Tag: city utilities

 

 

 

A BABY BORN IN PARIS TEXAS  

. . . . IS GOING TO FIND THINGS DIFFICULT.  BEING SLAPPED ON THE BUTT IS A DISGRACE, BUT (NO PUN INTENDED) FINDING YOU’RE $17,931 IN DEBT TO THE CITY ON YOUR FIRST BREATH ISN’T THE WAY YOU WANT TO ENTER LIFE. 

ITS ENOUGH TO MAKE ANYONE CRY.

Understanding) THE CITY OF PARIS TEXAS BUDGET

This fiscal year, 2023-2024, the City of Paris claimed it only increased its budget by 3.5%. But it raised more revenue from property taxes than last year’s budget by $1,912,026 – a 20.31% increase.  

Of that amount, only $101,001 is from new property added to the tax roll in 2022-2023.

REVENUE ($53,418,850.00)

General Fund: $ 31,051,550.00

Water and Sewer Fund: $ 20,987,300.00

Sanitation and Landfill Fund: $ 1,380,000.00

CURRENT DEBT:

The total of bonds and other debt obligations (principal and interest) outstanding is $123,445,000 of which $37,091,035 will be paid by property taxes. (But fees, permits, fines, retail sales, hotel occupancy taxes, local electric, gas, internet, phone, other taxes and/or fees are also paid by property owners, as well as by renters of property in Paris, and by those visiting Paris. Either directly or indirectly, property taxes are paid by everyone, i.e.; part of a retail item’s cost pays a portion of the property taxes owed by the retail outlet’s owner.)

An assessed property with a $100,000 taxable value owes a debt of $477.82 to the city.

ANTICIPATED Budget and Debt Costs:

City’s new Wastewater Treatment plant – an estimated base cost of $128,000,000. (Not counting interest.)

Current Budget:                                             $   53,418,850.

Current debt & Obligations:                         $ 133,861,575.

WWTP Anticipated New debt (P & I):        $  259,201,276.   

        Total Budget, Current & Future Debt Costs:            $  446,481,701.00

 

          $ 446,481,701 .00 is a tidy sum, even for the Texas Lotto.       

Other items of interest:

Capital purchases (one-time purchases); vehicles, certain equipment, studies, etc., are difficult to predict. An example being the recent $125,000 wasted for a local housing study so the city can have an excuse to do what it wants to do, which will not help real housing problems.

Surplus funds: Needed for dedicated annual revenue in case another assistant city manager is needed or some other man-made disaster occurs, or a big hunk of Paris is swallowed by a giant creature flying in from a far-off galaxy. When funds are not available, re-occurring or new revenue must be found.

So a healthy reserve needs to be available … as its just money the taxpayers don’t need.


Each of Paris’ 24,900 citizens will owe $17,931 to the City of Paris, based on today’s dollars.

The promised “. . . no increases in fees . . .”

Since 2003, this is the disastrous result of what the City of Paris Texas has done regarding a needed wastewater treatment plant:

The originally estimated wastewater plant cost of $30-to-$35 million jumped to $76 million in 2017. Five years later, by 2022, the cost jumped to $100 million. Now, barely into 2024, the estimated cost has reached a staggering $128 million. (No official estimate has been released on how many gallons of wastewater per day [GPD] the plant will treat.)

What simply drives all that off the scale of common sense is that taxpayers cannot say they were not warned.

From the city’s original estimated costs, the Paris Chamber continually has stated that what Paris did (and is doing) hits a new high in stupidity.

Jiggery-pokery, however, is not unknown in politics. Consider: In 2013, facing a $47 million bond vote for water and sewer improvements, citizens were told that “no increases in water and sewer rates would be needed.”

But in 2017-18, the city added an estimated $7.60 monthly to the local sewer rates (around $100 a year MORE than we were paying) to “help pay for a new sewer treatment plant.” Then, on 4-1-2021, water and sewer rates were again increased another $7.65 a month , and “routinely increase every six months” until 4-1-2026. And again, we were told that the increases were needed to help “finance construction of a new wastewater plant.”  

No matter how some may want to spin it, that was the spirit of intent in all the statements.

So, where’s the plant? Of course, there isn’t one.

SO, IF the money generated from the increases in rates have been used for other purposes, where is accountability?  IF the income from those past rate increases isn’t in an established, ear-marked fund for a new plant, as was promised, where did the money go?

And, please, no Happy Talk of it being used to “pay down other debt.”  The “other debt” was, supposedly, being paid from the tax and utility rate increases for those purposes.

But WHY a $128 million costs?

 

A Look at independent reporting on types and costs of wastewater treatment in Texas.

