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Taxpayer group challenges bond validation

written by Danny Carter. Email: danny.carter@albanyherald.com.

ALBANY - Efforts to validate a $6 million bond issue to be used for the development of downtown Albany were delayed Wednesday after a challenge by the Dougherty County Tax Payers Association.

The group challenged the bond matter over what it contends is a move by the city of Albany and Albany-Dougherty Inner City Authority to issue the bonds without any provision to audit and review the spending.

"We were shocked to find that the city was requesting the court to waive OCGA 36-82-100 which mandates performance audits and reviews and further mandates these audits to be provided to the public on a regular basis," wrote Tim Coley of the Dougherty County Tax Payers Association. Attorney Jay Reynolds, who represents ADICA, said the hearing has been rescheduled for 9 am on April 14 before Dougherty County Superior Court Judge Willie Lockette. Reynolds did not discuss specifics of the case.

Lockette continued the bond hearing Wednesday during a one-minute session with Reynolds and Joe Dent, attorney for the taxpayers' group. Lockette had not anticipated any challenges and was not prepared to hear the arguments. He already had another case scheduled for Wednesday morning.

Richard Thomas of Dougherty Tax Payers Association contends :"the city was trying to get this bond issue slipped in the back door."

Thomas said Georgia code requires that the bond issue be subject to audit with complete disclosure on how the money will be allocated.

"This would give the citizens a chance to object if they think it's unsound," Thomas said. "If Judge Lockette had signed the bond document today (Wednesday), it would have blocked any citizen or organization from challenging what the city is doing."

Thomas said he believes the city is in violation of Georgia code, and said a similar effort in Moultrie was rejected.

"Most citizens consider the revitalization of downtown a complete failure," Thomas said. "Not only is it a filure, it is creating an albatross around the neck of the taxpayers."

Thom as also believes the 6.7 percent increase rate on the bond issue is about 100 base points higher than what the city should have been able to obtain.

The higher interest rate and the lack of audit requirements, Thomas said, is symbolic of the "frivolous spending spiral they've been on for years."

He criticized local governments for not cutting staff and implementing worker furloughs, a step many private businesses have done in recent months.

City Manager Alfred Lott, who was at the Capitol in Atlanta Wednesday for the annual Albany/Dougherty Day, said he thought the issue of the ADICA audit had been cleared up through an e-mail sent by Commissioner Roger Marietta.

"The e-mail that Commissioner Marietta sent to the taxpayer group addressed the audit matter," Lott said. "It is my understanding that they have a yearly audit."

Lott said concern over possible improper use of the $6 million bond issuance is unfounded.

"That simply is not true," Lott said when asked about rumors surrounding planned use of the money. "That bond money is specifically earmarked for downtown development, and I can unequivocally state that it is under the command and control of the ADICA director (Don Buie) and myself. The plans for that money are being monitored closely.

"We don't feel now is the time to talk about specific projects being considered because of concerns about competitive bidding and possible price gouging. But as soon as there is something concrete, we will let the public know our specific plans."

Lot said residential development remains a priority for downtown development.

"We've said all along we're interested in residential development and the associated retail that comes along with it," he said. "We still want to get people living downtown."

Carlton Fletcher contributed to this article.