Mayor's Money- Management Policies Depleting Town Reserves


In response to the article "Water, growth top candidates' agendas" in the Feb. 15 edition of the Roundup, which quoted Mayor Vern Stiffler as saying, "We have spent $7 million in the last four years and we paid for everything in cash":

Mr. Mayor, did you flunk Economics 101 or just forget? When we moved to this town, there was a surplus of $11 million and you have successfully depleted our reserves.

I am not saying that the projects were not necessary nor a good idea. What I am saying is that you have not been a good steward of the citizens' cash.

A municipality can borrow money at a considerably lower rate than the average citizen. Four percent is the going rate.

Had you borrowed the $7 million dollars while at the same time earning a modest five 5 percent (on the town's cash surplus), the town would have been ahead by 1 percent and never have touched the $11 million in cash.

This concept has apparently completely escaped your thinking.

Mr. Hoby Herron ran on a platform of "Money in the bank, water in the tank." I suggest that you and those who voted with you have spent the "cash" like water, and we are fast losing our cash in the bank.

In case you haven't got a calculator, that 1 percent equates to $70,000 per year or $280,000 plus when compounded over a four-year period.

You were also quoted as saying "I've lived a lifetime of leadership management." If this is a sample of your management, I believe it is time for a change and hope that the people of Payson will see to effecting that change.

Shirley L. Snyder, Payson

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