Quote:
Originally Posted by newflyer
All the big money going into this building could have been used by the government for other worthwhile projects.
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I don't know how it is in Manitoba, but in Ontario, when a municipal or provincially owned corporation invests in a capital project, that is its own money. That money can not be taken by the government and spent on something else, and in the case of Thunder Bay and TBayTel, it is separate from the revenue payments the city receives from the utility's profits. TBayTel has spent tens of millions in new infrastructure over the past decade (and so has Thunder Bay Hydro) and
none of it has come from taxpayers, and
none of it was ever destined for public coffers.
Quote:
Originally Posted by newflyer
The cost of this project will eat into Hydro profits for years to come and will reduce its "dividend payments" to the government.
"This is costing us a fortune in an economic downtown!' "Let's eat up future revenue and then make up for it by jacking up taxes!"
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Revenue going down doesn't equate to cost. At least in Thunder Bay, the municipally owned company's revenues to the city are not part of the regular budget, they're an addition to it. A bonus after the fact. The city never, under any circumstance, relies on their profits to support it's general operations. It is purely for capital investments by the municipality. Their decreased revenue has nothing to do with our property taxes. If they lose money, it is reflected in a change in their rates, and if you don't like it, there is competition to the utilities that one can use instead.