Okay, so we raise taxes to build new roads on the outskirts of town that only benefit new development, then borrow against bonds to maintain infrastructure and then cross our fingers and hope the feds pay us back, without interest.
The city can prepay the U.S. government’s remaining share of the cost at $24.7 million and Congress will reimburse it.
Um, wouldn’t you wait until the check cleared the bank before we started these projects? I’m beginning to think that Eugene ‘Montgomery Burns’ Rowenhorst and Mayor Minions are trying to shove as many projects through as possible before they jump ship and leave an empty galley to the next administration.
Bonding is like a long-term mortgage, Beninga said. The CIP, which comes from the second-penny sales tax, typically is a one-time-only expense with no interest cost to the project. With a bond, interest would be added to the bridge project’s cost.
“We have lots of other issues that we’re going to have to address in the future, and I would prefer that we keep our bonding indebtedness as low as possible,” he said.
Munson doesn’t care, he’s done in 16 months.
There should be laws against this recklessness.