Here’s how it works: a city builds new infrastructure. That development brings in some quick revenue. It looks like a win. But the problem is, the long-term cost of maintaining all that infrastructure is far greater than the revenue it generates. And when those bills come due, the city doesn’t have the money. So it approves more new development on the edge of town to get another hit of short-term cash. And the cycle repeats.

It’s called a Ponzi scheme because it only works as long as you keep growing. But eventually, the whole system starts to crack. That’s where many cities are today—struggling to maintain what they’ve already built, with no clear way to pay for it.

If a city consistently spends more than it brings in, it’s on a path to insolvency. That’s just math.

When deciding how to steward city finances, Local leaders should ask: What investments will make our place stronger, more resilient, and more livable for the people who are already here? Outside institutions, like bond rating agencies or federal grant programs, often push cities toward growth, expansion, and flashy projects, even when these things don’t serve the people who actually live in the community. The bottom line is this: financial decisions should reflect the values and priorities of the community, not the incentives of outside systems.