Exposing Corruption, Injustices and the Truth.
| O'Fallon Watchdog |
| Watchdog Headlines ! |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
O'Fallon, Mo., leaders point fingers amid sales tax slowdown
By Nancy Cambria
ST. LOUIS POST-DISPATCH
03/04/2007
O'FALLON, MO. - With a six-mile stretch of shopping centers along Highway K, O'Fallon has been considered the land of
milk and chain stores when it comes to retail in St. Charles County.
But a $600,000 shortfall last year in expected sales tax revenue has city officials nervously evaluating the surrounding
competition and picking old political fights.
"Is it time to panic? No. It's time to be concerned," said Council President Peter Cantwell, who noted the city had only a few
major commercial developments come before the planning board this past year and even fewer that broke ground.
That's a slowdown Cantwell said the city can't afford as large competing shopping centers have already gone up in nearby
Lake Saint Louis and Dardenne Prairie on the Highway 40 corridor.
"You don't have the luxury of time for us in business," he said. Cantwell continues to blame a former Board of Aldermen
majority voted into power in April 2005 for many of the city's development troubles. He said the group was foolish to de-
annex parts of the city that included commercial projects in developing BaratHaven and at Highway N. He, along
with many on the current board, think the previous officials drove developers away.
"Even now when Bill Hennessy and I and the other councilmen are explaining that we want to rebuild these bridges, the
builders are very polite, but the answer is, 'We need more time because we've been burned.'"
Last year, O'Fallon earned about $10.6 million for its general fund from its 1-cent city sales tax, according to recently
released figures. Although the receipts were up slightly over the previous year, they fell short of an anticipated $11.2 million
on which officials based the city's current budget.
Director of Finance Vicki Boschert said that officials realized about midyear that the returns were coming in more slowly than
expected, and that they had made some budget corrections but now would have to evaluate this year's budget to find trims.
The sales tax receipts were expected to contribute about 43 percent of the city's general revenue budget this year; property
tax was expected to make up an additional 16 to 17 percent. The city depends on utility taxes and other revenue to fund the
rest.
Last year's estimate, which predicted tax receipts would increase by about 6 percent from 2005, may have underestimated
the competition. Within the past 16 months, Target, J.C. Penney, Lowe's, Shop 'n Save and a Wal-Mart Supercenter have
opened in nearby communities along Highway 40.
Boschert said consumers also appeared to be less willing to spend their money. Recently, The Liscio Report, a financial
newsletter that tracks state sales tax receipts nationwide, said collections were on the decline and declared a national
"weakening consumption trend."
Mayor Donna Morrow said the council ought to consider the shortfall and the economy as a warning that the city needed to
consider a sale of the sewer and water system and take a hard look at how it wanted to fund parks and other improvements.
Earlier this year, Morrow unsuccessfully pressed the council to put a three-eighths-cent sales tax for parks on the April
election ballot. She has also indicated that if the city wants premier services, it may have to consider raising property taxes.
But Cantwell, who is running for re-election next month, said the city needed first and foremost to focus on rebuilding
relations with developers.
Whatever their differences, the officials agree that O'Fallon, with a population estimated at 74,000, still is a prime market for
developers.They also want to remind residents that where they shop is important. "We definitely need to, as a city, hope our
residents support our local business," Morrow said.
Nancy.Cambria@post-dispatch.com
Watchdog Response:
It is no surprise that Peter Cantwell is looking to find someone to blame for O’Fallon’s recent financial woes. A recent Post-
Dispatch article claims the City of O’Fallon fell over a half million dollars short in sales tax revenue in 2006. Peter is running
for re-election and certainly doesn’t want residents to think his decisions may be part of the problem, so he does what he
does best; play the blame game and point fingers.
