October 18, 2016 · 0 Comments
Sangamon Co. (ECWd) –
Since our inception in 2011, we have focused on small local government operations and learned to look at key documents to identify red flags. Now keep in mind, we are just a couple of Southern Illinois Hay Seeds, as former College of DuPage president referred to us, yet for some strange reason reading comprehension has not eluded us as it appears to have happened with public officials.
In the case of the South Sangamon Water Commission, it took us no time at all to identify contracts with the Village of Chatham that lacked statutory obligations as well as bond concerns. Of interest regarding the bonds is the selling of those bonds claiming a three million gallons per day facility is going to be built while only building a two million gallons per day facility. A Securities and Exchange complaint has been filed regarding that matter by citizens of the Village of Chatham.
In May of this year, Moody’s downgraded the SSWC Taxable Alt. Revenue Source Series B Bonds and issued a “Negative Outlook”. Who do you suppose is going to bear the burden of fixing that problem? Yes, you the taxpayer as your rates will go up to cover their malfeasance.
“The Baa1 rating reflects the weak legal security of the bonds with a pledge of property tax revenues that are currently abated. The rating further reflects the small tax base and operating system that is heavily reliant on one intergovernmental agreement for water supply. The rating further considers the weak debt service coverage and limited available liquidity and an elevated debt burden.”
“The negative outlook reflects our view that the financial position of SSWC will remain challenged as expenses are greater than anticipated and liquidity is projected to remain narrow. The outlook further reflects our concern that increasing debt service payments will further challenge the ability to improve the financial position.”
So if Moody’s is able to see, comprehend, and act, why is it so difficult for the SSWC Commissioners and those tied to this creation, Village of Chatham and Village of New Berlin, to see the freight train coming their way?
We suspect a much more negative outlook to hit once additional information is made public to include misrepresentation on bonds sold, conflicts of interest, and illegal easements being issued by SSWC for the life of certain individuals.
Stay tuned for ongoing updates regarding the water issues coming out of the South Sangamon Water Commission.
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By Kirk Allen
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