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Saturday, August 8, 2009

Take me to the PILOT out of control


In an earlier post, I already suggested that PILOT -- money Dallas Water Utilities pays into the General Fund and is reimbursed to the DWC through higher water rates you pay -- is nothing more than a hidden tax increase.

Let me give offer this example to prove my point: You hire me to perform a service and we agree on a payment that includes an hourly fee, which you think is reasonable, plus my expenses billed at cost (no markup), which you also think is fair. The parallel to the city budget is that my hourly fee corresponds to your property taxes, and my expenses corresponds to fees you pay to the city (water bills, parking meters, golf fees, etc.)

After the first month, you get my bill and you see that my expenses include rent I paid to myself for living and working out of a house I own. Now, if you think this is a legitimate expense that you should reimburse me for, you're going to love PILOT.

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