Is Douglas County Georgia in financial crises?

Memorandum From: Igor Malanchuk www.Igor2008.com
Republican Candidate for Chairman,
Douglas County Board of Commissioners
Vote July 15 – Early Voting July 7-11

Is Douglas County Georgia in financial crises? Look at the numbers!

Under Tom Worthan’s watch, Douglas County saw the biggest disconnect with financial reality, stretching of the law to its limits and beyond and a steady stream of tax increases.

Here are some numbers from the County’s budgets:

1. General Fund Trends: spending outgrew growth in revenue by $9,602,102.00.

Source: General Fund Trends Actual Approved Difference:
2004 2008 Growth:
Revenue: $62,536,133.00 $80,862,132.00 $18,325,999.00
Expenditures: $58,133,457.00 $86,061,558.00 $27,928,101.00
Surplus/Deficit: $4,402,676.00 -$5,199,426.00 -$9,602,102.00

2. Douglas County Government Salaries and Wage Appropriation grows 3.4 times faster than the County’s population.

Source: 2004 and 2008 Budgets 2004 2008 Growth:
Salaries and Wage Appropriations $55,805,310.00 $85,320,131.00 35%
Douglas County Population 107000 119500 10%

3. Tax anticipated notes (Loans) grew up by 100%.

Tax anticipated notes 2005 TAN 2008 TAN
Amount: $7,200,000.00 $14,000,000.00
Interest: 2.53% 3.58%

4. The County is unable to maintain 10% Reserves policy:
2004 2008 Growth:
Revenue $86,660,884 $107,484,423 19%
Expenses $68,865,910 $99,618,521 31%
Reserve (10% of budget) $8,666,088 $10,748,442
Deficit/Surplus $9,128,885.60 -$2,882,540.30

On March 5, 2008 Douglas Neighbor Newspaper reported that Chairman Tom Worthan is “cheerful about the state of the county”. Three months later, in June 2008, the County finance department reported declines in revenue and Tom Worthan borrowed $14,000,000.00 – another record amount for the County.

Tom Worthan has shown a disregard for responsible management of our tax dollars and has no will to stop overspending. His actions will lead to higher taxes.

By voting for Republican Igor Malanchuk on July 15 we can end:
• Higher Taxes
• Uncontrolled growth of government and overspending,
• Hiring of services without proper biding procedures and necessity,
• Cash pay outs without contracts and itemized bills.

As Chairman, Igor Malanchuk will:
• Restore the rule of law and fiscal management
• Restore values of limited government and principles of equal opportunities
• Trim wastes and find savings in the government
• Create new opportunities for small businesses

Help Igor Malanchuk to help you: Vote against new taxes, favoritism and wasteful spending – Vote for Igor Malanchuk. It’s your government… let’s take it back!

Have a Great day and a Happy July 4th,
Igor Malanchuk

Look at the Numbers
Source: Douglas County Budget 2004 and 2008.

Campaign Headquarters:
3697 Hwy 5, Suite 6 Douglasville, GA 30135
Tel: (770) 947-8253 Fax: (770) 947-8254
www.Igor2008.com – E-mail: Igor@Igor2008.com

Directions:
From I-20 West, exit 34 (Hwy 5) take Left and go 3 miles See Cedar Mountain Village Center
(next to Food Depot)

Summary of Flagview Mobile Home Park Purchase

Submitted by Igor Malanchuk

Summary of Flagview Mobile Home Park Purchase (for construction of new jail) by the County.

Sources: available through Douglas County and GBI records, local media

March 15th, 2007

* Bass and Associates completed the park’s appraisal for the County: value is $5.6mln.
* County’s appraisal at the time was $3,9 mln.

_____________________________

May 2nd, 2007

Tom Worthan hired Kyle Gable, Bullock Mannelly Partners, Inc. to buy the park for the County for 5% commissions

_____________________________

August 27th 2007 3:35 p.m. email communications between Eric Linton (County Administrator and Scott Orton)

Erik: “Scott, if I am reading this right, you are estimating approximately $1million to close park.”

Scott: “That is correct…..”

Thursday, September 6, 2007 Douglas County Sentinel

Worthan: Jail will be built with our without SPLOST

“I don’t want to build a new jail and I’m sure you don’t,” Worthan said. “Our number one responsibility is to protect you and your property. We can’t do that by letting prisoners out early.” Only four hours before Worthan spoke to the AARP, the Board of Commissioners (BOC) approved the $8.5 million purchase of a 36-acre site for the jail and law enforcement administration center. The land currently houses the Flagview Mobile Home Park.

