Debt and the Budget— Some Interesting Numbers

by Dean Silver

There are some really important facts in the Biennial Budget.  Many of them are difficult to uncover without some digging.  Here are some that I found significant and interesting.

Fifteen percent (15%) of the total revenues in the BN 2021-23 Adopted Budget are supplied by new debt.  The new debt is all assigned to four enterprise funds: Water, Wastewater, Streets, and Electric. 

Over one half (55%) of the allocated revenue for the water fund is new debt ($24,011,700).

One third (33%) of the allocated revenue for the wastewater fund is new debt ($7,421,400).

Over one third (39%) of the allocated revenue for the streets fund is new debt ($6,396,000).

About one twelfth (8%) of the allocated revenue for the electric fund is new debt ($3,000,000).

Existing debt as of June 30, 2021 was $17,579,992.55.

The new debt budgeted would increase our current debt by 232% to $58,409,092.55.
In other words, the new debt would be 332% of the current debt.

The projected deficit for BN 2021-23 is $10,773,036.

Is this good budgeting? Is this sustainability? Food for thought.

Here are three graphs to illustrate the data:

You can view the adopted budget here:
https://www.ashland.or.us/SIB/files/Administrative%20Services/2021-23%20Budget/City_of_Ashland_2021-2023_Adopted_Biennium_Budget.pdf