I can understand saying there are some issues here, but "elevator crisis"? Yeah OK.
I can understand saying there are some issues here, but "elevator crisis"? Yeah OK.
Something as simple as municipal cash accounting (instead of double entry accounting) is how tons of cities are finding themselves broke after a maintenance cycle without growth.
>The maintenance things they write about are a small percentage of budgets and so cannot be why cities go broke.
The thesis is that the maintenance things they write about are only small because they are based on significant growth of revenues. The other issue they note is that maintenance costs are non-linear, in that they are irregular from year-to-year, so large cost all hit at once, even if they are predictable.
Again, the issues that Strong Towns addresses is that the costs are not generally visible in the budgets, because they are on a cash accounting basis, and not an accrual accounting basis. There is no balance sheet in the traditional sense, and the spending on infrastructure is non-linear. So here, there is no depreciation of infrastructure in this budget except for city automobiles. The worry that Strong Towns is exactly that the depreciation and amortization expenses will overwhelm a budget when they come due.
We know that the city has limited borrowing capacity from their most recent airport expansion, where they are giving up parking revenue to investors: https://www.desmoinesregister.com/story/money/business/devel...
Again, if I'm wrong, I want to know, but the entire point that Strong Towns illustrates is that these cash accounting based budgets, like this one, do not illustrate future liabilities in terms of ongoing revenues.
can't wait for my lease to end.