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I understand settlements are not everyone's cup of tea, but for me I feel like it's the cherry on top of my favourite planet. I like watching things grow as I put more time into it, so even if the rewards aren't stellar I find it enjoyable. If they improve the system someday, I'll feel even happier knowing I invested into something that paid off down the road.
Max pop on a Settlement is 200. From my own experience (up to 110, before I lost my long save, to "outside forces" - some [ahem] "nameless person" deleted the wrong game line.), and from reading various posts and articles, it is almost (or actually) impossible to get up to an S-class Settlement before the pop grows to ~150. And, Yes, from my experience, you need to keep the debt usually 0, and the Happiness and Productivity usually maxxed in order to grow "steadily". (Even then it is none to steady.)
I also suspect that progress will be steadier if you organize your play so that you get back to "Oversee", decide things, and re-balance on a regular basis. Like within about a game day of receiving the announcement that there is a decision to be made.
You can just ignore it until you have time to bother with it. I let most requests sit until I am ready to deal with it. Never seen a downside to it. For one thing, the settlement might request you to make a decision that causes a short-term debt that will stop production and apply a negative balance. I wait until I harvest the units for the profits and then resolve the issue, then inccur the debt and move on.