Thursday, August 6, 2015

Bank of NH Freezes Carroll County Line of Credit

It was reported in today's Conway Daily Sun that the mere mention of Carroll County considering bankruptcy caused the Bank of New Hampshire to freeze the county's line of credit. Currently, that line of credit as a Tax Anticipation Note or TAN , is in the amount of $4.5 million. Quoted in the article was newly hired County Administrator  Ken Robichaud:
“Because of that word 'bankruptcy' and the way that Channel 9 put it in their intro, I received a call Monday morning from the Bank of New Hampshire saying that at this point they are freezing their TAN money until such time they feel comfortable that the county is not going to file for bankruptcy."

I'm not so sure it is fair to blame this on WMUR because the mention of bankruptcy came from the Commissioner's during their July 29th meeting. I suspect that once the budget issues are resolved , the line of credit will be restored. The County Delegation will once again meet on August 17th in Ossipee. 
 It is a lesson though for all public officials : be very mindful of what you  say in public meetings. 

6 comments:

Town Hall Junkie said...

No bank in it's right mind should loan the county a penny. Where is the N H DRA? Another N H NO-show...

Joseph Cormier said...

Why is there Chapter 9 federal legislation?

http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-9-bankruptcy-basics

"the municipality must be insolvent, as defined in 11 U.S.C. § 101(32)(C); "

RE: 11 U.S.C. section 101(32)(C)
"(C) with reference to a municipality, financial condition such that the municipality is—
(i) generally not paying its debts as they become due unless such debts are the subject of a bona fide dispute; or
(ii) unable to pay its debts as they become due. "

The insolventcy is the mindset of some, not all, of the cast of characters in County Management. Might be symptomatic of government, period!

County treasurer resigns in April and Assistant Treasurer Chip Albee is, now, speaking-up about bankruptcy, payroll, etc.

"Albee told the commission that the county couldn’t qualify for bankruptcy protection because its assets exceed its liabilities."

“I think it was pretty irresponsible to bring up the notion of bankruptcy,” said Albee. “I’ll be surprised if suppliers for things like the nursing home don’t start backing off a little bit and not provide us with credit.”

Why did the Bank of NH freeze the funding? That's irresponsible!
Why isn't a different bank being pursued ... now. How much money has the bank made off the county? I guess the bank doesn't know as much as the County ... said the spider to the fly!

"Albee said there are “enormous consequences” for talking about bankruptcy." Why did the treasurer resign, and not the assistant treasurer? Clean house. Who was the finance manager?

So, someone brings-up Chapter 9, and that caused all of the County money problems.

Really! ... so sue the Conway Daily Sun for making it public ... ya, right!

Where's the NH DRA reports and ... maybe Atty. General involvement?
That would be worth reading. Get those RSA 91-A, Right To Know requests in reporters!



Mellisa Seamans said...

As a point of information, NH DRA is currently conducting a "preliminary evaluation of reporting, compliance, and data integrity...intended to assess the reliability of data presented to DRA."

NH DRA Commissioner John Beardmore attended the May 22 Carroll County Delegation meeting to discuss the evaluation to be conducted over the summer. A video of the meeting can be found here: http://www.governmentoversite.com/delegation/carroll-county/2015-05-22

According to the scope of work, NH DRA is expected to deliver a report containing their findings and recommendations to Carroll County the first week of September.

Joseph Cormier said...

Thank you Melissa ... you might have to repeat 2013 RTK actions in 2015!

http://www.conwaydailysun.com/newsx/local-news/112249-journalists-sue-carroll-county-commissioners

Listened to the first hour of the URL posted :

http://www.governmentoversite.com/delegation/carroll-county/2015-05-22

Not GASB, but IRS ..."uncollectible" and "bad debt". There seemed to be a problem understanding. Real issue is audit trail and determination of same.

http://www.irs.gov/publications/p535/ch10.html

http://www.accountingcoach.com/blog/provision-bad-debts

The NH DRA Commissioner commented the DRA is interested in determining the present status of acceptable reporting from Carroll County (level of confidence), to the DRA. He commented the DRA was NOT concerned with "the past"(investigative). I think he also mentioned the NH DRA has never had to "do this" before.

Maybe the new MoBo TA can, also, file Right-To-Know requests for the town. Looks like September could be a fun month!


State Rep Glenn Cordelli said...

This will not be over with the DRA report. We must find out where taxpayer money has gone - there must be accountability.

Moultonboro Blogger said...

Thank you Glenn Cordelli and Ed Comeau. Somethings not right in Ossipee. The one commissioner with the background to fix this mess, Denny Miller, resigned abruptly. I hope the delegation picks a new commissioner based upon qualifications as opposed to party affiltiation.