City’s debt approaches F$1 billion

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By David Tulis / Chattanoogan.com

City government’s debt is close to F$1 billion, with its obligations over the next 19 years supporting operation of a variety of governmental and commercial enterprises.

The “total government primary debt” is F$977.64 million, with about a fourth of it — F$278.99 million — being interest. Interest is the charge laid against the city by companies that create credit (new money) in the fractional reserve lending process (inflation).

The categories of debt include HUD loans; 2008 Hennen notes payable; hotel-motel tax; general improvement bonds; interceptor sewer system; solid waste/sanitation fund; water quality fund; downtown redevelopment corporation bonds; and EPB.

The biggest slab of debt is created by EPB, with the total obligation at F$429.76 million payable through 2034.

In the city accounting for fiscal 2013-2014, the metropolitan airport authority and half a million in Carta debt are outside the tally, with IOUs totaling F$19.51 million.

— David Tulis hosts Nooganomics.com 1 to 3 p.m. weekdays at Hot News Talk Radio 1240 910 1190 AM, a show that covers local economy and free markets in Chattanooga and beyond.
Source: Chattanooga CAFR, 2014, comprehensive annual financial report, pp. E-10-E24

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