Monday, July 29, 2019

Water for yer shower, water for yer potty, money for the shopping center, money for a rainy day

Happy almost-August, dear readers!  
 
So if you have noticed, the city of Copperas Cove is recommended a 1 percent increase for water and sewer rates for the upcoming year.

Plus a 5.5 percent increase in solid waste rates for $1 per month.

This will be discussed by the council on Tuesday evening.

We were warned, back when She-who-shall-not-be-named was city manager, that because the council did not approve any utility rate hikes for years, there was some catchup to be made. Water costs more. The city buys its water, dear readers. There’s no magic well that the city draws from and sells the water. It ain’t free. So the city turns around and sells it to us customers. Plus, after we potty and shower, the city takes that water and treats it. It’s got to go somewhere y’all, and not in the ground because that’s just nasty and gross. So it costs to treat the water. That all makes sense.

But, if *I* were on city council – and I’m not – I’d recommend NOT raising rates this coming year. Not a’tall.

Let’s talk about the fund, as taken from the actual 280-page proposed city budget itself:

“Total expenses are estimated at $13,889,410, which is $26,535 less than the amount projected for the fiscal year 2018-2019. The Water & Sewer Fund realized a decrease in debt service requirements in fiscal year 2019-2020 as anticipated by the debt service schedule, estimates a 6% increase in the cost for water purchases, and the repair or replacement of vital equipment in operation facilities.”

Okie dokie. They expect costs of water to go up 6%. Not something the city can control.
Before we look at the numbers, let me ask you this: How many of us have 90 days of household expenses saved up in case of disaster or need?

Nope, I didn’t think many of us do.

Welp, those city funds have “fund balances” of at least 90 days of operating expenses. It’s a rainy day fund, or emergencies, or whatever. Back sometime ago, the city council itself approved an “ideal fund balance policy.”

Basically, the city manager MUST or IDEALLY keep at least 90 days of expenses in that fund. If the apocalypse happens, or whatever, we will still be able to keep operations going. Maybe not the apocalypse, but you get the idea. You just never know. But a city manager should adhere to the policies his bosses – the city councilmembers – have asked him to adhere to. Or, he could be fired. 
Yep.

Dear readers, let’s look at the fund balances for Water & Sewer, and Solid Waste, as taken from the proposed budget for the next fiscal year itself:



Okay. Look at the funds. Look at the fund balances. Presently, the city’s Water & Sewer fund is $201,189 OVER the ideal fund balance. Also, the Solid Wate fund is $1,604,535 OVER the ideal fund balance.

That’s OVER. In excess of.

Those funds already have $2,464,549 in Water/Sewer, and $2,678,691 in the Solid Waste fund. Waiting to be used. If needed. Like a disaster or something. Or?

Now….getting back to my “if I were on council” statement.

Dear readers, dear council members (some of whom read and scowl at this blog and perhaps curse me silently or not-so-silently), the funding of FATHOM has been a general clusterf*** of three years now. We still hear the problems popping up. Things weren’t GREAT under the old system, but at least you knew it was local.

Anyhoo, the more PRUDENT action this year for those funds would be to HOLD OFF ON ANY RATE INCREASES.

Think of YOUR customers, dear city council. You are customers, too. We elected you to keep OUR interests in mind. Now, granted, some of our interests are nice, but aren’t things that are for the good of all.

Curmudgeon believes the council should take a step back and instruct our city manager to use some of that fund balance INSTEAD OF raising rates. Make it a goodwill gesture to your customers. It is sad that most people equate ANY rate increases with feeding the coffers of FATHOM, but factoring FATHOM into the budget as it is now, STILL leaves us with a healthy fund balance.

Is a couple hundred grand more THIS year going to change much?

Are you going to fire someone if the balance dips slightly below “ideal?”

Well, since the council doesn’t follow its policies regarding conduct anyway, as evidenced by past actions of the council without nary anything but a “my bad” from Sorry-Charlie for violating Texas Ethics Commission regulations. 


Just sayin.

I remind my dear readers of the THREE MILLION DOLLAR LOAN the city made FROM THE WATER AND SEWER FUND to ENDEAVOR REAL ESTATE so it could build the section of the shopping center where we now enjoy places like McAlister’s, etc., on down the line to Burke’s outlet. 
It was perfectly legal for them to do so, but it is interesting at how robust a fund is that seeks an increase in funding.

Endeavor should be paying us back, I believe, on that loan. Sooooo, tell me about that rate increase again, dear council!

Curmudgeon will be all ears about the upcoming discussion this week.

1 comment:

  1. And nothing has changed but continues to get worse...people are moving out of rentals...hurting our realtors, hurting our local economy plus homes are being abandoned, taxes lost, vacant properties. For some strange reason they all seem to believe that this is a good thing...nothing here for families to do or much else. Must go out of cove for even a decent senior center......who is actually running this clown show?????

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