When governments need an influx of money they have a couple of options. They can borrow from a bank or issue a bond. The steps for doing this are well known in the financial sector. For this reason, bonds are generally low risk. However, if the issuer is Jefferson County you may have a problem. Most of you know by now the debacle that is the sewer bond. As the days go by we are reminded of the incompetence displayed by the county commissioners. The unfortunate part as that incompetent leadership equals squandering tax payer dollars. The following article appeared on al.com today. Please pay close attention to the bottom of page 1. It appears the tax payers are now going to pay a firm ($100,000/month) to manage the process of repaying investment bankers. That's $1.2 million a year to manage the crisis.
Bettye Fine Collins had this classic quote "I don't know any way to handle it than to bring in the folks with the expertise." That's great Bettye but shouldn't you thought of that before the bond was issued? Commissioner Bobby Humphryes said the investment banks in New York were not cooperating and costing the county money. Mr. Humphryes, that's what happens when you borrow money and don't make the payments. That's not a very hard concept to fathom is it?
I guess in the end the blame lies with the voters. If it wasn't for us we wouldn't be in this mess. We did elect these geniuses.
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