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