Why didn’t the city wait until they had the money available to pay for these projects instead of issuing debt?
It would take an extended period of time for the city to accumulate sufficient funds to pay for these projects. During this interim period, our residents and businesses would not have the police headquarters, other public safety projects, or be able to enjoy the park amenities envisioned for the park improvement projects.

The city also decided to borrow the funds since interest rates are low and as time goes on, the cost of construction (labor and material) rises and waiting would exponentially increase the cost of the projects.

The city’s decision to use debt to pay for projects now is the same as the purchase of a home would be for a family. Most families do not want to wait until they have enough money to purchase a home but instead take out a mortgage to buy the home now and enjoy the benefits while paying for the asset.

Show All Answers

1. How will the city pay for all of these projects?
2. What are bonds?
3. How will the bond proceeds be spent?
4. Why didn’t the city just borrow from a bank?
5. Why did the city pay off the Vizcaya loan with bond money?
6. How will the bonds be paid?
7. Will my taxes increase in order to pay for the debt service on the bonds?
8. Why didn’t the city wait until they had the money available to pay for these projects instead of issuing debt?