JAMES MADISON QUOTE - 1822

"A popular government without popular information, or the means of acquiring it, is but a Prologue to a Farce or a Tragedy; or, perhaps both. Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power knowledge gives."

SCOTTSBORO WEATHER - SUN & MOON RISE

Tuesday, July 21, 2009

Local Investment Banker Challenges City Council on Bond Issues at City Council Work Session.


James Bergman of Raymond James Financial Services spoke at last nights Scottsboro City Council Meeting challenging the City of Scottsboro's bond issue practices. Mr. Bergman has been dealing with bonds and investments for many years. He stated he does not deal locally with municipal bonds but his company does sell municipal bonds.


Mr. Bergman utilized the example of the High School Bond issue which he stated was for $13 million. He stated fees for this issue were exorbitant and exceeded standards. Just as an example Mr. Bergman spoke of the $443,000 in underwriting and associated fees with the High School Bond Issue. He then described the problems in Jefferson County and Birmingham with corruption concerning bond issues where government officials have been convicted of various corruption charges concerning their bond issues.


Mr. Bergman stated the city has not bid any bond issues for 25 years. He stated he believed former mayors and council members were not transparent in previous bond issues and requested that the current council should be forthcoming with all fees and costs, who receives them and disclose industry standards for fair costs of bonds. "I'm not pointing fingers but misdeeds by previous councils and mayors must stop in order that Scottsboro receive the best deal possible with the bond issues. The bond issues should be bid and total transparency should occur concerning the bond issues," Bergman stated.


In closing Mr. Bergman stated. "Excessive rates for bond issues does not serve the citizens of Scottsboro. Failure to bid the bonds and receive a fair rate is mismanagement." Mr Bergman also stated he thought the city was correct in refinancing the school and landfill bond to receive the best interest rates available.


In Other business: 1) Melissa Utect of Safe Haven Animal Shelter made a presentation concerning the cost of the non-profit facility in these economic difficult times. She stated adoptions were down and they were loosing foster homes for pets. She stated since 2006 the Safe Haven group has adopted out over 1000 animals. Ms. Utect requested $3500 from the city council to assist in defraying rising costs of animal care. 2) City Attorney made presentation concerning changes to the City of Scottsboro's Door to Door Sales Ordinance.



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