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To: gunsequalfreedom

A lot of money or redevelopment was raised by bonds. Be warned those will be the first to default if cities go broke(they are now).


9 posted on 05/04/2010 12:01:47 PM PDT by Oldexpat
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To: Oldexpat
A lot of money or redevelopment was raised by bonds. Be warned those will be the first to default if cities go broke(they are now).

The situation will not be helped by the state taking the redevelopment funds.

As for redevelopment agencies going out to bond for projects, as long as they did not borrow 100 percent of their bonding capacity, they should be OK. That of course would have to include accounting for the recent drastic downturn in the RDA component of property tax revenues.

It is not the bonding to carry out redevelopment that is the problem. If there is a problem at a local level due to bonding, it was borrowing irresponsibly and not taking into account the ability to repay the bonds in the event of reduced revenue. It is irresponsible financial management that would be the problem - although there is a case to be made that any borrowing is not good.

11 posted on 05/04/2010 12:14:05 PM PDT by gunsequalfreedom
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