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Issue municipal bonds? No thanks, we’ll crowdfund instead

CNBC – 26 Sep 2013 – When most towns need trash cans, they use money raised from taxes or municipal bonds. But when a city that emerged from bankruptcy less than a year ago needs trash cans, a touch of creativity is required. That’s why Central Falls, R.I., is trying to use a method more commonly associated with Internet start-ups and low-budget movies: Crowdfunding. In 2011, Central Falls became the only Rhode Island city to ever file for bankruptcy. And while the impoverished 1.2-square-mile city of about 20,000 residents never missed a bond payment, pensions were slashed, and the city budget became very tight. So tight, in fact, that the city couldn’t afford to buy trash cans for its public park. “We have these plastic blue bins that we literally got for free from the state,” explained Stephen Larrick, the city’s director of planning and economic development. “They’re not mounted to the ground at all. So if they’re empty, they will just blow over. Or kids will push them over. And the trash gets everywhere.” In addition to being unsightly, the spilled trash increases the city’s maintenance costs. And since the cans don’t provide a recycling option, Central Falls is […]

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