"Without the windfall, taxpayers likely would be footing that bill, or more likely, nothing would happen and our infrastructure would continue to crumble."
Where do you think this money comes from? It comes from the ratepayers. The water and sewer ratepayers, most of whom are also taxpayers, have been burdened with repaying $425 million dollars that should otherwise be used to pay for existing financial burdens of $3.5 billion for the CSO and Septic elimination programs (worthwhile projects) and the money stolen from ratepayers during the variable rate bond fiasco. Savings, if any materialize, should accrue to the ratepayers in reduced rates or fund needed maintenance (We are building $3.5 billion of new infrastructure and it will need to be maintained).
This is not free money that just fell from the sky. Citizens did not just pull it out of their back pocket. We, the ratepayers / taxpayers, are not off the hook; we have to pay it back, not them.
"But the most compelling evidence is the commitment Citizens is making to continue investing in the utilities. In addition to handing over cash and taking on city debt, Citizens must make costly sewer upgrades, and CEO Carey Lykins has said the company also will complete a septic tank replacement program that’s under way."
Again, Citizen's is not assuming any debt or paying for any costly upgrades; it is the debt of the ratepayers and it is the ratepayers who are paying for the costly upgrades. Guess what, before the transfer and sale, the debt was the responsibility of the ratepayers and after the transfer (sale), the debt will remain the responsibility of the ratepayers!
In summary, it is a tax increase; it will just be hidden within our future water and sewer bills. And if you don't know that, you are stupid. And if you are not stupid, then you are lying. And in either case, you are just repeating the City's propaganda, rendering this newspaper to the same worthless status as the local weekly rag.
Sunday, March 27, 2011
The UCC says .... you
With respect to the January 14, 2011, news release from the Indiana Office of Utility Consumer Counselor regarding the acquisition of the City of Indianapolis’ water and wastewater utilities, who exactly runs the Office of the Utility Consumer Counselor? Clearly, they don't represent the consumers. How could they come to the conclusion that it is equitable, reasonable, efficient or prudent to recommend a transfer that obligates the ratepayers to an additional half-billion dollars of debt, not to improve water and sewer systems, which, of course, are both deficient, but to overlay streets and build sidewalks? Yes, they are an advocate; the question is, for whom?
Theft of the citizens by Citizens
While no one involved in destroying the finances of the water company, included the supposedly vaunted management team of Veolia has been reprimanded, fired, resigned, dismissed or arrested, an additional crime is being perpetrated on the citizens of Indianapolis by our “public servants” and the Board of Citizens Energy by negotiating a “sale / transfer” of the Water Company to Citizens. This “sale” will be paid for by borrowing against the water and sewer user fees that should only be used for supporting the delivery of water and sewer services to the customer. Instead, with this sale, over 260 million dollars would be borrowed by Citizens (paid for by our user fees) for a thirty-year period, with said funds being deposited in the coffers of the Indianapolis Department of Public Works.
Our water fees, which have already been raised (and are proposed to be raised by more than a third) because of the ongoing financial malfeasance are now intended to be diverted to repave streets and repair and construct sidewalks.
The Council has already passed a proposal (132, 2010) to divert money from the user fees paid by the sanitary sewer district, managed by United Water, by bonding against payments in lieu of taxes (PILOT) funds (Yes, a portion of our wastewater fees for our public sanitary sewer service are sent to the city general fund as taxes instead of providing for our utility service – so, yes it is a hidden tax permitted by the State Legislature in P.L.27-1992, SEC.27), to repave streets and repair and construct sidewalks.
Of course, we are supposed to be happy about this diversion of user fees because savings have been wrangled from so-called “value engineering” and additional savings have been projected from the synergistic effect of combining the water and sewer utilities under the management of Citizens Energy, a public trust. Our happiness should occur despite the fact that sewer user fees are projected to rise by 400% over the next 10-20 years to pay for the $3.5 billion project related to the Combined Sewer Overflow consent decree and Septic Elimination program, etc.
Well, any savings should accrue to the water and sewer ratepayers, with a reduction in the rate of increase of future fees needed to pay for the Consent decree and maintenance of the existing and proposed improvements. They should not be diverted again (as with PILOT funds diverted during this decade) to fund other city operations. If a transfer of these “public” utilities to a “public” trust is reasonable and prudent, it should occur without any transfer of funds from the ratepayers to the City of Indianapolis general fund. It also should not include the continuation of any contracts with Veolia or United Water. If transferring this entity to Citizens makes sense, then it would not make sense to insert / retain an unnecessary layer of management between Citizens and the services and customers that they are proposed to be responsible for. Anything else would continue and exacerbate the financial and management absurdities related to our public sewer and water services.
