Wednesday, May 18, 2011

City of Mascotte made similar mistakes

The small city of Mascotte, in Lake County, like Polk City, also made the mistake of investing in sewer systems they simply could not afford.  This mistake has put the city in serious financial distress.  See a recent news story about Mascotte below:

City on the verge of state takeover

2 comments:

  1. "made the mistake of investing in sewer systems they simply could not afford". This is not true. The City of Mascotte anticipated greater growth than occured and found themselves with financial concerns that they are addressing. The following letter is posted on the City of Mascotte website (www.cityofmascotte.com) by the City Manager:

    Date: May 18, 2011
    To: The Stakeholders of the City of Mascotte
    From: Jim Gleason-ICMA-CM, Interim City Manager for the City of Mascotte
    Subject: News Stories on News 13 and WFTV Channel 9 on 5-17-2011
    First and foremost let me make this point very clear, the City of Mascotte is not in immediate danger
    of takeover by the State of Florida.
    Like many cities in Florida, the City is facing financial challenges in these tough economic times. The
    City has and will continue to pay all financial obligations and has not committed any violation that
    would need the State of Florida’s intervention or oversight.
    The City’s Utility fund does have $3 million in debt from the planning, design, permitting and purchase
    of land for expanded water facilities and a wastewater treatment plant. Due to the dramatic change in
    the economy many of the homes and commercial development planned for Mascotte were not built and
    new business did not come. Without the impact fees and income new customer connections would
    have generated, the city must come up with an alternate plan to pay the outstanding debt.
    The City’s General Fund is currently generating the income to meet its obligations, as well as
    maintaining a small cash reserve. However, with the expected continued decline in property values,
    balancing the 2011-2012 budget will be a challenge for staff and the elected officials. Another blow to
    the City’s financial picture has been Lake County’s decision to cut $104,000 in funding for fire services
    provided by Mascotte to the unincorporated areas around our City. Without those funds the Mascotte
    Fire Department may have to cut services and unincorporated residents and business will have to rely on
    the Lake County Fire Department which will dramatically increase response times.
    The city does face financial challenges and the solutions will require difficult decisions that will impact
    all Mascotte residents, business and employees however, in taking the steps needed to address these
    challenges, the City will move in the direction of financial stability and long-term financial health.

    ReplyDelete
  2. change the city name and it is polk city. polk city planned on expansion, not going to happen

    ReplyDelete