Question: why could we not just carry on with the present financing model as it is and borrow instead for the replacement of the lift stations?
Answer: while this sounds like a good idea there are financial consequences. However, if we continue with the present financial model any borrowing will necessitate either a tax increase or an additional sewer rate increase to cover the cost of borrowing. Using the proposed model the present rate covers the borrowing. No increase in taxes nor in rates need to be considered. The refurbished reserves would cover the necessary upgrades to infrastructure and maintain services.
Answer: while this sounds like a good idea there are financial consequences. However, if we continue with the present financial model any borrowing will necessitate either a tax increase or an additional sewer rate increase to cover the cost of borrowing. Using the proposed model the present rate covers the borrowing. No increase in taxes nor in rates need to be considered. The refurbished reserves would cover the necessary upgrades to infrastructure and maintain services.
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