Good stewardship starts at home, not in Washington. The citizens of Delta approved a bond ballot issue, in November 2009, to raise the city’s indebtedness ceiling to $30 million, with repayment of that debt maxing out at nearly $69 million. These new indebtednesses will be generated from “the issuance of revenue bonds from the city-wide capital improvement fund.” A bond is an indebtedness and an indebtedness has to be re-paid.
Proponents of Delta’s Main Street bypass suggest the constructing of a multi-million dollar, 1.6-mile long road and bridge, will provide an alternative route for semi-trucks, allow emergency and police an entrance to North Delta during times of train delay, and provide faster access for consumers wishing to take their dollars from Main Street to Montrose or Grand Junction. The drive for urgency from the bypass supporters is a November State-wide ballot initiative that if passed, would prohibit municipalities from bonding beyond a 10-year period. The revenue bonds carry a 20-year payback time.
The voice of good stewardship, fiscal responsibility, and respect for the economic times we live must be supported. Liberal spending and overzealous borrowing, coupled with a downturn in the economy is what has gotten this county in the mess it currently faces. For example, last week’s Delta County Independent reported, Delta’s unemployment is once again on the rise (now above 8%), foreclose rates continue to go up (1 every 2 days), and actual real estate values are going down (mean value down over $25,000 per home). The Delta School District has been very fiscally responsible approach by trimming their fat and eliminating 17 FTE teacher positions. The North Fork coal mines, have about a 20-year max load left, are struggling to survive governmental bureaucratic regulations.
The economic signs indicate Delta’s municipal sales tax revenue will go down significantly, thus rendering the debt servicing schedule dubious at best. One of the provisions included in the voter approved bond ballot issue was that, “no increase in city taxes to pay such debt.” As tax revenue deceases, Delta’s debt service remains a constant, thus requiring the city to decrease services, increase fees, or privatize such tax draining entities as the golf course. None of these alternatives appears to be a viable solution, thus a future ballot issue should be expected.
Realistically, Delta is looking at $27 million in capital construction costs and a debt service to tax payers of at least $30 million over a period of 20-years. Proponents say some of this cost can be alleviated through DOLA grants, city reserves, and cuts in government spending. This argument is defeated by the mere fact that State grand funding has been denied, city reserves are low due to “progressive” spending, and current council has shown little inclination to practice fiscal responsibility.
The bond ballot issue specifically states the new debt is “for the purpose of enhancing safety conditions for those persons parking and shopping downtown”. The proponents of the Main Street bypass fanatically use the analogy of a semi-truck carrying oil, wrecking in downtown Delta, while a train is crossing Main Street, and causing a catastrophic fire. The analogy is rooted in such scare tactics that those perpetrating it should be ashamed. The reality couldn’t be closer to the truth. Since Delta’s founding in 1882, there have been no major trucking accidents of the scope and calibre which proponent fear. Semi-truck drivers are some of the safest on the road, as high industrial safety require drivers to maintain a clean CDL. A simple solution to the problem surrounding semi-trucks and Main Street would be to pass an ordinance requiring all vehicles over a certain weight to remain in the left-hand land between a certain set of mile-markers. A few signs and the force of law would keep trucks away from store fronts and cars parked on Main Street; maintain a constant, safe and efficient flow of traffic, along with costing the tax payers a few thousand dollars, instead of several million dollars.
A few years back a home burned to the ground while a fire truck was caught waiting for a train. An event like this, while unfortunate, is a fact of life. Governments seek to eliminate all risks to create a perfectly safe world – the concept of “too big to fail” is a perfect example of a government program deemed to eliminate risk a horrific consequences. Bad things happen to good people and that is life, however mitigation of risk through safety measures should be within our public means. A less costly alternative to the ones the proponents advocate is a fire and ambulance sub-station in North Delta. Another idea advanced is to partner with the hospital to offer medic-vac services which would be able to responder faster than an ambulance, with an annual cost equivalent to the controlled maintenance of a bridge and debt service. Safety concerns are a very real issue and should not be ignored. Conversely, economic considerations of rising unemployment, lay-offs, and businesses hardly making a profit, along with predicted declines in tax base revenue should be acknowledged.
We cannot continue to spend more than we make (this is especially true for governments). The modified Main Street bypass plan includes 2-lanes, instead of 4-lanes; 4 stop lights, a bridge over the railroad tracks and is 1.6-miles in length. No data exists on how much “safer” Delta citizens will be with a multimillion dollar debt. Tough economic times call for out-of-the-box thinking to produce creative solutions. This letter has attempted to demonstrate how good stewardship can start right here in Delta and be as a beacon on a hill to show Denver and Washington how problems can be tackled and solved without placing future generations under the burden of an indebtedness which must be repaid.
