48 
cash flow from the sale of housing and land, and the rental of com- 
mercial and industrial property. Some services can be purchased from 
the existing municipalities (e.g., school and health) until the new 
community reaches a size sufficient to support the building of their 
own facilities. In addition, taxes can be collected from the new com- 
munity residents as they move in (just as in any other municipality) 
although some of the tax revenue will revert to the new community 
development district agency and some will be used to pay the sur- 
rounding municipalities for services purchased. If necessary, Federal 
loans can be obtained at very low interest rates to cover costs during 
the early stage of development. 
The second problem, political opposition, is much more difficult to 
deal with. One principle that ought to be observed is to involve long 
time residents in the planning and development of any new community. 
Present residents of any area that is included in a new community 
development district should be given representation on the board of 
the agency as well as options to buy stock in the development district 
corporation. One good argument that can be made is that the new 
community, once completed, will certainly offer many benefits to the 
present residents that they could not possibly provide for themselves— 
improved schools, improved health care, additional community sery- 
ices and facilities. In addition, the development of a new community 
will certainly enhance the value of their investment in a home in the 
area. Longtime residents are obviously going to be afraid of being 
taxed to pay for newcomers’ services and afraid of being politically 
submerged, but both of these fears can be allayed through the develop- 
ment district strategy. In the long run, if the State assumed the costs 
of education and the Federal Government assumed the costs of wel- 
fare programs, property owners would be less resistant to new develop- 
ment (in any form) since property taxes would not have to be so 
severe (to pay for the costs of education). However, until such a shift 
in fiscal responsibilities is made, the third strategy seems to present 
the best means of coping with these two serious problems. 
