Category Archives: Economy

NOAA Weather Radios “wasteful spending” –Richard Raines

Are NOAA Weather Radios “wasteful spending”?

We’ve already seen staff present the case for about 5,000 NOAA Weather Radios at $21.50 each, paid for out of grant money. They made that case at the 8:30AM 7 Feb 2011 Lowndes County Commission Work Session.

At the regular session the next day (5:30 PM Tuesday 8 Feb 2011), citizen Nolen Cox spoke against the NOAA grant and more generally said “just say no to grants”. He also went on at some length about how he didn’t believe in climate change. Nevermind that the fifth U.S. or British board of inquiry has reconfirmed yet again that the data and analysis for climate change are solid.

EMA Director Ashley Tye summarized the case for NOAA Weather radios, according to the minutes,

stating Lowndes County had been awarded $107,500.00, in Hazard Mitigation grant funding for the purchase of 5,000 NOAA weather radios to benefit all of Lowndes County. Mr. Tye added that Alert Works had presented the low bid in the amount of $21.50 per radio.
Finally, the Commission had some discussion. According to the minutes: Continue reading →

The business of carbon trading in Georgia

Rich McKay wrote for the ajc, Carbon limits a boon for traders: Proposed emissions standards may galvanize business in Georgia.
The carbon-emitting companies pay the farmers to not cut down the trees or to plant new trees. The idea is that the trees, which gobble up carbon, will store up the carbon from the atmosphere and offset what the smokestacks spew.
Blake Sullivan, of the Macon-based Carbon Tree Bank, has 26,000 acres of forest in the state under contract for carbon banking.

“Georgia has an abundance of forests right here, and trees are like the lungs of the Earth,” he said. “They inhale carbon and exhale oxygen. We can be part of the solution right here in our own backyard.”

Why is this suddenly a business? Continue reading →

VLCIA Bonds: $15M becomes $23.5M?

How much are those bonds VLCIA has committed we the taxpayers to?

According to VLCIA’s FYE 2011 Annual Financial Report it looks like the bonds started out as about $15,000,000, and are

If I’m reading that right (I am not a CPA), VLCIA took out about $15M in bonds for which they will pay back a total of about $23.5M. Is that really $8.5M in debt service, or about 56% of the original principal? Is that a good deal VLCIA has made with we the taxpayers’ money?

Meanwhile, VLCIA has

That’s an interesting number to contemplate while other arms of local government are scraping to pay salaries and provide services. One of those other arms of local government is the Lowndes County Commission, which appears to be co-guarantor for those bonds.

-jsq

VLCIA “inter-governmental funding agreement” with Lowndes County

If Lowndes County funds VLCIA and helps secure its bonds, how can the Lowndes County Commission have no control over VLCIA?

In Note A: Summary of Significant Accounting Policies of VLCIA’s FYE 2011 Annual Financial Report:

Reporting Entity

The Valdosta-Lowndes County Industrial Authority is a political subdivision created by the State of Georgia Legislature to stimulate growth in the Valdosta-Lowndes County area. The Authority’s revenues are derived primarily from contributions by local governnments and by the sale of land in the industrial development parks owned by the Authority.

Well, the VLCIA’s charter is available on the web and it doesn’t just say “growth”; it also says “the public good” and “the general welfare” of the community.

The financial report continues:

The members of the Industrial Authority are appointed by both the City Council of the City of Valdosta and the Lowndes County Board of Commissioners. Primary operating funding, as well as guarantees for certain bonds, comes from the Lowndes County Board of Commissioners and accordingly, the Authority is considered to be economically dependent on Lowndes County.
The first sentence is correct. If the second sentence is correct, how can the Lowndes County Commission say it has no control over or responsibility for the Industrial Authority?

Further, in Note F: Long Term Debt:

The bonds are secured by an “inter-governmental” funding agreement between the Valdosta-Lowndes County Industrial Authority and Lowndes County, Georgia.
If the Lowndes County government is co-guarantor of VLCIA’s bonds, how can the Lowndes County Commission say it has no responsibility or control over what VLCIA does? I am not a CPA, but the term “fiduciary responsibility” comes to mind. These bonds are, after all, being paid for by our tax dollars, and the Board of Commissioners are our elected representatives for the county.

