Dear Editor,
Sullivan council members are once again working toward hiring an
economic developer because according to the council “they have
budgeted to do so”.  This raises many questions and a need for
correcting some fundamental problems in my view. I have serious
concerns and questions regarding the need to hire an economic
developer in Sullivan.

As a property owner/tax payer in Sullivan, with employees and family
tied to this City as well, I have an immense interest in what goes on
in Sullivan.  Being a founder of West Sullivan has placed me at odds
(to say the least) with the City of Sullivan for most of the last 15
years.  Recent circumstances, which were beyond my control, have
caused West Sullivan and my neighbors to become by default contracted
with Sullivan for sewer treatment.  As a consequence, of that shotgun
wedding of sorts, I now have an even greater vested interest in
Sullivan’s management of all of its affairs and especially utility
rates.

Simply put, wouldn’t it be better to use every dime in the budget to
lower utility rates than to hire a sales person to try to talk people
and businesses into coming to a City that has driven people and
businesses out due to costs of living and operating here?   And by the
way, what happened to the utility ad hoc committee meetings and Matt
Carroll?  I hope Matt will go back to work on this issue.  And what
happened to John Davis and Fidelity?  Davis was so concerned about
Sullivan wasting money pursuing growth in 2008 he threatened to move
his business out of the City if Sullivan did not do what he demanded.
How is this situation any different?  Where is he now?  The sewer
rates were recently reduced a little, but it seems to me the council
gave only crumbs instead of real meat and potato reductions.  The City
can do much-much more if it chooses.
Does the average citizen realize Sullivan now has about ten million
dollars ($10,000,000) in mostly electric profits just sitting in our
City reserve account?  Since 1942, there has never been a
multimillion-dollar electric emergency, nothing more than a few
hundred thousand dollars in reality.   The electric profits from years
past are comingled with the old hospital sale money.  The City of
Sullivan loaned itself some of that comingled cash - about six million
($6,000,000) for the overpass a couple years back.  That loan money is
coming back through a separate special transportation sales tax
though.  So in reality, the City has upwards of sixteen million (yes
$16,000,000) in reserves for our council members to play with.
The bottom line for me is Sullivan has far too much money in the bank
while overtaxing our citizens and Sullivan has repeatedly proven it is
not willing to grow nor can it, and the only time growth is talked
about is election time, seemingly to get folks elected or re-elected.

Last year, there was much talk about the economy causing City tax
revenues to be down and even talk of laying off many Sullivan
employees to save money for the City. In the end the Police budget was
cut along with other jobs merged – to save money.  There is something
wrong with this.  It is not just the national economy hurting
Sullivan. Everyone should be honest and admit the biggest problem is
really Sullivan’s utility rates, which are through the roof.  Many
homes and businesses in Sullivan are either empty, or people and
businesses are minimizing their use of water, sewer and electric
because of the incredibly high utility rates. Check the rental ads in
this paper, talk to realtors, rental house owners and property
managers.  Renters have left, are leaving, or are avoiding Sullivan
due to utility rates. In many cases, the renters who remain have
demanded rent rate deductions to offset utility costs.  Some
businesses have left town to avoid the utility rates too.  Others say
“the rates are bankrupting them slowly”.  Empty homes are hard to
sell.  Many property owners have reduced rent rates in efforts to keep
renters and this tactic devalues the property along with all the
others in town.  Some properties are being sold under pressure at a
lower price due to inability to rent them, or own and live in them,
because of utility rates.  How will hiring an economic developer help
change any of this?

If Sullivan further lowered all utility rates there are people who
will stay in Sullivan in their homes, renters who need affordable
places to live and people to buy first homes, even tax credits to
motivate buyers to do so.  If utility rates in Sullivan were not so
costs prohibitive, some empty homes would fill up, and property values
will begin to stabilize.  The citizens buy goods at Wal-Mart or other
stores and in the case of empty homes - create more revenue to cover
the fixed costs portion of the utility services.  Certain parts of
each department costs the same to operate regardless of how many
people are using the services, or how many homes are sitting empty.
The more people living in town the more to help pay the fixed costs
portion of the utility departments.  Lower utility rates would help to
keep the businesses we already have in Sullivan as well.  Reducing
utility rates would create a much greater return on investment to the
City than hiring another employee as a sales person.

The fact is we make a ton of money selling electric to ourselves in
Sullivan.  Income from electric is just the same as another tax.  Even
though our mayor says, the City absorbed the last 5% rate increase
from Show Me Power.  This comment insults our intelligence. The City
could not have absorbed anything if it were not profiting in providing
us with electric service in the first place.  A true non-profit entity
is not supposed to make this kind of money.   When did we lose site of
this?  The truth is; we bank about one and half million ($1,500,000)
or more per year beyond costs - in electric service profit. Again,
this electric profit is just the same as tax.  Does this extreme
profiting/taxing on electric have to continue?  The answer is NO.  We
could run our electric more like a coop - save enough for maintenance,
replacement and unforeseen emergency repairs as non-profits are
supposed to do.

The City could choose to lower all utility rates now, by diverting the
“budgeted money” for the economic develop position to offset utility
costs.  And the City should redo it budget immediately to reduce or
eliminate all of its debts by spending just some of the reserve money
to pay off the debts.

I encourage citizens to go to the next City council meeting to demand
answers.  If you own your own home, rent from others, or own rental
property; these utility rates are hurting everyone and devaluing
property values.  Don’t let this, or the next council, continue the
same old plan of charging high utility rates while unnecessarily
holding on to our “reserve” money to play with and hire more staff
under the pretense of wanting growth when really they probably just
want to act as if they want growth - to get elected again.

This current council needs all of our input so they can see the light.
If people do not demand change, they will keep following the same old
plan.

Specifically, ask the council:

Why do we need to make so much profit on electric?

How much is enough in emergency reserves and make them explain their
answer in detail?

When the City loaned itself money from the reserve account to pay for
the overpass overages, did that not prove we did not need so much
money in emergency electric reserves? And, isn’t that proof the City
just use the reserves to play with and do with as they please, when it
suits them, instead of “saving for a real electric emergency”?

Demand we spend part of the reserve cash to pay off the treatment
plant and other departmental debt now - to lower all utility rates.

Put the $100,000 budget for the economic developer toward debt too or
better yet toward operating costs for the treatment plant and water
department too - to lower sewer and water rates even more?  Create a
new job title if need be to move some people out of those departments
if that is what it takes.  Where there is a will there is a way.

Then, lower the electric rates too - to help everyone and to reduce
further unnecessary cash reserves.

Our council will act if pressed by enough citizens to do so.

Thank you,

Jim Turntine