"A government big enough to give you everything you want, is big enough to take away everything you have"
Thomas Jefferson

Friday, June 27, 2008

DANC: Landfill Is Cash Cow, No Monpoly Game

The Development Authority of the North Country, (DANC) was recently presented their audited financial
statements for the 2007-2008 year. Highlights are presented below from the auditor’s presentation to the DANC board of directors .
The auditor’s presentation included the Authority’s financial operating statement. The Authority had a net gain in income of $9.5 million, which is greater than 40% of their revenue, which by any measure of the public sector is very healthy and almost unheard of in private sector.

The auditor reports that DANC is operating with a “very healthy surplus”

The Authority has relatively low debt service according to the auditor

DANC has several lines of services, housing, water, sewer, landfill, and fiber optics. The landfill alone represents a large portion of the Authority’s total bottom line, with a profit of $4.5 million that represents nearly half of all their net income.

DANC is requesting their partners consisting of Lewis, St. Lawrence and Jefferson County as well as the City of Watertown to approve flow control legislation that restricts a hauler from transporting waste outside the region to another landfill. Flow control is a monopoly style of managing the landfill, versus free market enterprise, flow control forces haulers to use DANC, when DANC should be attracting haulers based on competitive tipping fees.
With a $4.5 million dollar profit at the landfill and low debt service for the entire Authority operation, it would be prudent for local governments to reject DANC’s request for flow control and press DANC to remain competitive in the market place, which will ultimately benefit the end user of the landfill, the consumer.
DANC wants to pay cash for their landfill expansion, which means current users are paying excessive tipping fees and paying for future user’s services when such an expansion that is estimated to last 50 years should be bonded. Paying cash would eliminate the public’s participation in the process by bypassing local governments where their voices can be heard, just what DANC desires. Instead of stockpiling large profits and paying cash for something they should bond for, DANC could benefit current users by a rate reduction and profits that are more modest.

The increase population and economic activity in the North Country with the expansion of Fort Drum will result in an ample supply of waste. Monopoly is a board game, not a way for a public authority to operate.


Anonymous said...

Government regulation? What happen to free market?
Sounds Marxist to me.

Anonymous said...

Again, the CEO must go.

Anonymous said...

The wizards on the Lewis County Board of Legislators have already voted in favor of flow control.

Anonymous said...

The wizards on the Lewis County Board never think beofre they vote. They wait and see what happens after they make the wrong choice.

Anonymous said...

Bond for it? Are you nuts. Use the excessive profits and leave future citizens with no debt. Simple math. Must be you all forgot grade school as well as other simplistic answers.

Anonymous said...

the user fee at the landfill is a tax by my standards. I don't believe that it is up to DANC to tax me via a user fee to put my money in the bank.

There is not one of us who would advocate, or be willing to pay higher property taxes just so the government can invest MY money to make them money.

We are not talking about a few thousand dollars that DANC has overcharged us for, its in the millions.

If Jefferson County doesn't push for lower tipping fees they are not doing their jobs. O

One more example of DANC being out of control.

PIV how about a list of these " community" leaders that represent us at DANC?

Anonymous said...

I believe the politcal leaders are dink and donk.

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