‘Mayor’ Munford: Hack budget, settle DAPC loan

John Munford's picture

In the throes of covering Peachtree City’s mayoral campaign, and this being Thanksgiving Eve, constituents in Cart Path town should thank their lucky stars I can’t run for mayor.

Imagine, if you will, that I’m mayor and I’m charismatic enough to get at least two folks on council to agree with me on the following issues.

Say we want to spend money on cart path repairs. Where will it come from? I have a few ideas.

1. Ax the parking lot plans for both Meade and Riley Fields. Save $450,000 ... and that’s just for phase 1!

Recreation is one of the crown jewels of Peachtree City. But what’s wrong with a gravel parking lot, other than it just ain’t fancy enough to attract regional and national tournaments?

Sure, it’s more challenging for people to park in a gravel lot. That can be fixed easy on the cheap: Spend a few thousand dollars to lay down concrete wheel stops.

As for the “wear and tear” on family vehicles? I’m sure it’s such a hardship on all these sport utility vehicles to roll on the gravel for a little bit.

2. Sell the “bridge land” at the entrance to the Wynnmeade subdivision. Put the money towards cart path maintenance.

The city paid $840,000 for the 5.1 acres in 2002, under the theory that citizens in the “west village” needed to be able to go across Ga. Highway 54.

Guess what? The city and the Georgia Department of Transportation are building a bridge a little further to the east that will do the same thing: get them across the highway. It’s a cloverleaf design, the brainchild, I believe, of City Planner David Rast, with tunnels and ramps to maneuver carts across the road.

That bridge will be done by this summer, and it’s less than half a mile further down the way, accessible by the golf cart path that will be installed along the newly widened Hwy. 54. The only catch is golf carts have to cross in front of the driveway leading to the Best Buy shopping center.

That could be fixed with a special “first of its kind” stop signal on the cart path. Wire that golf cart path light into part of the traffic flow governed by the light so carts, joggers, walkers, dogs and all others who use the paths will have a safe time to cross the road. Sure, it would irk those who drive full-sized autos to shop, but this town needs to take a stand sometime in favor of golf carts and the like, even if it means snubbing cars, trucks and SUVs for a few extra seconds on a traffic signal cycle.

The purchase of the Wynnmeade site wasn’t just for a bridge, either. It was also to “protect” the residents of the Wynnmeade subdivision so the site couldn’t be developed commercially.

Time and time again, normal citizens come to various planning commission meetings and city council meetings, absolutely appalled that someone owns land near their home that’s zoned for commercial use. Truth is, they did so without checking the local zoning map to determine what else could be built around them.

It is not the city’s responsibility to buy up tracts of land to protect citizens from development.

3. Sack the expansion of the Gathering Place senior citizens center and all other similar non-necessary projects. Save $700,000 on the senior center alone.

It used to be that some folks, the current mayor included, howled if you dared to build a construction project in the city without a voter referendum. The expansion of the tennis center comes to mind. Now it’s acceptable to spend $700,000 (estimated cost, including design) without asking the voters.

I’d become a one-term mayor with this one, assuming I’d even win the election at all. You shouldn’t upset the dedicated senior citizenry, who always show up at the polls. But surely many of them don’t want to see their property taxes rise this year ... again!

Instead of constructing the expansion, we should encourage senior groups to meet for coffee, cards and fellowship in some of the various subdivision “clubhouses” around the community. They’d only be using them during the day when they’re normally not used anyway. If not, I’m sure there are more than a few churches that have some usable space during the daytime, when the majority of seniors get together.

The harsh reality is that the impact fee cash cow is running dry, and the city needs a reality check in terms of significant expenditures, and even the smaller more frivolous ones.

If you think Peachtree CIty lacks sports fields with paved parking lots and bigger, better senior citizen’s centers, then I suggest you find another comparable city that has more ... and move there!

4. Settle the lawsuit involving the $1.5 million in loans owed to Peachtree National Bank by the Development Authority of Peachtree City. Use hotel-motel tax money to pay back the loans over a newly renegotiated time frame.

