A lot of debt and a slowing economy;
Slower-than-normal sales tax revenue takes decisions that already are tough and makes them that much tougher.
This is unfortunate for many reasons. Okay, sure, maybe four to seven years ago no one could predict the recession coming, but it was pretty clear that Bush and the Republicans were not creating a lot of jobs, not to mention we were spending billions in Iraq which has zero payback unlike spending Federal dollars on education and infrastructure.
But on to Sioux Falls. Mayor Munson’s approach to the booming retail tax collection was to spend, spend, spend and borrow, borrow, borrow. When Dave took office the city was $90 million in debt and was keeping up with growth and infrastructure. Now at the end of what was considered for the most part a booming economy for city coffers we are close to $340 million dollars in debt and close to $100 million behind on infrastructure, and trying to play catchup in a sluggish economy.
Where did we go wrong?
When the money started flowing in seven years ago the prudent thing would have been to start prioritizing. I think this simple list would have saw Sioux Falls in a lot different spot today.
– Make a concerted effort to pay down our debt and build a strong reserve for emergencies and quality of life projects
– Catch up on infrastructure like road maintenance, sewer, water, etc.
– Put together a joint effort with developers for growth and new streets
As you can see this is a very simple list. Not only could we have all the same things we have today, we could have done it on a balanced budget. Instead, I believe Munson’s administration squandered our money on growth and quality of life projects that was not needed.
I feel very sorry for the next mayor.
You keep mentioning what terrible shape we’re in l3wis, yet nearly every one of our measureable statistics tells a totally different story, especially when you compare to national averages. How can all those people who track those things like unemployment rates, credit ratings, crime stats, bankruptcies, housing starts, population shifts all be so dead wrong? Or is Munson such an evil genius that he used his slush fund to buy all those folks off?
Four to seven years ago those same incicators said we were also in rather good shape both locally and nationally, otherwise you’d likely have seen a Smith Admin. locally and a Kerry Admin. nationally. In fact in July of ’03 our national unemployment rate was sitting at 6.3%, by July of ’05 that number hit 5% which was the lowest since pre 9-11.
Today, these numbers aren’t moving the way they were then, but for the most part we are still going forward locally at a time when everyone else is pulling back.
You are also aware that the bulk of that $100 million back log are for roads into commercial & residential developments that are currently gravel or simply staked out, right? No one lives or works in these places, yet. Plus we currently have a huge inventory of lots with a shrinking number of people making the move, most people are staying put. So the demand to pave all the way to Brandon or Harrisburg has slowed.
Sure, we have some catch up to do on repairs, but as I have said before, you don’t borrow to fill a pothole. That’s like putting a Big Mac on your credit card when you’ve got a grill & all the ingredients for a burger at home.
$100 million backlog has nothing to do with new roads and sewers, it has to do with upgrading our current infrastructure. I agree, we are not that bad off, but I think if we would have taken a different direction seven years ago we would have even more quality of life projects then we do now. I think by balancing our budget and building reserves gives us more money to build the wants by freeing up $40 million we currently throw away in debt service now. Just think of how many indoor pools, rec centers, etc we could build without taking out one single loan.
Munson projects used FAVORED bidders. Taxpayers paid 1/3 to 1/2 more than they should have. Home Rule was used to side step competitive bidding. Projects were a foolish waste without regard for ongoing infrastructure. Munson is the worst leader this city has known. He could have been kept in check if the council had any authority. There’s signs of corruption. Once Home Rule is repealed, perhaps certain contractors will be prosecuted.
I willing to forget everything that happened the past 7 years if we elect a citizen-first minded council and mayor. If that happens, the citizens of SF will come to the realization of the corruption over the past seven years.
I agree but, more than this, city government should return to democracy. The council needs authority and should be paid more. The mayor doesn’t need a 100K assistant. City hall should be citizen friendly. City codes should be rewritten so they are not so vague and subject to multiple interpretations. Citizens should have access to code copies. Now, you get “we think it’s available at the library”. Citizens would be entitled to appeal into court. There should be at least 3 bidders on any project. Contract awards over 100K must be voted on by the mayor and council.
“City codes should be rewritten so they are not so vague and subject to multiple interpretations.”
Funny you bring that up. After taping our interview, KELO reporter, Ben Dunsmoor asked Theresa and I if the petition is still going. I said, “Sure”. Theresa said it best though, “We are still waiting for an opinion from the city attorney before we stop.” she also added, “Don’t you think the city codes are too complicated if you have to get a private attorney to interpret them?” I have often thought SF and SD are “Lawyer Happy” states. They make laws complicated and confusing enough so you are forced to hire a lawyer. When I defended myself in court and had already plead guilty to a lesser charge, the judge drilled me on why I didn’t hire a lawyer. I told him, I didn’t think I needed one. He asked if it was because I couldn’t afford one? I said no, just didn’t think I needed one. You could tell he was frustrated that the state’s attorney offered me a lesser charge that I plead guilty too, and I didn’t have to spend $600 dollars to get the same result. I may have a big mouth, but I learned, when it comes to the law, say as little as possible.
Last I checked citizens still have the right to defend themselves in court.
Hard to blame the slowing economy on Munson. Bigger things than him were at work there.
It was a good thing we weren’t dependent on manufactuing jobs, but during the coming recovery it would be nice to attract a good manufacturing facility or two.
We need to diversify our employment options. Right now, we’re dependent on banking, construction and health care. The first is heavily exposed to market volitility, the second is very cyclical in nature, and the third is currently teetering on the edge of being slapped around by the feds.
Energy production (the clean kind), manufacturing of quality products, and major corporate divisions and HQs should be our focus.
Not sure I was blaming Munson for the slowing economy, but I will blame him for not being prudent about it. I also think that you need to make hay when the sun is shining. In other words, during Sioux Falls’ boom, we should have been saving as well as spending. Instead, we were just spending.
“I have often thought SF and SD are “Lawyer Happy†states.”
Yet they love to throw out the “trial lawyer” cliche every election cycle.