Module 2: Discussion Forum

Rocket Beach is a rapidly growing city near a space program facility with a current population of 200,000. The rapid growth is outgrowing current infrastructure, including streets, sidewalks, lighting, and sewer systems. City council members have considered a variety of options to fund infrastructure expansion, including (1) a term bond issue maturing in 20 years, or (2) a one-half cent sales tax increase, or (3) an impact fee of $1.00 per square foot for new residential and commercial buildings.

Evaluate the advantages and disadvantages for each of the potential financing options from the viewpoint of (1) the city council, (2) current homeowners and business owners, and (3) building contractors.