Mayor justifies $25 million dollar admin building by overcharging us on water rates
l3wis Boy, the man can spin.
Recently the city re-financed the Lewis & Clark bonds with a supposed $25 million in interest savings. But how this was accomplished was under the guise we were paying higher water/sewer rates for infrastructure upgrades.
We have been told over the past 7-10 years that we had to increase these rates and turn them into their own fund (enterprise) so we could upgrade our aging water & sewer infrastructure.
Sounds reasonable . . . if the city was telling the truth.
They actually have been putting the money in a savings account, $25 million to be exact. In order to save the $25 million in interest for the L & C bonds we had to make a $25 million principal payment. That money came from the ‘savings’ account.
During the Listening and Learning session the mayor justifies the $25 million dollar admin building because we saved $25 million on the L & C bonds. What a stretch.
Okay, let’s break down his illogical argument;
• We never needed the $80 million dollar hookup to L & C. In fact we only get about 10% of our water from the pipe (contract requirement) while we continue to buy land for more wells. I believe all along that we bailed out L & C and if they would not have gotten the $80 million from us they would have struggled to stay afloat. How was that the responsibility of Sioux Falls taxpayers? Our genius DC reps should have stepped up, I guess they were busy trying to get $27 million for Warren Buffet.
• We were lied to about increasing water rates. We were told this was for fixing infrastructure. It was never mentioned to us at ANY TIME over past 7 years that this money was going into a savings account, let alone a savings account to pay for an administration building.
• We didn’t need an administration building. In fact it would be more fiscally responsible to continue to lease property instead of adding more capital that we have to pay off and maintain. We essentially traded a $100K a year lease payment for $1 million dollar a year mortgage payment. There is nothing in the charter that says the city needs to own it’s own office space for employees. Even our finance director said over 2 years ago it made more sense to lease. The city should also concentrate on using more technology to reduce the number of city employees. They should also work on home work spaces.
Like paying for the indoor pool with a Federal levee bond repayment the mayor has justified an unneeded city building by overcharging us on water rates.
Always on the spin cycle.
