$24.6 million hidden asset is a red flag

The city of Franklin constructed a $24.6 million sanitary interceptor sewer with the thought of stimulating economic growth. It was completed in 2014 in the far southwest portion of Franklin. The only economic growth that has occurred was for Waukesha County residents and businesses. Typically, Milwaukee Metropolitan Sewerage District (MMSD) handles those projects, not local government.

The project has had its share of problems since its inception, including no economic growth for Franklin. Franklin residents opposed it from the beginning because it benefited Waukesha County residents and businesses.  Some of the Franklin residents and businesses, who were the last remaining property owners outside of MMSD, were being forced into the district as part of a condition that MMSD demanded. The residents had to begin paying for sewer to MMSD, even though this project could not deliver sewer service to them. Residents were told MMSD would own the sewer.

Now its been discovered the city of Franklin is the sewer owner, not MMSD. It is quite clear the city did not want to acknowledge they owned the sewer and refused to put it on the city's financial records as an asset, even though it was warned about it in 2012. Franklin's new accounting firm, Baker Tilly, recommends that the project be listed as a contributed asset, and depreciated over the term of the loan. They do not agree with the current city treatment of this transaction. 

Franklin residents were told that MMSD owned the sewer and that's why they had to pay hundreds of thousands of dollars in taxes to MMSD. Now the residents are learning that their city owns, constructed, operates and maintains the sewer. Why are their taxes going toward another government agency (MMSD) when the city of Franklin residents are on the hook for everything? These Franklin residents are paying twice for no sewer service or economic development. The only one benefiting is Waukesha County residents and businesses at the expense of Franklin.

Franklin residents are asking: Why did Mayor Olson vote for this deal? Why is Franklin supplementing economic development in another county?