The lawsuit filed by the bank has already cost taxpayers untold thousands in attorneys’ fees. Remember, the city has its own attorney, the development authority has its own attorney and the Tourism Association has its own attorney. Then there are the bank attorneys.

I don’t have a legal degree but I have a pretty good feeling about where this lawsuit is going. In the end, bank attorneys will argue that the DAPC had the city’s blessing to incur the loans, and at the very least the city council and city staff should have known about the loans, and thus the city will be liable to pay for them.

It is utter folly to say, “Whoops, we spent the money already but oh gosh darn-it-all, the law says we don’t have to pay you back.”

Maybe another mayor would be hell-bent on having a day in court, just to say, “I told you so!” Not me. I’d rather stop paying the attorneys, instead paying the money to cover the loans.

Do you think the bank would reduce the figure owed in an effort to get the money back as soon as possible? Darn right they would!

I have a checking account at Peachtree National. Is it legal for city officials to ask me and other bank patrons to essentially pay the cost for the poor judgment of their predecessors? I think not. Attempting to shift the blame to bank officials is pointless because the DAPC was a city-appointed body, an arm of the city if you will, that sought the loans.

When the loans were issued, the bank had no reason to believe that the development authority would lose its revenue stream, i.e., the city’s hotel-motel tax payments of $250,000 a year. That happened and someone will pay for the fallout, whether it be bank customers and stockholders or the citizens themselves.

***

There you have it. If there were such a thing as “Mayor Munford” this is what you’d get, like it or lump it. I’d try to have an open mind of course, in case circumstances warrant a serious review of the above concepts.

That’s the best part about writing this column instead of running for office. No one will have to hold me accountable for any of the aforementioned hare-brained schemes, even if some of them have merit.

If those of you in elected office want to adopt some of these concepts, by all means feel free. Just be prepared to suffer the political repercussions, as just about every special interest group will be out to get you.

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Submitted by Mayor Steve Brown on Fri, 11/25/2005 - 12:40am.

Should we elect John Munford our mayor? His editorial in the November 23, 2005 Citizen causes the reader to explore the topic. Some readers probably dismissed Munford’s fragilely speculative statements as a young writer committing journalistic flatulence.

Munford does not live in Peachtree City; therefore, I do not expect him to share the planning vision of the SR 54-W Corridor any more than I would expect someone living in Gwinnett County buy into our restrictive sign ordinance. I do not find it hard to believe that someone who does not live in our city cannot really buy into our long-term planning.

I have never accused Munford of over-researching a story. Most of his work tends to be casually above the surface. He keeps his boat well anchored in the harbor of good intentions and very rarely lifts his sails to venture out into the sea of objectivity and sound research. In all fairness, he has to produce a significant amount of writing on various subjects as is the case with most smaller local newspapers and time is not on his side.

Munford’s proposal to pay off the illegal Development Authority of Peachtree City (DAPC) debt because it is the “right thing to do” could be regarded as naïve and mischievous. By now, everyone admits that the DAPC horribly mismanaged two of the city’s venues. Even Direct PAC Vice Chairman Rick Schlosser admitted the DAPC actions were illegal in an April 16, 2003 letter to the editor. Trying to down play the illegal activity, Scholsser called the DAPC actions a “technical defect.” He made the following statement, “This technical defect (or illegality depending upon whether one is a glass half-full or half-empty type of person) was corrected by passage of House Bill 309 in the House of Representatives on April 9.” Scholsser recognized 10 years of illegal activity.

Munford possesses a much less intellectually sophisticated understanding of the Peachtree National Bank debt matter. Our attorneys have made the matter quite clear – the city cannot pay the debt. Upon reading the legal opinions, Citizen Editor Cal Beverly also arrived at the obvious conclusion, “The laws and cases cited in the Jan. 3 memo to the city seem overwhelmingly to shout, ‘You can't do this!’” Beverly next asked the key question that is deeply rooted in Peachtree City’s history, “Were the previous rulers and authorities so insulated from reality outside Peachtree City that they either ignored the laws and rulings or did they suppose regally that they could get away with it just because of who they were?”

