http://rutlandherald.com/article/20140808/NEWS02/708089953
Published August 8, 2014 in the Rutland Herald
Springfield borrows $2.8 million in anticipation of bond
By SUSAN SMALLHEER
Staff Writer
SPRINGFIELD — The town of Springfield has borrowed $2.8 million for 90 days in anticipation of floating a state bond to cover the local portion of about $20 million in water and stormwater system improvements, projects that were completed a couple of years ago.
The Select Board on Tuesday approved the short-term borrowing or “allonge” from the Connecticut River Bank, according to Town Manager Robert Forguites.
Forguites said the previous short-term borrowing had expired Tuesday, so the town was forced to line up another round of temporary borrowing while the final bond documents are prepared. The interest rate on the borrowing was 1.29 percent, he said.
Jeffrey Mobus, town comptroller, said the town had received approval from the Vermont Bond Bank for the bond, which will be used to pay off the local share of the multiple stormwater and water system improvements, which were completed a number of years ago.
Mobus said it was normal for the final bonds to be taken out years after the construction is completed to make sure all state and federal loans and grants are received, and the lowest amount is bonded.
He said the $2.8 million represents the local share on the $10 million combined storm overflow project, which was completed several years ago. He said there was no local share, thanks to state and federal grants and loans, on the drinking water improvements.
Forguites and Mobus said Vermont Bond Bank required some receipts and other paperwork dating back 15 years, and it was taking longer than a week to get everything in place, requiring the temporary borrowing.
“They need 15 years worth of stuff,” Mobus said.
these records should have been kept in order all along.
ReplyDeleteI'm guessing that if I asked you for a receipt from 15 years ago, you could put your hands right on it. Good for you. OCD comes to mind
Deletecould you explain that?
ReplyDeleteA hard drive must have crashed!
ReplyDeletehow many more times are we gonna upgrade this system ?
ReplyDeleteAs many times as the State mandates it
Deleteborrow, borrow, borrow..... the liberal mantra.
ReplyDeleteActually, no, 7:07. That's the conservative mantra.
DeleteBush 43 cut taxes and started the Iraq War. A sensible pol would have raised taxes to avoid government debt, but as conservatives hate taxation in any form (except on the poorer), he borrowed the money to pay for it.
What happens when the government borrows money? It goes into debt; we all know that.
But what very few realize is that the parties who LEND the money receive the interest income DEBT-FREE.
If you buy certain types of US bonds-- or municipal bonds, for that matter-- the interest income is debt-free; a great way to watch your savings grow. (This of course does not apply to some types of bonds, like the Series E savings bonds peddled to the penny groundlings).
So, those who have two-thirds or more of their income available for more than keeping their household afloat will buy government debt. Unlike stocks and other bonds, it's about as safe an investment as you can get, because only if the entire country goes belly up do you lose your stake-- all other forms of investment are actually far riskier.
So, if you want to get rich, fight for low taxes, encourage the most profligate form of government spending-- a war is as good as you can get, especially if it uses volunteer troops and a lot of private contractors to support them-- and buy government bonds. And who will pay them off? You got it! We taxpayers!!
And finally, as the war turns into a schemazzle of the first water, distract the taxpayers from the discovery that they are enriching you by screaming about the danger of government debt. Fight to have their Social Security reduced, their kids' schools impoverished and their recovery from job loss eliminated.
What's not to like about this? It's worked for me!
Once again chuck fails to make his point.
DeleteAs the owner of a small business in VT I can say that VT is unfriendly to business. Chuck's defense of the liberal idea that they need to tax and take from the business community and give to those who refuse to work is getting very old. VT is ranked 49 out of 50 states for a healthy state economy. States that lowered taxes to attract business are doing very well economically. VT needs to follow the model of these states if we ever want to improve the standard of living here. I am so sick of chuck and all the other whiners....
Delete3:51-- Good to know you don't think YOUR taxes are too high! And that you don't believe the propaganda about the danger of the national debt.
Delete