Comment Up:
The city answered the question
We question the city on the legality of this money grab of $63.5 million that will ultimately be $131 million by year 2049 to spend on "drainage and water and sewer facilities." These uses are enterprise funds. Is this legal? Enterprise funds would be on a Revenue Bond, not a General Obligation Bond.
OFFICIAL BALLOT CITY OF LAKE WORTH, FLORIDA
BOND
REFERENDUM ELECTION – AUGUST 26, 2014
APPROVAL
OF "LAKE WORTH 2020" BONDS FOR PUBLIC INFRASTRUCTURE PROJECTS WITHIN THE CITY.
Shall
the City of Lake Worth be authorized to issue bonds to acquire and improve
roadway, sidewalk, streetlight, streetscape, drainage and water and sewer
facilities located within the City in one or more series not exceeding a total
principal amount of $63,500,000, payable from an annual ad valorem tax maturing
not later than 30 years from the date of each issuance and bearing interest at
a rate not exceeding the maximum legal rate.
For bonds ___________ Against bonds______________
Showing posts with label Revenue Bond. Show all posts
Showing posts with label Revenue Bond. Show all posts
Monday, August 11, 2014
Thursday, April 24, 2014
Utility Rate Study and the Lake Worth 2020 Program
Comment Up
The meeting was all too mind boggling other than grabbing the cash. At Tuesday night's commission workshop meeting on the 2020 Infrastructure presentation, it was mentioned, on more than one occasion, that Burton & Associates had told us that we needed to raise our water rates at 5% for 5 years. So, by adding another 3% to that rate to pay to replace all the 2 inch water pipes costing $14 million through year 2019 was no "biggie" in their eyes...what's another 3 percent? It is all compounded over years. The power of compounding was said to be deemed the eighth wonder of the world - or so the story goes - by Albert Einstein.
Rate projections have changed over the last few years.
In actuality, Burton & Associates recommended the following in 2012, the last rate study that was presented to the commission--Subsequently, there is a new rate study dated July 9, 2013. Perhaps this was presented during last year's budget process but I don't recall it. The public is told less and less or on a "needs basis."
Although not relative now, because the city wants to spend bucko bucks of your money for a roads infrastructure program, (re-building half the city from the ground up) below are excerpts from the 2012 Utility Rate Study Update for Lake Worth by Burton & Associates:
Water System:
Reduce rate adjustment for FY 2013 from 5.25% to 0.00%
Adopt new multi-year schedule of rates as presented through FY 2016
0% in FY 2014, 4.50% in FY 2015 and FY 2016
Regional Sewer System:
Reduce O&M rate adjustment for FY 2013 from 20% to 15%
Continue efforts to receive full payment from members
Consider adopting FY 2014 rate adjustment of 5% as presented herein
Local Sewer System:
Reduce rate adjustments for FY 2013 from 13% to 0%
Do not adopt any future rate adjustments at this time
Dependent upon resolution of Regional Sewer collection issues by FY 2015
Going back to Water, while the FY 2013 RSA confirms no need for a rate adjustment in FY 2014, slightly larger annual rate increases of 5.00% per year are required starting in FY 2015 in order to provide sufficient funds for a larger multi-year capital improvement program (CIP). The five-year retail rate adjustment plan developed in the FY 2013 RSA is presented below.
FY 2013 RSA RATE ADJ. FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Water Rate Adjustment 0.00% 5.00% 5.00% 5.00% 5.00%
Avg. Res. Bill (5,000 GAL) $32.65 $32.65 $34.28 $36.01 $37.80
Monthly Increase / Yr. $0.00 $1.63 $1.73 $1.80 $1.89
Historically, this enterprise fund has faced significant challenges related to the disproportionate burden of wholesale costs from the Regional Sewer Enterprise Fund. That's what the report said.
The above does not seem to be quite the same as the rates presented on Tuesday night. The city commission is still reducing the electric rate each year until it is in parity with FPL all to attract investment. Screw the water users, though. The city will make up that monetary loss on the other end of the utility. If the majority of the city can no longer afford to water its lawns, then the entire place will turn to weed...slum...blight and then NO ONE will want to move here. I was estimating how much more it would cost our condo association on a yearly basis, if the city decided to go out on a revenue bond based on their figures and our last water bill,--- $4,047 more in year 2015 and $5,506 more in year 2019. Is that possible?
The meeting was all too mind boggling other than grabbing the cash. At Tuesday night's commission workshop meeting on the 2020 Infrastructure presentation, it was mentioned, on more than one occasion, that Burton & Associates had told us that we needed to raise our water rates at 5% for 5 years. So, by adding another 3% to that rate to pay to replace all the 2 inch water pipes costing $14 million through year 2019 was no "biggie" in their eyes...what's another 3 percent? It is all compounded over years. The power of compounding was said to be deemed the eighth wonder of the world - or so the story goes - by Albert Einstein.
Rate projections have changed over the last few years.
In actuality, Burton & Associates recommended the following in 2012, the last rate study that was presented to the commission--Subsequently, there is a new rate study dated July 9, 2013. Perhaps this was presented during last year's budget process but I don't recall it. The public is told less and less or on a "needs basis."
Although not relative now, because the city wants to spend bucko bucks of your money for a roads infrastructure program, (re-building half the city from the ground up) below are excerpts from the 2012 Utility Rate Study Update for Lake Worth by Burton & Associates:
Water System:
Reduce rate adjustment for FY 2013 from 5.25% to 0.00%
Adopt new multi-year schedule of rates as presented through FY 2016
0% in FY 2014, 4.50% in FY 2015 and FY 2016
Regional Sewer System:
Reduce O&M rate adjustment for FY 2013 from 20% to 15%
Continue efforts to receive full payment from members
Consider adopting FY 2014 rate adjustment of 5% as presented herein
Local Sewer System:
Reduce rate adjustments for FY 2013 from 13% to 0%
Do not adopt any future rate adjustments at this time
Dependent upon resolution of Regional Sewer collection issues by FY 2015
**Now things have changed due to the Regional Sewer settlement and the Capital Improvements Fund**
Going back to Water, while the FY 2013 RSA confirms no need for a rate adjustment in FY 2014, slightly larger annual rate increases of 5.00% per year are required starting in FY 2015 in order to provide sufficient funds for a larger multi-year capital improvement program (CIP). The five-year retail rate adjustment plan developed in the FY 2013 RSA is presented below.
FY 2013 RSA RATE ADJ. FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Water Rate Adjustment 0.00% 5.00% 5.00% 5.00% 5.00%
Avg. Res. Bill (5,000 GAL) $32.65 $32.65 $34.28 $36.01 $37.80
Monthly Increase / Yr. $0.00 $1.63 $1.73 $1.80 $1.89
Historically, this enterprise fund has faced significant challenges related to the disproportionate burden of wholesale costs from the Regional Sewer Enterprise Fund. That's what the report said.
The above does not seem to be quite the same as the rates presented on Tuesday night. The city commission is still reducing the electric rate each year until it is in parity with FPL all to attract investment. Screw the water users, though. The city will make up that monetary loss on the other end of the utility. If the majority of the city can no longer afford to water its lawns, then the entire place will turn to weed...slum...blight and then NO ONE will want to move here. I was estimating how much more it would cost our condo association on a yearly basis, if the city decided to go out on a revenue bond based on their figures and our last water bill,--- $4,047 more in year 2015 and $5,506 more in year 2019. Is that possible?
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