My Latest Thoughts about the Northlands Sewer Project

We have probably reached the point of no return on the Sewer Project. Despite all assurances that this project will cost the city nothing, the USDA and the interim loan company are requiring the City of Walsenburg to sign contracts to guarantee the loans.  They are not quite as trusting of the Northlands residents as the city is.

The project should have been completed before the Northlands was annexed.  The current situation is a patch and band aid approach.  It involves the city assuming the responsibility for every part of the venture. The only beneficiary for the project is the Northlands community of about twenty persons.  If businesses flood Walsenburg with applications to locate there, it will be a great thing.  The key word is "if".

A city official has said there is misinformation about this project.  Most of the misinformation has been promoted by those who are trying to push this project through regardless of its long-term indebtedness for the city.  Though Walsenburg officials continue to believe the Northlands residents will pay for the project, there has been little evidence that they have paid any of the bills so far.  The latest example is a new legal bill for processing the loans. This bill is $27,000.  The whole process is based on the loans covering all expenses, but a loan has to be repaid.

It reminds me of the joke where a person is telling a friend that he didn't have the money to buy a new car. The friend says, "You don't need any money.  All you have to do is write a check."

My investment in Walsenburg is a house and some friendships. My responsibility is to attempt to protect both.  This is why I am concerned.

Walsenburg Infrastructure

In a previous blog I mentioned that a city official agreed that Walsenburg has about $30 million in contingent liabilities.  These would include replacement of water and sewer lines, replacement of the gas transmission line, replacement of the water supply line from LaVeta, replacement/repair of the water tank, and resurfacing of city streets.

With these kinds of expenses required to maintain basic services, it should be clear where our priorities need to be.  Why is there no urgency to solve these problems?  Why is the Northlands Sewer Project always first in line for time and money?  If the residents and owners of the Northlands aren't contributing their time and money to the project, why is it so important to the city council?

Maybe Walsenburg citizens aren't sending a message to the council on where their priorities are.  Is it true that our basic services are not important? Could it be that our council is avoiding these problems?  The money for the loans  and legal fees will be in the range of $5 to $10 million for the Northlands Sewer Project. That amount would be a good start on some of our city projects for basic needs.  I wonder if there are potential council members in the community that would put basic services in a different order than the present council?  We currently have four members who are affiliated with a political party known to stand for fiscal responsibility.  Does that not apply to city policy?

Any shortfall in the city budget always brings talk of additional mil levies and other taxes.  The burden is placed on responsible homeowners who are rewarded by being billed for expenses for other areas while their needs are put on indefinite hold.

Cloaked Easement Negotiations

The Walsenburg city council is pushing to complete the Northlands Sewer project regardless of the consequences.  The secrecy about the easement negotiations is pronounced.  Even council members are asking for information.  There is reason to believe that the administration and some council members are discussing business by cell phone and e-mail between council meetings.  Never mind open meeting laws.

City property can be traded in easement deals which leave the citizens out of the loop. I only bring these things up because I was raised to believe in democracy.  If citizens don't insist on being informed, they send the message that government can act unilaterally.

I have asked the question repeatedly, what have the Northland residents contributed to this project?  I haven't received an answer yet.  The city has contributed money and many man hours to this project.  If half this effort and money were spent on the city, we would have new Infrastructure and paved roads.

We need to re-examine this project and pull out before we lose more money and time to a speculative venture that may only benefit a few land speculators.

Same Song a Different Day

The Northlands sewer project keeps coming up in the City Council meetings and the Financial Committee meetings.  Funds for the project keep coming from the city of Walsenburg.  How much have the property owners in the Northlands area contributed to date?  This is unknown.  No amount has been mentioned.

The bills collecting on the accounts payable ledger are for the city.  One of the next bills will be a $400,000 plus interim loan to pay for initial invoices for the project.  The city is borrowing money to pay for services already rendered.  There are about $500,000 in expenses waiting for payment.

Even though the money will be repaid by the USDA loan, the loan is guaranteed by the city of Walsenburg. Currently there are invoices for legal services in the amount of $27,000 to pay for property description details to properly secure the interim loan.  Although it would seem logical that the Northland property owners would front this money, so far there is no indication that this will happen.  All front money and effort seems to be from the city.

There is another puzzling part to this picture.  The easement procurement process is proceeding so quietly that even council members aren't aware of any news about it.  Many of us are concerned about the terms of any deals to secure the easements. Hopefully, the future of Walsenburg will not be forfeited in this process.

The Northlands project appears to be an ongoing process that should never have been started after the area was annexed.  All utilities and roads should have been in place before the annexation.  If proper procedures had been followed, we would not be involved in this quagmire now.