Claremore is working to pay down $52 million in debt.
The breakdown of the proposed fiscal year 2021 city budget included an explanation of current city debt, and a payoff plan.
The city currently has a total of $52 million in debt and an annual debt payment of $5,000,000.
"The city is managing its debt payments well," City Manager Jim Thomas said in his original budget proposal.
With the current debt and payment plan, the city could be debt free by 2036 if they do not borrow any additional money.
"But I do not foresee the city being 100% debt free in 2036. The city has at least $50-$75 million in deferred maintenance public works projects that need to be addressed over the next 10 years. These projects include electric, water, sewer, new roads and repairs of existing infrastructure, and storm water detention," Thomas said.
"Cumulatively we have a little over $52 million in debt. That includes the $10 million revenue note that we acquired in October of 2019 at an interest rate of 1.69%," he said. "In about 10 years that debt payment will be down to less than $1 million. Keep in mind that $10 million from that revenue note is not budgeted in this budget."
In breaking down the debt in rough estimates, Thomas said:
•$10 million (loan October 2019) specific projects not awarded as of today
•15 million ( left over from 2015 $21 million water plant upgrade), 10 million ( Utility improvements 2005)
•10 million ( left over from 2010 sewer Plant upgrade )
• 2.0 million Baker Hughes Sub-Station
• 6.0 million various CPWA capital projects sewer, water, electric
"In fiscal year 2025 the payment drops to $3 million and by fiscal year 2030 payments drop to $1.4 million," Thomas said. "The interest rate for the $21 million water plant was 2.59% fixed for 15 years. The rate for the $10 million in October 2019 1.69% for 15 years. If interest rates remain historically low the City will continue to borrow money for capital improvements to address deferred infrastructure improvements. This is all down without a GO Bond or tax increase."