Tuesday, May 4, 2010

Deep Thoughts on Water Rates, by John Hammer, with a little factoid refreshment and Guarino

The prophetic voice of Mike Baron continues to resound.
...If water consumption has not risen significantly over the last fifteen years or so
...why is there a need for water rates to increase nearly every year?
...Is there any chance the city will take the water revenues,
and divert them to pay for other budget items unrelated to water?

"...The main reason given for raising rates is that Moody's and the other bond rating agencies in New York could downgrade Greensboro's utility bond rating if the utility doesn't have what Moody's considers enough money in the bank... [GH: Correct]

...Greensboro is supposed to raise its water rates in time when money is extremely tight for its citizens in order to keep Moody's happy, not because it is necessary. [GH: Incorrect, per debt repayment levels, maintenence, environmental mandates and under utilization of an overbuilt infrastructure paid for with borrowed money, unless the City of Greensboro has been pilfering the water rate hikes to mask stealth tax increases]

Moody's ranked AIG as AA before it collapsed, and Lehman Brothers earned an A rating a month before it went bankrupt. [GH: Correct]

But to keep these rating agencies – which are as responsible for the economic crisis as anyone – happy, [GH: Correct] the city staff says that water rates have to be raised. [GH: Theoretically Incorrect, unless Guarino's intragovernmental fund transfer thought is validated, at which time a reserve fund audit should commence at the direction of City Council, initiated by the mayor.]"

John Hammer

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