I agree. Passing costs on to future generations is common place in other cities. This practice would surely cause elected officials to think twice before building.
Look at airports that are owned by the municipality, they have no construction, no investment - because that would look like a deficit. Then look at commercial airports that can borrow money. Or compare AMTRAK to a commercial airline.
Not building new water treatment plants, or new transport links or new hospitals but just spending money patching up the old ones = fiscally responsible zero deficit? Now imagine a corporation whose plans were to spend no money on sales, expansion, R+D etc what would it's share price do?
I don't believe that government services are lower quality than private services because of a lack of spending.