Letters to the editor: March 5, 2010
Dear Editor,
Why has the Mayor and the City of Folly Beach failed to take full advantage of the benefits available to the City of Folly Beach under the “American Recovery and Investment Act” (ARRA)? ARRA included new and expanded municipal bonding authority which would significantly lower the City’s borrowing costs.
The Mayor and the City of Folly Beach have failed to take advantage of the new ‘Build America Bond’ program (BAB), which authorizes any local government to issue taxable BABs in calendar years 2009 and 2010 to finance any capital expenditures for which they otherwise could issue tax-exempt governmental bonds. Either funding option would be available to reduce the borrowing costs to expand City Hall, to replace aging garbage trucks at lower cost, and to acquire clean-up equipment for the beach as well as deferred fire-fighting equipment.
There are two types of BABs: one offers a tax credit and the other a direct payment to the issuer. The first is a Tax Credit Option whereby Bond proceeds must be used to finance a governmental purpose for which tax-exempt bonds can be issued. A taxpayer holding a BAB is eligible to receive a tax credit equal to 35% of the amount of interest paid on the bond. The second is a Direct Payment Option. This type of BAB may only be used for capital expenditures. It may not be issued to refinance capital expenditures, but may be used to reimburse otherwise-eligible capital expenditures that were paid or incurred after the effective date of ARRA and that were financed originally with temporary, short-term financing issued after the effective date of ARRA. The issuer of the bond will be allowed a credit, paid by the U.S. Department of the Treasury (U.S. Treasury), equal to 35% of the coupon interest payable under such bond.
ARRA included two additional types of Bonds; Recovery Zone Economic Development Bonds (RZEBs) and Recovery Zone Facility Bonds (RZFBs). RZEBs are a type of taxable Build America Bond that allows Folly Beach to achieve lower borrowing costs through a direct payment option and has a subsidy rate of 45% of the interest payable under such bond. RZEBs can be used finance a broad range of “qualified economic development purposes” including public infrastructure and facilities.
Additionally and with a single designation of the City of Folly Beach as a “Recovery Zone,” Recovery Zone Facility Bonds would be available to finance a broad range of depreciable capital projects. A typical financing arrangement for RZFBs would be for the City of Folly Beach to issue conduit bonds for qualifying businesses operating in its recovery zone to fund commercial and other economic activities. The deadline for the issuance of these bonds is December 31, 2010.
Very truly yours,
Christopher Marley
PO. Box 821
Folly Beach
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To the Editor:
After being denied a parking decal because I do not own the property in which I reside, I did two things. First, I researched all of the 2009 City Council meeting minutes in order to find evidence of a vote on the issue; thus far, I’ve found no record of a vote on the topic. Secondly, I discussed/questioned several residents (property owners) and unnamed local government members about the new policy to see how it had been posited. The local residents that I spoke with about this were definitely surprised with the new information concerning parking decals. The Council members, on the other hand, were aware of the action, but really didn’t have too much to say about it. However, I will say that I was told that the Mayor had taken it upon himself to make this decision—nonetheless, this is how bad rumors are started, especially in the realm of government and I do not accept this notion as truth without giving the Mayor a fair chance to respond.
According to the 2000 U.S. Census Bureau, there are approximately 2,116 residents on Folly Beach. Of those 2,116 residents, 58.3 % are property owner occupied units while 41.7% are renters. The number of residents that are non-property owners is a highly significant proportion of the total populace here on Folly Beach. Moreover, renters are a vital component of the local economy and its establishments that rely on all residents, both property owners as well as renters alike to keep their businesses running during the off-season.
Most municipalities do not pick and choose which services to extend to residents within their district based on whether or not one rents or owns and Folly Beach should be no different. The refusal to issue residential parking decals to some residents in the local community simply because they rent sends out a negative message and almost appears to categorize them as 2nd class citizens whose opinions/ideas do not matter. Many “renters” are also registered voters and this issue could likely serve as a catalyst, which brings more of them to the polls and sparks a greater interest/involvement in civic engagement.
Justin Rummage
113 W. Hudson Avenue
Folly Beach
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Dear Editor,
I am a member of the City of Folly Beach Parks and Recreation Committee, but my comments and questions are my own as a voter and resident.
It has come to my attention that the mayor may have committed the approximately $219,000 of Green Belt funding awarded to the City of Folly Beach to a joint real estate transaction with the Charleston County Parks and Recreation Commission to build a beach park on E. Arctic Avenue at the current location of The Front Beach Inn.
If this is true, my issue is not with the proposed park the County wants to build. There are some benefits. It would bring us a lovely park space, and more parking for tourists adjacent to the business district. It also will involve the removal of buildings that, even though they have been Folly mainstays for many years, have fallen into disrepair and are no longer habitable. I do want to know how another County Park will benefit the residents of Folly Beach. Residents do not need more beach access, residents do not need parking places and residents do not need beachside showers. Also, in my opinion, residents do not need to be paying fees to use any park on Folly Beach. Our city does need revenue, so I am eager to hear about the financial benefit this potential transaction will bring us and what we would get in return for such a commitment.
It is confusing to me that Folly Beach’s Greenbelt money might be used to subsidize a County PRC project rather than using it to support the efforts of our own Folly Beach Parks and Recreation Committee to identify potential natural park spaces which could make use of these funds. Giving away our Greenbelt money undermines those efforts.
My questions are:
• Is this true? Has our Greenbelt money been committed to this transaction?
• What is the justification for committing these funds to a County parks project verses a Folly Beach project?
• What would be the financial benefits to the city and residents?
• Are all council members fully informed about this transaction and in support of it?
Last Tuesday I read this statement at the City Council meeting. The Mayor refused any public discussion and was reticent to even admit he had such a discussion with CCPRC. I came away with these questions largely unanswered. Council members appeared to be uninformed about this transaction and at least three had not heard anything about it from the Mayor. Yes, the Council would have to vote to commit the Greenbelt funds to a County Park purchase, but how could they in good faith make such a decision without knowing all the facts or any of the facts surrounding this purchase and what Folly Beach would get in return.
I think many residents like me are fed up with the lack of communication with and within Council. It is my wish that current and future Council members will take heed and support a more open and transparent form of government. Let’s use our votes to bring trust back to our City Council.
Christine Wilkerson
W. Hudson Ave
