Tag Archives: bonds

Brad Lofton leaving Myrtle Beach, SC

Looks like Horry County, SC stuck to its initial three-year offer, both for Lofton, and for millage to fund his development authority there. There are things the newly-renamed Valdosta-Lowndes Development Authority could do to let sunshine turn Lofton’s local land legacy green.

Jason M. Rodriguez and Amanda Kelley wrote for Myrtle Beach Online yesterday, Brad Lofton leaving Myrtle Beach Regional Economic Development Corporation,

Membership to the EDC increased earlier this year, but revenue from the membership decreased by nearly $60,000, impacting the organization’s marketing services and more.

Loton has had many projects succeed, and met some challenges during his time in Horry County.

Earlier this month Continue reading →

Moody’s confirms excellent bond rating for Lowndes County School District

Lowndes Schools’ decrease of $4.1 million in annual bond payments after 2013 is more than the total $3.6 million in bonds Dublin Schools issued to pay for their megawatt of solar power. So Lowndes Schools could float bonds for solar panels at Lowndes High School like Dublin Schools did for Dubin High School. Or on the new Pine Grove Middle School, which already has some energy efficiency features. Either would decrease outgo in the future, thus evening up the financial structural balance and increasing reserve levels. The SPLOST mentioned by Moody’s is the educational ESPLOST, which passed by more than 4 to 1 in March 2011.

Moody’s PR 17 July 2013, Moody’s confirms Lowndes County School District, GA’s Aa3 GO rating,

$34.9 million in GO debt affected

New York, July 17, 2013 — Moody’s Investors Service has confirmed the Aa3 general obligation rating of Lowndes County School District, GA. The Aa3 rating affects $34.9 million in outstanding general obligation bonds. The bonds are secured by the district’s general obligation, unlimited tax pledge but are expected to be paid from proceeds of a one percent Special Purpose Local Option Sales Tax (SPLOST). The district has an additional $10 million in general obligation bonds not rated by Moody’s.

SUMMARY RATING RATIONALE

The confirmation of the Aa3 rating reflects the district’s sizeable and growing tax base, SPLOST support of debt service, modest debt burden, and rapid payout. The rating also incorporates the district’s below average socioeconomic indicators and recent trend of General Fund operating deficits. Excluding a slight 1.7% decline in fiscal year 2011, Lowndes County School District has consistently experienced growth in the $3.87 million tax base, which is expected to continue going forward. The base benefits from the institutional presence offered by Moody Air Force Base, Valdosta State University (A1/stable), and South Georgia Medical Center (A2/stable). The current SPLOST is authorized through September 2017 and should provide sufficient revenues to make debt service payments. In fiscal year 2012, SPLOST revenues were $12.4 million compared to debt service payments of $12.2 million. Following fiscal year 2013’s payment of $12.1 million, the district’s payments will decline to just under $8 million annually. Amortization is rapid with all debt fully matured by fiscal year 2018. The district does not have any plans to issue additional debt.

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Kemper Coal cost overruns at Southern Company Stockholder Meeting @ SO 2013-05-22

SO CEO Tom Fanning used Julia O’Neal’s question about cost overruns to tout the alleged benefits of Kemper Coal, which include selling CO2 to oil companies to pump into the ground to produce more oil. He didn’t mention that oil is then burned to produce more CO2. Can you justify the Kemper Plant on your metrics? --Julia O Neal And that Mississippi lignite coal he said would otherwise stay in the ground? Yes it and its CO2 would stay there if SO would get on with solar instead of coal.

Before her question, he had not said much about that project, mostly this about Major Projects, at 29 minutes and 28 seconds in SO’s own video of the 22 May 2013 Southern Company Stockholder meeting. You’ll have to skip there manually, because of the SO’s video format. SO prohibited “unauthorized” videoing, so we don’t have the usual LAKE video on YouTube.

I always call out Vogtle and Kemper County. Both projects are going to serve our customers for decades to come. We’ve had some challenges with Kemper. We’ll probably talk about those later. But when I think about the value that these projects will bring, I think our customers, and the economy of the southeast, will be benefited for decades. And we’re very excited about the progress we’re making on both of those.

It’s curious he mentioned SO’s flagship coal and nuclear projects without saying coal or nuclear. And if by “progress” he means Continue reading →

Harrisburg just keeps getting worse

After Harrisburg, PA defaulted on its incinerator bonds, started selling off pieces of itself, and threatened bankruptcy (twice), now the SEC is suing the city for fraud.

James O’Toole wrote for CNN Money 6 May 2013, SEC sues financially troubled Harrisburg,

The Securities and Exchange Commission has sued the city of Harrisburg for fraud, alleging that officials in the Pennsylvania capital misled the public about the city’s financial condition.

The SEC says the misleading statements came in the city’s 2009 budget report, its annual and mid-year financial statements and a “State of the City” address. The case marks the first time the SEC has charged a municipality with misleading investors in statements made outside of securities documents.

Harrisburg has been mired in

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About that flyer

Sent Wednesday. -jsq

Date: Wed, 06 Feb 2013 19:43:49 -0500

Dear Mr. Pritchard,

Thank you for your message of 1 February.

Yes, the binders of the documents for the closings of the various bonds are the sort of financial instruments I requested in my message of 28 January, and that Chairman Slaughter listed in his letter dated 18 January (that I received 28 January). Monday 11 Feb 2013 after the Work Session will be a good time for me to inspect and copy those binders. I will bring a camera and a photocopier. If that time will not work, please advise me of times that would.

