Debt figure doesn't count millions in interest
David Milstead, Rocky Mountain News
Published August 30, 2006 at midnight
The Northwest Parkway Public Highway Authority told legislators and the public, in a press release, that it has $416 million in debt to pay.
But that figure is significantly less than the $469.5 million debt figure in the authority's audited 2005 financial statements. The difference comes in the counting. When the authority issued four chunks of debt in 2001, it had principal amounts totaling $416 million.
But some of that debt allows the authority to add interest owed to the bond amount, without actually paying the interest costs. In 2005, the authority paid $12.9 million in interest, but actually racked up $27.3 million in interest costs.
The unpaid interest is added to the bond amount each year. So the $416 million in original principal is now reflected as $469 million in the authority's financial statements. And that debt number will continue to grow as more interest accretes in 2006 and beyond.
Featured
-
DNC in Denver
Complete coverage of the 2008 Democratic National Convention.
-
The Crevasse
A five-part series that examines one tragic day on Mount Rainier.
-
Deadly denial
Sick nuclear workers applied for government compensation but most haven't seen a dime.
-
Final Salute
The Rocky followed Maj. Steve Beck as he took on the most difficult duty of his career.
-
'Colorado's burning'
Coverage of the state's worst wildfires.
-
Columbine shootings
Coverage of the April 20, 1999, shootings at Littleton's Columbine High School.
-
The Crossing
Colorado's deadliest traffic accident killed 20 children on Dec. 14, 1961.
-
Osveli's journey
Osveli Sales left Guatemala for a better life. Two months later, he came home in a box.
-
Wake for an Indian warrior
Oglala Sioux bestow a tribute to the first tribal fatality in Iraq.
