Framingham Debt

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.
The city of Framingham pledges its full faith and credit to repay their general onligation bonds, but as debt increases quickly, their promise seems to be depreciating in value.

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 (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 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

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

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)

07/01/2017 123,000,000 314,000,000

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

Unfunded Liabilities
Year Ending	Retirement	Health Insurance/ (OPEB)
07/01/2017	123,000,000	314,000,000
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 .

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).

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).

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