UPDATED 26 May 2016: New Information about TCUD

So, last week Bob and I met with Matt Young from TCUD to get a better understanding of this organization.

Before I get started on what we learned: The Fri, 20 May 2016, issue of the Tunica Times stated: “TCUD employees work directly for Tunica County for the first time in the utility’s history, making them eligible to participate in  state retirement.”  This is not correct.  TCUD employees are separate from the County and are employed by TCUD. 

On to what we learned:

TCUD was created through Local and Private Legislation.  If you would like to look this up, you would be looking for House Bill #1758 during the 1996 Regular Session of our State Legislature.  TCUD is an entity unto itself.

In the late 1990’s, the sewer and water for the Casinos was handled by Riverbend of Mississippi, Inc., a private engineering firm that was under contract to run the Utility District.  The Casinos requested that the Public Service Commission regulate Robinsonville Commerce Utilities.

It was during this time period that the Board of Supervisors, (Dunn, Henderson, Battle, Jr., Tucker and Pegram) asked TCUD to take in and upgrade water and sewer in White Oak, Dundee, Hollywood, Robinsonville, etc.

There was a $6,200,000* bond that was issued in 2004 to pay for the Tunica Cutoff system upgrades and other system upgrades in Robinsonville.  There was also a $2,391,339 loan authorized through Mississippi Department of Environmental Quality (MDEQ) yto pay for the system upgrades in the Dundee and Hollywood areas.  These upgrades were requested by the Board of Supervisors therefore, this bond and this loan are the obligations of the County government.  Each year, the County pays debt service on the bond of around $500k. 

*The records for this bond are in the Chancery Clerk’s office.  There you will find that the Board of Supervisors agreed to pay this bond.  Those of us who were not privy to this information, me included, did not understand why our County was paying the debt service for TCUD.  Now we know.  The above named Supervisors obligated us to this debt.

  

Riverbend of Mississippi, Inc., the management company which was owned by John Almond and Mike Young, was contracted to manage TCUD.  This contract ran out 31 Dec 2015 and was not renewed.  Up until this time, TCUD was paying $10k per month to the Riverbend of Mississippi.

At the last Board of Supervisors’ Meeting, the County Administrator, led the public to believe that TCUD was behind on their payments with MDEQ.  This is not true.  This note was and is the responsibility of the County because the Board of Supervisors requested that TCUD upgrade services in Dundee and Hollywood.  The Board requested it.  The County owes it.

The County also requested sewers at the Cut-Off to the tune of about $4 million.  We pay for this too.

It can be said that the County had money….lots and lots of money…when these projects were requested.  However, in my opinion, these former Boards of Supervisors obligated the citizens of Tunica County without their knowledge.  And, while they were obligating us to pay for these upgrades, they built the airport, the museum, River Park, the golf course, and the arena without one feasibility study. They just built and built and built.  They didn't even wait to see if just one of these projects would be profitable before they were on to the next.  Ugh!!!

Here’s an analogy that might make this more clear:  Say, I asked Bob to purchase a new car for me and I tell him that I will make the payments.  Then I go and spend my money on yarn and fabric.  Hmmm, no money for the car payments. Ugh! Ugh! Ugh!

Additionally, the County’s gaming revenue started decreasing in 2007 and the people we elected didn’t make the proper adjustments.  That is, reign in expenses and increase taxes.

I’m wondering to what else our elected officials have obligated us?

  

Two Supervisors’ Meetings ago, there was a discussion about the $700k Daniel Farm’s note at First Security.  This is for water and sewer for this subdivision.  USDA has approved the contract with TCUD in which $703,000 is in the form of a loan, which the County has agreed to maintain, and $537,000 is in the form of a grant.  These two amounts total $1,240,000.  There is a Resolution by the County to repay $703,000 of this cost.  Heads up on this one: I don’t think there is a guarantee of construction of a subdivision after the sewer and water installation is completed.

There has been too much confusion about reimbursement monies from FEMA following the 2011 flood.

There was a FEMA $300k disaster reimbursement that was due to the Road Department.  We already know that we will not be getting reimbursed for this expense because the former Road Manager did not follow FEMA requirements. 

Then there is an additional amount of $289k, also a FEMA disaster reimbursement, that is due to TCUD.  This amount represents flood related work at Goldstrike, Harrah's and the Cutoff.  The only way TCUD would have been eligible for this reimbursement was for the request to be co-signed by the County.  The County agreed to co-sign.  The $289k was received and was deposited in the County’s General Fund.   From my understanding, the County Administrator kept the reimbursement and is using this money to offset funds that have been advanced to TCUD to help with their past due bills.  I think this action is wrong and doesn’t leave a clear paper trail for money from the Federal Government. 

Additionally, “after the flood of 2011 many of the streets in Nelwin needed repair.  TCUD, having just installed the sewer lines in the road, took the responsibility of paving the roads to repair them to the condition prior to the flood.  TCUD elected to use the Road Department to perform this work since they have a contract price with various paving contractors in the mid south.”  TCUD knew that the County had received the FEMA and therefore, did not reimburse the Road Department for the cost of this repair ($85k).  In my opinion, this creates another paper trail problem.  The County needs to give TCUD their $289k and TCUD needs to write a check for $85k to the Road Department.  Then decisions can be made on their own merit as it relates to helping TCUD with their past due bills.

And now we get down to the $87k TCUD is requesting to fund employees’ 401k accounts at Hancock Bank.  In 2012, the TCUD Board decided to stop matching the 401k employee contributions to their 401k retirement in an effort to save money.  I think this is so wrong.  Before the County pays this money, I believe TCUD should attempt to collect this money from TCUD Board Member’s bonds.

Folks, we are never going to get out of this hole that our elected officials have put us in if every time we turn around we find that we have been obligated to more expense without our knowledge.  And now, the Tunica County Board of Supervisors voted to meet at 9a on the first and third Mondays each month.  I don’t know about you but I think we need more transparency not less.

Hello Supervisors: You serve at the pleasure of the people; not the other way around.