The DAPC was incurring debt for a purpose that was outside their legal authority as granted by state law. The DAPC has no powers but those which are expressly granted to it by the Constitution of the State of Georgia. Furthermore, there was no public vote nor public disclosure on a vast majority of the debt as state law requires (NO JOHN, THE CITY DID NOT KNOW WHAT WAS GOING ON). It was later discovered that several of the DAPC members were also on the Board of Directors of Peachtree National Bank who issued the loans. The bank actually issued over one million dollars of collateral-free debt to the DAPC.

One of the largest falsehoods regarding the DAPC during the previous Lenox administration is that the authority’s $1.5 million debt was used to make capital improvements to both the city owned amphitheater and the tennis center. Nothing could be further from the truth. In fact, only $300,000 of the entire debt can be connected to enhancing the structure of either facility. It was the city government that paid for the structural improvements to both facilities and not the authority and we have the documentation to prove it. The city government issued $2.5 million in checks to pay for the recent tennis center expansion and we guaranteed that we will use a portion of the hotel/motel tax to repay the city’s Bricks and Mortar loan taken out by the previous council.

The Georgia State Legislature purposefully created development authorities so that any debts that they incurred would not be the responsibility of city or county governments. Authority members are not elected by the public and are not accountable to the people or their elected officials. Munford is asking that our city abandon the Georgia Constitution and the laws that govern our state. His statements about the “right thing to do” are inconsistent with the principles of law and the agreements drafted between the city and the DAPC. He is trying to foster a misguided sense of morality that should really be denounced as an odious bargain with illegal behavior.

Munford is asking us to reward lawlessness. There is a distinct reason why systems of law have developed over the centuries – to avoid chaos. Munford’s logic would have us believe that it is the taxpayers’ responsibility to reward the array of corporate CEO’s that have been indicted for fraud and theft. Who cares if they were acting outside the law? His logic tells us that if someone steals our car and they are caught that we should write them a check so they can buy their own car.

Seriously, we DO NOT know where most of the funds went! The Georgia Bureau of Investigation, city auditors and many others cannot tell us where the borrowed funds went so why would we pay them back?

Back to the question of Munford as mayor. He did attend the debate at McIntosh High School. You also have to give Munford some credit for stating some positions on various issues (even if they are weak positions). Harold Logsdon has been campaigning for a year and has not produced as many positions has Munford did in his one editorial.

For a head-to-head comparison of the issues between Incumbent Steve Brown and Challenger Harold Logsdon, go to www.MayorSteve.com – the essence of a good leader is being able to take a stand on the issues and providing valid solutions.

John Munford's picture
Submitted by John Munford on Fri, 11/25/2005 - 10:57am.

His logic tells us that if someone steals our car and they are caught that we should write them a check so they can buy their own car.

That's not what I'm saying at all. Perhaps Mayor Brown is misreading my intentions.

Look at it this way: The city has been operating the tennis center (and the amphitheater) without bothering to pay off those loans.

Let's say your grandfather (the DAPC) dies and leaves you his 2005 Cadillac (the tennis center) in the will. But granddad still owed $25,000 on the car. You now have possession and title of the car. You have to pay it off, finance it, or sell it.

Imagine how much the tennis center would be in the red if the Tourism Association had to pay for the old DAPC loans which were taken out for the tennis center and amphitheater? Whether the money was spent for capital improvements or operations doesn't matter.

Unless the city can prove that the money went walking off somewhere and not spent on the facilities, they are unlikely to prevail in court ... despite any attorney's opinion. If they could do so, you can bet there would have been criminal indictments by now.

Instead, there's just accusation and innuendo. And lots of legal bills.


John Munford's picture
Submitted by John Munford on Fri, 11/25/2005 - 11:10am.

