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City’s Debt Load the Focus of State of City Address

During Tuesday’s Junction City Area Chamber of Commerce community retreat the city’s debt load was the topic of the State of the City Address.

Gerald Smith
Gerald Smith

Gerald Smith, City Manger, explained during the address that from 2006 to 2011 the city’s debt load went from $26 million to $169 million.

“I don’t need to rehash how we got here, we all know how we got here. The fact is we’re here, how do we crawl out? How do we move forward? How does the city continue to operate? How do we continue to provide services at the same level that we have assorted to provide services in the past,” Smith asked.

Smith went on to say that un-managed growth over that time was the tipping point that was a factor in the city’s debt increase. From 2006 to 2012 the city’s population increased by nearly 35 percent going from 16,804 to roughly 25,000.

Smith explained that in another state of the city address, that he plans to give in about 45 to 60 days, he will outline his plan for going forward. The plan will include increased user fees that will result in increased revenue streams for the city.

“That will support under funded city services, slowly relieves the over dependence of sales tax revenues, and increase the city’s reserves to reasonable levels,” Smith explained.

According to Smith none of the initiatives that he plans to outline will result in increased tax burdens to the tax payers of Junction City.

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