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.
16 comments:
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.
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?
Hell, they'd get a better rate at the payday lenders they ran out of town.
where are you getting the 30%? The interest cost?
"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.
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.
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.
For another 40 grand....
$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.
New Board, Cancel Parking Garage.
Busy Day - It was just starting to unfold.
http://www.co.hinds.ms.us/pgs/boardminutes/docs/01_07_08.pdf
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?
Had enough? So have we.
Join the MS Tea Party. Visit MSTEAPARTY.NING.COM
Maybe you should change you post name to Borezombie.
4:12
Per John Dennis: "He who would pun would pick a pocket."
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.
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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