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D.C. Council to consider borrowing cap
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WASHINGTON (Map, News) - D.C. Council members will consider setting a legal cap on the amount of bonds the District may issue for new projects, heeding warnings of debt-related financial peril if the city continues to borrow at an “unsustainable” rate.
Council Chairman Vincent Gray last week introduced legislation that would restrict the District’s overall debt level to 12 percent of its annual expenses. The ratio is expected to reach 11 percent next year, already a percentage point above Chief Financial Officer Natwar Gandhi’s recommended ideal limit.
“This legislation will send a strong message to the bond-rating agencies that the District of Columbia is taking the issue of managing its borrowing and debt seriously,” Gray said. “This legislation will also require the council to make tough choices on what we borrow in the future, but it will also ensure that future generations of Washingtonians are not saddled with excessive debt.”
In his annual debt letter issued earlier this month, Gandhi urged the council and Mayor Adrian Fenty to “send a signal to Wall Street” and adopt the debt cap “out of concern for the District’s financial health.” The city’s “somewhat unsustainable” level of borrowing threatens its bond rating, the CFO said, which could bring higher interest rates on existing debt.
D.C. already plans to borrow more than $3.5 billion through 2013 for a dozen economic development projects, school modernization, government facility upgrades and the consolidated forensics laboratory. If the city were to stop adding projects, Gandhi said, its highest-in-the-nation debt per capita would still skyrocket from $10,902 this year to $13,999 by 2013.
New initiatives that call for major borrowing, Gandhi wrote, “may have to displace currently-planned projects.”
Gray’s bill, co-sponsored by 10 of his colleagues, would institute a “firm cap” but still allow for exemptions in an emergency or for a “unique project,” the chairman said. Several major endeavors not yet in the pipeline for new borrowing could be threatened by a debt cap, including the redevelopments of Poplar Point, the McMillan Reservoir and Hill East.
City Administrator Dan Tangherlini recently told The Examiner that the Fenty administration would find it difficult to back a strict debt cap if it meant closing the door on revenue-enhancing projects.
mneibauer@dcexaminer.com
Comments from Examiner Readers
7:08 AM MST on Wed., Aug. 13, 2008 re: "Fixing Fenty’s jobs program racks up overtime for team"
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Examiner Reader said:
Mayor Fenty also needs to look at the D.C. Fire Departments Fire Investigfations Unit. Just yesterday, we lost another arson case in court because one of our investigators lied in court
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Overpaid Teen said:
What will happen to the teens that have been overpaid? I have received more than $600 more than I am due, and because I didn't realize that I had been overpaid until a week after it happened, I have spent $19 more than I should have. Will the government try collect the extra funds? Will charges be brought against me because of the $19, even though it was due to a DC government error?
1 agree | 0 disagree
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Examiner Reader said:
Is there ever any end to the Districts incompetence?
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Examiner Reader said:
When will the Mayor be held accountable? THis is just one example of how reckless he is. He will undoubtedly find a way to blame someone else and illegally fire them; but in the end, it's his responsibility. In this case, it's obvious that it was his own recklessness that led to this debacle. As a voter and taxpayer, I am completely outraged. If the Council isn't more active in it's oversight of this Mayor, they's better start looking for new jobs because as taxpayers we are not going to tolerate this anymore.
3 agree | 0 disagree
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Examiner Reader said:
For this mayor: I say recall, recall, recall! You make a mess of the summer jobs program just so you can say you 've done better than Marion Barry. That's not even bad politics. It's childish. the program was supposed to be about the children.
