Walsenburg Style Accounting

Some of us keep asking the same questions in the city council and committee meetings.  This is an indication that we are not getting answers.  The obscurities revolve around the city's accounting system. When a question about the balance of the water department infrastructure fund is raised, the stock answer is to say that it is too complex to answer.

Accounting is not designed to hide facts.  It is to reveal expenditures and revenues so that we can see where our money is and how it is being spent.  A separate account should be established for money held for water line replacement.  Another account would be for sewer line replacement.  This would make it a simple thing just to look at these accounts to see what we have.

Another area that keeps being obscured is money spent on the Northlands projects. To be transparent each transaction involving this project should be included in the budget.  This would include all deposits, fees, and revenues involving the Northlands.  More than one request for expenditure amounts on this project has resulted in different numbers being given. The story that keeps being repeated by proponents of the sewer project  is that everything is free and it won't cost the city anything. This project is being sponsored by Walsenburg. We should be able to track money associated with it.

One of the confusing things about the water and sewer funds is that two items for infrastructure replacement are associated with each fund.  There are two separate items on customer water bills for infrastructure replacement. Another account known as capital improvements contains money for water and sewer replacement.  This is an account which receives money from sales tax.  There is not a clear way to access balances for these accounts.  I was hoping the city treasurer would bring clarity to this problem, but the best solution is probably to set up separate accounts which are easy to access and track.

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Citizen or tax source?

Most of us take a lot of things for granted.  We turn our water tap on and water flows.  We depend on our sewer lines to drain properly.  If our house catches fire, we depend on the fire department to put it out.  All these things depend on a water and sewer system that works.

In Walsenburg we have a very old system and it doesn't always work properly.  This is why a portion of sales tax is set aside in capital improvements to replace the old water and sewer pipes in the city.  Hopefully, our officials have not forgotten about these funds. At present, the only thing I can see the money used for is to fill in blanks on a financial report.

The new Utility Committee  met on February 17 to look at problems we have in the city.  Besides looking at some customer service issues, the new committee stated its purpose. One of the stated purposes of the committee is to replace our aging infrastructure.

It seems that everything gets priority over this problem.  The city is in the process of spending thousands on new computers.  The Northlands project has demanded hours of time and considerable expense from officials. The city is also assuming risk on the grants and loans necessary for the project to move forward. The last time I looked most of the people in Walsenburg who need services live in the older parts of the city.

Can anyone name a project which has benefited residents?  We didn't even get Christmas decorations downtown last year.  They would have cost about $300 to install.  There is a lack of direction and a lack of commitment to the citizens here.

I have one more point on this subject.  Who checks our fire hydrants for their operating condition?  The last published report was in the Huerfano World Journal on October 31, 2010.  At that time over half of the hydrants had mechanical problems.  Eleven of the hydrants didn't work at all.  Be hopeful that the inoperable ones are not near your home.  The two hydrants nearest the latest house fires in Walsenburg had defects. The one on 7th street wouldn't shut off, and the one on Pennsylvania wouldn't turn on.  Both hydrants have now been replaced.
Alvin Murphy
Walsenburg

Political Vigilance

If you are aware that something is wrong in our country, you might be a part of the solution. Because I am retirement age, I have seen a lot of history.  I was never more aware of the erosion of personal privacy rights, freedom of speech, and basic decency than I am today.

For those individuals who can't see this, you are possibly younger or of a progressive mindset.  Progressive is not necessarily a good term.  It is associated with the current movement towards communism.  When you have seen the Vietnam and the Korean Wars fought to stop communism, and the World Wars fought to stop narcissistic tyrants, it makes you pause to see the developments in Washington D.C. today.

It is easy to become distracted and think this only concerns federal politics, but these criminal tendencies begin on the city and state levels.  It is the duty of every citizen to watch their representatives to see if they are doing their jobs.  Everyone makes mistakes and every failure is not a willful breaking of the law.  The point is there must be checks and balances.  A graphic example of failure of this system is the U.S president stating to the French president that as president he can do whatever he wants.

The judicial branch and the congressional branch are not doing their duty.  They are to provide a check to the power of the executive branch. Our duty is to observe and to be a check on the local and state representatives, so they will not take advantage of the people they are supposed to be serving.

While it is nice to be at home relaxing after a long day at school or work; it is incumbent on us to go to city council meetings and other political functions on the local level.  Of course, one of the most important responsibilities is to vote.  While the primaries don't get the turn out of the general election; they are very important in sending a message for the values you represent.
Alvin Murphy
Walsenburg

The Northlands Sewer Project Revisited

I had hoped to move on to other subjects before I saw a rebuttal of my "Financial Future of Walsenburg" letter to the editor.  It was nice to see concern by a city official about these issues.

The idea that infrastructure replacement is to be done with regular water revenue is not correct. This money is in a capital improvement fund designated for these replacements. At the January 7, 2014, City Council Meeting, Dave Johnston stated that the money is still in the capital improvement account because no projects have been planned.  My understanding is that the funds are to be used for water and sewer line repair and replacement. Why are there no water and sewer line replacement projects? The use of these funds was approved two years ago.

One of the most persistent rumors about the Northlands Sewer Project is that it doesn't cost our city anything.  In other words, the total cost for this project will be the responsibility of the annexed property owners without any obligation to the citizens of Walsenburg.  Is it really possible for a mere 19 property owners to fully fund a $10,000,000 (the payback amount with interest) sewer line project?  Can anyone show that the Northlands property owners have paid any of this cost?

We must count the man hours spent on this sewer project, the security money for it,and the cost of valuable property and water rights being traded for land easements to complete it. The other part of the free equation that doesn't add up is for the city to guarantee the grants and loans because the Northlands property owners can't qualify for the loan or pay the $10,000 application fee.

If the Northlands property owners could do this project without the city, it would be different. The payments for the loan agreement can be made with sales tax from businesses in the Northlands. This is a refund of sales tax to make loan payments on the sewer project.  However, the sales tax in Walsenburg is not refunded to the merchants who collect it here. City officials have told of the benefits that are coming from taxes generated in the Northlands, but they are benefits for the property owners of the Northlands. Their sales tax pays for a new sewer line.  We would like a refund of sales taxes in Walsenburg to pay for some improvements here.

The cost of the sewer project is continuing to increase with time, according to Kent White from GMS Engineering.* This verifies my earlier statement that prices usually increase on goods and services over time. Rarely do contractors give refunds for money saved because a project is delayed.

Walsenburg is a partner in a project with Northlands property owners who need the credit of the city to guarantee the loan. It may be time to step back and reconsider the whole plan.  How long will it take and how much will it cost?  How many letters of intent do we have from businesses wanting to locate in the Northlands?  The citizens of Walsenburg need to have input in this project.  Perhaps a town hall meeting would bring these matters out in the open for discussion.

* from an interview with David Rinehart in the January 9, 2014, issue of The Signature.