_____________________________

Quarterman Questions Douglas County Pension Plan

From: James Quarterman, Democrat Candidate for Douglas County Ga. Chairman

Chairman (Tom) Worthan:

It has come to my attention that the county plans to transfer the 50 to 60 million dollars county retirement plan over to GEBCOR as of July 1, 2008. It is also my understanding that GEBCORE is a division or agency of the Georgia County Commission Association.

It is my understanding that if this transfer is allowed, isn’t it going to cost each employee up to $400.00 per year in fees and cost the county an additional $130,000.00 a year?

My question is how can you transfer 50 to 60 million dollars without any bids or due diligence of service to protect this fund balance. And isn’t all this being done so that the county can use its employee’s retirement and pension to secure and anchor future debt to build a new county jail and other projects?

Tom Worthan Promotes Website… but where’s the beef?

Campaign signs placed around Douglas County by Chairman Tom Worthan promotes his website but as of this post the site has not been launched. With only 4 weeks from the July 15 Republican Primary, Worthan has said nothing about about his record or his plans for the future of Douglas County.

Stay Turned! And save this site in your favorite list: www.TomWorthan.net

Tom Worthan Agrees to Debate Malanchuk in Public Forum

Douglasville GA: Igor Malanchuk, 43, Republican candidate for Chairman of the Douglas County Board of Commissioners is pleased that his opponent, Tom Worthan has agreed to participate in a public debate(s). While attending a public meeting, Malanchuk asked Worthan if he would debate the issues before the public. Worthan agreed and the two candidates are working out the details as to time, location and debate rules.

“This will give voters of Douglas County the opportunity to ask questions to each candidate and get a feel for our vision for the future of our county”, Malanchuk said. “I believe the public needs to know where we stand and how will plan to manage our tax dollars.”

Malanchuk suggested “Citizen’s Hall” at the county courthouse as the venue, but said he is open to any location as long as the public can be accommodated.

“We need an old-fashion forum where the voters can ask any question without censorship or screening. I am open to discuss any issues the public has, any time, any place”, Malanchuk said in a previous release.

Igor Malanchuk said his campaign platform is based on cutting spending, finding waste in government and keeping taxes as low as possible.

For more information on his campaign visit – www.Igor2008.com

Igor Malanchuk Challenges Tom Worthan to Town Hall Debate

Douglasville GA: Republican candidate for Chairman of the Douglas County Board of Commissioners, Igor Malanchuk , 43 from Winston Ga., has challenged incumbent Chairman Tom Worthan , to a town hall debate to allow voters to compare both candidates.

Malanchuk said while campaigning, citizens have asked him if there will be a one on one debates with the two candidates to address some of the important issues facing Douglas County.

Malanchuk made the challenge in a phone call to Worthan on Monday. Malanchuk said he would like the debate to be held in “Citizen’s Hall” at the court house with an impartial moderator.

“It would be 2 men and 2 microphones”, said Malanchuk. “We need an old-fashion forum where the voters can ask any question without censorship or screening. I am open to discuss any issues the public has, any time, any place”, Malanchuk continued.

According to Malanchuk, the public is looking for leadership in tough economic times. They want to know what can be done about run away government spending, higher property taxes, county pension plans, jail population and roads.

“Mr. Worthan has a record of higher taxes, more debt and increased government spending”, said Malanchuk. “I’m offering something new for Douglas County. It’s called fiscal responsibility. The current chairman has never met a tax he didn’t like. I want to cut taxes by controlling the size and cost of government.”

The winner of the July 15 Republican Primary will face-off with Democrat opponent James Quarterman in November.

Douglas County Spent Cash Reserves

County borrows operating funds
Issues tax anticipation notices
By Winston Jones
Staff Writer
Posted: Wednesday, June 4, 2008 1:39 AM EDT
From: Douglas County Sentinel

The Douglas County Board of Commissioners (BOC) unanimously approved the issuance of $14 million in tax anticipation notes (TANs) Tuesday to provide the county with operating funds while awaiting property tax collections.

SunTrust Robinson Humphrey submitted the lowest bid of four bidders, with an interest rate of 2.15 percent. The short-term note is due to be paid on Dec. 31.

“Because a large portion of our revenues come from property taxes, and property taxes aren’t collected until the last two or three months of the year, it usually becomes necessary to borrow money in order to operate until the property taxes are received,” said Jennifer Hallman, county finance director. She said the economic downturn, with lower revenues and higher expenditures, also contributed to this need for immediate funds.

This is a common form of financing used by governments with cash flow needs, Hallman said. The county will invest the portion of the $14 million not being used and the interest earned will offset some of the interest charges on the notes.

