Now, Mayor Patrick Madden in his second -- and last -- term, has just announced that the City has paid off $44 million in legacy operating debt obligations, liberating city finances from expensive debt obligations.
"In the past, Troy incurred a 25-year debt to the Municipal Assistance Corporation (MAC) and postponed pension liabilities to avoid making the tough decisions. Today’s payment sets our city and neighborhoods up for a brighter future," Madden said. "When we spend today’s income on yesterday’s expenses we are not spending it on our present needs, resulting in what has been a 25-year lack of investment in our many assets.
"While paying down debt is never easy, the City of Troy is now liberated from what I call 'stupid debt,' meaning we will have more money and better credit with which to fund current city operations instead of paying down interest on paperclips purchased in the 1990s."
For years the City, under different administrations and City Councils, deferred routine payments to the New York State and Local Employee Retirement System (ERS) and the New York State and Local Police and Fire Retirement System (PFRS). On June 6, it prepaid the outstanding balance on the final four outstanding loans to the New York State and Local Retirement System over deferred retirement benefit payments. The City had issued its last payment to the Troy MAC in January 2022.
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