Debt is Debt

Why do cities go bankrupt?

Typically it's because of a municipality's financial stress caused not only by bad political decisions such as getting the city deeper in debt but by a poor economic environment coupled with gross mismanagement, as well as many years of economic decline.

Here in Lake Worth we have all of the above along with a structurally unsound pension system with unfunded liabilities totaling $88.717,931. No one ever talks about this.

Our operating budget's controllable costs are $9,953,178 even though the budget is suggesting $31,006,779 for total operational expenditures.

Our commission is NOT shy when it comes to voting on spending your money or getting you further in debt.  This time--34 more years of a general obligation bond for what they tell us is infrastructure, fire hydrants and lighting that we must have, needing $63.5 million all at once. And then we can't forget that land on Boutwell Road owned by others, the Park of Commerce, where they want to spend nearly $10 million to attract business development. We should not forget that anything the CRA does is backed by the city if they can't pay...they still owe lots of money on failed ventures like the Gateways. And what about the city's track record...we should never forget all the MISSING MONEY through the years. Trust is of vital importance when you are going to vote yourself into long-term debt.

• We still owe $54 million on the 2004 Utility System Revenue bonds that were refinanced twice as well as interest of $11.8 mil.

• We still owe $6,809,683 on the reverse osmosis, on a loan agreement with the Environmental Protection Drinking Water Revolving Loan Fund program plus another $1.8 million in interest. 

• We still owe $2,822,400 on the ECR bonds plus interest.

Scott Maxwell says we have NO debt and then qualified his statement by saying we had no debt in operations. We have plenty of operational expenses and we move money to Operations in order to operate and maintain a balanced budget that we have to do by law.  Thank God for laws but as you know, even laws can be circumvented.

 As far as I am concerned, debt is debt. Now he, along with the rest of the commission other than McVoy (who voted against the bonds issue for not the right reason but at least he didn't follow the sheep), wants to ensure that you stay pregnant and barefoot for over 30 years.