Wednesday, December 25, 2002

Authority would be fired at any private company

Well, I'm back. I have been very quiet for some time. Frankly it was more interesting watching than participating. Our new mayor and mostly new council have been working overtime. Ever since our former mayor Bobby made the 6 o'clock news trying to press criminal charges on our current mayor for misappropriation of $8 and change in services, it's been pretty quiet. Even his cadre ran for cover. But, as things happen, there is almost always a new dragon just around the corner.

This time it's the Development Authority.

Okay, let's start with the basics. What is the Development Authority and what is it supposed to do? It's rather simple actually. Their function is to "develop" (hence the name!) business within the city. They are to court new outside PTC businesses and encourage them to locate to PTC and help existing PTC businesses grow and expand, thus adding to the PTC tax revenue and job base.

That should be the prime function. Unfortunately, our current staff feels their function is to begin new businesses, fund them with loans backed by our tax dollars, borrow whatever is necessary, alter city property without proper permission, run businesses in the city's name and not worry about profit. "After all, we can just use the taxes to cover the losses!"

In the real world, it doesn't work like this. "Managers" are held to be bottom-line, P&L responsible. This is also a simple principle. Make money or die!

These non-elected officials are spending PTC future tax money with total disregard and unconcern. With the gall of an Enron executive, they maneuver skillfully to justify their actions. They claim their actions are not illegal.

I personally doubt the validity in this, but it is of little matter. They deserve to be canned because they are losing tons of money. Simply put, they are poor managers.

If I worked for a company that borrowed money to meet salaries, I'd get my resume out fast! That company is on the rocks.

Seasonal trends? What business doesn't have them? Real managers are paid to work and adjust cash flows for this. That's why they are called "managers."

The Development Authority is in short not doing its job. It should be contributing to PTC taxes by expanding business, not starting them and mismanaging them, then propping them up with loans based on future tax revenues.

Where did you guys learn this? If it was a business school, please let us know the name so we can redirect our youth elsewhere. You have it backwards! You should be canned because you simply are not doing the job. Forget the rationales, forget the legality of it all, which is questionable; you should go because you are costing PTC money when you should be adding to its assets. That is you job.

I have worked for a number of companies as a general manager. Though it has often been tough, I have always made money, maybe not as much as we all wanted, but my numbers were always in black ink. Even today, in this poor economy, the small company I manage can say we have been profitable for the last 72 months on a monthly basis. It may indeed be a small company, but it puts my bottom line ahead of a lot of others.

Unfortunately, this includes the PTC Development Authority's businesses.

You should not "step down," you should be fired for incompetence. If I did what you have done, I assure you I would be unemployed quickly. For those who say, "It's different for PTC," my response is, "Why?"

You see, if I fail, I have no taxes to base loans on. My income, indeed my job security, is based on performance. Always has been, always will be.

Why should the PTC citizens and taxpayers settle for less?

Rick Gauthier

Rickg4@juno.com