The Environmental Protection Agency (EPA) is quite serious when it comes to its NPDES permitting and its rules for sewer treatment plants or POTW's. The water coming out of a sewer treatment plant must be almost perfect before it is released. There are obvious reasons for this, namely that there are people downstream who might be drinking from that water. You can understand how serious that gets. This means that the stringent policies are always causing municipalities to upgrade their sewer plants, and at huge costs.
Most folks don't realize how much money is spent running these plans, or how much energy is used in the processes. It is huge. Without the constant energy the sewer backs up. The plant also needs water flow, and it is a giant undertaking from the processes to facility, and equipment used. Cities must be very careful to budget so they can afford these huge costs, and much of the money they take in for tax revenue is used for the sewer plants.
The Desert Sun, our local "8-minute read" daily newspaper had an interesting article on the front page on August 26, 2012 titled; "City Siphoned Off Sewer Plant Millions - Critics: Palm Springs' accounting moves circumvented law putting monies off limits," by Keith Matheny and Mariecar Mendoza.
Okay so, here is another big problem. Many of the cities out in California, and that state is hardly alone in the challenges of budgetary issues. There are serious financial difficulty due to legacy cost of people who have already retired, that is to say the pension funds of former workers at the municipality level. Also the increase in healthcare costs has been no less than 8% per year. In some cities they are paying 60% of their entire budget for the pension fund of those who have already retired. This means that all the money they take in tax revenue, all but 40% is already all used up.
If the cities at that point spend 45% administering all of their projects, and the services they perform, that means only a little over 20% of what they collect in tax revenue is going to city services. In some cases, by the time they get done paying for the police department and sewer treatment facilities there is no money left. That means they don't have enough money to have a fire department, code enforcement, dogcatcher, library, parks department, or anything else. Do you see the problems here?
The other day I was talking to a friend about this, and I said jokingly; "no wonder the cities are full of crap." But all jokes aside, I hope you will please consider all this and think on it.
Lance Winslow has launched a new provocative series of eBooks on Economic Issues. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net
Article Source:http://EzineArticles.com/?expert
Source: http://newsandsocietyblog-economics.blogspot.com/2012/09/are-stressed-municipality-budgets-and.html
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Source: http://homily-wendeline.blogspot.com/2012/09/news-and-society-blog-economics-are.html
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