Yes, it is true, just read the article by Adam Beam. This I have said for years. There is too much not on the books that the city is liable for, and it only gets put on the books when it no longer can be hidden.
Functional bankruptcy? I am asked constantly what is that as no one seems to know. OK, it is my term, one I created to describe a bankrupt entity that cannot easily go bankrupt as it can tax its way out of it, penalizing the people who it has already violated. Obviously, no other entity other than a governmental one can exist in functional bankruptcy. No private business can squander all its assets, have a very red bottom line on the income statement and balance sheet, and be able to force everyone to come in and spend money with them, whether a person wanted what the business had or not. But our city can do that, and it is, raising water and sewer rates yearly, fines, fees, and other taxes. We are all paying for council mistakes, and we will pay for years. It is so bad that we will not have Christmas decorations in 5 Points and downtown, according to news articles quoting our city manager.
2006-2007 has not yet been audited, according to news articles, so no one knows exactly what happened. The comments in the article are very telling, especially if you read past what is being said. Adam Beam has really been polite to council and administration with his comments. But if you do the numbers he presents, plus factor in the items he says no one knows exactly what the costs will be, you can see that the city is far into the red. Then identify the items that are not on the books that need attention, such as water tanks that need repair, water and sewer lines that are failing, extra police and security that needs funding, down revenue of local business that will be reflected in lower business license tax collections, among others, plus add in the insurance costs for employees that have “surprisingly” blind sided council, and you can see a lot more red ink.
What does this mean for all of us, in the city or not? Higher water, higher sewer, higher taxes and fees, increased cost of living and doing business in the city. This can, and will, cause people to move elsewhere, and business to think twice before locating in the city. Already SCANA has chosen to move, and others will probably follow. If so, costs to us left here will go even higher.
Rickenmann and Finlay suggested firing city employees deemed responsible. I wonder if they would care to share with us who those city officials and employees might be? Coble said it is embarrassing, but with new procedures and personnel, the city should do a much better job. Of course, why did he not recognize this a few years ago when it started, and how much worse could he and council do? Does council not ask to see financials? Do they not make and review a budget? Do they not base the next year’s budget on what actually happened the previous year, plus expectations of the future of the economy?
I could go on and on, but Adam Beam has written a good, albeit gentle, story on the situation. Adam’s articles are one good reason to take The State. He has been digging into city issues and reporting well about them. I know many of you dropped your subscriptions due to the editorial staff, most especially Warthen and Bolton, who have done a good job of running off many subscribers, and have been the inspiration for the I Don’t Read The State bumper sticker and others similar. So take out a 2 month subscription, and send Henry Haitz, the president, (1401 Shop Rd., P.O. Box 1333,Columbia, SC 29202, hhaitz@thestate.com) a note saying that you will continue to subscribe if they get rid of those two. Newspapers everywhere need the subscribers, so maybe he will. After all, The State cut out the Saturday editorial page, so maybe the end for those two is coming sooner than we think.
After you read the article, send me your comments.
Joseph Azar
http://www.thestate.com/local/story/499398.html
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