From Ed Staab

Monroe

To the Editor:

We read in the Monroe Times (September 5) that Green County needs a new highway department facility, with a price tag of $49 million.

Will the new facility be funded by issuing a bond? If so, then the taxpayers will have to pay not just the principal ($49 million), but also the interest on the loan.

The article does not state the interest to be paid, nor the interest rate, nor the length of the loan, but I made some guesses. If the length of the loan is 20 years, and if the annual interest rate is 4%, with payments made annually, then the total interest paid is $21.2 million (and change). I assumed an amortized payment schedule, where the tax payers pay a fixed amount every year, heavy on interest at the beginning and mostly principal towards the end.

The total cost to the tax payers (principal + interest) is $70.2 million, using my assumptions. Of course, it would be better if the real numbers were publicized so we wouldn’t have to make guesses.