Bottom line:

Interest rates are rock bottom really low. Everybody is borrowing.

Framingham has borrowed $28 million per year for the last eight years.
See numbers at bottom of page.

Given its high expenditure rate, Framingham cannot possibly pay this level of
debt back in the same generation as it was borrowed.

In fact, Framingham will continue to borrow and borrow.

Please note future annual OPEB costs of $22 million. When does this kick in?

We are generating cross-generational debt.

We borrow it. Your kids or the illegals all pay it back. Maybe?

What a great country we live in. We borrow now, they pay later.

Good luck with this program.

Sustainability at current tax rates? I think not.

The public sector unions (teachers being the biggest) will use their union dues to
push and push and push for Proposition 2 1/2 overrides .

Remember, they get the benefits of any overrides .

Annual Framingham revenues 2015

Fund Revenues
General Fund 2015 241 million
Enterprise Fund 2015 42 million
Total Income 283 million
Future ANNUAL OPEB costs: $ 22 million

Assorted Debts And Liabilities

Inside the debt limit ($360 million max) 98 million
Outside debt limit, authorized and issued 81 million
Outside debt limit, authorized but not issued 164 million
Short term debt 40 million
Total debts 383 million

Borrowing Limits

Borrowing limit inside the debt limit is 360 million
How much more can we borrow (inside the debt limit)? 262 million
Borrowing limit outside the debt limit is The Sky

Unfunded Liabilities

OPEB unfunded liabilities 288 million
Retirement unfunded liabilities 110 million
Total Unfunded Liabilities 388 million
Total Debts And Unfunded Liabilities 771 million

Pie In The Sky Project Costs

Wanted by Halpin for new schools/roofs 300 million
Wanted by Halpin for a new Town Hall 25 million
Wanted by Halpin for the Athenaeum 3 million
Wanted by Tully for a golf course 5.5 million
Wanted by Selectmen for Boys and Girls club 0.24 million
Total Pie In The Sky Costs 333.74 million
Total Debts, Liabilities, and Pie In The Sky 1,104.5 million

A billion here, a billion there and soon we're talking serious money.

Framingham debt within the debt limit is restricted by MGL 44 Section 10 ( debt limit ) . Framingham's borrowing capacity is limited to five percent of the total townwide assessments ($7.5 billion). Framingham's borrowing capacity is about $360 million.

The town seems to have a bylaw that states that we cannot spend more than 5% of the General Fund budget on debts costs but I am not sure.

All this construction we see going on in Framingham is being financed by debt. We are borrowing $28 million per year.

Compiled from the town's annual reports
2015 General Fund debt service costs 11.7 million
2015 Enterprise Fund debt service costs 11.7 million

Long term debt inside limit

2007 26 million
2014 99 million
2015 98 million

Long term debt outside debt limit

2007 41 million
2014 68 million
2015 81 million

Long term debt outside debt limit
authorized/not issued

2007 24 million
2014 139 million
2015 164 million

Short term debt

2014 48 million
2015 40 million
2007 26 + 41 + 24 = 91 million
2014 99 + 68 + 139 = 306 million
2015 98 + 81 + 164 = 343 million
Amount borrowed between 2007 and 2014 = 306 - 91 = $ 215 million
Amount borrowed between 2007 and 2015 = 343 - 91 = $ 252 million
Average amount borrowed each year: 252 / 9 = $ 28 million

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