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The Planner Blog -Home Page 3 of 3 <br /> party or something. <br /> Readers should know that the numbers for sewer, water, storm sewer and other <br /> major infrastructure is even more skewed. <br /> I can now hear readers asking me how, if the numbers are this absurd, do small <br /> towns stay in business? The hard reality is that they are not. Small towns survive <br /> and cash flow using four different mechanisms: <br /> • Subsidy from federal, state and regional governments. <br /> • Taking on debt. <br /> • The Small Town Ponzi Scheme (taking revenue from new development to <br /> fix old development). <br /> • Transfers from net-positive tax-paying properties to subsidized properties. <br /> We'll talk about these four mechanisms some other time, but I'll conclude by <br /> pointing out that only one of these is a stable, long-term strategy (hint: not the first <br /> three listed). <br /> Will federal, state and regional subsidies continue? Can small towns continue to <br /> take on debt?How much longer until ponzi schemes start failing? <br /> The time to start building Strong Towns is now. <br /> Article originally appeared on The Planner Blog (http://www.theplannerblog.com/). <br /> See website for complete article licensing information. <br /> http://www.theplannerblog.com/j oumal/2009/3/3 0/the-cost-of-development-one-example.ht... 4/9/2009 <br />