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« Opinion
A city starved for funding should sell its assets
A city starved for funding should sell its assets
EDITOR:
Youngstown can readily fund a facility for its Municipal Court and possibly afford new facilities and offices for a much-needed enhanced law enforcement presence without raising its already high municipal income tax rate. Sell the Youngstown Water Department; better yet, sell the entire Mahoning Valley Sanitary District.
The state of Indiana sold its toll road for a lump sum of $3.5 billion that earns more annual interest than it earned in its entire 50 year history.
Selling a government-owned or controlled entity such as water/sewer utilities requires legislative approval. I urge any member of city council and any state legislators form the area to propose such legislation.
Perhaps one of our Mahoning County commissioners can likewise suggest a county-owned nonproductive asset that could be sold to generate funding for the county courts.
Atty. CARL RAFOTH
Youngstown
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Comments
And after the city sells the water system to the highest bidder, I expect water prices will go up. Given enough time, in water rate changes will far exceed any tax increases the city would pass.
Actually , Youngstown taxes are very high , for what we get. In particular , there is the anomoly of a city, whose citizens are desperate for more income , having one of the highest income tax rates in Ohio . Little wonder busineses locate outside Youngstown . The income tax rates are only this high because the property tax payers have been struggling for many years under their load .
The City needs to identify its underutilised assets & , if it can't improve them itself , consider them seriously for sale .
As far as the water system is concerned , the pipe network has suffered from decades of being undermaintained . Other cities in a similar position have found anything up to 30% of their water was being wasted through leaking pipes .But this was only fixed after their water systems started being managed by people with a financial interest in minimising wastage . Youngstown needs a massive amount of infrastructure investment & it can't all come from the City or government sources . Some private capital is needed . I would be surprised if the City couldn't sell its water dept . even with a condition that usage charges be capped ; because a new owner could make enough just from waste reduction .
Great Idea! Sell it to a county-wide entity and eliminate the infamous extortion using water for annexation that has destroyed the valley over the past few dscades - everyone wins...
Youngstown actually has one of the highest municipal income tax rates in the country, with all things being relative, not just Ohio.
The comparison between selling a municipal water and sanitary department to selling a statewide toll road is skewed, at least when the figures are mentioned.
A toll road through a state is going to see constant revenue while a municipal water department in an economic toilet with a declining population will be a little harder to market and will fetch no where near the sales proceeds of the toll road.