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highjinx
join:2000-10-12
Alturas, CA

highjinx to ravital

Member

to ravital

Re: I don't have any trouble with this......

said by ravital:
said by mjcrocket:
said by tazman69:
I'm not sure when your tax dollars would come into play.
Tax Dollars come into play, because that is where the guarantee on the bonds comes from. The Municipal government guarantees that the principal & interest on the bonds will be paid; and the credit rating of the local government is used to get the good interest rate on the bonds. The value of these bonds is also counted against the total credit limit of the municipal government concerned.
blah, blah, blah...However, when the project is a success, it means the municipal government can direct money earned from the project to other purposes, like a property tax abatement or a reduction in other fees, which benefits everyone, whether they subscribe to the service or not.
Nice spin. Not only will they not "re-direct" profits, you can be damn sure that eventually it will be a source adding to the coffers.

Way back when, when I lived up in Northern California, they told us that the 15 cent toll to cross the Bay Bridge would go away after 5 years....Today they charge $2.00 and there's 6 Billion in new bonds for the new bridge. What do you think the new toll will be?

On the surface, Muni-Networks have a grass-roots sort of appeal. I just don't think that muni's understand the continual costs and technological risks associated with building/running/maintaining a fiber network.

Until someone convinces me otherwise, I say let private investment build it.

HJ

ravital
Just Another Pesky Independent Nh Voter
Premium Member
join:2001-07-19
Merrimack, NH

ravital

Premium Member

said by highjinx:
Until someone convinces me otherwise, I say let private investment build it.

HJ
Nice spin, but that is exactly what Revenue Bonds are, private investment. Private investors take all the risk. Really.