Saturday, May 24, 2014

On LW 2020 and the General Obligation Bond

Comment Up
The recent editorial in the Palm Beach Post is extremely generous with other people’s money-the Lake Worth taxpayers-by its suggestion that we add an additional burden of 3.43 mills for 30 years to our already over taxed property owners to pay for the neglect of the past 50 years and to add infrastructure to benefit residents for the next 100 years. Waterfront property owners could possibly see annual tax increases of several thousand dollars.

Do you think it equitable to burden the present homeowner for past and present neglect and for a future which only a very small number will be around to enjoy? In addition, our Commission was planning a revenue bond for $14 million for water pipe replacement which is now off the table as it is not legally possible, and 16% higher water rates.

This is the same Commission that ran on lowering electric rates to attract business and homeowner investment. (Lowering electric rates was able to be accomplished because a 5 year notice was given to FMPA in 2008 of our desire to exit by a past Commission for whom they excoriate at every opportunity.)

Does the present Commission think that a huge increase in both taxes and water rates will encourage investment in our community? A much more sensible and equitable approach would be to address the water distribution system on an as needed basis. A water supervisor told me a few weeks ago that they are aware of the pipes most in need of replacement.

The “tens of thousands of dollars a year” the City allegedly “burns through” likely refers to the salaries of the employees who patch the roads. A small investment in better equipment and use of a greater quantity of asphalt can make the fixes longer lasting.

Cities all over America have neglected infrastructure and with little means to afford replacement, so Lake Worth is not alone. It is time for our Commission and City Manager to come up with a new and less grandiose plan to gradually improve our infrastructure without penalizing the present taxpayers. And now we learn that the $62.3 million bond will really amount to $131 million when it is all said and done.

Laurence McNamara

21 comments:

Anonymous said...

We could have had this gentleman as our Mayor instead of the ***-faced gavel banger that we are stuck with now. Very sad, but people are very good at hiding their true nature when they are begging for our vote. Maxwell alluded to the fact that "you might have new people on the dais" several times in the district one meeting. Was he worried? He should be.

Anonymous said...

@ 9:47am.. you should watch your tongue. Your parole officer can look up your IP address. Wouldn't want a big Ole Mary like yourself in the clink this weekend!

Anonymous said...

Think of all the improvements the city could have made if the "best commission ever" didn't piss away $40 million on an unneeded R.O. plant that has resulted in the highest water rates in the state. Why don't you ever "report" on that?

John Rinaldi said...

I don't understand why folks have to get mean and go into attack mode if they disagree with the commission or any one person. I think the mayor has done so much to help the city and I know that she really cares and loves our city. She is in favor of this bond issue and I disagree with her, Scott, Andy and John on that point but that's what this process is all about. They have not voted on this yet and they have asked for our opinions at all of the past meetings. It's now up to us to persuade them to look at what we really want. Yes we would all like the big wish list to be accomplished but it's just more than we can afford or be comfortable with. Tell your representatives how you feel and get the word out to your friends and neighbors. I think that collectively we can influence the Mayor to scale this down or delay this until we all have had a chance to make up some ground that the recession has taken. I may disagree with the mayor but I know she is open to listening and will change her position if she hears us.

Lynn Anderson said...

Gads, what in the heck are you talking about 9:56?

Lynn Anderson said...

10:36--the reason I never post your comment on the RO is the false information you are trying to post--

THE FACTS:

If we had stayed with the Palm Beach County Water Contract (LW a buyer of water)
$25,786,000
$1,500,000 payback to South Florida Water management for a total of
$27,286,000


Reverse Osmosis System (LW a supplier of water)
$23,556,000 (this includes the cost of getting out of the PB County Water deal of $1.2 million)
Savings of--
$3,730,000. "This equates to a savings of $1,000 for every resident in Lake Worth

Laurence said...

Thanks for the accurate R.O. cost and for pointing out the savings we enjoyed, in addition to avoiding the County having us at their mercy re rates. Our water is much higher quality than the county's cocktail, part of which is treated sewage.

Anonymous said...

10:45am...Using your figures, if we still got our water from P.B.County every Lake Worth resident would be paying $83. more per month for water.

If the R.O.System equates to a savings of $1,000. for every resident of Lake Worth, why are we paying higher rates than the rest of the County?


Lynn Anderson said...

Don't know that we are.
Two years ago, we raised our water rates by 10.25% to make money. Ask your friends at city hall.

G Rice said...

