A commentary in the Springfield News-Leader today cited a recent op-ed of ours (OK, of mine) about city utilities in Springfield. The commentary noted how, despite its pension issues, the Springfield city government is far from broke, and offered as one piece of evidence the value of its utility holdings. That is where we came in:
Further, the Show-Me Institute estimated that City Utilities’ water division alone could be sold for $75 million.
That was a very rough estimate, as I readily admitted in the piece on Springfield and City Utilities that this figure came from, but it is nonetheless based on reasonable calculations that I discussed in detail. The author of today’s piece is right on: Springfield is not broke, and it does have options in fixing the city’s pension problems. Those options may or may not involve a tax increase, but selling the municipal utilities is a very realistic option that has already been done by Florissant and Webster Groves here in Missouri, to give just two examples.
