Sunday, May 15, 2016

A reminder: How bad is the financial situation at the Lake Worth Casino complex? Really bad

Most glaring in this report (below) that City Manager Michael Bornstein presented to the City Commission late last year is that the loan ($6 million+) is not getting paid back anywhere near as promised by previous elected officials (aka the 'visionaries', see below). As part of the business plan originally proposed, the Casino complex would be making enough money to pay $500,000 a year back it borrowed. When you add that to the projections, the red line in the graph below would be, as they say, "off the charts".
The Casino business plan was a failure from Day One.
In order to save money and keep the BEACH! operating the City and staff are on a shoestring budget. Much maintenance is being deferred and those costs are not going away—just pushed down the road.

In order to fix this situation a previous commission left us with, some, including current Commissioner McVoy, PhD (who was on the dais at the time the Casino project was bungled), came up with this 'grand' pitch: Raise electric rates to fix the problem. A problem that wouldn't have been a problem had this past commission done their jobs right in the first place:
For too many past City administrations, the Electric Utility was the "cash cow". As you can see above, some would like to go back to those days. The pitch above by Maier and McVoy failed.
Do I have to remind everyone who is responsible for all this? Here are those 'visionaries':
Once again, here are some of the problems with our 'charming' Casino complex and this does not include the problems with the municipal pool and the seawall which was never properly inspected.

1 comment:

Anonymous said...

Wes look around at all other municipalities where they own the electric system and you will see higher rates in order for them to feed the budgets for both large and small cities. We are not FPL with millions of customers and we rely on our electric/water system to support our business as a city. Continue to seek lower rates will not work.