I'm buying into *part* of the vision for Hwy. 54 West. The cloverleaf bridge/tunnel system spanning the railroad will be fantastic.

I'm questioning the need for another bridge less than a quarter mile away that does the exact same thing. Nevermind that the city hasn't bought the land on other side of the road needed for the Wynnmeade bridge. Can you say "cha-ching?" Even if the city gets a grant and pays only 20 percent to build the bridge, with the land costs the price will skyrocket well over $1 million.

While I don't live in PTC anymore, I did from 1989 to 1995. And in my role as a reporter, I know the plans for this Wynnmeade bridge are for it to serve as an "architectural feature" in addition to moving cart path traffic.

My argument throughout the whole "Mayor Munford" piece was from a financial standpoint. The city no longer can afford such pretty niceties. "Visions" almost always cost taxpayer money, and it's certainly true in this case.


Submitted by Reality Bytes on Fri, 11/25/2005 - 10:03am.

The citizens of Peachtree City are demanding to know the answers to the following questions, Incumbent Steve Brown:

-Do you plan to lower taxes?

-Dana Kinser asked why your stand on senior housing in the West Vilage proposal changed between what you told the Centennial HOA and your latest positions? You seem to be telling two stories.

-What is your contingency if a judge requires the City to pay back the DAPC loans? Do you plan to appeal?

-How can you overcome the perceived notion of several in both the media and the candidacy that you are not "good for business"?

-Did you unilaterally approach one of your mayoral interns to assist in the creation of the "McIntosh Debate"? If so, do you believe this to be a conflict of interest in the campaign?

-How many of the 900 "new businesses" that were started in Peachtree City during your administration were manufacturing facilities? How many of them could you classify as significant revenue generators? How many of them might be extremely small businesses or home-based businesses (I remember seeing a letter to the editor regarding a piano teacher having to register for occupational taxes...I have also driven through the variety of business developments in the City and haven't seen 900 businesses there).

The answers to these questions would greatly clarify many of the important discussions many members of the community are having. If you wouldn't mind posting your answer to the blogs here, I think a great deal of people would appreciate it.

WatchDog's picture
Submitted by WatchDog on Fri, 11/25/2005 - 10:16am.

Great questions, and we have yet to get a straight answer from Brown on any of them. He has had every opportunity in the world to answer them here, at the debates, etc. but he hasn't because he will either be exposed for the liar he is or he is too much of a coward. Probably both.

You won't get any answers from Brown on these questions, my friend, but we all know the answers, don't we?

Arf.


PTC Guy's picture
Submitted by PTC Guy on Fri, 11/25/2005 - 10:40am.

I like straight answers.

Would like to see even the hint of a beginning of them from Logsdon.

But, I won't hold my breath.


PTC Guy's picture
Submitted by PTC Guy on Tue, 11/22/2005 - 10:57pm.

I agree with several things you said. But have a little problem here:
I have a checking account at Peachtree National. Is it legal for city officials to ask me and other bank patrons to essentially pay the cost for the poor judgment of their predecessors? I think not. Attempting to shift the blame to bank officials is pointless because the DAPC was a city-appointed body, an arm of the city if you will, that sought the loans.


I am a tax paying citizen of PTC. Is it legal for Peachtree National officials to serve in any capacity for PTC and make loans to themselves and totally mishandle the whole issue and then place the total responsibility on PTC tax payers? I think not.

There were tons of screw ups here. But Peachtree National Bank is not innocent in this either.

Whatever a just compromise is it must be found. But can it be found outside of court? I don't know.

But PTC cannot be held solely responsible here. These guys worked representing two legal entities at the same time on the same issue.

Who is responsible for what in what percentages?


ptctaxpayer's picture
Submitted by ptctaxpayer on Wed, 11/23/2005 - 10:35am.

