Councilwoman Wendy McDonald will be hosting a town hall meeting for residents and business owners in Ward 2 next Thursday evening, May 22, 2014 from 5:30 to 7:00 PM in the Bay St Louis City Council Chambers.
Topics for discussion may include parking, speeding, activities and events such as runs, festivals, Second Saturday etc., noise, harbor opening and other topics of interest to the residents and business owners in our Ward. Because there will be a 2 ½ hour workshop related to the city budget starting at 3 PM on Tuesday, May 20, 2014 with a council meeting to follow at 5:30 PM we will not get into the budget at this meeting but use this time to address other concerns such as those outlined above.
Mike Favre, Councilman at Large and Les Fillengame, Mayor are attending this meeting as well and are interested in your input and feedback as it relates to Ward 2. Please feel free to send in topics of interest ahead of time if possible so we can allow time to cover topics of interest and for participation from the residents and business owners.
Horrifying isn’t too strong of a term to describe what I witnessed back on May 6th during the City Council’s finance workshop. Hopefully I’ll be able to explain why I was horrified as the subject matter is somewhat technical in Mississippi Municipal Finance. From a big picture standpoint, financially the City of Bay St Louis is a rogue municipality, making loans without any statutory authority to do so while spending fantasy tax revenue, unrealistically budgeted and never received. Worst of all is the Mayor is in deep denial – either that or he gets his kicks from telling whopper after whopper about the state of the City’s finances. It does not serve the public interest.
To me, there were two moments that encapsulated the entire two hour workshop the first was when auditor Jennifer Bell was giving her presentation on the internal control and legal compliance findings.
To set up her finding on purchasing, rumors have been swirling since last August the City was financing its deficit using what is most commonly known as its trade payables, or in Mississippi Governmental parlance its claims docket. Whether a local government or a struggling business, when cash gets tight the first way operating cash flow is financed without a bank is to simply let bills ride until the money comes in to pay them. Robbing Peter to pay Paul is a time honored way of buying time in the business world for cash starved entities public and private. Unfortunately Mayor Fillingame and City Clerk David Kolf have been telling whoppers about the City’s cash flow being A-OK for months so when the rubber met the road the Mayor essentially accused the auditor of fabricating her results. Dwayne Bremer’s story on the workshop made it sound like it some sort of difference of opinion. Here is the salient snippet:
Falgout said the draft audit states that the city is experiencing a cash-flow problem and that bills were being paid in order of priority, rather than order received.
Fillingame said that he challenged the assertion and pointed to the fact that the audit is not yet complete.
Yesterday’s Bay City Council finance workshop was horrifying on two levels in fact folks. I put the workshop out on Twitter yesterday via my smartphone while Dwayne and Jennifer took pages of copious notes old school style. The long and short of it is the City is broke and has been broke for several months. Now the Mayor is pitching a new plan to refinance the City’s debt just weeks after telling Dwayne that City finances were groovy. The plan hizzoner is pushing will plunge the City deeper into debt to paper over the accumulated deficit the City has been financing off the back of its trade vendors and claims docket.
Accounting, legal compliance and related financial concepts are arcane, sometimes mind numbingly so thus I get a charge when audit presentations are recounted by the print media. I’ll be back with a detailed post on this exact topic but first here are the takeaways from the other two media organizations in attendance on this issue of vital public interest:
No word in either story on whether the City Council authorized the Mayor to begin discussion with Butler Snow to begin the bond refinancing process as proposed by Mayor Fillingame. In fairness to the Echo, Dwayne was fighting deadline issues. The Sun Herald is not in the game.
Last month the Seacoast Echo reported the Bay-Waveland School District had purchased the Old Bay Tech building on Second Street in Old Town Bay St Louis to house the district’s administrative offices and alternative school. This purchase would mark the beginning of the final phase of school district’s recovery from Hurricane Katrina and breathe new life in a building that has sat empty since the storm.
In a way that piece also encapsulates the state of the school district in 2012, which has found itself at odds with local good government activists over several issues that I will not go into on this post. That said today the FEMA funded transaction the district executed to purchase the Bay Tech building will be examined in detail because the Seacoast Echo got it wrong, which is strange considering the editor of the paper is married to the school board president. To kick-start things let’s visit with that story I linked above:
The Bay St. Louis-Waveland School District has purchased the old Bay Tech building in Bay St. Louis, hoping to turn it into a new district office and alternative school.
The building and 1.6 acres of land located at 200 N. Second Street were purchased for $580,000. According to county tax records, the previous owner was Magnolia Group LLC of Shorewood, Ill.
Now when I say the Echo got it wrong I do not mean the reporting was lazy, as I think the reporter faithfully reported everything that was said in the meeting. We need to examine another snippet though, before Slabbed tells the in-depth story:
Project Coordinator Brad Barlow said buying the building made sense for the district.
“We’ve explored many routes and found that this was a cost-effective way,” he said.
Although the project has been delayed over other projects, Ladner said, the district wanted to get the schools rebuilt first.
Funding will come from FEMA proceeds and district funds.
I’ll admit I saw this piece last month and came away thinking $580K for a building and 1.6 acres of land in old town was a bargain. That is until I learned that it was sold on June 7, 2012 by the Magnolia Group to a LLC owned by 3 local business people for $325,000, that public records show owned the property around a month before flipping it to the school district for a $255,000 profit. Let’s establish that via the Multiple Listing Service aka the MLS. I have made certain redactions to protect certain individuals that I do not believe were involved in the transaction: Continue reading “Court documents raise questions about Bay-Waveland School District’s purchase of the old Bay Tech Building”