Quote:
Originally Posted by SteelTown
So Hamilton would have to pay $97.5 million out of the $650 million.
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Give or take - though the $650 million price tag seems high. I suspect it has to do with the line running east on one street (Main) and west on another (King), effectively almost doubling the construction cost for the stretch in question.
Remember also that the city wouldn't be paying it all at once. For the next couple of years, the capital budget is constrained by the big financial shadow still being cast by the RHVP construction, but that will start to ease by, say, 2010 (though expansion of the Woodward water treatment facility will put new pressure on the capital budget very soon).
Here's a back-of-the-envelope capital outlay schedule for LRT:
Year Budget
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2010 $10.0 m
2011 $20.0 m
2012 $30.0 m
2013 $37.5 m
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Total $97.5 m
Remember that the city essentially borrows its capital budget, and then services its debt from operating revenues. With some creative thinking, it may be able to tap into new revenue streams to help pay for the LRT portion of the municipal debt. Who knows: in a few years, citizens may be pledging to buy track the way we're currently buying square feet of limestone facade for City Hall.