Thoughts on freep.com Shores harbor article
June/28/2009 16:33
Did you see the article on the Free Press web site on June 22 about the Shores harbor situation? This hyperlink takes you to the news item that notes that currently only about 70% of the Shores boat wells are occupied. I distinctly recall the discussions between our elected officials and residents leading up to the harbor renovations. Concerned taxpayers were advised not to worry, that the boater’s revenue going into the harbor fund should cover the renovation expenses. Non-boating residents were not supposed to bear the burden for other’s recreational pursuits.
Now it has come to light that this promise was based on a number of presumptions, including “full harbor occupancy every year”. Having lived in the Shores for 16 years, and often enjoying the opportunity to take a stroll down the park pier, I can’t recall any time when we had an occupancy rate close to 80%. Did you know the village was actually warned in writing by its auditors that 100% occupancy was one of the assumptions that had to be met if cash flow from marina operations was to be positive!
So, Shores officials based the revenue projection for the harbor on an erroneous initial assumption, one that is now even more off target in these hard economic times. Also I bet not many citizens know that the Shores elected to finance the harbor with a bond structure that only pays interest for the first few years. As consumers, we all know the consequences of not promptly paying down both the interest and the principal on our personal debts. How many of us would take out a credit card for which we would pay interest only initially, but then pay through the nose in later years? 3.8 million dollars borrowed now turns into a long-term obligation to Shores taxpayers of over 7 million dollars.
As a result of the bond financing decision made by the Shores, annual payments on the harbor bonds start at about $160,000 this year, but skyrocket to as high as $304,000 in the year 2032. Consider this, as you get ready to pay the inflated summer tax bill you received yesterday.Couple the declining harbor revenues with the progressively escalating bond payments, and it is clear Shores taxpayers will be bearing the consequences of faulty fiscal decision making for many years to come.
At least citizens who attended the June council meeting know we now have two responsible Council members in Ted Kedzierski and Dan Schulte, officials who showed they are not going to sit back without questioning the consequences of the issues at hand. Thanks to Dan and Ted, I am glad to see that the days of unanimous, rubber-stamped Shores council votes, as well as votes taken without any meaningful public discussion or debate on major issues, appear to be over.
Feel free to let me know your thoughts on Shores issues using the contact form on the last page of The Shores Recall Web site. The same form can also be used if you want to be added to the growing e-mail list of residents who plan to take part in the recall efforts.
Now it has come to light that this promise was based on a number of presumptions, including “full harbor occupancy every year”. Having lived in the Shores for 16 years, and often enjoying the opportunity to take a stroll down the park pier, I can’t recall any time when we had an occupancy rate close to 80%. Did you know the village was actually warned in writing by its auditors that 100% occupancy was one of the assumptions that had to be met if cash flow from marina operations was to be positive!
So, Shores officials based the revenue projection for the harbor on an erroneous initial assumption, one that is now even more off target in these hard economic times. Also I bet not many citizens know that the Shores elected to finance the harbor with a bond structure that only pays interest for the first few years. As consumers, we all know the consequences of not promptly paying down both the interest and the principal on our personal debts. How many of us would take out a credit card for which we would pay interest only initially, but then pay through the nose in later years? 3.8 million dollars borrowed now turns into a long-term obligation to Shores taxpayers of over 7 million dollars.
As a result of the bond financing decision made by the Shores, annual payments on the harbor bonds start at about $160,000 this year, but skyrocket to as high as $304,000 in the year 2032. Consider this, as you get ready to pay the inflated summer tax bill you received yesterday.Couple the declining harbor revenues with the progressively escalating bond payments, and it is clear Shores taxpayers will be bearing the consequences of faulty fiscal decision making for many years to come.
At least citizens who attended the June council meeting know we now have two responsible Council members in Ted Kedzierski and Dan Schulte, officials who showed they are not going to sit back without questioning the consequences of the issues at hand. Thanks to Dan and Ted, I am glad to see that the days of unanimous, rubber-stamped Shores council votes, as well as votes taken without any meaningful public discussion or debate on major issues, appear to be over.
Feel free to let me know your thoughts on Shores issues using the contact form on the last page of The Shores Recall Web site. The same form can also be used if you want to be added to the growing e-mail list of residents who plan to take part in the recall efforts.