Yes, there are other documents I would like to inspect. Please provide

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I have obtained the binder of the documents —Joe Pritchard

The County Manager has found the legal documents on issuance of the the bonds Chairman Slaughter listed in his letter of 18 January.

Received yesterday (as a *.docx file, and still to the wrong email address, but this time including both residence and postal addresses), County Manager Joe Pritchard followed up on his email of 29 January, in which he had seemed puzzled about the term "financial instruments" (it's a standard term in business and investing) such as I asked for 28 January. I thank Mr. Pritchard once again for responding. (I thanked Chairman Bill Slaughter in person the other day.) The relevant correspondance about the flyer that Mr. Pritchard previously wrote was created by the VDT is still missing. I will ask for that Monday, when I respond to Mr. Pritchard's most courteous offer to inspect the financial instruments.

Here's Mr. Pritchard's letter. -jsq

Joe Pritchard February 1, 2013

John Quarterman
6565 Quarterman Road
3338 Country Club Road #L336
Valdosta, GA 31605

Dear Mr. Quarterman:

To follow up my email of yesterday, I have obtained the binder of the documents executed at the closing of the $15,500,000 CVDA

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Created by the newspaper, not the county —Joe Pritchard

Thanks to County Manager Joe Pritchard for responding to my letter of Monday. He partly (but not completely) answered my question by saying the VDT did it. More on that later.

He included a PDF copy of Bill Slaughter’s letter of January 18th. Perhaps Mr. Pritchard was unaware that letter didn’t reach me until after my letter of Monday, because the county sent it to the wrong address. Mr. Pritchard’s email response was also sent to the wrong address, although fortunately email to that business address does reach me. He also copied the Chairman at his business address instead of at his Lowndes County address. In any case, electronic copy is almost always more useful than paper, so I thank Mr. Pritchard for sending that PDF copy.

Here’s Mr. Pritchard’s letter. -jsq

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Regarding the recently refinanced bonds —Bill Slaughter

Many thanks to Lowndes County Chairman Bill Slaughter for taking the time to respond to a citizen's question in Citizens Wishing to Be Heard! The response didn't actually answer my question, but that may be because the question wasn't clear enough without a copy of the flyer that claimed the county's new judicial and administrative complex was "100% Paid by SPLOST" and "$0 Balance Owed"; see next post.

An hour or two after I sent a letter to County Manager Joe Pritchard Monday, someone from the county called to say Chairman Bill Slaughter had sent me a letter in response to my question to the Commission about bonds, but it had been returned by the Post Office. As you can see by the image of the envelope, they sent it to my residence address, where I don't get mail. That's why I always include my postal address on Citizens Wishing to Be Heard forms, open records requests, etc. Anyway, they made it available for pickup at the county palace. Ten days after the PO sent it back to them is better than never.

Here's Chairman Slaughter's letter. -jsq

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Dear Mr. Pritchard: How are we paying on something that was 100% paid off? —John S. Quarterman

I sent this today. -jsq

 
From: John S. Quarterman <questions@quarterman.com>
Cc: bslaughter@lowndescounty.com, jevans@lowndescounty.com, rraines@lowndescounty.com, cpowell@lowndescounty.com, dmarshall@lowndescounty.com, jpage@lowndescounty.com, questions@quarterman.com
Subject: How are we paying on something that was 100% paid off?

Dear Mr. Pritchard,

You may recall that at the Lowndes County Commission meeting of the 8th of January 2013, I asked the following:

“When this building complex was opened in 2010, the county put out a double-sheet flyer saying it was completely paid off out of SPLOST money, with zero dollars owed. I’m wondering how it is that then, either in November or December, the Commission just before your one here, refinanced bonds that included I think it was six or seven million dollars for this very building complex? I’m very confused by that. I wonder if someone could clarify how we’re paying on something that was completely 100% paid off with zero owed.”

I asked Commissioner Crawford Powell this question at the going-away reception for former Chairman Ashley Paulk on 14 December 2012, and he referred me to you for an answer. It has been more than two weeks since I asked in a Commission Regular Session and I have received no answer. So I ask again.

Specifically:

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How are we paying on something that was 100% paid off? —John S. Quarterman @ LCC 2013-01-08

Why are we furloughing librarians to save $30,000 when we apparently floated bonds for unbudgeted millions on the county palace? That’s essentially what I asked the Lowndes County Commission at their 8 January 2013 Regular Session. Nobody had an answer.

Just to add to what Commissioner Lee said, in addition to everyone appreciating all your service, I’m sure we all appreciate all his long years of service.

Of course there are some things that have come up since he was first on the Commission. For example, Internet access.

The Internet is the roads of the future.

Perhaps funding that might be as important as striping roads. It’s a thought.

For more on that, see what Idelle Dear said just before.

And I really appreciate that clock there. It’s a sign that sometimes change is good.

At least they are doing a few things differently.

When this building complex was opened in 2010, the county put out a double-sheet flyer saying it was completely paid off out of SPLOST money, with zero dollars owed. I’m wondering how it is that then, either in November or December, the Commission just before your one here, refinanced bonds that included I think it was six or seven million dollars for this very building complex? I’m very confused by that. I wonder if someone could clarify how we’re paying on something that was completely 100% paid off with zero owed.

It’s actually about $8.9 million. Why are we paying that? Nobody answered. County Manager Joe Pritchard, pictured below, on that 2010 flyer I mentioned, paid no attention.

A prominent local member of the fourth estate said nobody was allowed to answer. Actually, the Commission’s own Policies and Procedures for Citizens Wishing to be Heard include these lines:

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