A default on the federal level could discourage investors from providing the money cities need to function, build affordable housing, fix roads and make other improvements.
In rapidly growing Clearfield City, Utah, Mayor Mark Shepherd is watching the drama in Washington over raising the debt ceiling, worrying about what the federal government defaulting on its loans would mean for his city’s overhaul.
In just the last four years, the city has permitted or started construction on an additional 4,000 homes after getting rid of its limit on building heights. It used municipal bonds to expand the city’s train station and raise money for other projects like fixing its roads.
But Washington’s stalemate could put a halt to more projects or force the city to raise taxes on citizens who could be dealing with a nationwide financial crisis.
ROUTE FIFTY
by KERY MURAKAMI
FEBRUARY 21, 2023