In summary, this transfer should be no different than any other transfer of duties or responsibilities from one public entity to another. The fact that Citizens and the city would be borrowing money over a 30-year period to pay for, what are for the most part, temporary improvements should give anyone pause. All aspects of the private and public realm are over leveraged. Yet, the solution that is proposed is another "rob Peter to pay Paul" scheme. The only proposal that should be considered is a straight-forward transfer of duties.
Our water fees, which have already been raised (and are proposed to be raised by more than a third) because of the ongoing financial malfeasance are now intended to be diverted to repave streets and repair and construct sidewalks.
The Council has already passed a proposal (132, 2010) to divert money from the user fees paid by the sanitary sewer district, managed by United Water, by bonding against payments in lieu of taxes (PILOT) funds (Yes, a portion of our wastewater fees for our public sanitary sewer service are sent to the city general fund as taxes instead of providing for our utility service – so, yes it is a hidden tax permitted by the State Legislature in P.L.27-1992, SEC.27), to repave streets and repair and construct sidewalks.
Of course, we are supposed to be happy about this diversion of user fees because savings have been wrangled from so-called “value engineering” and additional savings have been projected from the synergistic effect of combining the water and sewer utilities under the management of Citizens Energy, a public trust. Our happiness should occur despite the fact that sewer user fees are projected to rise by 400% over the next 10-20 years to pay for the $3.5 billion project related to the Combined Sewer Overflow consent decree and Septic Elimination program, etc.
Well, any savings should accrue to the water and sewer ratepayers, with a reduction in the rate of increase of future fees needed to pay for the Consent decree and maintenance of the existing and proposed improvements. They should not be diverted again (as with PILOT funds diverted during this decade) to fund other city operations. If a transfer of these “public” utilities to a “public” trust is reasonable and prudent, it should occur without any transfer of funds from the ratepayers to the City of Indianapolis general fund. It also should not include the continuation of any contracts with Veolia or United Water. If transferring this entity to Citizens makes sense, then it would not make sense to insert / retain an unnecessary layer of management between Citizens and the services and customers that they are proposed to be responsible for. Anything else would continue and exacerbate the financial and management absurdities related to our public sewer and water services.
In summary, this transfer should be no different than any other transfer of duties or responsibilities from one public entity to another. The fact that Citizens and the city would be borrowing money over a 30-year period to pay for, what are for the most part, temporary improvements should give anyone pause. All aspects of the private and public realm are over leveraged. Yet, the solution that is proposed is another "rob Peter to pay Paul" scheme. The only proposal that should be considered is a straight-forward transfer of duties.
Water is life
Streets and sidewalks are important elements of a city, but water is life and sanitation is health. We can live without the first two elements, maybe inconveniently, but we can live. We can not live without the second two elements. Obligating water and sewer ratepayers and squandering precious financial resources for short-term temporary repairs of streets is reckless, unethical and immoral. The utility transfer is supposedly based on the premise that future savings will be realized from engineering efficiencies and from savings resulting from the synergies of the utilities being operated by Citizens (and Veolia and United Water – huh?). However, those future savings are not assured, just as the savings from the Department of Waterworks variable-rate bonds as well as all other promises of savings propagandized over the last few years, decades or centuries were not assured. Time after time, savings never materialize and expenses continue to rise until the next great scam (creative idea) is proffered to the citizens (serfs).
While many appear to be dismissive of the idea that serious inflation and even hyperinflation may be just around the corner; it appears foolhardy to assume that inflation or other financial maladies could not befall us all in the upcoming decade. Prudence would dictate that we tread carefully in obligating “citizens” to more unending debt. But I suppose that when a city’s economic mantra is a Ponzi scheme, I suppose it may be foolish to expect anything other than financial machinations.
While many appear to be dismissive of the idea that serious inflation and even hyperinflation may be just around the corner; it appears foolhardy to assume that inflation or other financial maladies could not befall us all in the upcoming decade. Prudence would dictate that we tread carefully in obligating “citizens” to more unending debt. But I suppose that when a city’s economic mantra is a Ponzi scheme, I suppose it may be foolish to expect anything other than financial machinations.
PILOT - Payoffs in lieu of theft
Furthermore, this proposal is a scam to pay off campaign contributors, while incurring 30-year long-term debt to be repaid by the water and sewer ratepayers for the repaving of streets that will need repaved in four or five years. Any idiot knows that you only borrow for long-lasting capital expenditures; not for operating expenses, maintenance and repairs, and you definitely don’t steal dedicated funds to pay for other unrelated projects.
