BURLINGTON, Vt. -
Burlington Mayor Miro Weinberger has proposed a new Fiscal Stability Bond to help ease the city's money problem.
He says paying off the $9-million bond would require increasing property taxes. The city council approved putting the bond issue on the November ballot.
"The city's finances are in rough shape," says Weinberger. "We have been downgraded by Moody's to the edge of junk bond status."
Weinberger blames a lack of cash, partly because of money woes at Burlington Telecom.
Right now, the city pays it mounting bills with short-term, high-interest loans, like using a credit card. The mayor wants to cut the credit card and take out basically a long-term loan.
Weinberger says the city pays a $500,000 a year in interest on loans. He says that could double, if the city's credit rating drops further down.
"We can't let that happen," says Weinberger.
That's why Weinberger says he has proposed a long-term loan, called a Fiscal Stability Bond, to help pay the bills, eventually save money, and hopefully improve the credit rating.
The bond would be for $9-million and would cost a person with a $250,000 home an extra $60 a year, for 15 years.
"I think Burlingtonians know we have a problem. They know the way the city's finances were run in recent years created a serious problem. They know something needs to be done about it," says Weinberger.
The mayor calls the bond the first, key step to fix the money problems and reassures people that none of the money will be spent on BT.
