Mis-Representing Community

A couple of items from yesterday's Capital caught my eye, and raise serious questions about the representation of citizens both in County government and in some civic organizations purportedly advocating on behalf of their communities.

The first concerns utility fee increases mentioned here in an earlier column (1/26/05). Despite the fact these fees haven't been raised in years, the inevitable whinery from some that the $100/year increase for water, sewer, and trash collection would break their bank, caused several local politicos, none of whom had trouble saddling county residents with a $26 million golf course bailout, to get cold feet on the matter. Councilman Middlebrooks (R-Pasadena) cut to the heart of the issue when he offered, "people would be upset if they started receiving statements next fall that reflected the higher charges, particularly in light of the council's decision two weeks ago to issue $26 million in bonds so the county could take over Compass Pointe Golf Course in Pasadena." Perhaps, dear Councilman, you might have considered that before letting our utilities go insolvent in favor of this golf course debacle. One wonders what other future necessities the golf course bonds will be used to put the kibbosh on. Bill Burlison (D-Crofton) and Pam Beidle (D-Linthicum) also voiced concerns over the rate hike (and also voted for the golf course funds).

Department of Public Works Director, Ron Bowen, said it best, "The rates we are proposing … represent the true cost (of providing services)." The cost of services increases with time, as the price of goods and cost of living rises. Where does the expectation that these fees will remained fixed for all time originate? It's not a realistic position, and it shouldn't be catered to by people who are charged with running the County's basic functions, like its utilities, in a responsible manner. Thankfully, Chairman Dillon (R-Pasadena) seems to have a sense of the importance of the rate increases and realizes that they have to passed, one way or another.

The second half of this diatribe will have to wait for tomorrow. In the meantime, be careful out in the snow.

Tee (Bond) Time

Well, get your clubs out of the closet and shine your cleated wingtips, the County just purchased another golf course. You heard it right, rather than spend a bit more time considering the repercussions on the County's bond rating, the Council voted 6-0 (Councilwoman Samorajczyk abstained) to issue $26 million in bonds to buy the Compass Pointe Golf Course from MEDCO (see the 2/7/05 posting for background).

Fears that the County's bond rating would be shot, should it not bail MEDCO out, seemed to carry the evening. Councilman Middlebrooks (R-Severn) proclaimed, "I think it is unequivocally irrefutable, this body would be nuts and we would be run out of town . . . if the bond rating is hurt... Those bond (rating) companies would squash us like little ants at a picnic."

The Council and public were regaled with more predictions by County Budget Officer, John Hammond, that the course "could gross as much as $4.5 million a year." The course needs to bring in at least $1.9 million/year just to cover its debt. Only time will tell if this course is going to continue to be an albatross around fair Anne Arundel's neck. I think it's safe to say we haven't heard the end of the Compass Pointe saga.

Look be-Fore! you Vote

The possibility exists that the County Council may vote on whether or not to issue $26 million in bonds to buy out the Maryland Economic Development Corporation's (MEDCO) financially troubled Compass Pointe Golf Course in Pasadena tonight. Other options include allowing the MEDCO-owned project to founder, which may hurt the County's credit rating because of a previously signed contract with MEDCO (which forced the County to pony up a $1.1 million loan last year), or paying the $3 million in cost overruns from the mismanaged project, and allowing MEDCO to keep ownership. This last option, bailing MEDCO out and then leaving the course to the quasi-public entity to reap potential revenues, seems objectively worst.

The real question, it seems to me, is how much, if at all, leaving MEDCO to deal with this disaster on its own, a strategy advanced by Councilwoman Barbara Samorajczyk (D - Annapolis), will affect the County's bond rating. If the answer is "very little, if at all," the County should consider itself lucky to have been able to avert this continued fiasco, and leave MEDCO to clean up the mess. There's certainly no use in throwing more good money after bad.

County Budget Officer, John Hammond, has played exceedingly coy throughout the proceedings on this matter, and continues to parrot support for Executive Owens' position, which involves buying out MEDCO. Additional deliberations on this matter should involve figuring out exactly how he let the County get into this ill-conceived deal in the first place.