Holding City Funds for Future Debt Get "Yes" Vote.

A long debated proposal to at least temporarily set aside $45.4 million to pay down city debt obligations in the future received a preliminary yes vote in City Council Wednesday. The deal would put the money in a “restricted fund in the nature of an irrevocable trust.” The funds would have to be used to pay down debt sometime in the future unless both the City Council and the state appointed Intergovernmental Cooperation Authority (ICA) decided to use it for other means. The proposal was moved by the Ravenstahl administration at the request of the ICA. The unspecified plan could be to use the money when city bonds expire in 2011, 2012, and 2013. Councilman Patrick Dowd, who is running against Mayor Luke Ravenstahl, has been a lead opponent of the bill. He says it lacks enough clarity and control. He also questions what would happen with the money if the ICA were to be disbanded. Dowd says he wonders why the unusual language was inserted into the bill. Dowd notes this agreement will become part of the 5-year plan for the city. He says that is far too important of a document to include questionable language. Mayor Luke Ravenstahl says the measure addresses ICA demands that the city make plans to cut its future debt. The city’s budget could slide into the red if the long-term debt is not addressed. The bill received a 5-2 yes vote with Doug Shields and Dowd voting no. William Peduto abstained. It will come up for a final vote next week.