Monday, February 26, 2007

MLGW sitting on Mountain of Ratepayer Cash


It comes as no surprise to any taxpayers in Memphis and Shelby County that the MLGW has given a special deal to Edmund Ford. This is serious and those responsible should resign. However this is a small amount of money compared to the mountain of cash and cash equivalents that the MLGW is sitting on and continues to pile up each year out of the pockets of ratepayers who do pay their bills.

Consider that the MLGW only publishes their financial statements nine to ten months after they close their financial year on December 31. Looking at the 2004 and 2005 statements, the unrestricted cash reserves have increased from $177 million to $230 million. They say that they like to keep on hand 30 days of expenses, which is about $94 million so why do they need the extra $136 million? Could it have anything to do with financing the new proposed football stadium that the Mayor proposes? Actually the current cash after more than 13 months from the last published financial statement is probably over $270 million as they continue to pile up cash at the expense of the rate payers.