The problem in O’Fallon is not the lack of major commercial developments or the de-annexed, residential heavy, overtaxed
Barat Haven project or Schipper, Hudson, Kuehn or Busken. Peter is one that subscribed to the bigger is better, growth at
all cost philosophy just as his political idol Paul Renaud. This philosophy has created an ocean of residential development
(once described as a sea of vinyl) lined with vacant strip centers, neither produce enough tax revenue to support
themselves much less the city when one takes into account all the services people want provided. Peter claims in the Post
article that the builders have been burned and that Peter and the other builder friendly Councilman need to rebuild these
bridges. The Watchdog is pretty sure that “rebuilding” bridges with builders would not be needed for a number of reasons.
His logic makes no sense when you consider these strip center projects are complete and are sitting idle waiting for tenets.
It seems that all you need to do is find a business that wants to over pay for a lease, be forced to charge higher sales taxes
on their product, and deal with the mind numbing traffic gridlock in front of their store.
O’Fallon officials lack foresight. The past, as predicted, is catching up with O’Fallon and that is why they find themselves in
the financial situation that they are in. Many of the previous leaders in O’Fallon were driven to increase the number of
residential living units at a breakneck pace to the benefit of their financial supporters (McBride, Vantage, TR Hughes). The
problem is residential taxes do not pay for the services that they require leaving the city in a financial hole. Major retail
centers were not a priority at the time because it did not directly benefit their “home builder” supporters, or in some cases
employer. Instead of balance, O’Fallon became one giant, never ending subdivision. A poorly designed, poorly
constructed subdivision full of lies, payoffs and corruption.
The WingHaven area is a perfect example. A concept neighborhood, a city within a city, but it turns out to be a huge failure
when compared to the original concept that was sold to the residents of O’Fallon. WingHaven was to have a “high tech
corridor” that was to be used to increase the likelihood of attracting high tech companies to O’Fallon, which in turn would
create jobs and pay substantial taxes to the city. This area was strategically placed along highway 40 and was designed to
be a self-sufficient area. The major tenet in the Wing Haven complex, MasterCard is a perfect example of the ‘bill of goods”
sold to the O’Fallon taxpayer. It turns out the deal with MasterCard was a disaster for taxpayers. The figures from the
County Assessors office show a loss of tax revenue to the Wentzville School District alone to be around $2,000,000 a year
due to the various tax breaks given to them. Another problem came when this unique area was partitioned off by the likes
of Peter for more houses, obviously to benefit his buddies the builders. These are the very same builders that Peter claims
that he needs to help rebuild bridges for. The Watchdog can only assume these new bridges will be for the builders to
continue the raping and pillaging of O’Fallon.
The Watchdog can’t help but think back to some recent financial decisions Peter and his friends on the Council have made
that are indicative of their financial plight. Creating an unneeded position for what appears his friend and supporter Steve
Talbott that will pay well over $100,000 a year after salary and benefits. Giving $800,000 to a developer for an unneeded
road that was built solely to divert traffic into a new subdivision (sound like Barat Haven, Mexico-Lowes Loop Rd and
Guthrie Rd all over again). This $800,000 was given away without any signed agreement, just a promise. The Watchdog
has never heard Peter or this Council talk about reducing the amount of debt in the city, or reducing the budget, no, like a
spoiled 5th grader it is all about more, more, more. I think Peter and this Council needs to focus on the residents for a
change. In the Post article Peter was asked if it is time to panic, he said no, but it is time to be concerned. I am sure the
concern is how he and the rest of the Council can continue handing out taxpayer funded gifts to their political friends and
supports.
In the past year Peter Cantwell, Bill Hennessy and the rest of the Council have approved at least 3 major commercial
developments Belleau, Lowes Loop, and Kingsmill, albeit with up to an additional 1% sales tax to help the developer and
yes to be borne by you the retail taxpayer. This additional 1% will not go to the city and will not help out in this financial
crunch, but instead it goes into the pocket of the developers of these projects. These sales tax increases all were approved
by Peter Cantwell and Bill Hennessy and can be found in O’Fallon Ord No. 5048, 5086-Hennessey voted no and 4985.
