Thursday, September 13, 2007

24 years at 1.87%

As of October 5th, we will have owned this property of ours in Cleveland's Archwood-Denison/Brooklyn Centre neighborhood for 24 years. I track investments for time-weighted and dollar-weighted rates of return. Using data from the county auditor's site, and considering the original purchase price ($32,000) and the cost of our improvements to the property (which have been minimal), and the current market valuation on the website ($59,800), I see that the time-weighted rate of return here has been 1.78% and the dollar-weighted rate of return here has been 1.87% over these past 24 years, since 1983.

Is it any wonder that the latest county commissioners' report, as The Cleveland Equanimous Philosopher (It's The Details That Can't Be Strung Behind An Airplane That You Should Be Worried About) has pointed out, shows a deficit projected for the end of this year? (see pages I-3 and I-10 for starters.)

Apparently, the numbers tell us, this county has been run in such a fashion that our personal investment in the county (our little $32,000 house) has not kept pace with the outside world, and yet we as a county are paying outside-world prices for goods, services, and salaries. This is not sustainable. We need to cut back on what we are spending around here for that nebulous layer of county services. Can you tick off right quickly what things the county does are mission-critical? The roads, and then what?

What we pay to keep a bloated county trundling along seems to be like throwing good money after bad. We've supported them lavishly in the past, and all we have is a growth in our investment here of under 2%. It's time to pull the plug on them. We should not continue to pay top dollar for mediocre results.

1 comment:

  1. you're right, but i'm afraid that they are so entrenched that it would be nearly impossible to do. same principle applies to the city government. two chiefs for every indian.