News and Opinion from Sisters, Oregon

Problems at City Hall

Councilor Weed should be praised for having the courage to tell the truth about the dysfunction at city hall.

City Manager Eileen Stein and staff tried to get a water rate increase for almost two years from two different councils and failed.

The proposed increase, spread over five years, would have doubled the cost of water and increased revenue to the water fund from $450,000 to $959,000 per year.

With both councils, the mayor and council president supported the proposed increase while the other councilors wanted options to keep rates as low as possible during the recession.

The proposed increase was based on funding capital improvements to the water system over the next five years.

The TAC was formed to challenge the improvements that were the basis for the proposed

increase.

Despite what other TAC members have said, there was generally consensus as to what needed to be done during the five-year planning period. However, there was considerable disagreement regarding the reasons some projects needed to be done while others could be delayed until growth returns and the economy improves. The recent 6.6 percent increase will remain, but there are no other increases planned or required during the next five years. Ratepayers will save considerably during these difficult times.

Why was this process so hard and time-consuming? Why did it take almost two years and 50 hours of TAC meetings to get an increase of 6.6 percent versus 100 percent or more? It's the same reason Congress failed to get a deficit reduction deal.

Nobody wants to lose their job, retirement benefits, health insurance, and lifestyle.

Lobbyists for every federal agency are pulling every string possible to avoid the chopping block.

The military and defense contractors are going all-out to keep every project and program; nothing can be cut or the war on terror will be lost, we won't be able to defend ourselves, and we'll all die.

Similar extreme arguments are being made about every branch of the federal government.

All senators and representatives are in favor of cuts as long as they do not affect their state, district, or campaign contributions; it's all about self-preservation.

In a down economy an adversarial relationship is created between the public sector and the private sector that pays the bills. The city burns about 15 cents in reserves for every dollar spent. This is not sustainable. When the reserves generated during the building boom are gone, layoffs and other reductions will result. The leadership will do anything to avoid this pain. The city manager and staff used stonewalling, manipulation, and misinformation to avoid the inevitable downsizing and spending cuts; they need a lot more revenue to keep the current ship afloat.

Former Councilor Jerry Bogart wanted to pay for necessary upgrades using cash reserves.

He was told this was unlawful.

Several months later the city manager and staff confirmed the law had changed and money could be transferred from reserves to the water fund.

This was another misrepresentation because it's been lawful since at least 2001 to transfer reserves to the water fund.

What changed is the ability to move money from the water fund to the general fund.

This creates a potential cash cow (fees for an essential service) that can pay for everything without voter approval but that's a story for another day.

Obviously, the city manager and council leadership wanted to raise rates and conserve cash to avoid, for as long as possible, the inevitable reductions in staff, wages, benefits, and spending.

The next battle will likely be over sewer rates given the current leadership at city hall. City residents need to fight for their rights and interests. There is no guarantee that local activists Mike Morgan and Ed Protas will have the time and energy to wage another year-long battle.

Apathy is the enemy of a free democratic society. Please get involved; it's your city and your

money.

 

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