City to add $57 Million Dollars in NEW debt

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The City Council on Wednesday gave preliminary authorization to $57 million in new debt and set a public hearing for July 17 to get input on the bond sales.

The money will finance a variety of upcoming capital projects, including utility improvements and another round of funding for Pioneer Elementary School, currently under construction off Holland Road. (via Suffolk News Herald)

My question is: Does this mean that City Council authorized spending on these projects without having the money? It appears so, I haven’t been able to get a straight answer on that question yet.

I did contact the budget office to get more information, and was told that the issuance of bonds is something they do every year, and it’s like getting a loan for a mortgage. Thing is, most people aren’t refinancing their home every year.

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