The City Council of Walsenburg is on its way to clearing all obstacles to the Northlands Sewer project. Easement evaluation and procurement negotiations are advancing. The only thing not changing is my reluctance to accept it as good for the city. The lessons I've learned as a student of economics and history argue against the theory that you can borrow yourself out of debt.
An idea that repulses me is to depend on my children and grandchildren to pay off my debts in the future. The current federal administration thinks it is perfectly acceptable. The size of the national debt is an example. It is a little surprising to see it embraced so readily by local government.
The reason the USDA will not issue general obligation bonds for this project is that the city has a lack of assets for collateral. By changing the bonds to revenue bonds, they are accepting our future revenues from utilities as collateral for the loan without our approval. Only the council and the administrator are making this decision. They are noticing no objections from citizens and a lack of attendance at meetings about these money issues. This is taken as a yes vote by the citizens.
Since there is a serious deficit in the general fund for the city, the idea of raising the sales tax is being suggested as the answer to most of the financial problems. The current tax is 7.90%. adding a penny to that will give us the distinction of having one of the highest sales tax rates in the state. This action is not to provide additional services or repair aging infrastructure; it is to pay for existing budget deficits.
When you move into a community, it is expedient that you check into the city finances before you take on their debt. The chances for things improving in a lifetime are fairly low.
No comments:
Post a Comment