Peter maybe that is a place to start looking for your lost revenue. The previous years before that the city including Bill
Hennessy had approved Caledonia (sales tax increase Ord No. 4792), O’Fallon Station (sales tax increase Ord No. 4793),
Megan’s Crossing (sales tax increase Ord Estb. 6/7/04) and O’Fallon Retail Walk, not to mention the three or four new car
dealerships such as Lou Fusz Dodge, Trenary Chevrolet and a new Vovlo dealership. Peter claims according to the Post
article that few commercial developments have been approved in this past year. I guess he forgot about above mentioned.
I guess Peter forgets that this is the same town that just a few short years ago wanted to bulldoze downtown, run it
businesses and residents off so they could hand the property over to, surprise, surprise their builder buddies and comrade
in political arms. The bridge you need to be rebuilding Peter is with the residents and businesses, not your political backers
such as the builders and developers.
The Post article also claims Peter Cantwell stated that it was foolish to de-annex the BaratHaven project due to the
commercial development in it. Again, I think Peter is a bit short sited. BaratHaven offered nothing new in way of
commercial; as a matter of fact it was more of the same – strip centers. First off BaratHaven was going to be another TDD,
code for secret sales tax increase that goes into the developers pocket, second it involved a road to be created for the sole
purpose of getting in and out of the development, which would be fine if the developer wants to build it and pay for it, but in
typical O’Fallon fashion the developer wanted the taxpayers to fund his road for his development at a tune of $1,500,000,
then wanted you the taxpayer to pay for detention, landscaping, permits, insurance, professional fees, layout and testing for
a grand total of $1,950,000 and came with no escrow, letter of credit or guarantee should the road fail as many have been
prone to do in O’Fallon. The Watchdog could be wrong, but the Watchdog feels those items should be paid for by the
developer, not taxpayers.
The commercial projects in BaratHaven that Peter was so worried about losing came up to just over 200,000 sq. ft. a very
small piece of the BaratHaven puzzle, the rest is comprised of a private school which offers no tax revenue to the city, 205
residential home sites which are lucky to pay for themselves vs. the service the city provides, and the rest in a marsh or as
the developers of BaratHaven like to refer to as parkland, again producing little if any tax money for the city. So why would
Peter keep harping on the loss of this ground? Let’s take a look at the major players involved and those that stand to make
the most money out of the deal, well it’s none other that Peter’s old friends McEagle Development (Paul McKee/WingHaven)
and Vantage Homes (McBride Homes Family). The total cost borne by the taxpayers for BaratHaven to build more of the
same in O’Fallon would have been nearly $4,000.000 (the amount you would be paying in additional taxes to the developer,
not the city). Is it any wonder why this city is in financial trouble? This information is strait out of the BaratHaven
Transportation Development District handbook supplied to the Board of Alderman on January 27, 2005. Is the picture
getting clearer? I guess Peter needs to rebuild that bridge also, since he failed to come through on securing another piece
of ground for these guys to swindle.
Peter is also concerned that Lake St Louis and Dardenne Prairie are taking commercial projects away, well they are and
they are doing it via the City of O’Fallon’s very technique, they are giving away the farm for a short term gain. The problem
with this flawed technique is that it leads to abuse, misguided judgments based on greed and the complete manipulation of
our public trust by increasing taxes without the citizens approval. In other words what is happening in O’Fallon right now, will
soon be taking place in Lake St Louis and Dardenne Prairie. On a personal note to Pam Fogerty, when you sleep with
vipers you will get bit.
The same Post-Dispatch article quotes the Mayor so the Watchdog would be remiss if it failed to mention the plan the
Mayor has for the sale of the water and sewer facilities. This is another short sighted, ill advised plan for the residents.
The city could sell these facilities and the services, and reap the short term financial reward but the numbers do not add
up. It appears the amount received from the sale would not cover the total debt owed on the bonds for the water and sewer
facilities. The worse part of this deal is that the resident will gain nothing. The residents will still be the ones paying for the
remaining bond debt via the city and the new rates for water and sewer usage charged by the new owners of the facilities.
The city would also remove the citizen’s voice in any rate increases, since it would now be part of a private company. What
really bothers the Watchdog is that the problems at the water and sewer plants did not sneak up on anyone. This has been
a building problem for at least the past 5 years and although late, it was being addressed by a previous Board of Alderman
once the information was presented to them. I think it is important to recap this situation for a clear understanding.
