Some communities avoid financial managers through bailouts!

[douglasm]

Aha, there's the problem. Out here, it is the developer's responsability to lay infrastructure within his development. "Water and sewer to the property" is a common term around here, meaning utilities come to the lot line.

I have to agree with Novine here that the government entity got hosed [[although maybe not according to Michigan law). Like roads, the developer should pay to have installed water, sewer and electricity main lines which are then deeded over to the utility when they go into service. It's a cost of development, and that requirement should be in the development codes.

[Detroitnerd]

Defend this all you like. But if you're in favor of emergency managers coming in and cleaning up messes, why should you be opposed to them cleaning up this mess?

This dogged defense of these suburban and outstate officials only adds to the perception that these EMs are really for minority communities only.

[brizee]

Defend this all you like. But if you're in favor of emergency managers coming in and cleaning up messes, why should you be opposed to them cleaning up this mess?

This dogged defense of these suburban and outstate officials only adds to the perception that these EMs are really for minority communities only.

Benton Harbor got the clamps as soon as soon as Snyder's signature was dry on the EM bill.

Wasn't Allen Park supposed to be investigated for takeover back in May? They gambled on the movie businees that the gov aborted, and lost. What came of that?

These communites don't need defending or excuses. It's different when white people do it.

[Wesley Mouch]

Defend this all you like. But if you're in favor of emergency managers coming in and cleaning up messes, why should you be opposed to them cleaning up this mess?

This dogged defense of these suburban and outstate officials only adds to the perception that these EMs are really for minority communities only.

Agreed.

People who are defending the Livingston County mess see the differences. And there is a difference between Detroit-style financial problems [[w/ significant corruption and waste) and Livingston County-style problems [[government supporting sprawl).

I don't see much difference between the two. Because I don't like either. They both stink.

The real lesson to be taken away here is that anytime government gets involved with things beyond basic governance, they are subject to the same problems as the corporate world -- corruption, debt, waste. The best thing to do is to get government out of all of this -- and just focus on core needs.

It was a mistake in Livingston County to issue bonds to finance sprawl. Not because sprawl is bad [[and it is), but because they have no business financing it. Even if it is a long-standing practice.

It was a mistake in Detroit to pay Bobby Ferguson and his ilk for doing nothing. Not because corruption is bad [[and it is), but because the city shouldn't have been doing most of what he was paid to ostensibly do.

Stop trying to be the tool for all purposes -- and just do the basics right.

[Scottathew]

WOW. Normally I don't buy into the us vs. them, black vs. white, affluent vs. not-affluent.

However, this is what it is. A bailout for the rich sprawlburbs...

[Wesley Mouch]

WOW. Normally I don't buy into the us vs. them, black vs. white, affluent vs. not-affluent.

However, this is what it is. A bailout for the rich sprawlburbs...

Its just a loan. More rope. Not a bailout. Just rope.

[prokopowicz]

It is a bailout according to popular, and unfortunate, usage. Most bailouts [[e.g. Greece, U. S. banks) are loans on very favorable, unrealistic terms. Sometimes a bailout is a direct investment for a share of ownership [[e.g. GM). Rarely is it a gift of free money, although the zero interest rate policy is an example for investment banks.

The press is very loose with the term bailout, and most people aren't aware of the distinctions.

[Hermod]

Handy Township has a population of 5,100 people as of 2010 and very lowly paid township trustees.

Here is the story as seen by the Township Supervisor. It reads a little bit different than the politically charged blog quoted by the thread starter.

HANDY TOWNSHIP SPECIAL ASSESSMENT DISTRICT

In 2002 Handy Township was presented with a proposed manufactured home development consisting of approximately 500 units. The development was denied by the Planning Commission and the Township was sued by the developer. A consent judgment was entered into providing for the developer to reduce the number of units and other concessions and for the Township to provide waste water treatment services. Waste water treatment services were to be provided by a Township built plant to be financed through Livingston County issued bonds and secured by Special Assessments on the development. Other property owners joined the Special Assessment District. The waste water treatment plant was built to handle over 700 REUs with capacity to be phased in as needed. To date approximately 200 REUs are being utilized. Several properties are delinquent and scheduled for tax sale in 2013.

In 2003 Handy Township passed an Affordable Housing Ordinance [[AFO) allowing denser development of homes on smaller lots. The location and number of the developments was to be controlled by availability of municipal services. Shortly after the enactment of the AFO the Lake Isabella Village court decision allowed developments that required community waste water treatment facilities to install private systems if municipal services were not available. The Department of Environmental Quality was responsible for permitting and not the Township. The Township rescinded the AFO in 2005.

To protect the public health and to provide capacity for the developments approved under the AFO the Township partnered with the Village of Fowlerville to construct a waste water treatment facility to be owned and operated by the Village in which the Township would have over 500 REU capacity. The Township portion of the project was financed by Livingston County issued bonds and secured by Special Assessments on the properties. To date just over 20 REUs are being utilized and the majority of assessments are delinquent and scheduled for tax sale in 2013.