And, as for alternatives, I have already told Chris Cotterill directly to his face in a public meeting, that if the city wants to fix the street and sidewalk infrastructure, then they should go to the legislature and raise the gas tax (enact a transparent local gas tax, if necessary) to an adequate level to fund infrastructure, at a rate that will allow the city to catch up, with the backlog over a period of time. Our wonderful “public servants” have no problem running to the legislature again and again to beg to raise taxes, so that they can give more money to millionaires and billionaires or to subsidize a minor portion of our economy. This proposal (and the already passed PILOT bond (paid out of sewer fees) is a tax, hidden within our sewer and water fees, but I don’t expect the corporate media to do anything but spew out the government’s talking points, lie, attack truth tellers and attempt to get the sheep to follow.
And, as for alternatives, I have already told Chris Cotterill directly to his face in a public meeting, that if the city wants to fix the street and sidewalk infrastructure, then they should go to the legislature and raise the gas tax (enact a transparent local gas tax, if necessary) to an adequate level to fund infrastructure, at a rate that will allow the city to catch up, with the backlog over a period of time. Our wonderful “public servants” have no problem running to the legislature again and again to beg to raise taxes, so that they can give more money to millionaires and billionaires or to subsidize a minor portion of our economy. This proposal (and the already passed PILOT bond (paid out of sewer fees) is a tax, hidden within our sewer and water fees, but I don’t expect the corporate media to do anything but spew out the government’s talking points, lie, attack truth tellers and attempt to get the sheep to follow.
Diversion perversion
While no one involved in destroying the finances of the water company, included the supposedly vaunted management team of Veolia has been reprimanded, fired, resigned, dismissed or arrested, an additional [wrong] is being perpetrated on the citizens of Indianapolis by our city-county councilors, Mayor [Greg] Ballard and the board of Citizens Energy, by negotiating a “sale” of the water company to Citizens.
This “sale” will be paid for by borrowing against the water and sewer user fees that should only be used for supporting the delivery of water and sewer services. Instead, over $260 million will be borrowed by Citizens (paid for by our user fees) for a 30-year period, with said funds being deposited in the coffers of the Indianapolis Department of Public Works.
The fees paid to the water company that have already been raised (and are proposed to be raised by more than a third) are now intended to be diverted to repave streets and repair and construct sidewalks.
Of course, we are supposed to be happy about this diversion of user fees because savings have been wrangled from so-called “value engineering” and additional savings have been projected from the synergistic effect of combining the water and sewer utilities under the management of Citizens Energy, a public trust.
Our happiness should occur despite the fact that sewer user fees are projected to rise by 400 percent over the next 10-20 years to pay for the $3.5 billion project related to the combined sewer overflow consent decree and septic elimination program, etc. Any savings that might occur should be reflected in a reduction of the proposed rate increases that water and sewer ratepayers would pay in the future.
This “sale” will be paid for by borrowing against the water and sewer user fees that should only be used for supporting the delivery of water and sewer services. Instead, over $260 million will be borrowed by Citizens (paid for by our user fees) for a 30-year period, with said funds being deposited in the coffers of the Indianapolis Department of Public Works.
The fees paid to the water company that have already been raised (and are proposed to be raised by more than a third) are now intended to be diverted to repave streets and repair and construct sidewalks.
Of course, we are supposed to be happy about this diversion of user fees because savings have been wrangled from so-called “value engineering” and additional savings have been projected from the synergistic effect of combining the water and sewer utilities under the management of Citizens Energy, a public trust.
Our happiness should occur despite the fact that sewer user fees are projected to rise by 400 percent over the next 10-20 years to pay for the $3.5 billion project related to the combined sewer overflow consent decree and septic elimination program, etc. Any savings that might occur should be reflected in a reduction of the proposed rate increases that water and sewer ratepayers would pay in the future.
Transparency
Since it appears that the Citizens Energy user fee theft will be approved regardless of the implications of such approval, I propose, for the sake of transparency, that our water and sewer bills be itemized so that everyone knows how much is being stolen from them each and every time a payment is remitted. So, at a minimum the water and sewer bill should indicate the portion of each sewer bill dedicated to payments in lieu of taxes (PILOT), including the 30-year bond payments (City Tax); should indicate the portion of the water and sewer bill paid to the City (2010 Street and Sidewalk Repairs – 30-Year Bond) for the transfer the water and sewer utilities; should indicate the cost of the water company extricating itself from the variable-rate bond fiasco (Cost of Variable-rate Bond Fiasco), and should indicate the cost of paying Veolia to continue to provide poor service and poor water quality, while continuing to enrich itself (Cost of Privatization).
Inbred Government
This goes to show that the issue goes beyond party affiliation, as the school board is non-partisan, but aligns itself with the administration, because they see themselves as being apart of big government. Just as the council aligns itself with the mayor, based on party affiliation, the school board aligns itself with the administration, in order to share in the spoils of big government.
So, they think it is perfectly natural to use the administration's lawyer and take the administration proposals (see how Eugene White acted when someone dared question the administration’s proposal) as gospel. Because, why not, aren't they all in this together - brothers in arms?
