Why does the city think the Federal payback of levee money is for spending on whatever? (Press release, October 2):
The City Finance team continues to evaluate options for the nearly $10 million. The City Council will ultimately approve the allocation of how these funds will be utilized to best serve the citizens of Sioux Falls.
Utilized? Well I am no economic genius or accountant, but my guess is I would put the money in an investment or savings account until 2018 (when the bond can be paid off) and pay off the bond then. These credit card execs are not happy until they max us out.
Maybe they need to understand South Dakotans do not like maxed out credit cards or debt limits…
I’m with you here. I still think it’s insane that our primary method of financing basic maintenance of our city infrastructure is borrowing – i.e., we have no plan to save up money to pay to fix things that we have already built. This is not sustainable; in fact, it’s a Ponzi scheme.
If you “save” the $$ or purchase bonds – and the Repubs crash the economy – as they seem intent on doing – those $10MM will be worthless. A bridge or some other piece of infrastructure – on the other hand – will last for a century or more and provide value every day – REGARDLESS of “conservative”; Tea Partier or whatever whacky factions’ approaches to “governing” might come into play.
Tom – FWIW – MONEY is a Ponzi scheme.
I would agree if it is spent on needed infrastructure, that would be a wise thing to go. But remember the last time the city had money burning a hole in their pockets they bought a film projector.