We asked for it and we are going to get it.
El Paso’s voters approved transferring the responsibility of handling storm water issues from the city to our Public Service Board (PSB) at the May 9, 2009 election.
Of course we were told that the PSB would handle our money wisely. Prior to the election whatever funds were spent on storm water came from the city’s budget. When the transfer was made we did not see a corresponding decrease in property taxes. Instead we saw a monthly fee tacked on to our water bills. That was a double whammy.
The PSB web site today tells us that the money they collect is only used to handle the once or twice a year drainage problem. This is their statement about the fees: “They are used only for stormwater utility expenses”.
Quite to the contrary, Money down the drain showed us that $1.3 million is spent on “indirect cost allocation”. Another $1.7 million is spent on general and administrative expenses. They have borrowed about $66 million so far. They pay about $2.2 million a year in interest and another $2.5 million in principal.
Our reward
The Times reported the other day that the PSB now says that they need about $544 million to fix us up real good. If the borrowing numbers work out the same way as the previous $66 million, we will be paying another $18 million a year in interest and about $20.6 million toward principal reduction.
This represents a $600 million dollar tax increase before interest expense and “indirect allocations” that city council would have had to justify to the voters.
How do they propose that we pay for this? Their solution is an 8% increase in fees each year. Does anyone think that these fees will go down once the bonds are paid for in twenty or forty years?
Because we blindly believed these people we will now pay for it as part of our water bills and the city will get a free ride.
Normally I would say that we deserve better, but in this case we got what we asked for.
Brutus
Posted by Brutus
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