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Officials differ on spending windfall

SALEM

March 30, 2013

The auditor wants to pay down debt, the mayor wants to bolster the capital improvements fund and Utilities Commission members want included in further discussions on what to do with a $1....

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(23)

dubfun

Mar-30-13 8:55 AM

Spend it on downtown revitalization instead of tacking an additional tax onto a population that is already struggling in this poor economy.

4 Agrees | 3 Disagrees | Report Abuse »

thebear402

Mar-30-13 8:59 AM

I hope they're earning interest on it.

3 Agrees | 0 Disagrees | Report Abuse »

STofit

Mar-30-13 9:38 AM

Do what any sane person would do. Go buy Power Ball tickets. For sure don't pay off any bills. (sarcasm)

0 Agrees | 0 Disagrees | Report Abuse »

PattiHannah

Mar-30-13 8:15 PM

Police Department/ Narcotics Detection Dog

6 Agrees | 4 Disagrees | Report Abuse »

swager

Mar-31-13 5:50 AM

Why would the water dept. need it back? The rates are adjusted for the city slush fund, not actual costs. Why do you think the city takes money to prop up other entities as they continues to fail? With the way they run it, there is no need for messy tax increases, just bump your bill.

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concerned

Mar-31-13 7:52 AM

Apply it to debt and capital improvements. While I would like to see it all go to capital improvements and fixing our streets, we have to realize that debt is not good for financial stability. Pay off the big bill and use the rest to fix the streets (not just a patch jobs) Debt payments and interest on those debts is part of the reason why the city had to change the capital improvements split to 15%. Reduce the spending and the capital improvement split can be increased. A portion should also go to law enforcement to help stop some of the crime that has been increasing over the last few years. Be responsible with this money and don't waste it. I think the auditor is on the right track for the long range financial well being of the city. Only don't go racking up more debt once this is paid off. Live within your means and the city will be better off for it.

8 Agrees | 2 Disagrees | Report Abuse »

Cahill

Mar-31-13 9:12 AM

Here we have an opportunity - in an environment where money can be borrowed at 3.5% only pay off loans that must be paid off because they are residual high-interest loans. The money would be better set aside to generate interest in a secure fund. This would benefit us for generations, instead of being a one-time capital infusion.

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concerned

Mar-31-13 11:19 PM

Pay 3.5% and get what .25? Now there is a plan.

6 Agrees | 1 Disagrees | Report Abuse »

ladybug

Apr-01-13 11:14 AM

I hardly think he meant a loan interest savings account.

1 Agrees | 7 Disagrees | Report Abuse »

concerned

Apr-01-13 12:35 PM

Enlighten me ladybug what did he mean?

5 Agrees | 1 Disagrees | Report Abuse »

ladybug

Apr-01-13 12:56 PM

Enlighten me concerned .

You seem to have a negiative answer to everything.

Pay off the higher interest loans. Borrow money if needed. We'll never 3.5 % again and invest the balance. Like the water dept does with it's 10+million,.

1 Agrees | 7 Disagrees | Report Abuse »

ladybug

Apr-01-13 1:15 PM

Why is 1,4 million setting in a pile for 6 months without an attempt to get alittle interest off it.?

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Mtlhed

Apr-01-13 5:09 PM

Just pay off the debts, or at least as much of them as possible. The borrower is slave to the lender. Why is it that all governments play footsy with the banks? I'll never borrow money again, yet my tax dollars go into bottomless pits of overspending and loan payments. Fixing streets or roofs is great, but it should be with surplus money.

3 Agrees | 1 Disagrees | Report Abuse »

WatchDog

Apr-01-13 6:18 PM

"Like the water dept does with it's 10+million"

You mean the illegal surplus of money that belongs to the residents of this city? That money?

4 Agrees | 0 Disagrees | Report Abuse »

concerned

Apr-01-13 7:37 PM

Ladybug What is negative about saying you should pay off debts that are costing you more in interest than you could get if you put the money into any kind of savings that would pay you less than you what you are paying in interest on the loan. Government entities are by law limited on the places they can save public money. It must be placed in the more secure investments which always pay a lower rate of return.

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Mtlhed

Apr-02-13 9:17 AM

I don't know anything about an illegal surplus of money. I'm just saying that, in general, individuals, families and government agencies would be better off by only spending within their means, out of free and clear money after all bills are paid. That way there's no need to go into debt.

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ladybug

Apr-02-13 9:53 AM

Methed.

Unfortunatley it don't work that way..

People want things and along came old pay for it later credit cards,

0 Agrees | 4 Disagrees | Report Abuse »

WatchDog

Apr-02-13 6:52 PM

Mtlhead, ladybug stated it, not you: "Like the water dept does with it's 10+million"

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WatchDog

Apr-02-13 6:58 PM

"....government agencies would be better off by only spending within their means, out of free and clear money after all bills are paid."

Mtlhead, that would be a first for Salem by actually following the law? If the Salem residents and taxpayers ever woke up...Salem would quickly change!!!

1 Agrees | 0 Disagrees | Report Abuse »

WatchDog

Apr-02-13 7:19 PM

Government agencies are non profit. It is against the law for any ENTITY of Government to have a surplus of money.

ANY ENTITY OF GOVERNMENT. HINT HINT

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concerned

Apr-03-13 8:21 AM

Bug says: "Enlighten me concerned .

You seem to have a negiative answer to everything"

Do you mean a negative answer like the city auditor has since I agreed with her?? You must think she has negative answers also right?? I agreed with her because I thought she gave them sound financial advise. Not because it was her or that I was against anyone that had a different ideas. Unlike those that have to put their names to comments so they can be praised of men, I believe we should share ideas on here and it shouldn't matter who the idea came from. If it is a good idea it is a good idea. Instead of attacking people why don't you try to give logical support for or against others ideas.

Because someone does not agree with every half baked idea that comes down the pike does not make them negative.

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questioner

Apr-03-13 12:31 PM

Not that we get a vote, but I also would agree with Ms. Brothers as it seems the most financially sound plan given. (Mr. Goll's "I should get the money" doesn't even count as a plan in my book.)

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questioner

Apr-03-13 12:46 PM

I do have a couple questions (and someone, please, answer without much side commentary if you can): WHY do we have loans that we can't pay down early or refinance? Isn't that rule #1 when you buy a house, etc--make sure you can pay it off early? Was there some incentive like a lower interest rate to do it that way? Otherwise, who did it and with whose approval? Then, what is the "Home Depot Tax Increment Finance loan"? And while the paper said it is "costing the city an increasing amount of money from the general fund each year because the payments from the affected businesses aren't enough to cover the yearly payment", I'm not understanding what that means. We took a loan to give a tax break elsewhere(??), and what we're being repaid is less than what we are having to pay? Why are we having to pay more on a loan we took to give as a loan to someone else than we are receiving back from them? Who decided that one? What went wrong? Will it get fixed?

0 Agrees | 0 Disagrees | Report Abuse »

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