They did it again. Last night at Council (CoW), while discussing the city’s financial outlook, it was reported that the Water Fund is operating at a deficit, and, whew! good thing they raised water rates or else it would be really out of control!
What a crock. The Water Division is a money maker (pp. 96-7). What happens is, the city transfers $500,000-$525,000 every single year to the
Black Hole General Fund. In FY2010, the Water Fund will also pay out more than $800,000 in debt service and loan payments. They siphon, then have to borrow money for–what?–repairs probably.
You know, between the debt distributed across four funds, underfunded pensions and that $29.4 million post-retirement insurance liability (which will not even be mentioned until after the budget is passed, unless one of us brings it up) we really are in hock up to our eyeballs. It’s anybody’s guess as to how long this house of cards can stand.
The level of trust we should put in city government, however, is not in doubt at all.