Todd Galbierz one of the previous City Administrators under Renaud and Morrow directed various city officials to withhold
critical information about items such as the condition of the water and sewer plants from the Board of Alderman.
Fortunately these city officials did the right thing and brought this information to the Board. Once the situation was
discovered the Board took action. First by calling Mr. Galbierz on the carpet (he resigned instead of answering questions)
and second by making some tough but justifiable decisions. Water and sewer rates unfortunately had to be minimally
increased, but more importantly the very mechanism used to pay for repair and upgrades to facilities, the water and sewer
tap fees that builders and developers pay when they build new houses were increased to a more productive level. A
decision was also made that the city would stop the questionable practice of past Administrations of paying the tap fees for
builders and developers (another giveaway).
This alone saved the city millions of dollars and forced the builders and developers to pay their own way in O’Fallon. It got
so out of hand that O’Fallon taxpayers were paying for the tap on fees for builders and developers in the southern part of O’
Fallon, an area that wasn’t even maintained by the city but rather Duckett Creek and Public Water District #2. I guess this
is what Peter meant by burning bridges. Peter and his Council quickly rebuilt this bridge by reducing tap fees to builders,
and even going back to giving them away free for some builders meaning this cost was picked up by the taxpayers. Peter
was quick to play the blame game by stating the fee increases were unnecessary and that the previous administration
raised rates to punish developers. In an ironic twist of fate the sewer plant “shot craps” not once but twice, shortly after
Peter lead the charge of pointing fingers at Schipper, Busken, Hudson and Kuehn leaving the city “up the creek without a
paddle”. Instead of doing the right thing, Peter and his buds decided to play politics, now they have a broken sewer and
water plant with no way to pay for it. If the plants are sold, the new company will have to fix the problems, and pass along
the cost to the residents through higher rates, all while the residents pay off the bond debt from the city through their taxes.
Peter, Mayor Morrow and the rest of the council played political chicken with this issue and lost. Unfortunately it will be the
residents of O’Fallon that will have to pay the price.
By Nancy Cambria
ST. LOUIS POST-DISPATCH
03/04/2007
O'FALLON, MO. - With a six-mile stretch of shopping centers along Highway K, O'Fallon has been considered the land of
milk and chain stores when it comes to retail in St. Charles County.
But a $600,000 shortfall last year in expected sales tax revenue has city officials nervously evaluating the surrounding
competition and picking old political fights.
"Is it time to panic? No. It's time to be concerned," said Council President Peter Cantwell, who noted the city had only a few
major commercial developments come before the planning board this past year and even fewer that broke ground.
That's a slowdown Cantwell said the city can't afford as large competing shopping centers have already gone up in nearby
Lake Saint Louis and Dardenne Prairie on the Highway 40 corridor.
"You don't have the luxury of time for us in business," he said. Cantwell continues to blame a former Board of Aldermen
majority voted into power in April 2005 for many of the city's development troubles. He said the group was foolish to de-
annex parts of the city that included commercial projects in developing BaratHaven and at Highway N. He, along
with many on the current board, think the previous officials drove developers away.
"Even now when Bill Hennessy and I and the other councilmen are explaining that we want to rebuild these bridges, the
builders are very polite, but the answer is, 'We need more time because we've been burned.'"
Last year, O'Fallon earned about $10.6 million for its general fund from its 1-cent city sales tax, according to recently
released figures. Although the receipts were up slightly over the previous year, they fell short of an anticipated $11.2 million
on which officials based the city's current budget.
Director of Finance Vicki Boschert said that officials realized about midyear that the returns were coming in more slowly than
expected, and that they had made some budget corrections but now would have to evaluate this year's budget to find trims.
The sales tax receipts were expected to contribute about 43 percent of the city's general revenue budget this year; property
tax was expected to make up an additional 16 to 17 percent. The city depends on utility taxes and other revenue to fund the
rest.
