I hear a lot of hand-wringing about the city taking on debt for the NeCus’ project, as well as the City Hall and police station.

The city’s financial position is very strong. We have a AA bond rating, due to our excellent liquidity and vibrant economy. As of June 30, the city has cash of $20.1 million; debt of $5.3 million; net cash of $14.8 million. A big part of our financial plan is based on the transient lodging tax.

The TLT revenues were $5.13 million in fiscal year 2024. That accounted for 65% of city revenue. TLT funds are paid for by our visitors, who require a huge amount of our city services. TLT revenue grows with inflation because it is based on the growth in room rates for hotels and short-term rentals.

TLT income has more than doubled over 10 years, and has grown at an average rate of 8.9% over that period. What if another pandemic strikes? People still came to Cannon Beach in the pandemic. In the three years of the pandemic impact, revenues grew 9% per year.

Municipal bond rates for AA rated issuers are currently 3.8%. Just like with your home, a 30-year mortgage is one of the best deals on the planet.

A lot of scary talk; not much scary facts. The city has a strong financial position, we should not fear debt, just as homeowners should not be afraid of their mortgage rates.

Vote “yes” on the funding of the NeCus’ project in November.

TIMOTHY RAMEY

Cannon Beach