Rocky Mountain high | Arkansas Blog

Wednesday, July 12, 2006

Rocky Mountain high

Posted By on Wed, Jul 12, 2006 at 7:12 PM

Max here in beautiful Durango, Colo., just catching up on news from home. I swore this was going to be a few real days off. But then I read that the NLR Chamber of Commerce was recommending that the city take out a mortgage to cushion the coming electric rate shock. Mayor Pat Hays seems somewhat reluctant, with good reason.

Do you put YOUR electric bill on a credit card? Do you finance an electric bill for 30 years? Wait, don't tell me you wish you could. I know, many of you think check cashers provide a useful, fair service, too.

But if you DID finance your light bill for 30 years, have you given any thought to the accumulated carrying charges? UAMS is a helpful illustration for revolving credit, thanks to the recent legislative session, when it said it would much prefer bonds to pay for a $35 million cancer center expansion. This decision, rather than paying cash from the surplus, will cost taxpayers more than triple that $35 million if the bonds run to term. It's a bond underwriter/lawyer payday, but not exactly careful stewardship.

Same thing on the northside. NLR is looking at $79 $41 million wholesale rate increases each of the next three years. Nearly $250 $125 million all told. Finance that for 30 years and you're halfway a quarter of the way to a billion before you pay it back. When the news article says Electric Department "revenues" will pay for the borrowing, make no mistake. That means customers. Here's hoping the mayor stays cool on this one. And that the city's share of a new power plant really proves to be the panacea that's hoped. Otherwise, there's no way around paying the piper, a combination of higher rates and reduced city services most likely. That new Wal-Mart SuperCenter that's coming out Maumelle way will eventually ease some of the pain with a mighty flow of sales tax dollars (unsubsidized by school taxes, it's worth noting).

Back to nature.


Favorite

Comments (16)

Showing 1-16 of 16

Add a comment

 
Subscribe to this thread:
Showing 1-16 of 16

Add a comment

More by Max Brantley

Readers also liked…

  • Among the last words from Kenneth Williams: 'Finger Lickin' Good Fried Chicken'

    What's purported to be a final-words essay from condemned prisoner Kenneth Williams was distributed today by Deborah Robinson, a freelance journalist in Arkansas.  He reflects on his execution, his victims, reactions of inmates and big servings of fried chicken, which he says are given to all inmates on execution days.
    • Apr 27, 2017
  • Mitch Landrieu on the removal of Confederate tributes in New Orleans

    You want to hear the words of a strong mayor? Read the speech delivered by New Orleans Mayor Mitch Landrieu on the removal of the last of four Lost Cause tributes in the city. THIS is a strong mayor. Brilliant.
    • May 22, 2017
  • Baseball fans have a new place to stay

    If you missed out on Razorback baseball home games this year because you couldn’t find a great place to stay, your problem is now solved: Staybridge Suites of Fayetteville is now fully renovated and located directly across from Baum Stadium, with free parking for hotel guests.
    • May 22, 2017

Slideshows

  • Arkansas vs Ole Miss at War Memorial stadium in Little Rock, Saturday, Oct. 13, 2018. After leading for much of the game, Arkansas lost 37-33 when Ole Miss scored the game winning Touchdown with less that 2 minutes left. 
  • Margaret Clark Adventure Park
    New sculptures, preschoolers play area dedicated in Riverfront Park in Little Rock.

Most Recent Comments

 

© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation