Manitowoc’s mayor is explaining the city’s current financial situation after a resident asked about debt.
During this week’s Jim and Rick Show, Open Mic Edition, a caller said, “Somebody informed me, I don’t really know how true it is, but the city is $50 million in debt? Why would the city be $50 million in debt?”
Mayor Justin Nickels tells Seehafernews.com that it is close to accurate, saying that it has hovered around $50 million for a few years.
However, the city was around $75 million in debt when Nickels was elected to his first term as mayor, and has been paying it off faster than it has incurred debt.
Nickels then explains, “My goal was always to keep paying it down, but things are getting expensive!”
Specifically, he mentioned fire trucks and road expenses.
He then noted that general fund and TIF debt are not included, as debt is recovered through the district rather than general property taxes.
Manitowoc is allowed to borrow up to 5% of its equalized value, which right now is about $3.7 billion.
That means they could borrow up to $185 million, meaning the debt is far below that amount.
More can be found in the City of Manitowoc’s Annual Report at manitowoc.org.