Proponents of Delta’s Main Street bypass suggest the constructing of a multi-million dollar, 1.6-mile long road and bridge, will provide an alternative route for semi-trucks, allow emergency and police an entrance to North Delta during times of train delay, and provide faster access for consumers wishing to take their dollars from Main Street to Montrose or Grand Junction. The drive for urgency from the bypass supporters is a November State-wide ballot initiative that if passed, would prohibit municipalities from bonding beyond a 10-year period. The revenue bonds carry a 20-year payback time.
The voice of good stewardship, fiscal responsibility, and respect for the economic times we live must be supported. Liberal spending and overzealous borrowing, coupled with a downturn in the economy is what has gotten this county in the mess it currently faces. For example, last week’s Delta County Independent reported, Delta’s unemployment is once again on the rise (now above 8%), foreclose rates continue to go up (1 every 2 days), and actual real estate values are going down (mean value down over $25,000 per home). The Delta School District has been very fiscally responsible approach by trimming their fat and eliminating 17 FTE teacher positions. The North Fork coal mines, have about a 20-year max load left, are struggling to survive governmental bureaucratic regulations.
The economic signs indicate Delta’s municipal sales tax revenue will go down significantly, thus rendering the debt servicing schedule dubious at best. One of the provisions included in the voter approved bond ballot issue was that, “no increase in city taxes to pay such debt.” As tax revenue deceases, Delta’s debt service remains a constant, thus requiring the city to decrease services, increase fees, or privatize such tax draining entities as the golf course. None of these alternatives appears to be a viable solution, thus a future ballot issue should be expected.
Realistically, Delta is looking at $27 million in capital construction costs and a debt service to tax payers of at least $30 million over a period of 20-years. Proponents say some of this cost can be alleviated through DOLA grants, city reserves, and cuts in government spending. This argument is defeated by the mere fact that State grand funding has been denied, city reserves are low due to “progressive” spending, and current council has shown little inclination to practice fiscal responsibility.
The bond ballot issue specifically states the new debt is “for the purpose of enhancing safety conditions for those persons parking and shopping downtown”. The proponents of the Main Street bypass fanatically use the analogy of a semi-truck carrying oil, wrecking in downtown Delta, while a train is crossing Main Street, and causing a catastrophic fire. The analogy is rooted in such scare tactics that those perpetrating it should be ashamed. The reality couldn’t be closer to the truth. Since Delta’s founding in 1882, there have been no major trucking accidents of the scope and calibre which proponent fear. Semi-truck drivers are some of the safest on the road, as high industrial safety require drivers to maintain a clean CDL. A simple solution to the problem surrounding semi-trucks and Main Street would be to pass an ordinance requiring all vehicles over a certain weight to remain in the left-hand land between a certain set of mile-markers. A few signs and the force of law would keep trucks away from store fronts and cars parked on Main Street; maintain a constant, safe and efficient flow of traffic, along with costing the tax payers a few thousand dollars, instead of several million dollars.
A few years back a home burned to the ground while a fire truck was caught waiting for a train. An event like this, while unfortunate, is a fact of life. Governments seek to eliminate all risks to create a perfectly safe world – the concept of “too big to fail” is a perfect example of a government program deemed to eliminate risk a horrific consequences. Bad things happen to good people and that is life, however mitigation of risk through safety measures should be within our public means. A less costly alternative to the ones the proponents advocate is a fire and ambulance sub-station in North Delta. Another idea advanced is to partner with the hospital to offer medic-vac services which would be able to responder faster than an ambulance, with an annual cost equivalent to the controlled maintenance of a bridge and debt service. Safety concerns are a very real issue and should not be ignored. Conversely, economic considerations of rising unemployment, lay-offs, and businesses hardly making a profit, along with predicted declines in tax base revenue should be acknowledged.
We cannot continue to spend more than we make (this is especially true for governments). The modified Main Street bypass plan includes 2-lanes, instead of 4-lanes; 4 stop lights, a bridge over the railroad tracks and is 1.6-miles in length. No data exists on how much “safer” Delta citizens will be with a multimillion dollar debt. Tough economic times call for out-of-the-box thinking to produce creative solutions. This letter has attempted to demonstrate how good stewardship can start right here in Delta and be as a beacon on a hill to show Denver and Washington how problems can be tackled and solved without placing future generations under the burden of an indebtedness which must be repaid.
