In an earlier post, I asked how the Public Building Commission’s bonding authority went from $60 million to $72 million in a short time. Journal Star reporter Dave Haney has the answer:
The $72 million request would essentially put the PBC at the limit of its bonding authority, beyond the $60 million limit previously reported. The PBC has since retired some debt as well as gained more bonding authority through the city annexing more property – the basis by which the PBC’s bonding authority grows, allowing up to five percent of the city’s assessed value.
Another hidden cost of annexation to the taxpayer.
So a larger tax base is bad?
Clayton — It is when the additional tax revenue is not sufficient to cover the increased costs in public works and public safety for the properties annexed.
Is any of this $72 million going to be spent in the areas that have been annexed in the last decade or two? Is the extra $12 million going to spent on schools north of the runaround?
More govt. debt is bad for the taxpayers. It has to be paid back, with interest. Duh!