Wednesday, June 29, 2011

Hinds County audit: $5.1 million dollar deficit but no problem...

we'll just borrow $6 million from next year's property taxes.

The CPA firm BKD recently submitted to Hinds County the audited financial statements and special reports for the fiscal year ending September 30, 2010. The report states the County suffered a deficit of $5.1 million dollars in total government funds ($2.1 million in the general fund.) as it received $84,067,348 in revenue and spent $89,177,022. However, the county borrowed $6 million against the property taxes collected in January and February 2011 (See tax anticipation notes on page 10.). The county typically borrows against the property taxes and other funds to erase the deficit and then repays the loans in by April 1 as property taxes are collected.

Several items worth noting:

1. Debt service is $9.3 million (page 9). Principal is $6.5 million, interest is $2.8 million.
2. $52 million was collected in property taxes.
3. Hinds spent $33.4 million on public safety.
4. The county borrowed $6 million in tax anticipation notes in November 2009 to be repaid by April 1, 2010. The county had an option to extend repayment period to April 1, 2011. The report states "The county exercised the extended option." (p.27)
5. 2006 Interest rate swap had fair market value of -$1.4 million
6. 2007 Interest rate swap had fair market value of -$2.1 million (p.32. It must be pointed out these two liabilities are on paper and have not been realized.)
7. Hinds pays $50,000 to CMPDD.
8. Hinds paid $3.5 million to PERS.
9. Hinds presented no management response.


Anonymous said...

No big deal. Nothing to see here. It's government. They don't know how to function unless they are spending more than they make. Print more money, deficits, float bonds, default, borrow, ...... All part of a day's work in government.

Boarzombie said...

Did I understand that right? Approximately 30% interest on a short-term loan to the county? I'm really asking in case I misunderstood your comments and the spreadsheet. That seems high. Has that accrued over time or is that the interest owed for that particular short-term loan?

I bet Pawn Stars would give them a better rate than that, don't you think?

Anonymous said...

Hell, they'd get a better rate at the payday lenders they ran out of town.

Kingfish said...

where are you getting the 30%? The interest cost?

Boarzombie said...

"Debt service is $9.3 million (page 9). Principal is $6.5 million, interest is $2.8 million."

Looks like about 30% or so. It could very well be that my assumptions are wrong, as well as my math, but pigs don't count. I hire people to do that for me.

Anonymous said...

Boarzombie, the debt is probably long term and larger than 6.5 million. I figure that means they paid 6.5 toward principal and 2.8 paid in interest on a debt that is much larger than 6.5 million.

Example, finance $100,000 for 30 years at 5.0% In the first year your debt service would be $6442 total, with $1475 being principal and $4967 being interest. If you simply look at those two numbers, it appears the rate is over 100%. But the interest is calculated on the $100,000, not on the $1475.

Anonymous said...

The most telling aspect is that Hinds presented no management response. There must be management to present a mangement response. Of course, they could always have paid Derrick Johnson to handle the response. He's a lawyer, errrrr, manager.

Anonymous said...

For another 40 grand....

Anonymous said...

$52 million collected in property taxes. $33.4 million went to public safety. --- We should have state of the art equipment and definitely should feel safe.

Anonymous said...

New Board, Cancel Parking Garage.
Busy Day - It was just starting to unfold.

Boarzombie said...

12:53, thanks, you fixed me. My assumptions were wrong.

And you know what happens when you make an assumption -- you make an "ass" out of "u" and "mption." Isn't that how that goes?

Anonymous said...

Had enough? So have we.

Join the MS Tea Party. Visit MSTEAPARTY.NING.COM

Anonymous said...

Maybe you should change you post name to Borezombie.

Boarzombie said...


Per John Dennis: "He who would pun would pick a pocket."

KaptKangaroo said...

Has no one learned borrowing against your future is a sure fire way to ensure you spend your children's future?

The fact politicians in Hinds continue to try to find ways to finance vis-a-vis foolish debt instruments is appalling.

When is the electorate finally going to recognize that their are many business leaders who are more qualified because they actually had to work, win, lose, spend, fire, hire at the right time at the right place. When you elect a bunch of folks with no ability to actually run a city, company, their own finances; you get what you elect.

Jackson has NO growth potential beyond a couple of pet projects. Lets talk Harbor Walk, Fondren, Farish Street. You call this growth? Or, should we all call it what it is, "laying in wait."

To push out the responsibility of a failing city is irresponsible and smacks of the vultures (bond advisers) looking for the opportunity to profit from the public trough.

Sad. Sad indeed.

KaptKangaroo said...

And Bore, you have quite a whip. When one whinces from the sarcasm spoken trivially through tense treatises that you speak, know, you have struck a chord.

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Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

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Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

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Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS