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Treasurer certifies DCU special tax district can support borrowing; $8.5M of authorized borrowing remains
Summary
Committee received notice from the treasurer that revenue streams tied to hotel and meals taxes for the DCU special tax district are sufficient to support further borrowing; staff said the city has borrowed about $51.5 million of a $60 million authorization and has roughly $8.5 million remaining.
The committee received a transmission related to new borrowing for the DCU (convention center) special tax district. Staff explained the legal framework by which certain state acts authorized Worcester to borrow and repay debt with specified hotel and meals tax revenue from parcels designated in the special tax district.
City staff explained the state-authorized special acts allow up to $60 million in borrowing for the DCU. According to staff, “the city has borrowed approximately $51.5 million of that money. We have about $8.5 million left to borrow,” and the treasurer certified that current tax receipts within the special tax district are sufficient to support any contemplated debt service. Staff told the committee the city last issued about $1.5 million in DCU‑related debt and that repayment comes from the designated meals/hotel tax streams.
Committee members confirmed that the borrowing is intended to be repaid by the special tax district receipts and not by the general tax levy; staff said that is correct. The committee recommended approval of the transmission and recorded a yes vote.
