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Committee adopts 60% proposed cap on total authorized borrowing, tables ordinance for further review
Summary
The committee voted unanimously to lower a proposed 70% debt-cap ordinance to 60% and then tabled the ordinance to allow bond counsel and corporation counsel to refine language and review legal implications.
The City Council Committee on Ordinances and Legislation on Jan. 13 voted to set a proposed cap limiting the city’s total authorized borrowing to 60% of its applicable statutory debt limit and then tabled the ordinance for further legal review.
Councilor Kadeem introduced a carried resolution proposing a percentage ceiling on total authorized debt to prevent the city from approaching its legal debt limit without voter approval; he said the initial 70% figure was open for committee discussion and noted the city’s current bond authorization sits around 28%. Vice President Dion seconded the motion to lower 70% to 60%, which passed on a roll-call vote recorded as unanimous.
Members debated thresholds at length. Councilor Canuel, citing equalized valuation and statutory debt-limit math, argued for a lower 50% cap and provided dollar estimates of how different percentages would translate into borrowing capacity. Councilor Kadeem countered that too low a cap would hamstring the administration’s ability to fund capital projects — for example, large fire and police vehicles and building repairs — and emphasized that two-thirds council approval and bond-counsel legal checks remain protections under current practice.
Treasurer/Collector Ian Shachney and Director of Financial Services Emily Arpke told the committee they had no present objection to the policy objective but stressed that any ordinance would add an additional legal requirement and should be reviewed by bond counsel before issuance to ensure statutory compliance. Counsel also discussed historical context, noting a 1977 ballot measure that previously imposed restrictions by voter action.
After the committee adopted 60%, Councilor Canuel moved to amend the cap to 50%; that amendment received no second and did not proceed. The committee subsequently voted to table the ordinance and requested that bond counsel and corporation counsel review proposed language and return recommendations to committee.
Next steps: the ordinance has been tabled pending legal review and drafting; the committee asked the chair to coordinate with corporation counsel and bond counsel before advancing the measure back to the committee for further consideration.
