Quote:
Originally Posted by someone123
My guess is that the government can get much better financing than what people get from RBC for mortgages. It also makes sense for the government to amortize the cost over a longer period -- the Golden Gate is 78 years old.
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I just used their mortgage calculator, I am not suggesting that it be financed through the Royal Bank. Several months ago, I remember reading that the long term provincial bonds were around 5%. Amortizing over a longer period wouldn't save that much in yearly interest.
According to Wikipedia, the Golden Gate Bridge is already paid off. Even so, it is still running at a deficit. The quote below is from Wikipedia -
reference:
The last of the construction bonds were retired in 1971, with $35 million in principal and nearly $39 million in interest raised entirely from bridge tolls.
In November 2006, the Golden Gate Bridge, Highway and Transportation District recommended a corporate sponsorship program for the bridge to address its operating deficit, projected at $80 million over five years. The District promised that the proposal, which it called a "partnership program", would not include changing the name of the bridge or placing advertising on the bridge itself. In October 2007, the Board unanimously voted to discontinue the proposal and seek additional revenue through other means, most likely a toll increase.
On 2 September 2008, the auto cash toll for all southbound motor vehicles was raised from $5 to $6, and the FasTrak toll was increased from $4 to $5. Bicycle, pedestrian, and northbound motor vehicle traffic remain toll free. For vehicles with more than two axles, the toll rate is $2.50 per axle.
In an effort to save $19.2 million over the following 10 years, the Golden Gate District voted in January 2011 to eliminate all toll takers by 2012 and strictly use open road tolling only.