……………our Bear Creek partners, have some excess water AT THIS TIME. They are also looking for future sources. We could have worked with them unless they do not “trust” Oconee’s leadership…………………………………… . Conservation of water is reducing the water revenue for the Oconee Utility Department which has been “charged” with providing the revenue for debt payments on Hard Labor Creek: SEE REVENUE CHART

AVOC

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June 10, 2008

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A Continuing Drought, declining revenues, tax digest and Oconee solution years away

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By Wendell Dawson, Editor, AVOC, Inc

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Lack of rain and the continuing drought are back in the news.It is shaping up as long, dry summer:

2-15-08 Drought - water problems are not over & we do not have competent plans

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Gwinnett Daily Post

http://www.gwinnettdailypost.com/main.asp?SectionID=6&SubSectionID=84&ArticleID=15935

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June 8, 2008

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State to sink deeper into drought
Spring rains weren’t enough to erase deficit

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I have listened to Oconee BOC incumbents Davis, Norris and Luke claim they have done something about our water needs.   A couple of challengers are talking the same way.   Citizens need to look at the facts.    Bear Creek Reservoir was designed to last longer than 5 Years!   Unrestrained growth in Oconee put much stress on its share.

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The Drought has caused Jackson, Barrow and Athens-Clarke to think about more reservoir space.    Bear Creek has a working partnership, (at least before Melvin Davis came on the scene), has a Treatment Plant and lines for treated water to each county. Yet Oconee strikes out with a $ 352 Million Project with Walton County at Hard Labor Creek.   Even with a “permit” there the earliest the project will be online is 2014!(at least six years from now).  

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At the same time, our Bear Creek partners, have some excess water AT THIS TIME.They are also looking for future sources.   We could have worked with them unless they do not “trust” Oconee’s leadership.    More than one source has told me that is the problem.

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6-10-08 Bear Creek Partners going separate ways seeking water sources

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The Athens Banner-Herald

http://onlineathens.com/stories/060908/news_20080609033.shtml

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June 9, 2008

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Race for reservoir funds on

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By Merritt Melancon

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The good news is that Georgia lawmakers spent part of their drought-frenzied 2008 session setting aside $ 70 million in grants and loans for local governments to help shore up their water supplies.

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The bad news is that about two dozen local governments have expressed interest in getting their share of the Georgia Environmental Facilities Authority's new funding.

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With reservoirs and water treatment centers costing hundreds of millions of dollars, the chance is slim that any one of the Athens-area applicants will walk away with a meaningful chunk of money from the state's new Water Supply Competitive Grant Program.

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Still, officials in Jackson, Madison, Oconee and Walton counties are hoping to snag a piece of the pie to help defray the cost of their own reservoir projects - no matter how forward-thinking the plans.

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The Jackson County Water and Sewer Authority, which is selling only 1.4 million gallons of the 9 million gallons of water it can take each day from the Bear Creek Reservoir, also is considering applying for GEFA money so the county can have plenty of water to attract industry.

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Authority Manager Eric Klerk said Jackson County doesn't need another reservoir now - "But we will."

The authority's board will vote next week on whether it should commission a whirlwind of engineering work this summer in hopes that one of three potential reservoir sites in the county could be used as the basis of a grant application

LOOK AT THE FACTS AND NUMBERS:

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FUTURE CAPACITY:

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With the $ 352 Million Hard Labor Creek Reservoir, Oconee County will only have 3.5 MGD for $ 66 Plus Million available  only in 2014 at the earliest.   Project delays (see progress of Oconee Park Project on GA 53) can add years.Some informed sources tell AVOC that the cost will greatly exceed the figures used to launch this project. 10-5-07 Oconee Votes to approve $ 66 Million in Water Bonds for Hard Labor Creek

REVENUE DECLINES

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Conservation of water is reducing the water revenue for the Oconee Utility Department which has been “charged” with providing the revenue for debt payments on Hard Labor Creek:

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.                         Revenues for OCUD

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DEBT SERVICE REQUIREMENTS:

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6-10-08 Charlie Baugh - Debt Service for Hard Labor Creek Project for Oconee County

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Note:Charles Baugh retired as IRS Director for Manhattan and has extensive background in accounting matters.

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May 2, 2008

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Debt Service for Hard Labor Creek Project for Oconee County

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By Charles Baugh

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I just completed reading the Offering Documents for the $ 19,585,000 bond issue the county just approved as part of the funding for the project.  

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The Preliminary Offering Statement states emphatically that the county system revenues are not pledged for payment of the bonds.  In fact the revenues are pledged for pay out for the Bear Creek reservoir bonds. 

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The Only revenues pledged are ad valorem taxes.  The following passages from page 10 are quite clear: "The County has also agreed to levy an ad valorem property tax, unlimited as to rate and amount, on all property in the County subject to taxation for such purposes in order to make the contract payments to the extent that the County does not have other funds to make such payments.  The County intends to make the contract payments with moneys derived from the County System Revenues; however, the County System Revenues have not been pledged as security for the Contract Payments or the Series 2008 Bonds."

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Couple this with the inflated population and revenue estimates and you can bet the bonds will be paid with property tax dollars or with future sales tax dollars.  You will see this in the next proposal to do a SPLOST vote which will include substantial sums for "water system improvements".  In fact the bond documents mentions future improvements to be paid for with sales tax revenue.  

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