WELL GLORY BE

Before we get to the meat of this post, let's have a bit of background. GE&P decided, a year ago, that we would give the local media every opportunity and assistance to report the political news, good and bad, from Berkeley County. We did not want to deprive any reporter the chance to advance a career by "discovering" any blockbuster scoops. Well, folks, things did not turn out the way we expected. We did our part; the reporters did their part; but, that's as far as it went. So, GE&P is now in full "let the cat out of the bag" mode. From now on, anyone who wants or needs to know the latest activities of Berkeley County Government, just click on GritsEggsandPolitics.com. Let's start with last night's County Council meeting.

We are certain that many, if not all of you, remember the 30% increase in your W&S bills in 2008. To justify this increase, the little entity who peeks over the dais at every council meeting and the powers that be at W&S, insisted ( at the time and since ) that the increase was unavoidable. According to the story, that horror that once occupied the center chair (looking over the dais) had painted the county into a corner with his indefensible position on the synthetic interest rate loan. As the story went on, this careless and unforgivable mistake on the part of the former supervisor was to cost the county millions of dollars to fix. In the meantime, the new administration had no choice but to go to extremes to save the financial condition of the county.

Allow us to quote an article from the Post and Courier dated April, 28, 2008:

"The fee and rate increase passed (council) as expected, with councilmen saying they had little choice. "(Remember, this position was based on the information they were given)

"They said it's needed to help the Water and Sanitation Authority fix an annual $6 million shortfall in its $46 million budget. Part of the reason for the shortfall is a risky 'synthetic fixed rate loan' that went awry earlier this year, resulting in weekly payments as high as $25,000 over budget."

"Council voted (based on the information they were given) to pay a $2.9 million fee to exit out of the risky loan and borrow $38,750,000 through a more traditional fixed rate loan."

"The issue passed with only Councilman Bill Crosby in opposition."

Does everyone remember this? The risky synthetic loan scheme perpetrated upon the county by that pinnacle of mismanagement, the former supervisor, contributed to putting the present administration in the hapless position of having to raise W&S rates by 30%.

Not so fast.

If you missed the regular Berkeley County Council meeting on Monday night, January 26, 2009, there's a little morsel of news you might be interested in hearing.

During the meeting of the Committee On Finance, Mr. Larry Finney, CPA, Green, Finney & Horton, LLP, made the presentation of the Berkeley County Audited Financial Statement for 2007-2008. In this report, it was stated that the correction of the synthetic interest rate issue cost the county nothing...... nada...... zero....... zilch.......not a thin dime extra.

Councilman Dennis Fish questioned Mr. Finney directly after the presentation. He asked, (paraphrased) "Do we understand that you are saying converting from the synthetic rate loan did not cost the county any extra money?" Mr. Finney indicated that Mr. Fish's assumption was correct.

Whoa!!! Hold the phone!!! Let's run this puppy around the track one more time.

County Council and the Berkeley County taxpayers were told the conversion from the synthetic rate loan cost mega bucks.
The Council appropriated $2.9 million to pay an exit fee to get out of the situation.
As a result, customers of W&S had to suffer a 30% increase in their bills.
Now, at this late date we learn there was no increased debt burden.

Does anyone besides GE&P want to know into what rat hole all the money is going?