5/31/2023 0 Comments Moneyhouse capital![]() ![]() Without changes, Cincinnati could only apply the money to paying down existing debt until all its debt is extinguished.Īccording to its most recent audit, the city was sitting on $1.2 billion in long-term debt. Since its introduction, the Ferguson Act’s provisions have seen a fair few amendments, but state law still limits how a city can spend proceeds. “What state law says is if you sell it, you have to pay your debt versus spending new money.” They can put it on the ballot, they can do it,” Huffman said. “The city of Cincinnati can sell the railroad without any state legislative activity. It’s a point Senate President Matt Huffman made shortly after his chamber approved the budget Thursday. The problem is that local infrastructure trust fund. Here’s the thing - nothing is stopping Cincinnati from selling the railroad. Each year, fund managers would transfer investment proceeds to the city to pay for “roads, bridges, parks, recreation facilities, and other infrastructure necessary for delivering core public services.” How to sell your railroad Last November, when he announced the plan, Cincinnati Mayor Aftab Pureval called it “an historic opportunity to deliver great value to citizens of Cincinnati and realize a substantial return on the investment and foresight of our predecessors.”Ĭity leaders propose putting the proceeds in a local infrastructure trust fund. But with a sesquicentennial creeping around the bend, city leaders are ready to get out of the railroad business. In the early 1980s that company merged with Norfolk & Western Railway to create Norfolk Southern.Ĭincinnati currently brings in about $25 million each year through Norfolk’s lease. For the bulk of that first century, Southern Railway ran things. Since 1881, private operators have leased the system. Cincinnati was the only one to took them up on the offer, and in 1880, it completed work on the Cincinnati Southern Railway. The Ferguson Actīack in 1869, Ohio lawmakers passed legislation allowing large cities to establish railroads. Norfolk Southern, the rail operator embroiled in controversy after a derailment in East Palestine last month, has offered $1.6 billion to purchase the railway. Another aspect is the buyer Cincinnati has in mind for its municipal railroad. Part of that interest comes from the perennial debate over where to draw the line between state and local authority. It’s one of many issues House and Senate leaders need to hash out, but one that will be closely watched. If all required documentation is not provided, we may be unable to establish a customer relationship with you.Ohio’s two-year transportation budget is heading to conference committee, and a planned railroad deal in Cincinnati hangs in the balance. We may also ask to see your driver's license or other identifying documents. What this means for you: When you apply for a loan, we will ask for your name, address, date of birth, social security number and other information that will allow us to identify you. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies every customer. IMPORTANT INFORMATION ABOUT ESTABLISHING A NEW CUSTOMER RELATIONSHIP Equal Housing Lenders.įor California Residents: Consumer and commercial loans made or arranged pursuant to a California Financing Law license - Number 603G493. A complete credit history, which will appear as an inquiry on your credit report, will be performed upon acceptance and funding of a loan.Ĭonsumer loans funded by one or more participating lenders. Personal loans not currently available in Illinois or Maryland.ġThis is not a guaranteed offer of credit and is subject to credit approval.ĢThere is no impact on your credit for applying. ![]()
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