The Texas Water Newsroom, produced by the Texas Water Development Board (TWDB), was created to tell the stories of Texas water—the people, places, issues, and efforts—on water and wastewater. So, let’s look at examples of just one funding source for wastewater infrastructure (and development of wetland and wildlife areas):

There were – are – billions of dollars available from public and private sources for proposed wetlands and wildlife areas; especially, those associated with reuse projects. Both such projects were the Paris Texas Chamber of Commerce recommendations back in 2012 for a portion of the flood plains adjacent to Lake Crook.* We even threw in the fact that such projects would gain favor for grants and low-cost loans, thereby reducing the cost of a new wastewater plant.

IF Paris had acted, the cost for a treatment plant likely would have been less than $30 million, and be up and running by now . . .

The Paris leadership ignored the recommendation and, by doing so, are now presenting the taxpayers a bill of $128 million ($259,201,276 million w/interest) for not acting. Likely, too busy finding ways to dump more debt on babes born in Paris, Texas; and to give tax money away to those who don’t need it . . .

We’ve known for years that growing pressure in the U. S. to develop resilient, drought-resistant water supplies — particularly for the West — wastewater recycling for potable use was rapidly becoming more important than ever. (A recent article from Wastewater Digest explores emerging technologies for wastewater recycling, for purposes ranging from potable reuse to mineral extraction and basic agriculture.)

 

* If interested, email us (parischamber@paristexaschamberofcommerce.com) and we’ll send you a copy of the recommendation to the Paris City Council, the PEDC, and what used to be the Lamar County Chamber. Its still a viable and workable endeavor…

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city utility rates are assessed by local monopolies          

 

Our local utility rates for energy, gas, AT&T, Suddenlink/Optimum/Altice (whatever the TV cable company is) are local monopolies and each pays a Franchise Fee to the City of Paris to operate here.  Usually, the franchise fee is based on a percentages of the rates the company charges consumers.

Of course, the City of Paris has a local monopoly on water and sewer utilities, and trash pickup (at least, until it’s privatized). And just as with the city’s utilities, council members have the responsibility to approve or disapprove every rate increase requested by these Franchisees. 

(Over the years that the Paris Chamber of Commerce has existed never, to our knowledge, has there ever been a request for a rate decrease.)

This means that every time a rate goes up, so does the income to the city from the franchise fee.  It is a hidden tax sort of thing.

This doesn’t get a lot of publicity.  Perhaps, because local media receives “advertising revenue” from these local monopolies and those who benefit from what the monopolies do or don’t do.  The news then gets colored by local government representatives, who report to the media what they’re doing (or not doing), until you don’t know what or who to believe. 

These factors mean that what you read and hear about local rates – or even how things may work locally – will not usually be found in columns about the need for open public information and full public disclosure. It is how Freedom of the Commercial Business Press works today. 

Anyway, we brag about our “low cost of living” when compared with other Texas’ cities. 

Yeah.  Chicka-boom-boom! 

Our “low cost of living” is because we have hundreds – thousands – of buildings older than oak, and they sell c-h-e-a-p! 

Look at the houses, neighborhood after neighborhood, block after block, and you understand why housing costs are so low.  You will also understand why retirees aren’t flocking to Paris like English Sparrows looking for a nesting site.

What you will not understand is why we brag about it.

While there is a reason for our low housing costs, there are no reasons why our city utility rates and costs should be among the highest in Texas.  (Along with our tax rates, with the sales tax requiring $8.25 cents on every $100 we spend.) 

We should be striving to hold down franchise fees, which include utilities:  Electricity, gas, cable, as well as City of Paris water, sewer, and trash pickup.

Every time the City allows a utility rate increase the less fortunate are penalized; requiring more of the widow’s mite. 

Of course, Paris is not alone in doing this.  It is the way politics generally works.  The least powerful individuals among us are the ones who most feel every increase in utility rates, gas prices, and taxes that dig deeper and deeper into their income. 

Cities, like Paris, raise city utility rates – not because it is the right thing to do – but because their citizens all need or must have what the utility monopolies are selling. And they are far easier to approve than an increase in property taxes.  Plus, people tend to blame the utility company when they get the bill, not the ones who approved the rate increases.

If Paris ever gets really serious about being the kind of city you want to live in, we’ll stop rubber-stamping every request for another rate increase. As we lose population, we should be reducing or – at least – holding the line on spending.

In the meantime, other companies would likely be happy to offer a lower rate for the same or similar utilities, if we invited them.  It might, at least, improve service.

Is there a law that says we can’t at least get bids?    

                

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