Fact is all of the cities and towns on this list combined owe less than Carmel. That is right Carmel’s debt is greater than the all 5 of these in total.
Standards & Poors cites debt in downgrading Carmel’s rating
Citing “the city’s rapidly increasing debt burden,” the City of Carmel saw a decrease in one of its bond ratings Nov. 14.
Standard & Poors has downgraded the City of Carmel’s long-term property tax credit rating from AA+ to AA, which is one notch lower, according to a report released Nov. 14.
The news comes as the City of Carmel put $96 million worth of bonds on the market the morning of Nov. 15. These bonds were issued for debt relating to new roundabouts, land purchases and incentives for a proposed luxury hotel near the Carmel City Center.
“The downgrade reflects our view of the city’s rapidly increasing debt burden, with mounting leverage that can pressure flexibility and budgetary performance over time,” states S&P’s report. “Carmel’s log-term debt grew, in real terms, by over $300 million in just three years. The annual debt costs are already high and are estimated to grow 71 percent by 2022. The city is planning to layer in more tax-supported debt in the next two to three years. Thus far the city has been able to afford its debt, paying debt service mostly with tax increment revenues and local income taxes.”
