As reported by @Shar Porier, county reporter, the county continues to grapple with how to pay down its $37 million debt to the Public Safety Personnel Retirement System. (Find out more about how we got into this situation in part one and part two.)
County budget manager Daniel Duchon laid out four options to pay down the debt for the Herald/Review, summarized below (full details here):
- Pay the minimum annual payment.
- Shorten repayment period from 30 years to 20 years. The payments are higher, but the total cost paid over the life of the debt is less.
- Pay the total debt off in the most aggressive way possible. This would be 5 years at $7.5 million each year.
- Bonds. This move would see the county use a loan (bond) to pay off the total debt to PSPRS. Then, opposed to paying PSPRS every year with variable annual payments, we simply make the bond payments, which are stable and add up to a lower total cost of the life of the debt.
The county currently pays variable payments annually that have increased from $1 million in 2011 to $2.76 million in 2020.
Which option do you support, and what questions do you have about the plan?