©2019 by Chris Foster for Ward 2 City Council. Paid for by Citizens for Foster

  • cfoster@cfoster.com

Financial Slide

Messages on social media claim Hudson is the model of financial health and continues to tout AAA Bond status as the gold measure of financial health. They are hiding the truth.

I bet you didn’t know that almost every notable financial institution involved in the mortgage crisis had a AAA status before they required a bail out, or bankruptcy. AIG, Lehman Brothers, Bear Stearns. AIG was AAA rated until weeks before the financial collapse. AA rated until days before its collapse.

Other AAA bonds include Westlake, Dublin, Columbus, Cincinnati, Delaware County, even Cleveland sells some bonds with AAA rating. Its not uncommon. In fact, it is only slightly better than average for northeast Ohio. Yet Hudson City has an average income, and cost of living, FAR ABOVE average.

I am not saying Hudson is AIG.

I am saying the writing is on the wall and that our financial direction is not what it should be.

During the next 4 years, based on the budget available on our city website, we will increase our debt by over 33%, pushing our Debt Percent of General Fund Revenue to 12.7% which is in our “Cautionary Range” as a municipality.

During the next 4 years we will flirt with the bottom of our spending floor. In 2020 it is 33.37%, well below the 40% that has been claimed. In 2021 it will be 30.48%. That is 0.48% above our absolute floor.

Below are our various fund levels over the next 4 years, just one city council term. Orange is where we are now. Blue is where we will be.

Based on this data ONLY, we will reduce our fund balances by 48% over this period. We start with $20,085,540 and end with $10,521,473.

With this spending, our roads remain a problem and we need to take loans to accelerate repair.

With this data, our sidewalks remain a problem. Our budget hardly addresses them.

With this data, all of these projects remain UNFUNDED, receiving no spending.

Tinkers Creek Watershed Study ($150,000) Division Street Park Underground Storm Water Detention ($600,000) Middleton Road Storm Sewer Improvements ($160,000) Willows Pond Water Construction ($1,450,000) Hines Hill Electric Substation Construction ($4,500,000) Water Reserve at Reserve Oaks (Our potion only) ($500,000) Manor Drive Water Main Replacement ($270,000) E. Streetsboro Water Main Replacement ($225,000) Hartford Road Water Main Replacement ($525,000) W. Streetsboro Water Main Replacement ($575,000) Maple Street Water Main Replacement ($350,000) Roslyn Water Main Replacement ($350,000) W. Division Street Water Main Replacement ($230,000) SR 91 Transmission Line Extension ($2,200,000) EMS Safety Center Renovation ($750,000) Hines Hill Road RxR Grade Separation Project Design ($2,000,000) Barlow Road/Young Road Intersection Construction ($850,000)

That totals $15,685,000.

That is more than we have left in any fund, for any reason, over the 4 years. Unfunded.

My neighborhood thinks it will see a grade separation on the Hines Hill RR crossing. We are not even budgeting to spend money on the study. Fact.

This kind of reckless budgeting and spending needs to stop. And misinformation spread by those who support the status quo needs to end.

Let's end it tomorrow on November 5th.