Every tax is a pay cut.  Every tax cut is a pay raise.
Citizens for Limited Taxation

Debt is one way of meeting present needs by mortgaging future revenues.
The ability to pile on debt at low interest rates with few consequences leads to complacency.
Long Term Debt Authorized and Issued (inside debt limit)
Year
Ending
Beginning
Balance
New Issue Retired Ending
Balance
07/01/2016 98,374,394 21,306,314 9,420,183 110,260,524
07/01/2015 98,857,399 9,762,932 10,245,938 98,374,394
07/01/2014 95,702,898 12,636,243 9,481,742 98,857,399
07/01/2013 94,303,479 12,953,862 11,554,443 95,702,898
07/01/2012 80,361,159 30,784,458 16,842,138 94,303,479
07/01/2011 45,826,213 40,344,559 5,809,614 80,361,159
07/01/2010 46,096,722 5,829,000 6,099,558 45,826,213
07/01/2009 40,361,428 12,095,591 6,360,246 46,096,722
07/01/2008 26,053,991 18,465,872 4,158,435 40,361,427
07/01/2007 30,400,946 275,572 4,622,527 26,053,991
07/01/2006 29,694,352 5,087,360 4,380,767 30,400,945
07/01/2005 25,516,225 8,870,550 4,692,425 29,694,352
07/01/2004 27,040,474 8,417,750 9,941,999 25,516,225
07/01/2003 29,228,526 1,913,529 4,101,581 27,040,474
07/01/2002        
07/01/2001   6,306,000 5,576,636 30,485,076
07/01/2000        

Long Term Debt Authorized and Issued (outside debt limit)
Year
Ending
Beginning
Balance
New Issue Retired Ending
Balance
07/01/2016 80,854,077 24,560,463 6,853,728 98,560,812
07/01/2015 68,417,148 19,346,765 6,909,836 80,854,077
07/01/2014 64,224,042 11,031,882 6,838,776 68,417,148
07/01/2013 41,922,340 30,000,862 7,699,160 64,224,042
07/01/2012 47,037,643   5,115,303 41,922,340
07/01/2011 36,310,414 14,816,675 4,089,446 47,037,643
07/01/2010 32,572,760 7,212,000 3,474,346 36,310,414
07/01/2009 35,086,141 18,164,900 20,678,281 32,572,760
07/01/2008 37,667,752 550,835 3,132,446 35,086,141
07/01/2007 40,782,864 0 3,115,112 37,667,752
07/01/2006 38,757,469 4,752,766 2,727,371 40,782,864
07/01/2005 37,881,120 3,278,835 2,402,486 38,757,469
07/01/2004 36,107,406 3,844,850 2,071,136 37,881,120
07/01/2003 37,731,128 497,500 2,121,222 36,107,406
07/01/2002        
07/01/2001   7,027,180 8,028,657 37,994,407
07/01/2000        

Long Term Authorized but not Issued
Year
Ending
Beginning
Balance
Recissions/
Additions/
Retired
Balance
Unissued
07/01/2016 164,196,889 40,783,285 123,413,604
07/01/2015 139,589,119 24,607,770 164,196,889
07/01/2014 127,390,278   139,589,119
07/01/2013 108,655,673   127,390,278
07/01/2012 116,073,065   108,655,673
07/01/2011 116,073,065   110,066,128
07/01/2010 152,148,023   116,073,065
07/01/2009 74,447,568   152,148,023
07/01/2008 55,758,356   74,447,568
07/01/2007 23,687,600   55,758,356
07/01/2006 100,455,569 76,767,969 23,687,600
07/01/2005 83,157,822 65,909,826 17,553,196
07/01/2004 73,824,301 58,936,224 14,888,077
07/01/2003 67,056,696 3,588,124 63,468,872
07/01/2002      
07/01/2001 96,091,150   62,796,500
07/01/2000      

Short Term Debt
Year
Ending
Beginning
Balance
Issued Retired Ending
Balance
07/01/2016 40,556,882 16,159,372 40,556,882 16,219,372
07/01/2015 48,826,001 38,248,174 46,417,293 40,356,882
07/01/2014 44,737,282 42,033,842 37,945,123 48,826,001
07/01/2013 50,721,098 41,594,386 47,578,202 44,737,282
07/01/2012 61,070,644 50,721,098 61,070,644 50,721,098
07/01/2011 91,152,653 35,917,901 65,999,910 61,070,644
07/01/2010 24,821,076 94,082,653 27,751,076 91,152,663
07/01/2009        
07/01/2008        
07/01/2007        
07/01/2006        
07/01/2005        
07/01/2004        
07/01/2003        
07/01/2002        
07/01/2001        
07/01/2000        

Unfunded Liabilities
Year
Ending
Retirement Health
Insurance/
(OPEB)
07/01/2016 110,444,086 288,645,575
07/01/2015 110,444,086 288,645,575
07/01/2014 95,314,038 202,000,000
07/01/2013 95,314,038 202,000,000
07/01/2012 95,314,038 202,000,000
07/01/2011 95,314,038 202,000,000
07/01/2010 66,000,000 280,000,000
07/01/2009 66,000,000 216,000,000
07/01/2008    
07/01/2007    
07/01/2006    
07/01/2005    
07/01/2004    
07/01/2003    
07/01/2002    
07/01/2001    
07/01/2000    

Legal Debt Margin/Accounting Principles
The Town is subject to Chapter 44, Section 10 ofthe General Laws of the Commonwealth of Massachusetts which limits the amount of bonded debt the Town may have outstanding to 5 percent of the valuation of taxable property as last equalized by the Commonwealth's Department of Revenue (see valuations at: Tax Rates ).

One significant departure from Generally Accepted Accounting Principles that the town has is as follows:

Long term debt has some level of interest associated with it. Long term liabilities are not interest bearing, but are at the whims of the stock market and may be inflation protected.

General fixed asset acquisitions (non-enterprise) are not capitalized in a general fixed asset group of accounts.

This becomes significant when you take into account all the unused real estate the town owns .

Commentary
To better understand the $431 million, scale it down to numbers you can understand. The annual town revenues, 2010: $235 million. Basically, if you were making $75,000 a year, you would be $150,000 in debt.

This debt/liability indicates that we have already spent two years worth of future revenues. Do we continue to spend like drunken sailors or do we just plain stop borrowing?

Framingham's per capita debt stands at $6,630 for every man, woman and child (assuming a town population of ~68,000).

Having all these debts and liabilities may be construed as a non-trivial indicator that we are not living within our means despite the alleged claims of our financial wizards in Framingham's Ministry of Finance.

I have to suspect that if a national healthcare plans passes, the the taxpayers liabilities will increase. In general, government interference only makes things more expensive.

Enzo Rotatori tried his best to scale down Framingham's growing public sector unions and their ballooning size in this article.

In Framingham, it's a million here, a million there and soon we're talking serious money ($431 million debt).

In Massachusetts, it's a billion here, a billion there and soon we're talking serious money ( $66 billion debt ).

In the U.S., it's a trillion here, a trillion there, and soon we're talikng serious money ($53 trillion including SS and Medicare/Medicaid).

Send comments to: hjw2001@gmail.com