The funding (read loan) has arrived from the federal government for the construction of our new east end waste water treatment facility. I must admit that I am torn between being happy that we are saving money on the cost of financing and concerned that at some point down the line we will have to pay additionally for the savings we receive today. Let me explain.
When the opportunity first presented itself to our city council it was as if an early Christmas gift had arrived. After all here was an opportunity for the city to get great financing at a reduced rate (0%) and forgiveness for a portion of the loan. We would have 20 years to pay back and we don’t start repayment until project is completed!
But I am a taxpayer as well as a city alderman and I have learned that there is no such thing as a free lunch! At some point , we the people will have to pay for the government’s recent trend of spending our tax dollars at a speed of light pace. After all this is really another welfare program for cities via the states. I know its meant to stimulate the economy but thus far the program hasn’t been successful and its costing a great deal of money. We started our project back in 2006 with the understanding that we would need the additional capacity with the growth of the east end and the water park development. Unfortunately the economy went “south” and growth has been replaced with survive for now. If this stimulus program wasn’t available the odds are we , as a city, would have put the plans on hold for now. But because we were “shovel ready” under the definition of the plan we were able to do it now.
You know that there were projects that were created just to access these funds that might not have not been considered if only conventional financing was available for municipalities.
There in lies the problem. Like some other social welfare programs, the federal government spends money needlessly and we the taxpayers are left to pay the bill. It reminds me of some on unemployment. If the coverage lasts 26 weeks, it seems most are unemployed fore at least 26 weeks. If the Feds extend it to 52 weeks, guess what,most are unemployed for 52 weeks. There is no incentive for some, to find a job if there is still coverage which allows you not to.
Please note that I said some not all and its the same with the cities getting assistance. The problem is when some cities create unneeded projects now just for the purpose of getting cheap money and the larger group pays the overall bill. Not all cities share equally in funding under the stimulus bill.
So my problem is, as a taxpayer, we need to curb the unnecessary spending of the federal government. Its like the Christmas present you receive and enjoy on Christmas morning but end up paying for long into the next year!
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