Kicking the Can Just Cost Us Another $2,675,666

The Town Council just approved another scheme restructuring Town finances (third time in seven years) that will cost water and sewer customers an additional $2,675,666 by pushing out debt to 2040. When the Mayor took office all Town water and sewer debt was fully paid by 2033/4.

From Davenport presentation to Town Council. Reflective of increased cost of sewer finance restructuring. Water finance restructuring costs ratepayers an additional $358,200.

Let’s be clear there is no savings with this latest scheme. By kicking the can they are pushing the debt out further costing Town residents and businesses much more. In a short four years from now town residents and businesses will see their debt service bill in the sewer fund alone balloon from $873,136 to $2,250,269 leaving the then Town Council with harrowing choices.

With their Mayor led monetization schemes in full disarray and failure, the Mayor and certain members of the Town Council are in denial that their lack of action over the past seven years leads them to continue to kick the can with no concern as to what it means to current and future ratepayers. Sadly, it leads them to ridiculous proposals to sell off the Town’s water and sewer system, forever giving up local control on service and rates or proposing to construct a 15-story tall cell tower adjacent to a residential neighborhood (good luck with selling your home if you live near that). And, my favorite, lie about why the Town’s sewer plant had to be upgraded.

Ironically as the nation is watching Texas and other states flounder due to the lack of investment in infrastructure, the Mayor’s finance scheme does not include any consideration of current and/or future capital projects needed to keep our water and sewer system in the state of good repair.

In the end, you pay more for nothing. And, the possibility that the state of repair of current facilities could be put in jeopardy. All bad choices that could have been avoided, but the solutions were ignored for political popularity as opposed to doing the right thing.

In general, private financed restructurings/re-financings do not merit bond rating agency review. It will be only a matter of time that they will pay attention that kicking the can is expensive and is damaging the Town’s fiscal stability.