1. Why Lexington’s Debt Level Matters
Current Debt Level: 1.3% (of $10 billion total valuation)
Current company: Belmont, Concord, Newton, Winchester, Wellesley – all 1.0 to 1.5%
With 2017 proposed $86 million debt, debt level reaches 2%
Exceeds peer communities
Add police station, high school, 7th elementary school, and others:
Debt level reaches state maximum 5%
No AAA community is above 4% debt
New company: Brockton, Fall River, Holyoke, Lawrence, Worcester – all 4%+
Consequences: Increased Borrowing Rates; Limited Financial Flexibility; Burdens Homeowners
Q: Can we grow out of this debt problem?
A: Yes. When Lexington housing values triple!
Housing Forecast: Prices expected to fall when the Republican tax plan passes.
AAA
Bond
Rating
AAA
Bond
Rating
Summit I – October 5, 1.33% debt level
Lexington Equalized Valuation (EQV): $10.9 billion
Lexington currently has debt = 1.33% of EQV.
Peer communities: Belmont, Concord, Newton, Winchester, Wellesley – all in 1.0% to 1.5%.
Brookline lower at 0.4%.
Committee for Systemwide Master Planning Before Building a New Preschool