Steven Bogert: Insight into use of bonds to finance city government

To The Daily Sun,

I write to provide some insight into using bonds as one of the tools to finance city government. It has been stated that Laconia is kicking its financial responsibilities down the road by using bonds and the financial end will come to us all. People also used to think that the sky was falling before learning about meteors. A city government’s responsibility is to provide a safe environment for its residents and businesses, i.e., fire protection, rescue service, police service, parks, and infrastructure like water, sewer, and roads. In order to provide these services, we need highly trained people, which means they need to be paid competitive wages in order to retain their employment. These services also require various specialized equipment to accomplish the results that its residents expect.

Now, let’s look at one piece of equipment. A ladder truck lasts about 20 years and costs about $1.7 million. Here’s the choice: Make the current residents pay the full price of the engine today with a large increase in the property tax rate or spread the cost over 20 years, which will lower the impact to the tax rate and allow future city growth to pay for it? This is just one example of the many fiduciary decisions an experienced councilor is required to make. I, for one, will choose to mitigate the tax rate and spread the cost over 20 years.

Though this only scratches the surface of bonds’ usefulness, it is my hope that this gives residents a better understanding about one small but critical aspect of city government. Please feel free to reach out to me with any further questions, and I ask for readers' vote to reelect me as their Ward 5 City Councilor.

Steven Bogert, Councilor Ward 5

Laconia