Debt – Wyoming Values https://wyomingvalues.com Information and commentary on issues of interest and concern to Wyoming citizens. Thu, 28 Mar 2019 22:15:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://i0.wp.com/wyomingvalues.com/wp-content/uploads/2019/10/cropped-WV_site_icon.jpg?fit=32%2C32&ssl=1 Debt – Wyoming Values https://wyomingvalues.com 32 32 157889110 City of Sheridan has too much debt https://wyomingvalues.com/city-of-sheridan-has-too-much-debt/ Thu, 28 Mar 2019 22:15:14 +0000 https://wyomingvalues.com/?p=409 Re: SEEDA. economic development debt

The report to the community 2018 indicates the city of Sheridan has $14.5 million in loans. This debt was acquired between 2015 and 2018. These loans are for public works and engineering projects.

In addition, the city has $3 million in loans due to the city’s participation in SEEDA. These last loans apply to the Vacutech and Kennon projects. I have asked SEEDA, what is the extent of SEED A’s ability to borrow and in-debt the city? The SEEDA attorney addressed this in 2017 in a letter to the Wyoming Business Council.

To quote from the letter, “The city of Sheridan is authorized to borrow money under the authority granted in W.S. 15-1-103 (a)(x).” Further, the capacity of SEEDA to borrow is limited by the provisions of article 16 sections 4 and 5 of the Wyoming Constitution on, which requires that “any loan amount in excess of taxes for the current year be put to a vote of the electorate of the municipality.” Also, “the total indebtedness of a municipality may not exceed 4 percent of the total assessed value of taxable property within the corporate limits of the municipal-ity, an additional 4 percent being allowed for sewer projects and water projects.”

In 2017, when this letter to the WBC was submitted, it was stated the estimated prop-erty taxes for the city were $1,451,360 and the loan to SEEDA was a “no recourse” loan against the general funds of the city. The attorney questioned whether constitutional restrictions apply to SEEDA. A no recourse loan does not mean the debt goes away, it means the city’s general funds cannot be seized to pay the debt.

When the letter was sent, the indebtedness of the city was approximately $5.5 million. In 2018, the city’s indebtedness was $14.5 million. SEEDA is the borrower of choice for corporate welfare projects. SEEDA depends on its renters to meet its loan obligations. SEEDA is by design, to exist in perpetuity.

Will SEEDA continue to obligate the city taxpayers with more economic development schemes? The Sheridan High Tech Gateway III Subdivision is anticipated as of this letter.

Appeared in the March 16 2019, print edition.
Credits: Sheridan Press
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