Recently, there has been much ado about cash management operations replacing the need for a public bank. It appears that the city is implementing an excellent cash management system and other improvements in city financial management.
Cash management is what families do when they pay off their credit cards every month. They plan ahead and avoid unnecessary debt and interest payments. This kind of financial management doesn’t work when they need to make large capital investments as for a vehicle or a house. The city is in a similar situation with projects like roads, utilities and the airport. To enjoy the benefits now rather than save far into the future, it is necessary to go to the bank for loans. This is where a public bank outshines a commercial bank. Instead of interest in the millions of dollars, the only cost to the city is bank overhead.
Dan Metzger – Santa Fe