Last year's estimate, which predicted tax receipts would increase by about 6 percent from 2005, may have underestimated
the competition. Within the past 16 months, Target, J.C. Penney, Lowe's, Shop 'n Save and a Wal-Mart Supercenter have
opened in nearby communities along Highway 40.
Boschert said consumers also appeared to be less willing to spend their money. Recently, The Liscio Report, a financial
newsletter that tracks state sales tax receipts nationwide, said collections were on the decline and declared a national
"weakening consumption trend."
Mayor Donna Morrow said the council ought to consider the shortfall and the economy as a warning that the city needed to
consider a sale of the sewer and water system and take a hard look at how it wanted to fund parks and other improvements.
Earlier this year, Morrow unsuccessfully pressed the council to put a three-eighths-cent sales tax for parks on the April
election ballot. She has also indicated that if the city wants premier services, it may have to consider raising property taxes.
But Cantwell, who is running for re-election next month, said the city needed first and foremost to focus on rebuilding
relations with developers.
Whatever their differences, the officials agree that O'Fallon, with a population estimated at 74,000, still is a prime market for
developers.They also want to remind residents that where they shop is important. "We definitely need to, as a city, hope our
residents support our local business," Morrow said.
Nancy.Cambria@post-dispatch.com
Watchdog Response:
It is no surprise that Peter Cantwell is looking to find someone to blame for O’Fallon’s recent financial woes. A recent Post-
Dispatch article claims the City of O’Fallon fell over a half million dollars short in sales tax revenue in 2006. Peter is running
for re-election and certainly doesn’t want residents to think his decisions may be part of the problem, so he does what he
does best; play the blame game and point fingers.
The problem in O’Fallon is not the lack of major commercial developments or the de-annexed, residential heavy, overtaxed
Barat Haven project or Schipper, Hudson, Kuehn or Busken. Peter is one that subscribed to the bigger is better, growth at
all cost philosophy just as his political idol Paul Renaud. This philosophy has created an ocean of residential development
(once described as a sea of vinyl) lined with vacant strip centers, neither produce enough tax revenue to support
themselves much less the city when one takes into account all the services people want provided. Peter claims in the Post
article that the builders have been burned and that Peter and the other builder friendly Councilman need to rebuild these
bridges. The Watchdog is pretty sure that “rebuilding” bridges with builders would not be needed for a number of reasons.
His logic makes no sense when you consider these strip center projects are complete and are sitting idle waiting for tenets.
It seems that all you need to do is find a business that wants to over pay for a lease, be forced to charge higher sales taxes
on their product, and deal with the mind numbing traffic gridlock in front of their store.
O’Fallon officials lack foresight. The past, as predicted, is catching up with O’Fallon and that is why they find themselves in
the financial situation that they are in. Many of the previous leaders in O’Fallon were driven to increase the number of
residential living units at a breakneck pace to the benefit of their financial supporters (McBride, Vantage, TR Hughes). The
problem is residential taxes do not pay for the services that they require leaving the city in a financial hole. Major retail
centers were not a priority at the time because it did not directly benefit their “home builder” supporters, or in some cases
employer. Instead of balance, O’Fallon became one giant, never ending subdivision. A poorly designed, poorly
constructed subdivision full of lies, payoffs and corruption.
The WingHaven area is a perfect example. A concept neighborhood, a city within a city, but it turns out to be a huge failure
when compared to the original concept that was sold to the residents of O’Fallon. WingHaven was to have a “high tech
corridor” that was to be used to increase the likelihood of attracting high tech companies to O’Fallon, which in turn would
create jobs and pay substantial taxes to the city. This area was strategically placed along highway 40 and was designed to
be a self-sufficient area. The major tenet in the Wing Haven complex, MasterCard is a perfect example of the ‘bill of goods”
sold to the O’Fallon taxpayer. It turns out the deal with MasterCard was a disaster for taxpayers. The figures from the
County Assessors office show a loss of tax revenue to the Wentzville School District alone to be around $2,000,000 a year
due to the various tax breaks given to them. Another problem came when this unique area was partitioned off by the likes
of Peter for more houses, obviously to benefit his buddies the builders. These are the very same builders that Peter claims
that he needs to help rebuild bridges for. The Watchdog can only assume these new bridges will be for the builders to
continue the raping and pillaging of O’Fallon.
