Stop the insanity on building projects
By Paul B. Double | Winona

What is perpetual motion? A chain reaction of events or costs, feeding on themselves and each other to cause new events to occur with no ending point or conclusion.

It also appears to be the process whereas government entities build buildings with no advance plans to fund their maintenance, replacement or operating costs. It is aggravated by sponsors who desire naming rights for building it; called by most “pork.” It is started by building new buildings thereby creating a need to use them.
Then, we hire more people to fill them, which necessitates more programs to fill the space, and when that occurs to create more space because we have now run out of space. It is a process that is unsustainable unless you own a money tree.

We have already built too many underfunded public buildings. Assuming that a building has a 50-year life cycle what is the cost to maintain it for its life, including at least two new roofs and four new heating cooling plants not to mention paint, floors and other routine and normal things like heat, electricity and water use? At the end of its life cycle, we then get to replace it, and with inflation most likely at four to five times its original cost.

School districts used to have sinking funds budgeted at 2 percent of the original cost providing for the buildings replacement as it wears out. Add to that another 2 percent for ongoing normal maintenance, and now we are talking some serious money.

So when your county board, city council, school district or state tells you they are going to bond for $100 million, ask them where the 4 percent or $4 million per year or additional $200 million over 50 years will be raised or taxed to pay for it. We also assume, often in error, that they have the cash on hand to pay for it in the first place rather than needing to add interest as well.

And, if they dispute the real total cost, ask them, “Have you ever seen a government program housed in a government building eliminated, shrunk or even use the same amount of space over a span of 50 years?”

If you have, take a picture and frame it, as it may be worth a fortune on eBay as a one-of-a-kind.

An now that you understand the real price tag on building ownership, let every elected official know that you want “truth in packaging” their new building plans without passing the buck, bill or another bonding obligation to your kids. And last but not least, never allow them to bond or have a special referendum for maintenance items.

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