The city of Charlotte’s 15 percent hike in water rates should — should — serve as an object lesson in perfect pricing. CMUD tried to place and service as much debt as theoretically possible — not as much as was prudent and affordable given foreseeable changes in its revenue stream.
City council did not just end up “in a box” as John Lassiter said — CMUD marched the city in with a band playing and flags waving.
Perhaps, one happy day, those in charge of placing public debt will be a tad skeptical of the projections of bankers and bond underwriters when the big number comes around. But with plans afoot for nearly a billion dollars in new public financing for local parks, libraries, and trains — do not try to hold your breath. You might drown.
