Christmas Eve brought us a new op-ed supporting the effort to create a Public Bank of Santa Fe.
Brass Tacks Team learned from Santa Fe’s 2011-15 Comprehensive Annual Financial Reports and debt service documents that Santa Fe spent $7 million in bond issuance costs and fiscal agent fees, and will pay $25 million in interest to Wall Street. If Santa Fe had had a public bank that refinanced that debt at 4 percent, its debt service costs would have been reduced by $282,425 and total debt by $52,439,584.
Though a public bank’s mission can expand over time, the immediate need is for financing (or refinancing) public projects. This is a much simpler, lower risk model than the partnership model described in the Building Solutions study. A public bank that finances infrastructure can support economic development, substantially lower city costs and debt, and return a share of profit from those loans to the city.
Check out the “Five Year Model” for starting a small chartered public bank that funds public projects. Learn why we call it a “Debt Reduction, Budget Easing, Income Generating Strategy for the City of Santa Fe.”