Tag Archives: VLCIA

Fiduciary responsibility of LCC to oversee VLCIA? –John S. Quarterman

Speaking to the Lowndes County Commission on 8 March 2011, I read from VLCIA “inter-governmental funding agreement” with Lowndes County, noting that VLCIA’s own audited annual financial report seems to be out of date, since it still says VLCIA asks the Lowndes County Commission for its funds. And I wondered about this part in Note F:
The bonds are secured by an “inter-governmental” funding agreement between the Valdosta-Lowndes County Industrial Authority and Lowndes County, Georgia.
I repeated what I wrote before:
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.

I quoted myself from VLCIA Bonds: $15M becomes $23.5M?

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?
I pointed out that VLCIA seems to have about $8.3 million in cash Continue reading →

More from Myrtle Beach

Lorena Anderson writes in the SunNews more about Brad Lofton’s new job, including a very interesting tidbit about how he left his previous job. Georgia man tapped to bring businesses, jobs to Myrtle Beach area: Lofton gets three-year deal to lead MB agency:
A Georgia native with experience attracting industries and jobs to his home state has signed a three-year contract to lead the Myrtle Beach Regional Economic Development Corporation.

Doug Wendel, EDC board president, said the board voted unanimously Thursday afternoon to offer Brad Lofton the job. He will announce the change to his current employer, the Valdosta-Lowndes County Industrial Authority, on Tuesday, Wendel said.

Lofton will begin work on the Grand Strand on April 15, bringing to an end the EDC’s search for a new chief executive, which began more than a year ago.

The EDC will pay Lofton about $121,000 a year to bring new industry and jobs to Horry County.

Look what else they mentioned: Continue reading →

Movin’ on up!

Arrived via google alert for keyword “Valdosta”:
Those on the committee to hire a new EDC director seem so certain they will offer Lofton the job that he is already making plans to announce he’s leaving Georgia next week, and can start work here in mid-April.
Lofton? Yes, that Lofton:
Brad Lofton, a Georgia native and moneymaker for the Valdosta-Lowndes County Industrial Authority in his home state, is being introduced around Horry County today as the leading candidate for the executive director of the Myrtle Beach Regional Economic Development Corporation.
The story is Economic development agency likely has new director, by Lorena Anderson, in the Myrtle Beach SunNews.

Hm, somebody is counting at least one chicken that hasn’t hatched:

Lofton has been with the Valdosta group since 2006, and has brought millions of dollars’ worth of business and jobs to that county, Wendel said, including an energy plant that uses biomass and is now getting federal renewable energy credits; ….
Also notice what they don’t list as a positive: the solar plant. Perhaps an indication of somebody’s priorities.

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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.

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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.

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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.

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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 →

VLCIA operating budget

Apparently VLCIA collects $3 million in tax revenues annually and pays about $368,000 in staff salaries and benefits, plus $125,000 in legal and accounting costs, as well as other items in general operations. This is according to VLCIA’s Operating Budget (FYE 30 June 2011), obtained by open records request in February 2011, and given to LAKE, the Lowndes Area Knowledge Exchange. Look for yourself; here it is in PDF and two different single-page forms.

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“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 →

“We welcome solar power to the City of Valdosta and Lowndes County”

After all the protesters, police, and press, representatives of VLCIA, Sterling Planet, Hannah Solar, Georgia Power, and the City of Valdosta did finally break ground for the Wiregrass Solar power plant. I asked Col. Ricketts for a shovel, but he just snorted. Here’s the groundbreaking video:


Wiregrass Solar LLC groundbreaking, 21 Feb 2011,
Valdosta, Lowndes County, Georgia.
Video by John S. Quarterman for LAKE, the Lowndes Area Knowledge Exchange.

Continue reading →