Quote:
Originally Posted by Doug
Unlike in the US, Canadian municipalities are financed by their respective Provinces. The City of Calgary borrows from the Province. It does not float its own bonds. If the City were to default, the Province is the creditor. That means in effect, the Province bears all risk of cost over-runs. Of course the Province could negotiate with City taxpayers to take on some of the burden, but it would not be in a strong bargaining position.
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Seems a bit of a stretch to say that Green Line cost overruns would be enough to push the Calgary to default on its debt. And assumes the city would actually go ahead if it assumed all the risk.
The province did their bit by funding the project. Otherwise, they should let the city make its own decisions. The province could give the cities more funding options too... but both of these things assume the UCP actually believed in a consistent conservative ideology, but they don't.
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