In a recent guest comment, the chairman of the PSWID Board of Directors said that he learned about inflation at an early age.
While some people learned about inflation at an early age, I was taught the importance of fully understanding the cost of borrowing money. I learned that if I borrowed $10 at 7 percent a $10 item would actually cost $10.70. I also learned the more you borrowed for a long period of time, the more it would cost.
I also was taught to live within my means and that it is better to save today for a better tomorrow rather than to borrow and spend today for a debt-filled tomorrow. I hope that PSWID board members will adopt the principles of living within one’s means and not double PSWID’s debt with a $7.5 million bond issue.
PSWID’s current debt is about $7.5 million. The purchase of the water companies in 2009 cost in the area of $3.5 million. From the year of purchase to now, PSWID has outspent income in the amount of about $4 million. PSWID has created this debt while imposing large increases in water usage rates and property taxes. I believe it is time for PSWID to take the time to look for more economical approaches to solving the community’s water problems.
The increases in water rates and property taxes have caused many residents to tighten their belts. It is time for PSWID to tighten its belt and start living within its means. Let’s save today for a better tomorrow.
I have one question. Since we have been in a period of low inflation during the time PSWID has been in charge of the water system, what does inflation have to do with PSWID’s steep increases in water rates and property taxes?
Bernice E. Winandy