Public-private partnerships wrecking cities
The kind of shenanigans in which Portland City Hall specializes -- pledging tax revenues to prop up favored developers and businesses -- is leading to severe financial problems for municipalities from coast to coast. This story lays it out pretty well, and we found this passage more than a little amusing:
The "full faith and taxing power" of communities, a solemn pledge, was being used to guarantee revenue bonds for nonessentials like solar-power projects, apartment buildings and a soccer stadium — things bailout-weary taxpayers might walk away from if the guarantees were called.Moody’s cut several communities' own credit ratings to junk, briefly making New Jersey the nation’s leader in junk-rated municipalities. (Now Michigan has that distinction.) The gritty town of Harrison, just across the Passaic River from Newark, had its rating cut a rare eight notches in a single year, when it couldn't honor a promise to pay debts connected with construction of the Red Bull soccer stadium.
Harrison had to borrow from Hudson County to get through the crisis, but that in turn raised doubts about whether the county's taxpayers would honor their guarantee of yet another project's debts — $85 million for a faltering waste-disposal system.
So much worthless junk, strapping local government and depriving a future generation of basic public services. We hope the historians name names.
| Posted at 8:16 PM | Permalink |
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Comments (11)
Naming names? There are so many. Everyone from the Elected Representatives to the voters themselves.
The Elected Reps are to blame for promising services for "free". And then the greedy voters that put them in office because they believed in a free lunch.
All services cost money. Every local government owned asset costs money up front and then from that point on until the life of the asset is done. (Maintenance) As an example, street lights. It costs the City of Portland 6 million per year in power costs (including PGE maintenance on the majority of poles.)
The PGE maintained lights are coming to the end of their life. Worse, the Portland twin street lights in some areas are poised to fall down. Yet, I have yet to hear of how those will be fixed as well. Just to repeat, this is but one small example. When you talk signs, street paving, and structures, the story is the same.
This is not "sexy" to the electorate. They want new stuff from their elected officials. Bike trails and bikeways, street car lines, etc. (By the way those require an increase in maintenance, with no way to pay for it.) Of course the elected officials promise and deliver the moon to get reelected or to promote their favorite cause, with no thought of what the services they really should be delivering.
Just my 2 cents worth.
Posted by Commguy | June 25, 2012 8:48 PM
What a coincidence? Portland/MultCo/Tri-Met have solar power projects, retirement towers for the wealthy, and soccer stadium remodels too.
But try issuing a bond to staff a new jail or pave a couple hundred miles of sand & gravel streets....But Noooooooo: CAN'T BE DONE....COLORS OF MONEY PRECLUDE US FROM STAFFING JAILS OR PAVING ROADS.
Posted by Mister Tee | June 25, 2012 9:27 PM
"This is not "sexy" to the electorate. They want new stuff from their elected officials. "
Do they?
Bike trails? Bikeways? Street car lines?
Really?
Who? Tensquat? Most people here don't want that stuff, do they?
Posted by Harry | June 25, 2012 11:00 PM
But! Portland cannot be a world class city without:
Streetcars
Light rail
High density housing
20 minute neighborhoods
bike lanes
bike paths
bike boulevards
Young creatives
Wind headquarters
Solar headquarters
Livibility
Walkibility
Sustainability
Climate neutral
The righties (not to be confused with the social righties) & Jack have been warning of this waste for years to no avail.
Maybe it is time to force city hall to just run the basic services and fire all "visionaries" - especially those that ride a bike to work. I’d bet that we could shut down 3/4 of the city agencies, if we only cared about basic services.
Thanks
JK
Posted by jim karlock | June 26, 2012 3:58 AM
"So much worthless junk, strapping local government and depriving a future generation of basic public services."
Hey, don't call teh irresponsible - They only need to keep raising water bills and fees and they can pay for all this junk. I mean a 50% increas in water the last 3 years has given them and extra $40M to play with.
Posted by Steve | June 26, 2012 6:12 AM
progressive = bankruptcy
Posted by Andy | June 26, 2012 7:48 AM
Well, well, the NYT has finally called, "bullsh*t" on this non stop financial fiasco. So now how do we, the tax paying public, fend off, or even try to fix the mess?;by being offered and electing, the likes of jerks JefferSten Smith, the ADD candidate, or Char-LIE Hales who can't remember where he last filed his taxes by the folks behind the scenes who really run the local show.
The gods only know who really runs things on a national and international level...
I could become depressed over the state of the world.
Posted by portland native | June 26, 2012 7:49 AM
And what is totally ironic is the new buzzword, "Sustainable" is any but...
Posted by Tim | June 26, 2012 11:12 AM
Tim,
Totally ironic and hypocritical here.
Sustainable is that new buzzword.
What I don't understand is that the followers of "Sustainable" can't or won't make the connection that the path/agenda is not.
Why would our city
- be willing to facilitate taking Hayden Island?
- not willing to save our current truly sustainable water system?
- go along with ever increasing debt
- . . . . . .
Posted by clinamen | June 26, 2012 11:46 AM
"What I don't understand is that the followers of "Sustainable" can't or won't make the connection that the path/agenda is not."
JK: Simple!
Sustainable is just another political BS cause to justify taking money from schools, basic services, fire & police to give to cronies.
Any connection to logic in irrelevant - it only has to sound good to the great masses who are not paying close attention to the pea under the shell. Basic propaganda. Big lie. Goebbels stuff.
Thanks
JK
Posted by jim karlock | June 28, 2012 3:38 AM
http://www.nytimes.com/2012/06/26/business/moberly-mo-backed-a-failed-project-then-refused-to-pay.html?src=recg
Posted by Mister Tee | July 1, 2012 7:15 AM