Especially When You Don’t Owe Them
Let’s say you give a needy cousin (Cousin Eddie) some money to stave off eviction of him, his wife and their eight children under the age of seven. Cheap at half the price because their plan was to move in with you!
You never once mention to your financially challenged relative that your handout is a loan. There is no discussion of a repayment schedule as you generously pass the much-needed cash to his outstretched hand.
Then, years later, when Big Ed is in even worse financial straits, you ask him when repayment is forthcoming. It’s safe to say he and his other nine mouths won’t be counted among those seated at your Thanksgiving table come November.
So…aren’t the million dollars in loans due from IRB’s general operating fund to the Sewer and Solid Waste Funds much the same thing? These monies were “given” to the enterprise funds without any approval whatsoever by our city commission—or anyone for that matter. There was nothing (and still is nothing!) in the way of a formal document outlining loan repayment terms or establishing an interest rate. Years later…an outside consultant swoops in and calls the ongoing stipends “loans”…leaving us as surprised as Cousin Eddie…and just about as broke.
The shock and awe over the 60% increase in sewer and, in particular, garbage is just now starting to create a low roar among our residents. Only recently has everyone seen the effect of the hike on their bi-monthly bills. Do you realize that the increase includes paying back loans that none of us—nor any commissioner—nor anyone else—knew anything about? Your current garbage and sewer rates include an amount for a repayment of these unauthorized loans but repayment doesn’t actually start until 2010.
Initially, repayment of these loans was positioned as a legal requirement. But as citizen after citizen overloaded the microphone at City Hall with evidence to refute this claim, the story changed to “it’s a good idea” to repay them.” Why is it that these “good ideas” always mean more money out of our pockets?
Let’s say you give a needy cousin (Cousin Eddie) some money to stave off eviction of him, his wife and their eight children under the age of seven. Cheap at half the price because their plan was to move in with you!
You never once mention to your financially challenged relative that your handout is a loan. There is no discussion of a repayment schedule as you generously pass the much-needed cash to his outstretched hand.
Then, years later, when Big Ed is in even worse financial straits, you ask him when repayment is forthcoming. It’s safe to say he and his other nine mouths won’t be counted among those seated at your Thanksgiving table come November.
So…aren’t the million dollars in loans due from IRB’s general operating fund to the Sewer and Solid Waste Funds much the same thing? These monies were “given” to the enterprise funds without any approval whatsoever by our city commission—or anyone for that matter. There was nothing (and still is nothing!) in the way of a formal document outlining loan repayment terms or establishing an interest rate. Years later…an outside consultant swoops in and calls the ongoing stipends “loans”…leaving us as surprised as Cousin Eddie…and just about as broke.
The shock and awe over the 60% increase in sewer and, in particular, garbage is just now starting to create a low roar among our residents. Only recently has everyone seen the effect of the hike on their bi-monthly bills. Do you realize that the increase includes paying back loans that none of us—nor any commissioner—nor anyone else—knew anything about? Your current garbage and sewer rates include an amount for a repayment of these unauthorized loans but repayment doesn’t actually start until 2010.
Initially, repayment of these loans was positioned as a legal requirement. But as citizen after citizen overloaded the microphone at City Hall with evidence to refute this claim, the story changed to “it’s a good idea” to repay them.” Why is it that these “good ideas” always mean more money out of our pockets?
Did one commissioner even hiccup when asked to approve repayment of loans that no one authorized in the first place? Not at the meetings I attended.
Nancy Obarski
Beach Trail/IRB
Nancy Obarski
Beach Trail/IRB
5 comments:
We citizens have a need and a right to know exactly how much was "loaned" and the exact terms of the payback (interest rate, amortization schedule, etc.) so we can determine if the amount included in the rates we pay is not a scam by a greedy commission to stockpile cash for some a2000 project (buy land outside the city, new library, etc.).
Why not just forgive the loan, reduce the sewer and solid waste rates so the people can save some cash?
Even Congress has figured out that one of basics of loaning money is transparency. Next thing you know our Commissioners will be telling us we need to increase density to improve our tax base. Please, just stop spending,NOW.
Vacant rental.
$10.00 water usage.
$138.00 in charges.
$148.00 total bill.
Am I missing something?
Hey Anonymous with the "vacant rental"...Did you even get to flush the toilet for that price?
A few times at a cost of $70.00 for sewage. That's some expensive flush!
Another Sham is the reclaimed water that we are forced to pay for even if we choose not to use it or hook up to it.
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