Concern for neighbors

I am a Rush County resident, and I am concerned for my friends and family who are Ellis County residents and taxpayers. I have come to feel so strongly about the bond issue in Ellis County that I felt compelled to write.

Please allow me to state the painfully obvious. The continuing increase in fuel costs is causing prices to rise on everything. Into this economic climate, add the possibility of a bond issue. For some that may not quite understand, a bond is a debt that will have to be repaid. Part of our present economic crisis is the subprime mortgage crisis. The affected areas include; stock markets, financial institutions, insurance companies, municipal bond "monoline" insurers.

Monoline insurers are the entities that guarantee the bonds that municipalities issue. As of Jan. 24, these corporations had guaranteed $2.4 trillion of outstanding debt. Two of the largest of these monolines are MBIA and Ambac. On Oct. 11, MB1A was trading at $66.98 a share; late last month they closed at $5.11.

Ambac closed at $70.57 on Oct. 11; late last month at $2.09. If seeing these numbers doesn't cause every taxpayer in Ellis County to feel just a little bit of concern then I have wasted this letter.

So what does all this mean? The companies that guarantee the bonds have been heavily hit by the crisis. In January, Ambac was downgraded in to AA. When a monoline is downgraded, it stops new business and all of the bonds it has insured must be downgraded too. Bloomberg estimates that the loss of a AAA rating costs investors and borrowers up to $200 billion.

You may think it won't affect you because you're a college student and you rent. A revenue bond is guaranteed by revenue, in this case that revenue is taxes, your mill levy will increase. The estimate is 1.206, which doesn't sound too bad but crunch the numbers. The present mill levy is 37.33, which will go up to 38.536. On a house with assessed at $100,000 the present tax is about $3733.00 per year. If the estimated increase is correct the tax on the same house goes up to $3853.60, but that's only an increase of $120.60 a year. If you're a renter that increase may be passed on to you. We already know we're paying more for everything. Ask yourself do you really want to add another $120.00 a year to your housing costs, can you afford to?

What if you're a retired couple and your fixed income is $2500,00 a month, which was adequate in 2004.

But what about in 2008 when due to rising costs your income doesn't cover all your expenses? You will be forced to cut expenses. Imagine you've cut to the bone, you just barely keep your head above water. Do you stop buying the insulin for your wife of 60-plus years? Now imagine you're in that situation and your local government decides they are going to issue a bond that will raise your taxes. But hey it's only $120 a year, they hope. We could be seeing hard working people taxed right out of their homes. What if the estimate is wrong? Since when does a project to build anything come in at or below the estimate?

According to the Aug. 28, 2000, edition of HDN, FHSU was looking at the feasibility of using Hadley "(FHSU President Edward) Hammond said that FHSU seriously considered taking over Hadley ... However, high renovation costs, including the removal of asbestos insulation were major obstacles." Was the cost of removal of asbestos insulation was taken into account when the estimates were made?

All that aside, I know it sounds like I'm commenting on the project, I'm not. But as a business owner, I know that you have to look at every side of an issue to make the best decision you can. I hope that Ellis County taxpayers will educate themselves and will not let apathy keep them from exercising the democratic process. There is a petition in your community to bring this issue to a vote. If you are a property owner or if you rent from a property owner in Ellis County, make it your highest priority to find this petition and make your voice heard. If you don't, then you and all neighbors will be paying more not only for your gas and food but also for your housing. I thank anyone who reads this for their time and attention.

Christina Cushing

La Crosse