Water rate increases are a backdoor tax

Share this: Email | Facebook | X

The Douglas County commissioners and public works director have been going through the county utility district by utility district month by month to "make the users pay for the operation of the districts." They claim that the county has been subsidizing the operations of the districts from other unidentified sources.

That's an admirable and desirable effort - to make the districts self-sustaining, but with two giant exceptions.

First, the county accepted defective over-built districts that did not meet the obligations to provide quality water in appropriate quantities. Now we are being asked to pay for the county employee and commission blunders.

Secondly, they are increasing the county's revenues without offsetting revenue reductions - that equates to a tax increase no matter how you look at it.

They are substantially raising the sewer and water service fees and usage rates. Those service fee increases are so far costing Douglas County taxpayers more than $850,000 a year. With the increase usage fees the take will exceed $1 million.

They are allocating the overpaid, high-priced Douglas County employee costs to the districts. Douglas County labor costs far exceed the average for like counties. Just who has determined how many hours each employee serves which district?

Why are not any of the users on the board of such districts? Is that not taxation without representation?

This is only the beginning as they will add secretly negotiated employee union contract increases plus some undefined cost of living increases in the future.

All this on top of doubling the utility fees, which is exasperated by the recent 6.3 percent electrical rate increase granted by the PUC. Furthermore, these fees are not defined as taxes and are therefore not tax deductible. The plan is a step by step increase until it reaches a full 5 percent because the Legislature has authorized it and that's what some other counties charge. Just because we can and others do it seems to validate the increases.

This is a huge "tax" increase county residents are being forced to swallow under the hidden guise of "user fees."

These reallocations of county costs have not been offset by other revenue reductions making those increases tantamount to a tax increase - an increase of the county revenue.

The other "funds" that were covering those costs just received a giant revenue increase.

This all means an additional $1 million has been sucked out of the Douglas County economy. That leaves less discretionary spending dollars available to support Douglas County businesses which results in a reduction of tax revenue. This will cause more business to close with more jobs lost which all leads to more foreclosures. This "tax" increase is extremely destructive to Douglas County's already fragile economy.

For some reason the board of commissioners fails to see and understand the taking of an additional $1 million from its residents to increase county revenues as a "tax" increase. They fail to see that such taking is padding the county coffers by increasing its revenue. They fail to see the taking is a destructive act. Or they know full well what they are doing and choose to ignore the damage to our county and its citizens.

We thought we elected intelligent commissioners who hired an intelligent county manager who had a understanding of economic issues and consequences and they would work to protect us and our economy from destruction. It appears that was not the case.

Please remember this at election time.


Stuart L. Posselt is a former county commissioner candidate and a north Valley resident.

Comments

Use the comment form below to begin a discussion about this content.

Sign in to comment