Framingham Debt

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Citizens for Limited Taxation

Framingham Debts and Liabilities
Debt is one way of meeting present needs by mortgaging future revenues.

Year
Ending Long Term
Authorized
and Issued
Beginning
Balance Long Term
Debt Issued Long Term
Debt Retired Long Term
Authorized
and Issued
Ending
Balance

07/01/2010

07/01/2009 75,447,568 30,260,491 27,038,527 78,669,532

07/01/2008 63,721,743 19,016,707 7,290,881 75,447,568

07/01/2007 71,183,810 275,572 7,737,639 63,721,743

07/01/2006 68,451,821 9,840,126 7,108,138 71,183,810

07/01/2005 63,397,345 12,149,385 7,094,911 68,451,821

07/01/2004 63,147,880 12,262,600 12,013,135 63,397,345

07/01/2003 66,959,654 2,411,029 6,222,803 63.147,880

07/01/2002

07/01/2001 13,333,180 13,605,294 68,479,484

07/01/2000

07/01/2002

Framingham Debts and Liabilities Debt is one way of meeting present needs by mortgaging future revenues.
Year Ending	Long Term Authorized and Issued Beginning Balance	Long Term Debt Issued	Long Term Debt Retired	Long Term Authorized and Issued Ending Balance
07/01/2010
07/01/2009	75,447,568	30,260,491	27,038,527	78,669,532
07/01/2008	63,721,743	19,016,707	7,290,881	75,447,568
07/01/2007	71,183,810	275,572	7,737,639	63,721,743
07/01/2006	68,451,821	9,840,126	7,108,138	71,183,810
07/01/2005	63,397,345	12,149,385	7,094,911	68,451,821
07/01/2004	63,147,880	12,262,600	12,013,135	63,397,345
07/01/2003	66,959,654	2,411,029	6,222,803	63.147,880
07/01/2002
07/01/2001		13,333,180	13,605,294	68,479,484
07/01/2000
07/01/2002

Long Term Debt Authorized But Not Issued

Year
Ending Long Term
Authorized
But Not Issued Retirement/
Recissions Balance
Unissued

07/01/2010

07/01/2009 152,148,023

07/01/2008 74,447,568

07/01/2007 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 67,056,686 3,588,124 63,468,872

07/01/2002

07/01/2001 96,091,150 62,796,500

07/01/2000

Long Term Debt Authorized But Not Issued
Year Ending	Long Term Authorized But Not Issued	Retirement/ Recissions	Balance Unissued
07/01/2010
07/01/2009			152,148,023
07/01/2008			74,447,568
07/01/2007			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	67,056,686	3,588,124	63,468,872
07/01/2002
07/01/2001	96,091,150		62,796,500
07/01/2000

Framingham Debts and Liabilities (Composite View)
Debt is one way of meeting present needs by mortgaging future revenues.

Year
Ending Long Term
Authorized
But Not Issued Long Term
Authorized
and Issued Retirement Fund
liability
(underfunded) Health Insurance
for Retirees
liability
(underfunded)
8% rate of return Total debt
approximated

07/01/2010 78,669,532 75,447,568 66,000,000 280,000,000 500,117,100

07/01/2009 78,669,532 75,447,568 66,000,000 216,000,000 435,117,100

07/01/2008 74,036,817 75,447,568

07/01/2007 55,758.356 67,721,743

07/01/2006 23,687,600 71,183,809

07/01/2005 17,553,196 68,451,819

07/01/2004 14,888,077 63,397,345

07/01/2003 63,468,872 63,147,880

07/01/2002 61,739,729 66,959,654

07/01/2001 62,796,500 68,479,484

07/01/2000

Framingham Debts and Liabilities (Composite View) Debt is one way of meeting present needs by mortgaging future revenues.
Year Ending	Long Term Authorized But Not Issued	Long Term Authorized and Issued	Retirement Fund liability (underfunded)	Health Insurance for Retirees liability (underfunded) 8% rate of return	Total debt approximated
07/01/2010	78,669,532	75,447,568	66,000,000	280,000,000	500,117,100
07/01/2009	78,669,532	75,447,568	66,000,000	216,000,000	435,117,100
07/01/2008	74,036,817	75,447,568
07/01/2007	55,758.356	67,721,743
07/01/2006	23,687,600	71,183,809
07/01/2005	17,553,196	68,451,819
07/01/2004	14,888,077	63,397,345
07/01/2003	63,468,872	63,147,880
07/01/2002	61,739,729	66,959,654
07/01/2001	62,796,500	68,479,484
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.
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. 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

The long term debt numbers in 2008 were propagated to 2009 and 2010.
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 ~65,000).
Having all these debts and liabilities may be construed as a non-trivial indicator that we are not living within our means despite the alledged claims of our financial wizards in Framingham's Ministry of Finance, such as Julian Suso.
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
The long term debt numbers in 2008 were propagated to 2009 and 2010. 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 ~65,000). Having all these debts and liabilities may be construed as a non-trivial indicator that we are not living within our means despite the alledged claims of our financial wizards in Framingham's Ministry of Finance, such as Julian Suso. 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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