How big are those bonds, anyway? See the next post.

-jsq

VLCIA Annual Financial Report FYE 30 June 2011

Where does that $3 million a year in VLCIA tax revenue go?

In the Annual Financial Report for the fiscal year ending 30 June 2011, for the Valdosta-Lowndes County Industrial Authority (VLCIA), there are some interesting assertions, and some really interesting dollar figures. These documents were obtained by open records request February 2011 and given to LAKE, the Lowndes Area Knowledge Exchange.

See the following posts about the “inter-governmental agreement” between VLCIA and Lowndes County and about the size of the bonds and debt servicing VLCIA has committed to. And of course read the report for yourself and see what you think.

-jsq

Still no suppliers or buyers for Wiregrass Power LLC –VLCIA

According to an open records request of 17 February 2011, the Industrial Authority says Wiregrass Power LLC still
“has not yet identified or completed a comprehensive list of potential suppliers of raw materials, goods and services required to construct and operate the biomass electric generating plant.”
This is on a sheet entitled “Owners/Investors/Suppliers/Contracts”, which also says:
“Site preparation and construction is not scheduled to begin until June 1, 2011.”
Hm, what happened to breaking ground in January 2011? The document also said a “Project Critical Path time-line is attached” but it wasn’t.

Regarding buyers for the plant’s power: Continue reading →

“the learning curve is very steep” –Ken Klanicki

This LTE appeared in the VDT yesterday (28 Feb 2011). -jsq
Former Lowndes County commissioner Richard Lee once told me “…the learning curve is very steep for first-time commissioners.” Our new county commissioners, Richard Raines and Crawford Powell, are living proof of the veracity of that statement. In case Bill O’Reilly is reading this, here’s a few examples.

Earlier this month a grant application for the purchase of 5,000 weather emergency radios was nixed by a 2 – 1 vote. The radios could’ve been a means for citizens residing in remote areas of the county to

Continue reading →

The owl in Hahira: March 2011 LAKE meeting

The owl in Hahira:
Monthly LAKE Meeting
When: 5:30-6:45 PM, Tuesday 1 March 2011
Updated meeting location
Where: home of Thomas Ieracitano
414 East Main Street, Hahira
229-251-2462
That’s on US 122, just east of the Masonic Lodge.
Thomas says:
“Bring a lawn chair, laptop (I will have Mediacom wireless) and your own food and drink.”
If it rains or there are too many bugs or something, we will move to:
Down Home Pizza
103 South Webb Street, Hahira
229-794-1888

Help cover food, water, transportation, incarceration, solar energy, biomass, and regular local government meetings: you never know when news will be made!

Popular topics lately on the LAKE blog, On the LAKE Front, include Continue reading →

Valdosta State of the City –Mayor Fretti

Here’s the text of Valdosta Mayor Fretti’s State of the City speech of yesterday. I thought they said it would be available on the web today, but if so, I’m not sure where. Pictured is Rudy the K9 dog, who is mentioned in this passage:
Now Wally was purchased with grant funds. Rudy was trained with grant funds. Our mobile command center was purchased with grant funds. Several other pieces of equipment for Police and Fire departments are purchased with grants. Now, there are those that scream and shake their fist at government to say, “Take no grants, for they are evil”.
Continue reading →

Authority should listen to other sources –John S. Quarterman

This op-ed by me appeared in the VDT today, 24 Feb 2011. On 15 Feb 2011 I spoke directly to the VLCIA board about the main points and the next day I sent them the longer version, Why “jobs, jobs, jobs” isn’t good enough for the public good and the general welfare, which includes links to videos of the relevant speeches and to VLCIA’s charter. -jsq
Everyone wants jobs for those who need them and jobs for young people so they don’t have to go somewhere else to find one. But what good is that if those jobs suck up all the water those people need to drink?

At the Lake Park Chamber of Commerce annual dinner Brad Lofton gave a speech which I liked, and I told him so afterwards, because it was mostly about real industry with real jobs that that the Valdosta-Lowndes County Industrial Authority (VLCIA) has brought into the area.

But it had a problem:

Continue reading →