Response to Mayor Maniac Munford. Well, John, you have an eclectic view. You demonstrate fiscal conservatism with Items 1,2 and 3. Those are good. You are correct; they are good ideas but not politically popular. Predictably, however, Mayor Munford (just like shutterbug Munford) shows “that loving feeling” for the Old Guard by saying “just give them their money”. A fiscal conservative would not. That one came off sounding like Teddy Kennedy or Nancy Pelosi. In items 1-3 you save about $1.9 million and then in Item 4, you “feel bad” and you just give it all away. The argument about “legal fees” is a sham. First, the total debt amount at stake is about 5% of our annual budget. Second, the total legal fees in this case will be less than 1% of our annual budget. Why should we do as lawyer Cindy Plunkett and the city lawyers say and let the courts decide ? Because to cave in on these claims against the city is very, very dangerous history to create for any sleazy trial lawyer in the future. They will look on your Yuletide Generosity as a reason to just cough up another check in the future. To heck with the law--- it’s the “moral” thing to do. We risk a small amount of money to make sure we have to pay and the taxpayers will have far more faith in the process for paying these bills if it is upheld by the courts. That is why in the 21 years I have lived here, taxes for city and county have gone up every single year.


John Munford's picture
Submitted by John Munford on Wed, 11/23/2005 - 12:41am.

PTC Guy, thanks for your comments. It's nice to know that I can think straight every once in a while. I agree that a compromise is best for all involved.

I agree there were tons of screw ups across the board on this one. But maybe you're misunderstanding a little bit about the roles of Doug Warner and Bob Truitt. Neither man served on the PNB board of directors at the same time.

The greatest shame of all of this is that if Tom Farr were here today, he could show us what happened and why when it comes to the loans and DAPC's budgeting specifically. And if he made a mistake, he would come clean about it and handle the situation honorably.

This much is for sure: the new Peachtree City Council, with or without Mayor Brown, is going to have some different viewpoints from the current council on some issues. It will be interesting to see how they handle this hot potato ... and how they pay for it.


Submitted by Snowman on Wed, 11/23/2005 - 10:22am.

Mumf - Sounds like you've been sitting in on Harold's strategy sessions.

PTC Guy's picture
Submitted by PTC Guy on Wed, 11/23/2005 - 9:06am.

I agree something has to happen. And that thoughts may change on this.

But, to be honest, for any vote to occur now that simply absorbs the costs without some mighty fine legal and documented facts presentations is going be like putting a political anchor around their necks while jumping into a deep lake.

I believe for the well being of PTC the court needs to settle this. It is beyond any resolution that will clear the waters locally.

As for role of the Bank and its associates, there is too much smell factor there to dismiss it all easily. Whether it is actually innocent or not.

But really, the coincidences are too much there.

Just my opinion here.


KraftyFla's picture
Submitted by KraftyFla on Wed, 11/23/2005 - 9:40am.

"Muddy Water" is an accurate depiction by PTC Guy on this DAPC debt. How can the City consider paying this illegal debt when no one has a clue where the money went? John Munford seems to concede this point. Unbelievable.

I would disagree with PTC Guy about the political fall-out for doing this deal. This is not a concern or a factor. This is the whole reason Logsdon is running. Lenox was recruited to enable the developers to unload the sewer system on the taxpayers and Logsdon was recruited to bail out the bad developer loans. It looks like nobody is going to jail which is fine but the taxpayers should save their $2 million for our inevitable rainy day rather than waste it on a corporate bailout.


DanTennant's picture
Submitted by DanTennant on Wed, 11/23/2005 - 9:56am.

Kraft's psychobabble is making me wonder if he has lost total touch with reality. He actually put in print that "Logsdon was recruited to bail out the bad developer loans".

Can you say Conspiracy Theorist Gone Awry? My God, what an idiotic thing to say.

Bob, Harold Logsdon has more honor and grace in his left pinky toenail than you will ever have. The guy is running because he thinks he can serve the citizens well with honesty and dignity.

Your nonsensical accusation ought to land you in round rubber room.
Do us all a favor and go away in a straight jacket.

Dan Tennant


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