Lynn, in the light of fair reporting of stated opinion or fact by LM on the final cost of the currently proposed 2020 plan going from "$62.3 million to $131 million when it's all said and done". While I haven't run an amortization schedule of the borrowed amount, interest rate and 30 year term it probably will be close to that amount. The $131 million is not the result of the cost of the project going up, it's the cost of borrowing money. If you by a home today for $120,000.00 and get a 30 year mortgage @ 6% interest, when the mortgage is finally paid off you will have spent $215,838.00 for the house you paid $120,000.00 for. People that can't pay cash do that for just about every major purchase or expense they have. They just don't sit down and figure what they're actually spending on it. Lynn, when you sold real estate did you sit down and do the math for your buyers to show them what they were actually spending on the house they were buying? I doubt you did. It's not you were trying to hide anything from them. I don't feel that's what the city staff is doing either. LM hasn't uncovered an undisclosed cost over run, he just did the math. Something most people don't do when they're looking to buy something on time.

Anonymous said...

What about the 750000 gallons a DAY we had to pay PBC, at three times what we were contract for. For 3 years. You never figure those cost in when you say it only
cost $1,500,000 to get out of the contract.

Lynn Anderson said...

What you say about the cost of borrowing is correct. But so? It's still the cost, is it not? This figure is from the finance director.

When I was selling real estate it was in Palm Beach. I didn't have to sit down and do that sort of math. But I gave an analogy the other day about the car salesman.

I am confused about your "beef." The people need to know what it is REALLY costing them.

Lynn Anderson said...

@3:36--As I receall, that was ONLY if we needed the water...part of the settlement deal.

Anonymous said...

Lynn @ 4:28 rewriting History again... It was 750,000 gallons a day everyday at three times what we were contracted to pay for three years in order for the BCC ever to get their way with the RO Plant.
And while we are on that subject isn't it wonderful that the Best Water in Florida is going through those rusty,corroded, decaying pipes we have.

Lynn Anderson said...

Oh, thanks, Wes. You are the only one who rewrites history.
As far as rusty pipes, go out and get some new ones. Vote for the bond.

Lynn Anderson said...

Anonymous above is correct on the purchase of 750,000 gallons a day from PB County for 3 years. That was the initial offer but I don't have any details...too long ago, what 5 years or so? Your memory is better than mine on this count. So send me the link if you have one.

Originally the county wanted $9.9 million to settle and Stanton got them way down in the settlement. As I recall, Clemens wanted to burn the $14 mil we already had spent and go with County water. He lost that one on a 4/1 vote.

Anonymous said...

Mr. Rinaldi,are you speaking about the same Mayor,Pam Triolo,who bangs the gavel and refuses to let a fellow commissioner speak? The one who allowed an illegal banner to hang on the Gulfstream Hotel and did nothing about it? The same one who tried to close our pool? The same one who threw out an entire city board just to get rid of one member that she was afraid of ? The same Mayor who spit on an election by the people of Lake Worth? The same mayor who thinks it's okay to spend almost 30,000 dollars to move an election so that "her " side might get the advantage in a vote ?(They didn't ).The same one who allows her fellow commissioners and city staff to attack citizens that she doesn't agree with from the dais? The same one who thinks it's just fine to fly around the country on our dime ,but won't report to the people on just what she did at those meetings? The same mayor that thinks it's appropriate to read funny little notes from her friends attacking citizens that she disagrees with? And I could go on. THAT MAYOR, Mr. Rinaldi?

Anonymous said...

Well my memory is great as I was there. Whatever this anonymous thinks he knows is wrong. The RO plant saved us $$ even including the purchase of the additional water from palm beach county. Besides being the best water around, we have the best water professionals in our plant and we have achieved a level of sustainability that other area cities have not attained concerning their most necessary commodity --water. These people that want to rewrite history are confused.

Anonymous said...

It's not easy being Mayor and many people will disagree on how she runs a meeting or votes but the one fact that everyone has to admit is that no one had the balls to run against her and that tells me that she is well liked by most of our city. I agree with John.

Lynn Anderson said...

There is a slew of people who don't like--
1. what she did to the heights amendment vote...57% of the voters.
2. what she did behind the scenes to get John Prince Park as a national ballfield and never once talking to the neighborhood.
3. what she has done to get us deeper in debt
4. robbing reserves
5. bully practices
6. and the list can go on an on.

Just because someone did not run against these people does not mean residents are happy with what's going on.

We have been fighting developers taking over our sweet city for decades and the city is in the hands of people for whom developers just love. It is very difficult to run in that sort of atmosphere because they have convinced a certain segment that development and growth is the only way we can get out of our deplorable conditions. Not so, and you don't spend taxpayer money building infrastructure for developers.

Anonymous said...

The RO plant was all about the unions. This was obvious as to who was holding all the signs in favor of it. Union favorite Golden was very sympathetic and I believe duped by them, along with several other commissioners . Unions have had a lot of power in past elections. Time will tell if the RO technology stands the test of time. After all it takes a lot of energy ,electricity, to run it. Maybe this is why our water is more expensive.