Our Commissioners Attend the Annual Strategizing Conference. I Emerge Not Terribly Depressed

We “city fathers” and heads of department spent an otherwise sunny Saturday at a well planned and executed meeting in which an imported facilitator led us along the usual pro-forma, management-approved ruts that these affairs always follow. I will relate a few of the bland recommendations. We needed to foster the Kentwood brand, speak well of the city government,  continue to foster the feeling of safety and orderliness that our residents may (or may not) treasure, keep costs and taxes low, and guard against threats coming from the economy, from civil unrest, or from other governments that could derail our plans. By way of boosting Kentwood, the meeting was held in downtown Grand Rapids.

There were no ringing calls for spending money to reach the Promised Land or for imposing new onerous regulations on the citizenry. I participated actively and at the end, had no idea about what future we had designed. The upside is that not having a concrete plan about where we should be going will allow the future to come as a complete surprise rather than as an continuously visible failing goal pinned on every cubicle wall, viewed daily with dread and anxiety.

I am of course not without some personal ideas about what we in the commission should do to manage our future. I start from a perspective of an outsider gazing down from a longer distance, darkly. Kentwood, it seems to me, has numerous threats, both internal and external, any one of which could thwart any well thought out plans.

Some are internal problems that we can address. We have debts and a defined pension plan about half invested in stocks.  Inflation, reaching only 0.7% in the USA last year, has been on a steady decline for 35  years. The inflation rate in much of the industrialized world is less than zero. If deflation takes hold, our equity markets would undoubtedly collapse, shriveling our defined pension plan and plunging the city into deep financial crisis. We should invest the defined pension plan money in long term treasury bonds or offloaded our risk by buying annuity policies for covered employees. We should also pay off our bonds when they are due rather than refinancing them at “low” interest rates. If deflation reaches 5% per annum, our real interest rates will look more like 8% at a time when real estate, income and sales taxes are all falling  making governmental revenues scarce. Deflation threatens the general US and world-wide economy but handled properly, it could make Kentwood with its relatively low debts the shining diamond of our region.

We can’t do much about the rest of the threats that we face.

We in Kentwood are tied in with the economies of Grand Rapids, Michigan, Detroit and Chicago/Illinois with their huge debts; defaults will cramp our finances and economy.

The average Kentwood  income has diminished from 49k to 39k in the last 10 years. I’d argue that the diminution is not because our citizens are working less, but rather because economically less productive residents are moving in.

Our real estate market has not recovered back to its admittedly bloated 2007 level.

Michigan’s DEQ (of Flint water fame) wants all new developments to retain all storm water on the property, but we have impenetrable clay soil and so may not be able to develop empty areas of our city.

The Feds have fantasies about distributing poverty to all neighborhoods in an apparent pursuit of equality, thereby improving our collective protoplasm, or something.

Our diversity, seen unaccountably as a virtue, could turn on itself turning ugly and cause devastating costs and hatreds.

Large portions of our city are were built in the 1920s and are on the cusp of economic obsolescence.

So I would plan working only for our survival. We should bend our energies to forestalling crippling losses and parrying threats that could destroy the vaunted peace and perception of orderliness in Kentwood.

I’m glad that the conference didn’t advance any new adventures in which we would fritter away our money. Opportunities in our city will come irregularly and from eruptions in the private sphere or in nature that no official can anticipate. (Who would have foreseen North Dakotans as being transiently wealthy due to fracking or more recently becoming a center for drone research; they had merely to let prosperity happen.) Hopefully, if and when opportunities come knocking, our city will still be functioning and able to benefit. Our leaders should curb their impulses to snuff out spontaneous and often disruptive innovations with regulations and planning, or, heavens forbid, subsidies.

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