To the Editor:
A recent letter praised city officials for a good bond rating. Believing that a AAA Bond rating is a sign of how great the finances of the city are being run shows a basic lack of understanding of public financing. A Bond rating directly affects how much the city has to pay to borrow money and is an indication of the level of risk an investor assumes in providing that funding. In other words, the higher your Bond rating, the easier it is to borrow money. The current Alexandria administration has subscribed to a borrow, build and hope strategy and adjusted city fiscal policies to maintain or improve the city's Bond rating rather than make responsible decisions that buy down the city's debt and reduce the future burden on the city taxpayers.
Under the current administration the city's debt has risen from around $100 million to over $525 million today. Do not confuse actions that increase the ability to borrow with actions that are in the best interest of the taxpayers. Think of it like applying for more credit cards when you can't pay the debt on the cards you currently have. The city is on the verge of drowning in debt as we approach a mandatory infrastructure recapitalization need that can only be solved by increasing the city debt or changing the way the city does business … your choice, more taxes and less services to pay for the debt service or better fiscal management. I vote for a new administration and a new strategy.
Richard Platt
Alexandria