 2008 [[$219.2), 2009 [[$331.9), 2010 [[$155.7), 2011 [[$196.6), 2012 [[$326.6). Or, over the 8 year time period an average Annual Deficit of $214.3 Million, per year.
Long-Term Debts
As of June 30, 2012 Long-Term debt is $14.99 Billion. Ok, Ok, some of that is really, really long-term debt or Water & Sewer debt and that will magically disappear with pixie-dust made powdered unicorn horn. But, the fact remains that $2.0 Billion of that debt is near-term and comes due within 5 [[short) years.
What to do.
- Stop anymore long-term borrowing. Besides, who would buy Detroit bonds that are now junk rated or unrateable? Don’t count on any additional State guarantees.
- Cut the Annual Deficit to ZERO
- Also create an operating surplus of $400 million a year for 5 years in order pay off that near-term bond debt of $2.0 billion.
Right, no E[[F)M or Bankruptcy Judge needed here. The City Council, Mayor and a few community activists can handle all this. [[Sarcasm off).
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