Councilor Elect Theresa Stehly and Public Works Director Mark Cotter will be on Belfrage’s show KELO AM 1320 talking about the water/sewer increases. Greg will turn on the phones for public comment at 8:30 AM. Should be interesting.
Stehly VS. Cotter, Greg Belfrage show, 8 AM Thursday (4/21/2016)
by l3wis
Posted in: Public Works, SF City Council, Sioux Falls, Theresa Stehly
Go Theresa!!! I think what a lot of people have not been made aware of is the fact water rates doubled from 2006 to 2011.
http://www.southdacola.com/blog/2011/04/have-water-rates-doubled-in-5-years/#comments
It is said with the new increases they will double again. The truly amazing part is, a very large chunk of this was avoidable IF the second penny sales tax had been used as originally intended. Jennifer Holsen, a former city manager, made the best case IMHO, in her Sept 7th 2011 blog post from Jennifers Musings.
I think the city of Sioux Falls should build an Event Center, but is the financing of this project sound based on projections that the Event Center will increase revenues city wide and sales tax growth will continue to grow to 5% over time? Sure there will be no increased taxes. But that is not the point. For the next 22 years, the debt to build this building will obligate the 2nd penny sales tax. The second penny sales tax funds roads, infrastructure needs both present and future. It pays for ongoing maintenance of facilities. This second penny workhorse will also need to take care of the ongoing maintenance costs of this new facility over the next 22 years so add that cost on to the debt cost in the capital program.
Once again, intended sales taxes usage is used to fund pet projects, while infrastructure costs are passed on to Joe and Jane Sixpack in the form of outrageous rate increases.
As an aside, I’m sure cotter will remind listeners of the cost to make sewer line improvements from the Brandon road station to the waste water facility. That cost pales in comparison to the cost of running water and sewer lines to Foundtion Park. We already have miles of water and sewer lines to developement parks along Interstate 90 that have nothing but weeds growing around those lines. WHY are we investing 49 million in water snd sewr lines to a developement park when we have other parks that desperately need tenants?
Hopefully, a discussion of the additional city penny sales tax will enter into this radio interview.
You know, the additional penny which was for roads before it was for general capital improvements, which once meant things like sewer and water before we started using it for things like improvements in the garden at the Pavilion….. It is all kind of like being “against the war before you were for it…”
I’m guessing instead of offering any viable alternatives, Cotter will only offer up scare tactics like cuts will have to be made like cuts to street repairs or other capital projects if the increases aren’t implemented.
Cotter had to have a plan in place if the requested increases weren’t voted in (it just never made it past the mayor or finance director’s ears), just like he had to have an alternative capital plan if that wasn’t approved by the mayor or council (delaying or reprioritizing projects, etc.)
Let’s save this vote for the new council.
The most important thing to remember from this discussion is how the second penny sales tax is used. When it was put into effect in the 80’s, it was meant to be used, 100% of it, for infrastructure, not event centers and other quality of life issues. Cotter said about 70% is used for roads. That means 16 million dollars a year is being spent on pet projects, NEVER the intent of the second penny. mr cotter has been around since 2006. He knew in 2011 the dire straits our sewer system was in, yet he chose to be the mayors front man for the 125 million dollar event center, being paid for with second penny money he needed so desperately for sewer upgrades. he knew then the only way to pay for the EC without a third penny tax was funneling it out of the second penny, then raise sewer rates down the road. Just an elaborate game of 3 card monty played on the taxpayers