How the City of Hurst Juggles Debt

How the City of Hurst Juggles Debt
By
James Scott Trimm

The City of Hurst says it "cycles" debt... in other words it "juggles" debt. At times borrowing money to pay off debt, and at other times paying off debt with money we already know we need with the clear intention of borrowing it again after the elections.  This often has the same effect as a consumer using one credit car to pay the bill on another.

Back in 2014 our city had recently paid off a portion of city debt, so that we went into the city elections with less city debt. Then in the very first city council meeting after the 2014 election, the City Council voted to borrow another 7.6 million dollars. This was not a bond election deal, this was just a vote of the city council. This is an example of the way the city juggles debt, frequently having a portion "in the air" during the elections."

The reason given for borrowing 7.6 Million Dollars was that our water parks needed to be refurbished. Yes, it appears that this had come as a complete surprise to our city. They have suddenly discovered that our water parks are not eternal, and have to be rebuilt every twenty years or so. In fact the city commissioned two studies to figure this out (not sure how much was spent on these two studies). Since this was totally unforeseen (yes, sarcasm is intended here), the city council voted to borrow 7.6 million dollars to rebuild them. Of course the city claimed that this would not actually raise our debt for the year because of “cycling” (a better word might be “juggling”) of the debt. Translation: The city is playing a shell game with the huge debt, borrowing money with one hand while planning to pay a similar amount down with the other. The shell game might be entertaining if our city was not spending itself into a huge debt along the way!

At this June 2014 meeting it was stated that our water parks are a "revenue source".

Of course if they were truly a revenue source they should, by all rights, be self sustaining. There should then have been a fund set aside from that very revenue, for the very day that would come (and did come) that the parks would need to be refurbished. Not only was that not done, but our city learned nothing, because it is still not being done… the “plan” (if you can call it that) is simply to be totally surprised again twenty years from now, that our water parks need to be refurbished every twenty years!

So why is our city not setting aside for an expense we know is coming, especially when these parks are supposedly a "revenue source"?

Because of the creative book keeping of our city. The Parks are NOT a revenue source, that was at least a misrepresentation, and at most a blatant lie by the city.

On Feb. 4th 2015 the City of Hurst Facebook page posted:

"For today's fun fact, we're proud to report that 54,000 patrons attended both Hurst Aquatics Centers in 2014. Chisholm is currently getting a complete makeover, and we can't wait for our patrons to see it this summer! "

Remember, at the June 10th 2014 City Council meeting we were told that it was important to refurbish the parks and to do it in the off season because we were told they "generate revenue for the city". So on June 10th the council voted to borrow 7.6 million dollars to refurbish the park (since it was borrowed we will pay back a good deal more than 7.6 Million).

So if the parks have only 54,000 patrons a year and if the patrons pay an average of $4.50 each (generous, since more than half will be Hurst residents and pay the lower price) then the parks only generate $243,000 a year. Multiply that by 20 and they generate only 4,860,000 in 20 years. Now if we spend 7.6 million every twenty years to refurbish parks that only bring in 4.9 million over that same twenty years. That does not even account for overhead (water, chemicals etc.) and payroll. It looks to me like these parks are not "revenue generators" at all, but are operating on at least a 2 to 1 LOSS. To represent these as revenue generators (as was done at the 6-10-14 Council meeting) is at the very least misleading. Why are we excited that we had 54,000 patrons when we need at least twice that amount (if not more) just to make these parks sustainable?

We waste money by spending about 1.48 on the dollar to borrow money to pay for things instead of setting aside in advance to pay for them.

It is time for a change at City Hall.  We need a mayor who will promote fiscal responsibility!  That candidate is Joel Downs. 

Mr. Downs is not the establishment candidate.  He offers positive change.   It is time for change, for new blood, and for a course correction toward conservative values that reflect those of the majority of the residents of our city.  And that is why I am supporting Joel Downs for Mayor.  I hope that you will join me.

You can Visit Joel Down's Campaign Website at http://www.downsforhurst.com