A small local government has decided to borrow money to improve infrastructure by floating bonds or levying special assessments on the local community for using the transportation facilities created due to increasing number of city dwellers moving into the town. They work in the city and need to commute to work.

Required:

Discuss the implications for the local governments credit rating and debt limits.

Statistical information of the area: Mostly retired people over 50 live here and the area is attracting working professionals who are moving into the area in larger numbers. Their needs dominate the improvements to infrastructure. Use facts in the text discussions to deal with these issues in your answer.