Wednesday, December 25, 2002

Authority's numbers, judgment don't add up

Your article on Dec. 11 concerning the pitiful recitation of the Peachtree City mess and its Development Authority strikes right to the heart of the fading belief of normal citizens that political management of public affairs is still a viable possibility. Likewise, it is a textbook case of brushing up to the truth and presenting about as much fact as we are apt to see.

The mayor comments, presenting certain facts. The Authority responds, indicating everything done has been done properly and with proper intent. It is my opinion that to read this article one must conclude either some hidden agenda, involving a lack of ethical behavior, or a woeful lack of judgment, failure to live up to this lack of judgement and some attempt, be there one possible, of a solution to a set of circumstances, which will, as it seems inevitable, lead up to an increased tax burden on the residents of the city.

For instance, the mayor calculates a $450,000 cost overrun. Virgil Christian responds that cost overruns are $286,000 and "most of the changes should be avoided."

That is a big difference between what the mayor says and what Mr. Christian says. Later in the article, however, Mr. Christian reports a $200,000 line of credit with Regions Bank (shame on the bank), negotiated to cover cost overruns.

Adding this line of credit (how does it differ from a loan?) to Mr. Christian's figure gets it close to the mayor's figure. One wonders, but will rarely find the answer, since that loan (line of credit) was granted in September, how much of those funds have been called upon, and, as Mr. Christian stated, the loan (line of credit) was to cover the cost overruns, is that what whatever has been withdrawn, actually used for?

My math tells me that if all the loan (line of credit) that is called for, dollar for dollar, is used to reduce the cost of overrun, then there would still be an $87,000 shortfall.

In addition, unless the bank has changed, there will be an extensive interest payment due on all the monies used.

Your newspaper would provide a proper service to make known the details of this loan, the payment schedule and the amount of interest. And, where in the world does Mr. Christian expect to acquire the money to repay this loan? And in passing, who in the world in Group VI, to whom the authority is in debt to the tune of $180,000 dollars. And how much money has been paid these people, and how does this total, amount paid and amount owed, relate to the dollars bid for work done?

Mr. Christian is quoted in your article, "I am proud of the product I have delivered to the citizens of Peachtree City ... The building will probably be appraised at $3.5 million once an appraisal in conducted." That is perhaps Mr. Christian's opinion and may be correct; however, if an average citizen tried to sell a home without an appraisal, we all know what would happen. Close the closing! So, when is an appraisal to be made? Why has one not been made?

One other point, Mr. Christian states the "council members" were kept up to dated by e-mails. It would be interesting to see some of the e-mails, describing the cost overruns.

Skipping the potential for thinking ugly thoughts about the ethics of this whole matter, let us just keep to judgment. What figures were the Authority working with that made them think there was a feasible way in which to retire the debt being accumulated, within their own projections? And then the question of oversight, which raises the question of how an appointed body could commit Peachtree City to such outrageous financial obligations: the September line of credit at Regions Bank. Is it possible, at this date, the Authority was in a position to commit the city to such a loan (line of credit) without some kind of approval?

Shame on Peachtree City elected officials and appointed Authority members.

Bill Chapman

Peachtree City