City of Portland debt jumped $285 million in a year
The City of Portland's big fat annual financial statement for the year ended last June 30 has finally hit the streets. The whole phone book is here. Among the interesting insights it provides is that the city's outstanding bonded debt rose by $493.4 million in that year; of that, $212.5 million was used to pay off pre-existing lines of credit. Taking into account another $4 million or so of miscellaneous other debt that the city took on for this and that, it is left with a net increase in debt of $284.9 million. (That doesn't count the underfunded and unfunded pension liabilities, of course.)
Debt service -- principal and interest paid on debt -- was $316.4 million for the year from governmental funds, and $324.4 million from proprietary funds. By our count, that adds up to a staggering $640 million of loan payments for the year. The city also spent $3.0 million in transaction costs on all the new debt it was taking on. The banks, it seems, had their way with the Portland taxpayers once again.
The city's excess of revenue over expenses for the year was $104.8 million. Property and lodging taxes grew by $13.4 million. How City Hall expects to pay off all that debt, and around $3 billion of unfunded pension liabilities on top of it, is anyone's guess.