Shaffer concerned about Carmel’s debt

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Dear Editor:

In November 2017, Standard & Poor’s downgraded Carmel’s debt rating indicating the city was “vulnerable to unanticipated economic or operating swings” as its debt levels increased.

Since that time, total debt has increased $12 million and no publically available plans or programs are in place to ease what S&P called “mounting leverage that can pressure flexibility and budgetary performance over time.”

An estimate from consulting engineers says $65.2 million or more soon will be needed to provide adequate water and sewer services to the high-density buildings under construction between Range Line and the Monon Trail.

And, in its first-ever public financial statement, the Carmel Redevelopment Authority spent $131.6 million in 2018. And, at year-end 2018, the city reported $207.8 million in construction in the works.

History teaches what happens when debt spirals out of control. Visit Newark or Gary or Oakland.

Does anyone know of a plan to stop the bleeding?

Bill Shaffer

Carmel