Friday, Mar. 18, 2005

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DAPC takes another financial hit

By JOHN MUNFORD
jmunford@TheCitizenNews.com

Another bad surprise was revealed for the Development Authority of Peachtree City at its Tuesday meeting.

The authority was made aware of another outstanding bill, this one for $20,000, to cover the authority’s 2003 audit. The city has already paid the bill to Mauldin and Jenkins, the auditing firm, on the authority’s behalf, noted Mayor Steve Brown.

Brown said the city wasn’t worried about getting the money from the authority because they realize the authority’s “situation.”

“We will work with you on it,” Brown pledged. “We’re not sending you demand letters or anything.”

Authority member Todd Strickland said he wanted to work with the city to make sure no more similar surprises come up.

“How do we put in financial controls so we’re not surprised by fees like this?” Strickland asked.

The authority’s financial picture is less than rosy as it tries to sort out its creditors and how to pay them absent the large revenue stream the authority previously got when it managed the tennis center and amphitheater venues.

Until the authority gave up those duties in late 2003, it got $180,000 a year as a subsidy for the venues. Many of the outstanding bills are associated with the tennis center and amphitheater, but now the $180,000 in hotel-motel tax payments is no longer a factor.

The authority is also facing a $1.5 million lawsuit from Peachtree National Bank over the loans taken out by previous authority members that have been defaulted on. Although the city now operates the venues through its new Tourism Association, neither that entity nor the city has agreed to pay the outstanding bills on behalf of DAPC.

The city recently pledged about $30,000 to the authority for its budget, and between attorney payments and other matters, the authority is about to have its entire budget spoken for, with several months left in the fiscal year.

The authority has been hindered by a lack of documentation and records in its attempt to get the finances in order, officials said. Other difficulties have included the untimely deaths of former longtime authority member Tom Farr, who handled much of the authority’s finances, and later Brian Palmitessa, who served as the authority’s treasurer until his death in August 2003.