 marigoldsGainfully employed, finallyPremium,MVM
join:2002-05-13
Saint Louis, MO
kudos:1 | reply to AmeritecTech
Re: ?!?!?! said by AmeritecTech:
Who pays if it fails and can't achieve profitability?
The bondholder pays, since they do not recover their investment. The city cannot legally pay off the bonds from the general fund, so the city will not be on the hook to pay the bonds if the utility fails.
The bigger risk of a failed utility is probably that the city will have worse services than if they had never created a public utility at all.
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