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FM Diversion and Dam Increases national debt

Fargo Diversion Authority Spending Spree

Fargo Diversion Authority Burning Through Cash
The Fargo Diversion Authority is burning through cash at an impressive rate. In just one short month, June 30th – July 31st, 2014, the Fargo Diversion Authority was able to spend $16,419,589.50.

As of July 31st, 2014 $13,672,412.68 has been spent on the city of Oxbow, ND, but Diversion Authority records are not clear on what other portions of the overall $79,934,616.80 project costs should also be included in the Oxbow price tag.

$16.4 million is a substantial chunk of change. Think about it, when Fargo eventually receives the outstanding $7 million in pending reimbursements for flood fighting cost relating to the 2011 and 2013 flood fights, Fargo will have spent more in one month for diversion related activities than all of the combined Fargo flood fighting costs since 1993.

Here’s the breakdown.

Fargo Flood Fight Related Costs 1994-2013 36,905,730
Federal Reibursements Received as of 12/31/2013 – 14,078,522
Pending Federal Reibursements – 7,052,910
——————————————————————- ——————
Total Fargo Flood Fighting Costs After Reimbursement 15,744,298

 

With the Fargo Diversion Authority actively engaged in the OHB project, flood protection money is being funneled away from internal Fargo flood protection projects, which could alleviate the forthcoming FEMA flood insurance requirements, which the city of Fargo has had ample time to address.

So where does the rationale that spending money on projects outside the city make any sense, when Fargo leaders stood in front of the state legislators spinning their woeful tale of how flood prone the city of Fargo is…, and how desperately they needed state funding to complete internal flood protection projects?

The Fargo Diversion Authority spent $98,015 in legal services just on “bond counsel” and another $60,200 to cover legal and closing costs on obtaining a $50 million dollar interim loan that taxpayers have the privilege of repaying. In essence Fargo Diversion Authority spent $158,215 to discover a way to stick the taxpayer with a $50 million loan if they fall short or run into other cost over-runs.

Every dollar spent on projects outside the city, leaves Fargo “dollar for dollar” less protected.

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