First, this is what I understand on the topic of the bond resolution that came before the Cobb County Board of Commissioners on Tuesday:
• The bond resolution is for the bond issuance this summer; there is no question that passing the resolution is a necessary step to move forward on the issuance.
• Asking for an authorization level in excess of what you will believe will be needed helps avoid an issuance problem. If an issuer asks authorization for only the exact amount based on its financial analysis, the issuance could blow up if it turned out to be $1 more than the authorization. A prudent issuer wants to avoid that.
• The really key numbers, I believe, are the net proceeds that go to the stadium project and the debt servicing obligation — and whether these remain within the expectation that (Cobb has) publicly shared. We will know that when Cobb County actually goes to bond market.
Common Cause Georgia’s issue is how the bond resolution details were made public — specifically, that they became available after the close of business Friday before a holiday weekend, the first business day after which the resolution was to be voted on.
Before coming to the Board of Commissioners meeting Tuesday, I Googled the question: “Why are press releases issued on Friday afternoon?” Posting information on a website is similar to a press release, so that’s what I went with.
Here’s the first entry that popped up. It’s from Salon.com: “Investors and journalists have long complained that companies release bad news — a failed product trial, a recall, a Securities & Exchange Commission investigation — on Fridays, particularly after the market closes. The Friday release is a transparent attempt to evade fallout by burying bad news ahead of the weekend.”
I can only imagine what the author would have said about a Friday before a long holiday weekend.
This is Common Cause Georgia’s concern. The public funding portion of the stadium is a subject Cobb citizens are interested in. There are reasonable questions that some may have about what the total dollar commitment is and why numbers have at least the appearance of changing. And it’s also reasonable to believe that the details in the resolution were revealed under the cover of darkness, so to speak.
The better way to do it? Explain things up front, before they hit the paper. The figure of $397 million must have been no surprise to Cobb County Chairman Tim Lee, and I imagine that he may have known the approximate figure well before Friday. Not everyone may understand bond details, and most haven’t worked in the capital markets and know what the conventions are. But the Board of Commissioners would have done its best.
The Tuesday county commission meeting did not allow for public conversation. All the speaking slots were taken by stadium boosters who lined up several hours ahead of time. It’s the same tactic used in earlier meetings to ensure that their voice dominated. That’s nice for them, but many people don’t have the luxury of taking half a day off of work. And even if citizens had a chance to speak, the meeting format did not permit questions and answers.
Common Cause Georgia preferred that the vote be delayed two weeks to let citizens absorb the details and ask questions. To her credit, Commissioner Lisa Cupid clearly preferred that citizens have more time to examine the resolution.
Cobb County’s communications and finance staff have done a fine job answering my questions whenever I ask. They have been friendly, open and helpful, and I have nothing but praise for their professionalism. But Chairman Lee and county commissioners need to get complete and accurate information to the public in enough time to be reviewed and questioned.
Again, Common Cause Georgia doesn’t oppose the stadium or the county’s involvement. Our focus is on transparency and full details. In the future, we’d like to see the Board of Commissioners get in front of the news.
Terry Taylor, a Smyrna resident, is a board member of Common Cause Georgia.
