☆ SV cities need to scrutinize where they’re getting—and spending—funds (opinions)
So say Gregg Dieguez (SHIFT-Bay Area) and Jan Soule (Silicon Valley Association of Conservative Republicans)—especially when it comes to “virtually bankrupt” yet overcharging local water, sewer, and transit agencies. Perhaps deficits aren’t—and shouldn’t be—inherent to the public sector, after all? More below in this Opp Now exclusive.
Gregg Dieguez, SHIFT-Bay Area sustainability director: Local government (small cities, and most water, sewer, stormwater, and transit agencies) is virtually bankrupt. For example, SFPUC was cash flow negative and had a capital reserve deficit of over $6.7 billion when I last studied it.
Part of the cause of the so-called “structural deficits” is an accumulation of bad decisions over time, which undermined the fiscal sustainability of those cities, counties, and agencies. They failed to give sufficient priority to the economy and the infrastructure supporting our civilization, while pursuing social programs which may be empathetic, but are fiscally unsustainable. One of those bad decisions is the failure to charge "impact fees" on growth (e.g., in new buildings) that are proportionate to the current replacement cost of the infrastructure being burdened.
One decision local governments and agencies could make is to charge impact fees, which fund the pro rata share of the current replacement cost of infrastructure supporting new homes and businesses, in addition to the direct extra costs of connection. This would make growth more expensive, but save current residents from subsidizing the New Joiners—which is one reason our costs are so high, because the soon-to-be-realized replacement costs must be funded by residents who did not benefit from the growth.
Jan Soule, Silicon Valley Association of Conservative Republicans president: Most importantly, local government needs to start cracking down on crime. I often suspect SJ stores are raising their prices because of the rampant theft—at least three times a week at the Home Depot in my neighborhood!—and legislation that prohibits employees from chasing thieves.
Furthermore, the city's negotiated "waste management" contracts are incredibly expensive for residents—and constantly going up. San Jose needs a better solution that meets our needs without breaking the bank.
Follow Opportunity Now on Twitter @svopportunity
We prize letters from our thoughtful readers. Typed on a Smith Corona. Written in longhand on fine stationery. Scribbled on a napkin. Hey, even composed on email. Feel free to send your comments to us at opportunitynowsv@gmail.com or (snail mail) 1590 Calaveras Ave., SJ, CA 95126. Remember to be thoughtful and polite. We will post letters on an irregular basis on the main Opp Now site.