Editorials: Aimless litigation

A judge gives us pause to ask again why the City of Storm Lake is suing Buena Vista County for misplacing $5 million or more in tax increment financing revenue, and why the county is being so pig-headed stubborn. District Court Judge Charles Borth last week ruled that the city’s lawsuit could proceed, but he limited the claims substantially. He gives each side ample reason to settle this embarrassment to good government before they further humiliate themselves in court for gross incompetence.

For over a decade the county sent tax increment financing revenues to the wrong accounts. The money was intended for the city, but was sent to other taxing jurisdictions like the school district or community college. The city never paid attention to the county error until a new city finance director discovered the problem a couple years ago. At that time, the county fixed the error but refused to pay the city a penny for its costly mistake.

There should have been an audit to find out where the money went and how. There was not. Neither the city nor the county asked the state auditor to intervene, nor did they seek an audit locally. They hid the truth by burying the facts.

The judge ruled that the city has a claim with the county for what it wrongfully received by the misdirection of revenue. That might not be much. We don’t know. That’s because an honest accounting was not done. It is not assured that more litigation will unearth what the county owes the city. What is assured is mounting legal costs for both sides. This is a huge taxpayer ripoff.

Storm Lake city taxpayers get screwed by the county. The city council covers for an inept administration. The county supervisors try to cover for multi-million dollar mistakes by multiple officials. Everyone lawyers up — the state auditor would have been free. Lawyers cost money while our streets crumble.

The county messed up. It should own up to its mistake and offer to make things right. The county has done no such thing. The city also was negligent in not paying attention. Things just roll on. Everyone gets a raise. Nobody gets an opponent. Nobody takes a hike.

We just get stuck by stubborn officials who refuse to tell the public how they are losing our tax money. Nobody is accountable. It is unlikely that this litigation will result in anything productive because the evidence is shredded into the trash bin of history. How much does the county owe the city? How could a judge or jury decide without an audit?

The city might be angling for nothing at great expense. The county might face a liability of millions of dollars that it does not have. A reasonable solution would be an audit with a proposed settlement. Too bad reason is not carrying the day.

Farm bill delays

Farmers are fretting over declining crop prices and increasing costs while Congress delays a new farm bill. Last week Sen. Chuck Grassley told us that he expects that the legislation will not be passed before the November election and probably not in a lame-duck session. That would make it two years late.

The farm bill was supposed to be done last September. The House far right dragged it down by trying to gut nutrition and conservation programs. The result is anxious farmers wondering about price supports and crop insurance during difficult times.

Republicans thought if they could delay it long enough they could rewrite the legislation entirely and break the long coalition between nutrition programs and farm supports that have kept each viable. It will be far harder to pass a generous tax subsidy for crop insurance if you try to cut school lunches or food stamps.

By delaying passage, the House Republicans risk losing on a bad bet. Donald Trump might not win. Mike Johnson might not be the speaker. Democrats could retain control of the Senate. They could be leaving the farm bill to progressives after the election. Whatever the case may be, it is hard to see why Congress cannot do something as basic as a food and agriculture bill. Rep. Randy Feenstra, R-Hull, should have to answer for this but he doesn’t. He is not doing the job for northwest Iowa farmers. The House of Representatives cannot write a farm bill that can pass.