Government is full of self-dealing profiteers who look out for themselves and their friends under the guise of civic service. When you want to know why a financial disaster occurred, the old adage of "follow the money" will answer all of your questions all of the time.
Anyone with any sense knows that is not sound business practice to have 60%, more or less, of bond debt in variable rate bonds. The question is who benefited from having the Water Company carry this amount of variable rate debt. Well, just as with adjustable rate mortgages that homeowners were suckered into (or suckered themselves into), the lawyers, brokers and advisers rake in greater fees for these variable rate bonds. While the savings are always touted as the reason to use variable rate bond debt; the savings are illusionary because of the high risk involved. These advisers always indicate that it can always be refinanced, but of course sometimes it can not be refinanced. Additionally, in this instance, the water company always has the ratepayers to bail them out, so why should they worry.
Someone, besides the ratepayers, needs to be held accountable for this budgetary malfeasance. To find that someone, just “follow the money.”
No comments:
Post a Comment