Quote:
Originally Posted by Bunk
I think James Maxim in 11 jumped the shark last night at the forum. Decided to pitch going ahead borrowing $5 billion to start building the rest of the LRT system now. It's that easy!
Interesting fact about borrowing money - you need money to pay it back. It's a tough sell to get a mortgage without income. He suggests we somehow "create" the financial means to pay it back.
http://metronews.ca/news/calgary/813...rt-system-now/
The path to building new LRT is a new long term, predictable, and adequate funding deal with the Province (rather than the current ad-hoc handouts and short term grants) and partnership with the Federal Government. If we knew we could count on a certain amount every year in perpetuity (or the Province gave the City their half of the property tax) then we could potentially take out that mortgage to get shovels in the ground. |
I'm in no way saying Maxim is right, but the city has a tax income, so theoretically it has an income to be able to borrow. Maybe not $5B (I haven't looked), but they could borrow.
The one sensible part of borrowing today is that interest rates are so low, and for a capital project that will see decades of use you might as well pay for it over time as well.