Differences when families, municipalities take out a mortgage in Chelsea, Quebec


by admin on February 23, 2011

The Editor,
Following recent developments in Chelsea, Quebec I would like to express my thoughts on municipal borrowing.
They are based on the following comparison of a family taking out a mortgage for a home and a municipality taking similar action:

Family Municipality

Usually a unanimous decision                     Usually many dissenters

Usually no choice but to borrow                  Can practise restraint

Amount of debt based on affordability        Amount of debt does not respect all incomes

Equity is returned to mortgagee when         Usually no return of equity but municipality property is sold                                            retains what it has bought

Borrowing benefits all in the family unit    Borrowing does not benefit all

Debt applies to here and now                      Debt often carried by future residents

Interest on loan price paid to have a home  Interest on loan is money taken out of budget                                                                                                                                                                                    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxwwhich could otherwise be spent on important


Michael W. Hewes

Chelsea, Quebec