Thursday, January 14, 2010

Our Long Local Nightmare May Not be Over

In a correction comment, Bryan Freeborn says, "Mark Barrett was consistent in the use of 'Public Money'. After conversations with both him and John Boyle I reviewed the articles. He did not use tax dollars."

Perhaps Mr. Freeborn will help us understand Buncombe County's financial involvement with the airport and explain this statement (emphasis added): "While the [airport's] assets are funded by the County, they are owned and utilized by the respective entity and reflected as assets on their financial statements. Therefore, the County has incurred a liability without a corresponding increase in assets. At the end of the fiscal year, approximately $105.4 million of the outstanding debt on the County’s financial statements was related to assets included in the financial statements of the school systems, community college, and the airport authority. "

Something to do with bonds and debt obligations and how bonds are paid?  Are the bonds the county floats for the airport repaid completely from airport user fees?  Or are these general obligation bonds, with the tax payer ultimately responsible?  How does the airport channel user fees to the county, so it doesn't have to show any debt obligations?  The county shows the debt.  The airport shows the asset.  Suppose the airport closes and there are no user fees?  Who pays the bond holders?

Hey, I'm a blogger, not an accountant.

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