Twenty Questions

Congratulations Citizens! The Mayor and City Council voted to repeal the Water Tax LID and hold an election. Now we can have a discussion on the merits of the purchase. Before making an informed decision a number of questions need to be answered. The following questions were selected from citizen comments on eaglewatertax.com:

Rates The cost including interest is now estimated at over $14 million dollars. How much will rates go up if the City buys the company? Some have estimated up to a 200% increase.

Repairs & Upgrades How much will it cost to fix old pipes, replace defective equipment, and perform needed upgrades? A PUC report estimates $1.5 million dollars. Where will the money come from to pay these costs? Where is the pro-forma budget that clearly outlines where the money comes from and where it will be spent.

Appraisals What do independent appraisals say the value is?

Politics What will prevent the water company from becoming a political weapon used by those in power to reward friends and punish the opposition?

Hookups How much will new hookup fees increase?

Oversight If the city is exempt from PUC oversight, to whom will the City answer on future rate increases and complaints?

Profits Who gets the profits? Will the City fund pet projects with water company revenues? We need to understand that any excess revenues will be maintained in a separate account, to be used strictly for existing service repairs and upgrades, or be returned to water service customers in the form of rebates.

Fairness Why do all citizens in Eagle get to vote if only a portion are subject to the tax? Is this a case of representation without taxation? If this is to be viewed as an Eagle-wide asset, then a method for charging ALL Eagle taxpayers needs to be understood.

Service Area Will the City guarantee that the water from this purchase will not serve new areas outside the present city limits?

Management Currently the city spends around $300,000 a year for United Water to manage the City’s existing water company. The City does not have the competence to operate the new company. Will the City have them manage the new company as well and at what rate?

Bond Fees The City has estimated the bonding fee to be $550,000. Are there other bids to provide this service?

Engineering So Far, the City reports spending more than $250,000 for engineering, legal, CPA and other fees and we have not yet approved the EWC purchase. How much more will be expected, and who pays these costs?

Down Payment In the Asset Purchase Agreement, the City committed to spending $400,000 before the closing to make improvements. How much has been spent so far?

Fire Hydrants Will those homeowners close to fire hydrants still get a bill like the LID?

Private Enterprise Because of the lack of incentives, government-run enterprises typically cost 40 percent more to run than private enterprises. Why does the City think they can do a better job than private enterprise in operating this company?

Growth It seems like current users will be buying a water company for new development. Will existing users be subsidizing new development? Certainly for each new meter added to the water system, each existing customer should see a reduction in their bill.

Meters Are all users currently metered so actual use can be measured and billed for?

Elderly Are seniors with fixed-incomes given a break?

Full Disclosure Has Eagle Water Company given elected officials any other gifts or contributions?

United Water If rates are going up regardless of who buys the company, why not let United Water buy it? Unlike the City, they have management and engineering experience and are not a bureaucracy.

The election is planned for May 27th. Hopefully the City will have the answers by then for us to make a good decision.

The Train Has Stopped…Now Hit Reverse

After watching its credibility go down the drain, the Eagle City Council took the first step to stop the leak. Councilman Norm Semanko proposed a new Ordinance 601 that will repeal the Water Tax LID Ordinance 571. Good job Norm. This is kind of like the 21st Amendment repealing the 18th Amendment in the U.S. Constitution. The new ordinance has to be read several times before it can be voted on.

Evidently the City Council and Mayor reread the Idaho Constitution and realized its illegal to buy a water company with an LID scheme. Article 8 Section 3 is unambiguous: buying a water company requires a vote of the citizens. So they also approved a motion to study holding a bond election. This is another step in the right direction.

However, what was missing in the meeting was a motion to get at least two independent appraisals. To plug the hole in the trust dike, the City must then make the independent appraisals and all relevant information available to the voters to consider before holding the bond election.

The new councilmen Semanko, Shoushtarian and Huffaker inherited the LID problem from the previous administration. We commend them for hitting the flush lever.

You can download Ordinance 601 at:
EagleWaterTax.com

Will Huffaker Stop the Bandy-Guerber Water Tax Machine?

Eagle City Hall was flooded with citizens in opposition to the Bandy-Guerber Water Tax on Tuesday. Councilman Norm Semanko listened to the citizens and wants to stop the tax and go back to square one. He needs two other council members to support his motion. Al Shoushtarian appears to support Semanko’s efforts. The key is Michael Huffaker.

At Tuesday’s meeting Huffaker spent considerable time lecturing citizens on the importance of listening. The public testimony was 7 to 1 against the largest tax increase in Eagle's history. Huffaker inherited this debacle from the previous regime, so a vote to start over is a vote to begin restoring credibility at City Hall. So will Huffaker listen to the citizens or vote with the Bandy-Guerber Tax Machine?

This issue may drown Huffaker’s political future. He says believes in the audacity of listening. Call him at 938-4704 and toss him a life-line.

Semanko Steps Up

Councilman Norm Semanko demonstrated real leadership on this issue when he asked the City Attorney to prepare a motion to repeal the LID Ordinance. We need three members of the city council to vote to stop this process. Hopefully at least two other councilmen will support him on his motion when it is time to vote. Please contact Al Shoushtarian at 336-5996 and Michael Huffaker at 938-4640 and let them know what you think.

Tidal Wave of Opposition

Eagle City Hall was flooded with citizens in opposition to Mayor Bandy’s $7.2 million dollar Water Tax LID scheme on Tuesday. Over 500 citizens flowed through the building with 7 out of 8 expressing opposition to Eagle’s largest tax increase in history. This level of opposition was consistent with previous public hearings. John Wall presented a petition with over 800 signatures asking that the tax be voted on with a bond election.

The message was very clear: STOP and BACKUP! Citizens want the City to do four things:

1. Repeal the LID Ordinance
2. Obtain at least two independent appraisals.
3. Lower assessments for undeveloped farm ground.
4. Hold a Bond Election.

Eagle City government’s approval rating is in the tank. If the city council takes these steps, they can begin restoring trust and healing wounds. The citizens have thrown a political life-preserver to the Mayor and the new Council. If they are truly listening, they will be wise to grab on and make these changes. Otherwise, they will sink under the lead weight of this defective LID scheme.

Eagle Water Company Owner Largest Donor to Mayor Bandy Campaign.

A review of Mayor Bandy’s campaign finance reports indicate that Bob DeShazo, the owner of Eagle Water Company donated $1,000 to the Bandy campaign. The donation was made the day before the run-off election.

Based upon Bandy’s report submitted January 8, 2008, he raised a total of $5,634.80 from 56 donors, indicating an average donation of around $100.

Only 16 Percent in Public Hearings Favored Water Tax

An analysis of the three public hearing meetings on the proposed Water Tax was conducted.

A total of 49 individuals testified: 37 expressed opposition, 8 were in favor, and 4 did not have an opinion. Of the 8 that favored the proposal, five were members of the City's LID Committee.

If only 16 percent percent are are in favor of the LID, why did the city council vote to approve it.

Was the city listening?

This is why the REAL public hearing is an election.