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Commissioner Jeff Rader
Manuel J. Maloof Center
1300 Commerce Drive
5th Floor
Decatur, GA 30030
(404) 371-2863
jrader@co.dekalb.ga.us
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| Commissioner Rader Update |
| Aug 12, 2008 |
Bonds: Protecting Your Wallet
by Jeff Rader
Imagine if you discovered that your credit card statement listed charges that you did not authorize. After you call the credit card company to explain the situation, it will remove the unauthorized charges from your bill.
But that's not the case in DeKalb County. The county government, through its development authority, wants to stick you, the taxpayers, with a $4.3 million dollar charge on your tab. And it does not matter to them whether you approve of the expense.
The $4.3 million is to be used to cover the anticipated cost overrun on the construction of a new county fine arts center. The county already has allocated $11.7 million for that project, funding that was approved before I was elected to the Board of Commissioners (BOC). While a fine arts center is a worthy contribution to our quality of life, the issue of the $4.3 million bond is one of public trust.
You, the taxpayers, trust your elected officials to spend wisely with public money and to do so in accordance with published policies and laws. One of those laws is that the county may not add to the taxpayers' debt via bonds without your permission. The Georgia constitution prescribes a referendum for the general public when we obligate our taxpayer funds for debt. That law has long been well understood and followed by the county when it comes to issuing bonds for general operating funds.
However, the county managed to come up with a workaround by having bonds issued by development authorities, which do not require a vote by the general public. The authority then "leases back" the facility to the county with the lease payments covering the debt service. That prompted the Georgia state legislature to pass a law, House Bill 181, last year so that any type of bond proposed by a county like DeKalb would be subject to a referendum.
The relevant language from that bill is as follows: "Any authority ... shall obtain approval by resolution and referendum as provided in this Code section prior to issuing bonds for any new buildings or facilities or improvements to existing buildings or facilities."
The county attorneys believe the language in HB 181 has loopholes that permit DeKalb County to continue issuing bonds through development authorities and to add to your debt without your permission. While it is possible that HB 181 may have a legal loophole, there is no doubt in my mind about the intent of the legislation.
Therefore, I voted against the motion to issue the $4.3 million bond because it violates the spirit, if not the letter, of the law that was adopted. I was the only county commissioner to vote against this motion, because you and fellow taxpayers deserve the chance to decide whether you are willing to assume this debt.
That vote was part of my ongoing efforts to be a responsible steward of your public money. Previously this year, I voted to hold the line on the millage rate (see May 19 Commissioner Update), I voted in favor of targeted, rather than across-the-board, pay raises for public safety officials (see April 22 Commissioner Update), and I voted in favor of an audit that revealed excessive spending by the county on computer-related vendors.
As an elected, public official, I am mindful that spending other people's money is a serious responsibility. My obligation is to spend your money wisely to provide you with the public services that you need while being careful not to abuse that spending privilege. You should not have to deal with surprises when it comes to financial matters such as credit card statements and public debt. Therefore, all bonds issued on behalf of DeKalb County shall be subject to final approval by you and your fellow taxpayers.
(Commissioner Jeff Rader represents District Two on DeKalb County's Board of Commissioners. He was elected to the position in 2006 for a four-year term.) |
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