IS IT TRUE May 14, 2013 Part 2
IS IT TRUE this morning the Director of the Evansville Water and Sewer Utility, Alan Mounts has come out with a statement that he and the City of Evansville believe they can do the repairs to correct the combined sewer overflow problem for $540 Million and that the previously reported $815 Million tab is what the Environmental Protection Agency (EPA) says the cost will be?…these folks are talking about the same project and the same time frame and both have the same wage data at their disposal to make their estimates?…as Mr. Mounts has spent most of his life (until last year) in banking we trust his ability to plug in things like interest rates, terms, and the estimate to arrive at the correct monthly payment?…we trust his numbers for how much the monthly increases in individual water bills will be simply because anyone who has spent this much time in banking ought to be able to plug three numbers into a canned program and read the answer?…his numbers are based on his $540 Million estimate?
IS IT TRUE the EPA has mandated and overseen many dozens if not hundreds of similar projects and is in a much better position to KNOW what the pitfalls are going to be?…if experience counts for anything at all we had better plan for the EPA numbers to be the reality we are facing when it comes to the MINIMUM this fix is going to cost?… if the EPA is correct and Mr. Mounts is sandbagging or pulling numbers from the polluted air this plan will eventually boost sewer bills for city residents from the current average of $26.30 a month to $118.06 an increase of $91.76 per month or 349%?…customers of the utility who live outside the city would see monthly rates jump from today’s $35.50 to $160.16 an increase of $124.66 per month or 356%?…the only unanswered question is whether these are today’s dollars or 2014 dollars?…it is safe to assume given the principle amounts and expected interest rates that these are today’s dollars?…with a modest 2.5% per year increase in prices the people of Evansville can expect a water and sewer bill of about $236 per month in 2041 and county dwellers on the city service can expect to pay $320 per month?
IS IT TRUE this is an expensive but necessary project to undertake if Evansville is to remain a viable city going forward?…this also emphasizes just how utterly inept it is to even think of spending money to build dog parks, skateboard heaven, ball fields, and to subsidize a hotel when this nearly a Billion Dollar fundamental problem is facing us like the barrel of a gun?…the chickens of 60 years of neglect and irresponsible governance have finally come home to roost for the City of Evansville?…we need to remind ourselves that this does nothing to repair the $500 Million of deferred maintenance on the water delivery lines that will have to be done too?…this does nothing to repair the sidewalks that in many areas are dangerous to even attempt to walk on?…this does nothing to address the ADA issues with the sidewalks?…this does nothing to address the numerous potholes in Evansville?…it is about time that our elected leaders start to concentrate on the things that a city has to do to even be a city and forget about the stupid games our leaders have loved to play for over half a century?…anyone who gives so much as a royal damn about the City of Evansville needs to be prepared to force these issues and demand that all frivolity is ceased until the potentially $2 Billion in FUNDAMENTAL NEEDS have been met?…THIS MAY BE EVANSVILLE’S LAST WAKE UP CALL?
Ok, I’ll just go ahead and say it: there is no way in h*ll that Evansville can afford this.
Even if the city could get someone to finance the bonds, there is no way that Evansville residents could absorb an extra $1000+ per year in rate increases. Not gonna happen.
The inflation adjusted math has been the same every time people look at this problem, which is why nothing ever gets done about it.
Honestly, I think the plan is to wait until a Republican administration comes in and rescinds the EPA mandate under the guise of restraining “big government.” Environmentalists will complain, but Democratic officeholders from the local level all the way up to the Feds will silently cheer the fact that they don’t actually have to put their money where their mouth is.
Failing that, there is always the “Detroit solution.” Just wait until everyone has moved out and start condemning/tearing down entire neighborhoods.
There has been an idea on the table for years that supports the Youngstown approach of turning much of the city where the cost to repair the sewers exceeds the value of the housing back into wetland or just cut the sewers off and depopulate wide areas of the city. In some cases this could make sense. Using the $815 Million number and 50,000 meters the cost to do the repairs per meter is $16,300. There are some 10,000 homes with meters in Evansville according to Tom Barnett that are not worth the cost to repair them. Taking those homes off the sewer and cementing it shut would save $163 Million in repairs. It is worth considering as Evansville truly needs to eliminate the stench and the backups to be considered for any industrial opportunities that may come along.
Interesting. I was wondering if anyone had run the numbers on a massive Eminent Domain program.
Sounds like California is treating you well, Joe! Look me up if you’re ever in Louisville.
Why does the city have to worry about not spending money on hotels and dog parks if the cost of the sewer repairs are going to be passed on to the ratepayers?
Good question. Why can’t they just go build a polo field, a ski slope, some Bocce ball courts, and an ocean beach if they can concoct some bullcrap proforma saying it works with TIF funding? Seriously dude, having a state of the art arena and a bunch of entertainment venues financed by public money when we can’t take a crap without risking it coming back to us looks incredibly stupid and narcissistic. Any city that wants to be taken seriously needs to act that way. All Evansville has done for 60 years is fluff and chicken dancing. It is time to grow up. Fixing the sewers before buying wiffle ball bats is part of growing up. WE have been governed by spoiled children long enough.
I completely agree, but from the point of view of corrupt politicians, the cost of the sewers is probably not a consideration since it is going to be funded by rate increases, not by tax dollars.
This is more solid evidence that a MAPS program is desperately needed here in order to both avoid the interest as well as rake in the accrued interest each year from the revenue to lighten the blow.
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