Livingston County has refunded [[refinanced) the bonds at a lower interest rate and extended the payment period on the 2005 bonds to lower the annual payments. Compounding the bond debt are the chargebacks to Livingston County’s revolving fund plus interest in the amount of $2,900,000 due at the beginning of 2014.


For the fiscal year 2011-2012 ending June 30, 2012 Handy Township collected approximately $950,000 in total operating revenues. Some of the revenue is restricted for specific use. For the same period Handy Township spent approximately $760,000. These figures DO NOT include the SAD collections and payments vary from year to year. The Township has been able to live within its income and has a modest fund equity. SAD bond payments for the next 10 years will average close to $570,000. Currently only $150,000 is being collected and the remainder is delinquent. This leaves a delinquency of approximately $420,000 per year. Coupled with the delinquencies on the bond payments there are the chargebacks due to the County of close to $3,000,000. Township fund equity and the amount saved annually will be totally exhausted when the chargebacks are due.

Dr. Henry M. Vaupel

Handy Township Supervisor

Handy Township's total operating budget wouldn't support the Detroit Clowncil and their chauffeurs, executive assistants, public relations flacks, body guards, and the rest of their entourages.

[Detroitnerd]

Handy Township has a population of 5,100 people as of 2010 and very lowly paid township trustees.

So they were living WAY beyond their means then.

Here is the story as seen by the Township Supervisor. It reads a little bit different than the politically charged blog quoted by the thread starter.

Oh, really? I expected the guy who was in the middle of all this nonsense to do an expose on himself and his colleagues. [[eyeroll)

Handy Township's total operating budget wouldn't support the Detroit Clowncil and their chauffeurs, executive assistants, public relations flacks, body guards, and the rest of their entourages.

Just when EM proponents can's stop saying the legislation isn't about sticking it to Detroit ...

Handy Township is a podunk town that lived beyond its modest means by shoveling resources it didn't have at developers who left it holding the bag. Poor choices. Therefore it doesn't need an EM.

But Detroit is a big city with large budget and substantial bonding authority that would have been able to meet payments if it hadn't had its state revenue-sharing pulled. Outside forces, more than anything, did it in. Therefore ...

[Hermod]

You know, when I first read the blog that started all of this, I took it at face value. I assumed that they got in trouble trying to service some developers that wanted to build McMansions way out in Livingston County at the outer reaches of the exurbs and got caught with the housing bust. I was blaming the township for getting caught with their pants down.

If the township supervisor is telling the truth [[and that is an excerpt from his annual report as found on the Livingston County website) it would appear that the trouble started when the trailer park got forced down their throats by the courts and they were required by the court to provide waste water treatment to the trailer park. Then they got into further trouble by wanting to keep the affordable housing developer from building with septic tanks. The hole in their budget to pay for this is about $450 thousand a year and with some relief, they will eventually pay it off. Hardly the degree of hanky-panky noted in the original political blog.

[Wesley Mouch]

It is a bailout according to popular, and unfortunate, usage. Most bailouts [[e.g. Greece, U. S. banks) are loans on very favorable, unrealistic terms. Sometimes a bailout is a direct investment for a share of ownership [[e.g. GM). Rarely is it a gift of free money, although the zero interest rate policy is an example for investment banks.

The press is very loose with the term bailout, and most people aren't aware of the distinctions.

Please explain what in this law indicates that this not a true restructuring of debt, but a forgiveness of debt. I don't see that the State is assuming responsibility for city nor sprawl debt here. If so, I truly would like to understand.

[Wesley Mouch]

...snip...
Handy Township is a podunk town that lived beyond its modest means by shoveling resources it didn't have at developers who left it holding the bag. Poor choices. Therefore it doesn't need an EM.

But Detroit is a big city with large budget and substantial bonding authority that would have been able to meet payments if it hadn't had its state revenue-sharing pulled. Outside forces, more than anything, did it in. Therefore ...

I love you, Mr. Nerd -- and you so often have a refreshingly clear opinion -- but do you really believe that it was 'outside forces'? Oh, but for that one revenue-sharing agreement being fulfilled, then joy would abound.

[Hermod]

From reading both the Livingston County website and the handy Township website, it would seem that handy Township is hardly a "sprawlburg" and isn't populated by rich Republicans with millionaire developer friends as people would have you believe. It is a rural area beyond the current spread of sprawl that got done in by a trailer park and a series of unfortunate circumstances. If they are only bringing in $950 thousand a year from 5,000 residents, the place must be semi-impoverished.

[Hermod]

OK, little bit of research on Handy Township:

1. Population went from 7,000 in 2000 to 5,100 in 2010 [[hardly an up-and-coming sprawlburg.

2. Median house values well below median house values for state of Michigan.

3. Median income well below state of Michigan.

4. Population 897% white with 90% of population claiming Norwegian or German ancestry.

5. 71% of all houses in township are heated by bottled propane gas.

[douglasm]

Hermod....
......let's see if I understand you correctly. The health department OK'd septic for the development AND there was no pipe nearby, correct? Yet they ran the pipe anyway with no guarentee of income from hookups. If we tried something like that funders would throw it back in our face. And I'd expect to be voted out of office.