Bond Debt

Government entities don’t need to use Bonds to fund their projects. A Bond is like a mortgage and if the interest rate is 5% and the Bond is a 30 year Bond, the cost is double. This interest cost is unnecessary and should be replaced by “accrual accounts”, where the government sets up these accounts to accrue large amounts of money for expensive future projects.

 

It makes sense for a young family to purchase a home. It is an asset that appreciates and recoups the interest costs. It makes no sense for government to pay interest costs at all.

 

Bonds should be reserved for large emergency needs that require immediate action. This would include replacing lead water pipes and fixing leaking sanitary sewers and water distribution systems.  These should have accrual accounts.

 

Bonds should not be used to build schools or government buildings or stadiums for the wealthy ball teams. We should not be squandering tax dollars on these things.  Schools and government buildings can be maintained to last a lot longer than 20 or 30 years and building stadiums with tax dollars is nuts.

 

Legislatures need to do “cost / benefit” analyses and find more fiscally responsible ways to solve their problems.

 

Norb Leahy, Dunwoody GA Tea Party Leader