Down The Sewer Pipe – Politically Speaking

One of the most vocal complaints, not the most but certainly on e of the top ten is streets and their maintenance.  People reason, not incorrectly, that since they are paying taxes the roads should be passable, without chuckholes, and swept clean of debris.

If you tell people that there isn’t money for their street issues they are goanna be upset when your street looks better than theirs.  With good reason too because why are you so much better then they? 

In 2008 Portland Oregon has thirty two million dollars in the general und that they have no idea what to do with.  Odd, seeing as how the cost of repair of the most needed streets is forty four million.  Even a causal visitor sees the disparity in this.  After all why are the elected officials telling every one that there is no money for streets when there is thirty, count them, thirty two million dollars without a home.

Do not worry though because they will spend all of this money, just not on streets.  Homeless shelters, street cars, land use studies, employment for criminals that come over the southern boarder without proper papers yes, streets for the tax payer – no.

Most towns and cities do not have such problems.  They actually do not have the extra money fore streets, or anything else for that matter.  What if there was a different, more practical, incredibly permanent, way to fund streets?

Try this idea for self-funding streets with the view that the fund becomes self-perpetual, or nearly so.  Find a bank that will allow as little as one hundred thousand dollars in an interest high interest savings account.  The City or Town government commits to add one-hundered thousand dollars out of the general fund for ten years into the Street Maintenance Fund.

Then self bond with the idea that the Town, or city, sells bonds to residents only.  Not to county residents or businesses in which the owners live outside of the town limits.  In denominations of one, five, ten, twenty five, fifty, one hundred, one thousand dollars.  Residents can buy as much as they like but have to hold them for five years before cashing them in. 

Split the interest into three parts, one part goes to the bondholders of record, one third goes to repair streets, one-third goes is turned back as principal.  If your residents bought a million dollars in bounds the first year the principal would be one million one hundred thousand dollars plus whatever one third of the interest is.  Even at a low rate of two percent your town or community would have seven thousand three hundred thirty three dollars at the end of the first year.

This way when people come in and inquire why their street is not being maintained the town or city staff can always say, buy a bond.  The good news is that the bondholder gets a payment, even if it is small, until they cash the bond in.  A must hold for five years does not mean they have to turn them in five years.  In my plan they could held on to them unit they die, at which time the next of kin receives a check for what ever principal they put in over the years.

This could work; Washington State is doing something similar for providing funds to their National Guard troops that serve in Iraq.  Now who will be brave enough to try this idea, or are you content in staying down and out in the Sewer Pipe?

Sherman