The Watchdog can’t help but think back to some recent financial decisions Peter and his friends on the Council have made
that are indicative of their financial plight. Creating an unneeded position for what appears his friend and supporter Steve
Talbott that will pay well over $100,000 a year after salary and benefits. Giving $800,000 to a developer for an unneeded
road that was built solely to divert traffic into a new subdivision (sound like Barat Haven, Mexico-Lowes Loop Rd and
Guthrie Rd all over again). This $800,000 was given away without any signed agreement, just a promise. The Watchdog
has never heard Peter or this Council talk about reducing the amount of debt in the city, or reducing the budget, no, like a
spoiled 5th grader it is all about more, more, more. I think Peter and this Council needs to focus on the residents for a
change. In the Post article Peter was asked if it is time to panic, he said no, but it is time to be concerned. I am sure the
concern is how he and the rest of the Council can continue handing out taxpayer funded gifts to their political friends and
supports.
In the past year Peter Cantwell, Bill Hennessy and the rest of the Council have approved at least 3 major commercial
developments Belleau, Lowes Loop, and Kingsmill, albeit with up to an additional 1% sales tax to help the developer and
yes to be borne by you the retail taxpayer. This additional 1% will not go to the city and will not help out in this financial
crunch, but instead it goes into the pocket of the developers of these projects. These sales tax increases all were approved
by Peter Cantwell and Bill Hennessy and can be found in O’Fallon Ord No. 5048, 5086-Hennessey voted no and 4985.
Peter maybe that is a place to start looking for your lost revenue. The previous years before that the city including Bill
Hennessy had approved Caledonia (sales tax increase Ord No. 4792), O’Fallon Station (sales tax increase Ord No. 4793),
Megan’s Crossing (sales tax increase Ord Estb. 6/7/04) and O’Fallon Retail Walk, not to mention the three or four new car
dealerships such as Lou Fusz Dodge, Trenary Chevrolet and a new Vovlo dealership. Peter claims according to the Post
article that few commercial developments have been approved in this past year. I guess he forgot about above mentioned.
I guess Peter forgets that this is the same town that just a few short years ago wanted to bulldoze downtown, run it
businesses and residents off so they could hand the property over to, surprise, surprise their builder buddies and comrade
in political arms. The bridge you need to be rebuilding Peter is with the residents and businesses, not your political backers
such as the builders and developers.
The Post article also claims Peter Cantwell stated that it was foolish to de-annex the BaratHaven project due to the
commercial development in it. Again, I think Peter is a bit short sited. BaratHaven offered nothing new in way of
commercial; as a matter of fact it was more of the same – strip centers. First off BaratHaven was going to be another TDD,
code for secret sales tax increase that goes into the developers pocket, second it involved a road to be created for the sole
purpose of getting in and out of the development, which would be fine if the developer wants to build it and pay for it, but in
typical O’Fallon fashion the developer wanted the taxpayers to fund his road for his development at a tune of $1,500,000,
then wanted you the taxpayer to pay for detention, landscaping, permits, insurance, professional fees, layout and testing for
a grand total of $1,950,000 and came with no escrow, letter of credit or guarantee should the road fail as many have been
prone to do in O’Fallon. The Watchdog could be wrong, but the Watchdog feels those items should be paid for by the
developer, not taxpayers.
The commercial projects in BaratHaven that Peter was so worried about losing came up to just over 200,000 sq. ft. a very
small piece of the BaratHaven puzzle, the rest is comprised of a private school which offers no tax revenue to the city, 205
residential home sites which are lucky to pay for themselves vs. the service the city provides, and the rest in a marsh or as
the developers of BaratHaven like to refer to as parkland, again producing little if any tax money for the city. So why would
Peter keep harping on the loss of this ground? Let’s take a look at the major players involved and those that stand to make
the most money out of the deal, well it’s none other that Peter’s old friends McEagle Development (Paul McKee/WingHaven)
and Vantage Homes (McBride Homes Family). The total cost borne by the taxpayers for BaratHaven to build more of the
same in O’Fallon would have been nearly $4,000.000 (the amount you would be paying in additional taxes to the developer,
not the city). Is it any wonder why this city is in financial trouble? This information is strait out of the BaratHaven
Transportation Development District handbook supplied to the Board of Alderman on January 27, 2005. Is the picture
getting clearer? I guess Peter needs to rebuild that bridge also, since he failed to come through on securing another piece
of ground for these guys to swindle.
