Tuesday, March 30, 2010

Brian Williams Statement on Water Transfer Deal Meeting


Democratic candidate for Mayor of Indianapolis, Brian Williams, released this statement by e-mail regarding the public information meeting on the proposed transfer of the city's water and waste water utilities to Citizens Energy Group. Here is the statement...

Last night I attended the public meeting on the proposed sale of the water company. I was expecting a town hall type meeting. Instead the meeting was more like the old Politburo meetings, a scripted and controlled format designed to convey an open and democratic process. Most important were three comments made regarding the financial underpinnings of the proposed deal. First, Citizen's Gas stated that it would borrow the entire $170 million the city would receive at closing. A few years ago this type of borrowing led to a disaster in the housing market today. Second, Citizen's Gas stated that their "financial models" clearly demonstrate that the ratepayers were better off under their proposal than any other. A few years ago, "financial models" on Wall Street were so sophisticated that we would never face an economic recession. Third, neither the Mayor or Citizen's Gas articulated what discount the City was willing to accept to allow Citizen's Gas, its preferred vendor, to be the sole negotiator with the City for the purchase of the assets. The more this transaction is discussed the more concerned I become about the financial viability of the deal. If this proposal is to move forward, Citizen's Gas and the Mayor need to be forthcoming on the financial models used to develop a value and purchase price, the source and use of funds and the governance structure and performance metrics.

1 comment:

Anonymous said...

Who ever knew someone would figure out a way to use "Politburo" and "performance metrics" in the same email?

What about paying for sidewalks and roads out of our already growing water and sewer bills? Any problem with that, or should we just focus on "financial models," "value pricing," and "performance metrics?"