Last year, the county had enough cash in its general fund to pay for county maintenance and operations until tax revenues came in, Hallman said. However, the county purchased a $9 million property tract for a future jail during the year and had to use general fund money to pay off a short-term note for the property due on Dec. 31. General fund cash was used for this payment.

Hallman said the transaction moved a high-liquidity (quickly available) cash asset to a less liquid capital asset.

Douglas County Ga. Budget Crisis

On May 20, 2008 Chairman Tom Worthan asked the Douglas County Board of Commissioners to approve a $14 million tax anticipation loan because the county has run out of cash. The budget for 2008 was almost $100 million the largest budget in the county’s history.

That’s right the county is broke!

At the end of 2007 the county had over $10 million dollars in reserve funds but spent it on land to build a new jail. The county paid over $8 million for land they assessed at around $4 million. This move comes only months after the voters rejected a $150 million SPLOST referendum. Worthan promised (threaten) to raise property taxes if the voters rejected the SPLOST. It appears he is fulfilling his promise.

The county stated that revenues are down across the board. Sales tax revenues have dropped 11%, building permits are down by 50% and so on.

In spite of the revenue decrease, Chairman Worthan and the board of commissioners are spending like a bunch of drunken politicians. They have made no effort to cut spending and continue to grow the size of government.

Will the BOC bankrupt Douglas County Georgia with their uncontrolled spending?

Only time will tell!

www.Igor2008.com

Igor Malanchuk to Challenge Tom Worthan for Chairmanship
Elect Igor Malanchuk,

www.Igor2008.com
Contact: Igor Malanchuk 770-947-8253
For Immediate Release

Republican Candidate to Challenge Tom Worthan for Chairmanship

May 1, 2008 – Douglasville, GA: Republican Candidate Igor Malanchuk, 43, of Winston Ga. is set to challenge Tom Worthan for chairmanship of the Douglas County Board of Commissioners in the July 15 primary.

A local business owner, Igor Malanchuk said his campaign and leadership will focus on cutting taxes and spending and bringing a fiscally responsible management style to the county government.

“In tough economic times we must keep the tax burden as low as possible”, said Malanchuk. “I will work with each department to find ways to cut our budget while providing the basic quality services our citizens expect. I pledge to never seek a tax increase.”

Igor said that taxpayers have a gigantic burden to keep up with the growth of government and will seek to prioritize spending. “By keeping taxes low, we help to stimulate the economy and it will actually help to generate more revenue in the long run”, according to Igor.

“Citizens tell me they feel shut out of the business of our government and I want to change that”, Igor continued. “I will hold county business meetings in the evening so more working folks can attend the business meetings and participate in their government.”

Other issue Igor will focus on;
• Trash and graffiti removal from right of ways. Improve roadway safety and traffic flow;
• Reduce the number of animals being euthanized at the animal shelter;
• Improve existing parks and recreational facilities before spending millions on new land;
• Ending nepotism (favoritism) in government hiring. Hiring will be based on talents skills and experience;
• Crime prevention and law education programs. Citizens must take an active role;
• High ethical standards for elected officials and employees. The public must trust officials;
• Stimulating economic trade and commerce. Provide incentives for small business establishment;

Igor is different and will make a difference!

Igor came to the U.S. in 1991 from Russia and became an American Citizen. He worked as a handy man, gardener, restaurant manager and account executive while getting education at State University of New York, New Paltz (Business Administration, 1997) and his Master at The School for International Training at Brattleboro, Vermont (Intercultural Management and Training, 2001). In addition, Igor studied martial arts, journalism, drama, engineering and financing.

In 1999, while working on his thesis’s for his Master program, Igor moved to Georgia and worked in The Georgia Council for International Visitors as a Director of Development and Training. He managed the U.S. Department of State training programs for foreign leaders and business executives.

Igor was able to enlist help of various federal, states, counties and cities officials in order to meet program challenges. Leaders like Governor Sonny Perdue, Federal and State Judges, County CEO’s and countless other local officials and business leaders worked with Igor in promoting Douglas County and the American Dream.

The very first training program Igor implemented was with the help of Douglas County citizens and officials. People of the county opened their hearts, minds and homes to international visitors. The visitors went to local high schools, government offices and businesses to learn about how our system works. Igor’s efforts helped to generate positive media reports about interactions between international visitors, residents and leaders of Douglas County. Igor has been able to count on the people of Douglas County and they have a special place in his heart.

Igor Malanchuk is ready to serve Douglas County. He will make a difference!

# # #