Usually it is unspoken, but sometimes those in government let it slip that the public process is merely an impediment to get through and is not to be taken seriously beyond merely going through the motions and maintaining the illusion of public decision-making. That is why your blog and others are continuously attacked because you dare raise questions and make people uncomfortable. They have grown used to doing what they want without any real scrutiny.
Because of that it is even more vital that the media really investigate government and stop reading and regurgitating press releases.
So, thank you Kara Kenney for making an effort - just don't let up - and, of course, thanks Paul for all that you do.
So, they think it is perfectly natural to use the administration's lawyer and take the administration proposals (see how Eugene White acted when someone dared question the administration’s proposal) as gospel. Because, why not, aren't they all in this together - brothers in arms?
Usually it is unspoken, but sometimes those in government let it slip that the public process is merely an impediment to get through and is not to be taken seriously beyond merely going through the motions and maintaining the illusion of public decision-making. That is why your blog and others are continuously attacked because you dare raise questions and make people uncomfortable. They have grown used to doing what they want without any real scrutiny.
Because of that it is even more vital that the media really investigate government and stop reading and regurgitating press releases.
So, thank you Kara Kenney for making an effort - just don't let up - and, of course, thanks Paul for all that you do.
War criminals are US
Why is George Bush walking around admitting that he is a war criminal and no one even blinks an eye? Shouldn’t he be immediately arrested along with his brown-skinned clone, Obama, who has no problem with assassinating American citizens? But, I guess that is not surprising in a country where our local and national law enforcement agencies have periodically firebombed its citizens and routinely radiates and molests them in public places.
The fact that Americans blissfully meander through their lives, more concerned with which sports team has won or lost or reality show contestant has been eliminated, while our leaders kill, maim and torture people in multiple countries of the Middle East and Asia and cause our brothers, sisters, sons and daughters to be killed, maimed and tortured, is shameful, to say the least. With further threats of expanding our criminal war machine throughout the world, if we don’t stop believing the lies of our current criminal-in-chief, Obama and demand justice be served against our former Criminals-in-chief, Bush and Clinton, we ensure nothing less than our own destruction. Real change would involve indicting, convicting and jailing; en masse, our criminal leadership; only that will, in time, bring about real safety, security and freedom. Anything less will result in more of the same “Slavery is Freedom and War is Peace,” propaganda that we seem to so willingly accept.
The fact that Americans blissfully meander through their lives, more concerned with which sports team has won or lost or reality show contestant has been eliminated, while our leaders kill, maim and torture people in multiple countries of the Middle East and Asia and cause our brothers, sisters, sons and daughters to be killed, maimed and tortured, is shameful, to say the least. With further threats of expanding our criminal war machine throughout the world, if we don’t stop believing the lies of our current criminal-in-chief, Obama and demand justice be served against our former Criminals-in-chief, Bush and Clinton, we ensure nothing less than our own destruction. Real change would involve indicting, convicting and jailing; en masse, our criminal leadership; only that will, in time, bring about real safety, security and freedom. Anything less will result in more of the same “Slavery is Freedom and War is Peace,” propaganda that we seem to so willingly accept.
JHA - sinecures
Why hasn't the Tribune exposed the deleterious impacts that the housing authority has had on the community while staff and board members enjoy luxuries paid for by the taxpayers? At a minimum, the Tribune should be annually publishing or providing a data base link of all public salaries (and I mean all). But this is how government works (doesn't); constituencies become entrenched, do whatever is deemed necessary to preserve themselves and turn "public service" positions into sinecures. So, nothing in the article is surprising since no real public review of this agency (which does not even have a website) has ever occurred.
By the way, where does Mr. Kanuch live? I doubt that it is in the City of Johnstown, where he and his high-paid cohorts have further devastated declining neighborhoods (while the City council and administration sits by and watches) through the recruitment and general Section Eight (8) policies of the Johnstown Housing Authority. He would never subject himself and his family to what he has subjected the remaining families of Johnstown.
No one heading a public service agency in this small town or small region should be making anywhere near $118,000. Actually, the housing agency, arguably, should have ceased to exist decades ago. However, when the media is complicit, due to lack of reporting, investigating and questioning, the disease of sinecurism can not be cured.
By the way, where does Mr. Kanuch live? I doubt that it is in the City of Johnstown, where he and his high-paid cohorts have further devastated declining neighborhoods (while the City council and administration sits by and watches) through the recruitment and general Section Eight (8) policies of the Johnstown Housing Authority. He would never subject himself and his family to what he has subjected the remaining families of Johnstown.
No one heading a public service agency in this small town or small region should be making anywhere near $118,000. Actually, the housing agency, arguably, should have ceased to exist decades ago. However, when the media is complicit, due to lack of reporting, investigating and questioning, the disease of sinecurism can not be cured.
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