Another resident expressed concern about the level of debt service — money to pay back borrowed funds for infrastructure projects — in the city’s roughly $450 million annual budget. In the current budget, debt service amounted to the second-highest operating expense at $72 million, behind public safety spending at $186 million.
The city is under a third of the maximum allowable debt under state law and maintains a AAA bond rating, the highest possible rating for bonds and a sign the city has capacity to meet its obligations, Schmiedicke said. State and federal contributions have not kept up with local government’s needs, prompting more borrowing to cover local infrastructure costs, he added.