Everyone, unless you’re a bleeding heart liberal, can agree that when it comes to most, if not everything, free market businesses do things better than the government.
Most wouldn’t bat an eye at a large multi-million dollar business diverting funds from a conservatively invested account to a smaller subsidiary that needs investment capital in the form of a loan, knowing that you can dictate the interest rate charged, and with the nature of the subsidiary, would have some form of assurance that the loan will be repaid.
So from a business stand point, sounds like a win/win right?
Large business A gets a better return on their investment, and smaller subsidiary B gets stable funding, at competitive interest rates.
Funny thing is, that sounds great for a business, and some say that government needs to be run more like a business.
However, when government bodies try to do things like a business, some of the public gets into an uproar.
Last night, the Borough Assembly approved the loan terms for the $12 million loan to the City of Homer to assist in bringing natural gas services to the southern Kenai Peninsula Community.
Since the assembly enacted an ordinance allowing for such a loan on February 5, 2013, there have been those in the community up in arms over this move.
Many will claim that the borough is acting outside their authority by using tax payer money for such a use, and many of most vocal opponents of this loan, concerned taxpayers who may have formed an alliance of some kind, mostly located in the Central Peninsula area forget one thing; those in Homer also pay borough taxes.
Why not let those in Homer who pay taxes benefit as well?
One benefit of the loan is purely on the return on investment that the borough will receive. Why not move the funds from a stagnant investment fund that isn’t gaining as much interest, when the borough, though this loan, can charge a 4% interest to Homer and Kachemak City.
4% is pretty good, but when you compound that with the savings the Borough will see by converting the schools and borough owned faculties to natural gas to heat the buildings, now pardon the pun, we’re cooking with gas.
So I guess my big question is, what’s the difference, how is it that the same group of people say that big business is the answer, then when the government takes step to mirror big business, it’s horrible?
If it doesn’t require additional tax revenue to fund, and the borough will end up getting more money as a result, I don’t see who could possibly be against it.
Think about it