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Dear Editor:
Inflation and basic economic reality are making Carmel’s municipal finances a lesson for the rests of the county on what not to do.
According to public records, Carmel’s population grew 24 percent in the last decade as total city revenues increased 98 percent and debt service payments, 319 percent (from $11.8 million in 2011 to $49.8 million in 2020).
On a per-capita basis, city revenues increased from $618 in 2011 to $981 in 2020. We don’t have 2021 numbers yet.
The mayor’s super-secret fiscal plan projects one-third of city tax revenues will go to pay down debt in 2022.
The latest Bureau of Labor Statistics indicate the average U.S. household pays less than 10 percent of disposable income in debt service of all kinds. That’s as of the Jan. 7, 2022, update.
Consider what your household budget would look like if that tripled.
Well, with inflation at a 7.7 percent level in Indiana according to Bureau of Labor Statistics reporting, lots of things will soon triple.
Not a pretty picture for a city $1.5 billion in debt with $86 million due by the end of the year. Some $52 million of that is to come from Carmel Redevelopment Commission projects.
Sad news for Carmel residents but a blazing warning sign for other Hamilton County taxpayers.
Bill Shaffer
Carmel