By Gabriela Resto-Montero
DNAinfo Reporter/Producer
New York City's record capital projects deficit has saddled every resident with thousands of dollars in debt, according to a new report from the office of Comptroller William C. Thompson.
Every resident in the city carries a burden of $7,760 based on the aggregated city capital debt of $64.8 billion. The city has an additional debt of $4.1 billion as it struggles to cover services with shrunken funds due to the recession.
“New York City’s debt burden is on pace to become unaffordable as our economy suffers the impacts of a severe global, national, and local economic downturn,” Thompson said in the report.
The amount of debt held by the city has increased 8.5 percent over the last year and the interest payments due for 2010 total $3 billion.
Loans have been used to finance construction of new roads, bridges and buildings. The report also counted interest on the Hudson Yards project in Midtown, a responsibility which falls to the city, as part of the debt total.
The debt grew in part due to Mayor Michael Bloomberg's aggressive capital plans but also the softening real estate market, according to the report.
"Total debt outstanding as a percent of personal income stood at its highest level since 1980," the report said. "New York City has the highest debt among the largest cities in the nation."
A debt of $28.7 billion for the Metropolitan Transportation Authority and another one of $22.4 billion for water and sewer construction are not included as part of the city debt because both organizations issue their own bonds.
Nevertheless, with those bills taken into acount, the actual resident cut of municipal debt grows to $13,800.
Thompson added that, although large, the debt still falls under the state limits and that, paradoxically, the city's willingness to take on debt attracts investors.
“In fact, the City’s General Obligation credit is rated AA by Standard & Poor’s, Aa3 by Moody’s Investor Service, and AA- by Fitch Ratings, allowing us to have some strong bond offerings this past year," he said in the report.
