02-11-2021, 03:02 PM
On the idea of distributing a certain percentage of tax revenue to municipalities on a per capita basis: How are large infrastructure project normally financed? For projects that are more piecemeal (like GO expansion, if it was a municipal project), the small and consistent cash flow would work fine. But what about projects like the LRT? Did we pay it all off at once, or is the region receiving continuous money from the province and federal government for their portions to pay down a debt?
While interest rates are low taking on debt for large infrastructure projects can be favorable, but surely there are some times where a massive lump sum payment is favorable for shovel-ready projects, which municipalities would otherwise have to "save up" for.
While interest rates are low taking on debt for large infrastructure projects can be favorable, but surely there are some times where a massive lump sum payment is favorable for shovel-ready projects, which municipalities would otherwise have to "save up" for.