1 agree | 0 disagree
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The Answer said:
Also what happened to stop and frisk it appears that this is no longer a part of the regular duties of MPD they just respond from crime scene to crime scene, for example I saw 20- 30 supicious subject standing on a corner an as opposed to getting out and asking what these guys were doing and telling them to disburse MPD just rode past, also Ray Charles can see the police coming from a block away with the strobe lights blinking and begin to run and hide, why is this still being done this is not effective policing
3 agree | 1 disagree
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The Answer said:
The MPD is in complete dissary the police are stating that the answer is more police officers with high powered guns but the streets are supposed to be safe Mayor Fenty and Mr. Peter Nickles did not think that the city was dangerous enough for us ordinary citizens to own guns as part of our constitutional right the DC police can protect themselves (by getting high powered rifles but ordinary citizens can't. Also some of the shootings in the past two weeks such as the one on North Captiol St and the shooting on Lincoln Road the police were in the area and knew the area was "volatile" but could not stop the shootings and blame it on the citizens stating "citizens don't cooperate with police" and who would considering some of the officers are have ties with felons. It is proven that they release confidential information and are also rude and verbally abusive. Also what happened to the old fashioned traffic stops of moving vehicles considering most shooting happen from moving vehicles
3 agree | 1 disagree
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will streetcars help or harm? said:
Don't we need to know about the streets the streetcars will be in? Streetcars work in places like Portland, OR, when they have a dedicated area in the middle of a street so that they don't block traffic. But if they have to use the street, they will likely increase congestion, not reduce it. This should be the start of the questioning -- not just ridership, but what happens to traffic speeds. If Graham discovers that there are issues with this streetcar, he should look at the other streetcar plans as well.
4 agree | 4 disagree
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What said:
Where is Carol doing her job from Rohoboth? She is not only losing Republican support, she is also losing all support.
9 agree | 6 disagree
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Examiner Reader said:
Oh, well. Nobody will come to DC anymore. Especially since Graham parks his own car for free. "Do as I say, not as I do."
8 agree | 7 disagree
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Homnoir: said:
Oh well, The Cary Silveman campaign may be seeing it's due demise. Silverman & all 10 of his constituents -Ray(We're-Here-We're....) Milefsky, Martin Moulton, Richard (Act-Up) Rogers, Si (I-demand-Shotspotter-now)Kailian, Alex (Bring-me-a-memo) Padro, Kevin (Uncle-Ruckus)Chappelle, Brian (I-demand-an-answer-this-minute-Councilman) Smith and their partners & significant others can take the message that the Shaw/Mt. Vernon/Convention Center/Chinatown community do not find their message(s) are the most viable for the aformentioned communities, as a whole. It's call inclusiveness not colonization by way of gay economic elitism.
6 agree | 10 disagree
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Examiner Reader said:
In any large business, there are incompetent workers. However, there are still many competent workers in D.C. government & a "brain drain" is possible! Most of the problems & perception of bad service are due to ill-prepared managers; managers that should never have been placed in such positions & certainly not allowed to continue as managers. D.C., unfortunately, has an ineffective, inefficient, inadequate method of selecting, training, maintaining & validating its office/program managers. In most instances, required supervisory (MSS)training is a joke and focuses mostly on fluff. A crew is only as good as its captain. If the captain is ethically challenged, unable or unwilling to perform, unfair, and/or a bully to subordinates-the public should expect poor performance and/or service. Yet, even under such challenges, many D.C. workers try to do their work. Their cries for help are routinely ignored & they have become easy whipping posts for what ails DC. Request my name be anonymous.
12 agree | 9 disagree
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Examiner Reader said:
Could you do a follow-up to determine how, and when, employees will be notified as to whether they have been guaranteed to receive the incentive payment. Employees would like to put in their official papers if they knew they would definitely receive the incentive. For instance, does it matter when one actually leaves the rolls? How much notice will employees receive that they have been found eligible? The applicaiton to retire, open through Friday, March 7, 2008, is an intent to retire and allows an employee to withdraw their intent. As a matter of fact, could you see whether or not the city is going to have a special fund during FY 2009 to pay these incentives? If Gandhi is saying there is a fiscal problem looming, how does that fit in? Also, will employees receive a lump sum incentive payment or payouts throughout 2009? Will those identified for the incentive payment be based on actual quality of services provided based on the last evaluation? Request my name be anonymous.
8 agree | 7 disagree
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Examiner Reader said:
Councilwoman Carol Schwartz is in error. There would be no "brain drain" from the ranks of the D.C. Government because of the fact that the majority of the D.C. employees have little or no brains to begin with. Frankly, if they want to do the taxpayers a favor what they should do is fire what they have and recruit from the outside. Then their problems would be solved.
9 agree | 8 disagree
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What about the taxpayers? said:
Those of use who pay through the nose in property taxes should get a little relief. How about a partial refund?
112 agree | 109 disagree
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