Peter is also concerned that Lake St Louis and Dardenne Prairie are taking commercial projects away, well they are and
they are doing it via the City of O’Fallon’s very technique, they are giving away the farm for a short term gain. The problem
with this flawed technique is that it leads to abuse, misguided judgments based on greed and the complete manipulation of
our public trust by increasing taxes without the citizens approval. In other words what is happening in O’Fallon right now, will
soon be taking place in Lake St Louis and Dardenne Prairie. On a personal note to Pam Fogerty, when you sleep with
vipers you will get bit.
The same Post-Dispatch article quotes the Mayor so the Watchdog would be remiss if it failed to mention the plan the
Mayor has for the sale of the water and sewer facilities. This is another short sighted, ill advised plan for the residents.
The city could sell these facilities and the services, and reap the short term financial reward but the numbers do not add
up. It appears the amount received from the sale would not cover the total debt owed on the bonds for the water and sewer
facilities. The worse part of this deal is that the resident will gain nothing. The residents will still be the ones paying for the
remaining bond debt via the city and the new rates for water and sewer usage charged by the new owners of the facilities.
The city would also remove the citizen’s voice in any rate increases, since it would now be part of a private company. What
really bothers the Watchdog is that the problems at the water and sewer plants did not sneak up on anyone. This has been
a building problem for at least the past 5 years and although late, it was being addressed by a previous Board of Alderman
once the information was presented to them. I think it is important to recap this situation for a clear understanding.
Todd Galbierz one of the previous City Administrators under Renaud and Morrow directed various city officials to withhold
critical information about items such as the condition of the water and sewer plants from the Board of Alderman.
Fortunately these city officials did the right thing and brought this information to the Board. Once the situation was
discovered the Board took action. First by calling Mr. Galbierz on the carpet (he resigned instead of answering questions)
and second by making some tough but justifiable decisions. Water and sewer rates unfortunately had to be minimally
increased, but more importantly the very mechanism used to pay for repair and upgrades to facilities, the water and sewer
tap fees that builders and developers pay when they build new houses were increased to a more productive level. A
decision was also made that the city would stop the questionable practice of past Administrations of paying the tap fees for
builders and developers (another giveaway).
This alone saved the city millions of dollars and forced the builders and developers to pay their own way in O’Fallon. It got
so out of hand that O’Fallon taxpayers were paying for the tap on fees for builders and developers in the southern part of O’
Fallon, an area that wasn’t even maintained by the city but rather Duckett Creek and Public Water District #2. I guess this
is what Peter meant by burning bridges. Peter and his Council quickly rebuilt this bridge by reducing tap fees to builders,
and even going back to giving them away free for some builders meaning this cost was picked up by the taxpayers. Peter
was quick to play the blame game by stating the fee increases were unnecessary and that the previous administration
raised rates to punish developers. In an ironic twist of fate the sewer plant “shot craps” not once but twice, shortly after
Peter lead the charge of pointing fingers at Schipper, Busken, Hudson and Kuehn leaving the city “up the creek without a
paddle”. Instead of doing the right thing, Peter and his buds decided to play politics, now they have a broken sewer and
water plant with no way to pay for it. If the plants are sold, the new company will have to fix the problems, and pass along
the cost to the residents through higher rates, all while the residents pay off the bond debt from the city through their taxes.
Peter, Mayor Morrow and the rest of the council played political chicken with this issue and lost. Unfortunately it will be the
residents of O’Fallon that will have to pay the price.
| O'Fallon Watchdog |
Exposing Corruption, Injustices and the Truth.