According to the city's 2007 financial report, they owe approximately $18 million on bonds, note and other obligations. Some of this debt goes back to 1986 and $4.5 million was borrowed in 2007 for projects. If the two communities merge, who pays this debt? Most of it is general obligation debt, so it must be paid out of any general revenue and is not restricted to certain levy or revenue source.
So who will pay for this debt in a merged city? We all do. That’s right - it is assumed by the new city, such that everyone in the new city will be paying this debt, debt that was incurred to provide streets, infrastructure and other projects in the city. Is it really fair that township residents be forced to pay for these improvements when city residents were the main beneficiary of them? Township residents and businesses would end up paying $12 million in liabilities that we really didn’t benefit from and we had no representation in deciding to incur that debt.
