Spending on public projects.

in delaware •  3 years ago 

http://www.munciejournal.com/2021/08/delaware-county-saves-hundreds-of-thousands-on-bonds-and-will-repave-streetsg

Delaware County was able to refinance many loans and consequently reaped a $529,000 windfall.

Having money in the public coffer, the next logical action for elected officials is to spend it.

Wait, what?

Certainly many of the infrastructure projects that the county officials decided to fund are worthwhile. I drive many of the roads listed almost daily.*

However, what is not reported, perhaps because it was not discussed, are the relevant opportunity costs to using this funding in some other way.

What other public projects require funding? Of course, many will fall outside the jurisdiction of the particular TIF involved.

However, an alternative course would be to retire some of the debt. Rather than rolling over the bonds pay them off! This would reduce future tax liabilities for citizens of the district, increase land value, and possibly increase tax revenues for jurisdictions where the funds are more urgently needed.

What is important to note here, however, is the absence of a discussion of such alternatives entirely.

*Driving some of these roads might be better described as negotiating a slalom course of potholes.

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