Editorial: Missing beer money

Boston Beer Company's decision not to build a brewery in Freetown is a disappointment for sure.

The brewer of Sam Adams setting up shop in the SouthCoast would have been a boon to the local economy, and especially to the Fall River Water Department. Afterall, 90 percent of beer is water.

But as disappointing as it is, the fact remains that the region has lost nothing. It's simple physics: You can't lose what you never had.

Try telling that to the government.

Fall River Administrator of Public Utilities Terrance Sullivan announced Wednesday that the water and sewer departments will go into the red as a result of "losing" a $1 million payment Boston Beer Co. had promised should it decide to locate in the area.

The city will also "lose" the income from the 800,000 gallons of water a day it would have provided the brewery, and revenue from processing the brewery's sewerage. The resulting budget shortfall will now necessitate budget cuts and - surprise, surprise - rate hikes.

How can not getting money the city never had possibly hurt the budget? Well, when preparing its finances, the water department attached the beer money as "anticipated revenue," allowing it to balance the numbers. That kind of fuzzy math - recklessly anticipating future income to pay for current debts - is what has caused the mortgage crisis the country now faces. The difference is when government agencies engage in such shady practices, they have an easy out: They can just fund their budgets anyway - on the backs of citizens.

And that's exactly what the water department plans to do. The City Council Committee on Ordinances will consider a request to increase the water rate from $1.26 per 748 gallons to $1.34. While that may not sound like a lot, it's yet another example of a government entity taking advantage of residents and forcing them to pay for its own mistakes.

Gambling the future on phantom income is taking the easy way out. It allows administrators to justify their over-inflated budgets and fund initiatives without making any tough decisions. But the perceived easy way out rarely turns out to be easy, especially when you gamble on a long shot, which is exactly what the water department did.

There was never any guarantee Boston Beer Co. was coming to Freetown. In fact, many doubted it would happen from the beginning. Banking on that money is akin to betting the Bruins will win the Stanley Cup: The payoff would be huge, but it sure ain't likely.