If Lowndes County funds VLCIA and helps secure its bonds,
how can the Lowndes County Commission have no control over VLCIA?
Note A: Summary of Significant Accounting Policies
VLCIA’s FYE 2011 Annual Financial Report:
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?
Note F: Long Term Debt:
The bonds are secured by an “inter-governmental” funding agreement
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?
the next post.