Citizen Newsletter #149

From: Henry Citizen <hccitizen@charterinternet.co... Add to Contacts Sat, January 16, 2010 11:45:28 AM
To: hc.citizen@hccitizen.org

Citizen Newsletter
NEWSLETTER # 149
January 17, 2010 The Conservative Voice of Henry County

Announcements & Info

In This Issue

1. Mathis’s Flawed Agenda

2. State of the County & Fiber Optics
3. Henry Commissioners are CLUELESS
4. Let’s Build a Door
5. Real Ethics Reform: What it Takes Contact Henry Citizen at hc.citizen@hccitizen.org
6. Your Voice Henry Citizen Newsletter Opt-In
7. Patriots Corner Unsubscribe
8. Filing a Property Tax Return Your comments and submissions are always
9. The Case Against Public Broadband welcome!
10. Asa’s View on The State of the
County

Editorial / Publication Policy

Do not waste money on fiber optic plans while we MAILBAG

have projects from SPLOST I, II, and III that are not
completed. ~~ Michael Eddy Pete Cook said

Hey, I agree with Mr. Asa. You know he is one cool

dude. Let's us know from the start what this all
I take strong exception to saying that about. Now this is the type of reporting we should
politicians are spending like drunken be getting here. That rag they call the Herald is
sailors. only good to start a fire and then sometimes it
doesn't work. I like the work of Mr. Citizen and Mr.
Doctor also.
When I was a drunken sailor, I quit
spending when I ran out of money.
Thank you for reading the Henry Citizen Newslet
Please send your comments or submissions to

Sponsor Henry Citizens for Responsible Government

Henry Citizen Newsletter is a success because of readers like you. Thank you for allowing Citizen to be a part of the
information you receive. And a special thanks to all the regular contributors!
If you would like to donate to Henry Citizens for Responsible Government please click the link below, or visit HC
Citizen Website by clicking Donate to Henry Citizens.
Larry Stanley, Editor

Special Thanks to our Sponsors -- Please join them!

Thank you!

THE MOST COMMON WAY PEOPLE GIVE UP THEIR POWER IS BY THINKING THEY DO NOT HAVE ANY. REMEMBER, YOU ARE NOT
ALONE. YOU - WE - ARE THE DEFENDERS OF LIBERTY!

Mathis's Flawed Agenda

Yesterday’s State of the County address from Chairman BJ Mathis indicated the business plan for the fiber optics
study is complete. Who has seen it? Have you? Are they being transparent enough for the citizen’s of Henry
County? Why is the Commission moving forward with something where there has not been a public hearing? Is it
because they know the citizens are opposed to wasteful spending? During a recent Commission Meeting a
representative from Charter spoke and indicated the study had not been made public. She went on to say that
there had been several fiber ring failures in Georgia. The first project she named was the City of Tifton.

Based on information off the internet, Tifton invested $10.7 million to create CityNet, losing $5.8 million when they
sold it later. The consultant Tifton hired to review CityNet's financials presented his findings to the City Council.
The Tifton Gazette indicates he alleged the following errors by United Telesystems Inc.:
· The initial projections were flawed.

· Potential subscribers were overstated.

· Operating cash flow and profitability were “extremely exaggerated”.

So who is this consultant that proposed the telecommunication plan in Tifton? The same consultant advising our
Henry County Board of Commissioners. J. Allen Davis d/b/a Rural Broadband LLC f/k/a United Telesystems Inc..
Information provided by this consultant enticed the City of Tifton to move forward with this “flawed” venture. Is
Henry County now about to lose $14.1 million dollars of hard earned taxpayer dollars? I assume Allen is being paid
nicely to do it. It only took a little research to discover the “expert” the county is depending on for information
may not have the most successful track record in recommending fiber optics projects.

Rural Broadband LLC: http://corp.sos.state.ga.us/corp/soskb/Corp.asp?1553076

United Telesystems Inc. http://corp.sos.state.ga.us/corp/soskb/Agent.asp?2519011

Don’t worry fellow Henry County taxpayers, Tifton is not the only failure. The City of Acworth was advised by
United Telesystems Inc. as well. City of Acworth taxpayers, had to sell before incurring the major losses other
Georgia cities have, but they were still left to service the bonds generated by the project according to an AJC
article in February 2001. What makes citizens fearful of a Henry County project is not only the potential losses,
but the short period of time the local government realized Allen’s projections were going to put them in the hole.
Fairburn is another failed project of Davis’ too. Maybe they should have studied and research these issues prior to
rubber stamping projects when these large funds are involved?

http://www.tiftongazette.com/local/local_story_047221441.html

http://www.tiftongazette.com/local/local_story_014223629.html

http://www.gacable.com/images/GA_Municipal_Brochure.pdf

Other items that need further research are the familial relation with the construction company Davis tends to
recommend. Also, did Davis lease the system from the City of Tifton after they recognized an issue and he later
defaulted on his own original recommendation?

Can we afford to spend $14 million in this economy? Especially when we are talking about laying off teachers in
Henry County and other potential cuts. Maybe the county should call in the consultant who came to Tifton to clean
up Allen’s mess instead of “investing” money in what appears to be a potentially “flawed” plan. If our commission
won’t speak for us, then others need to. Do we HAVE $14.1 MILLION TO WASTE?

K. Plummer
Rightfully Concerned

State of the County and Fiber Optics

Posted at The Henry Neighbor

Well it sure looks like a new fiber optics network owned by Henry County is certainly still on the agenda.

We got painted a pretty well rehearsed painting of how all these, expansions into residential neighborhoods will
benefit the county. The taxpayers are the county. Fiber Optics will have to be upgraded to keep in step with
growing technology, Upgrades that will require a new and continual budget for the department that will oversee it.
I wonder did B.J. Mathis not listen or did she choose to ignore public comment from Deanna Jones, the
representative from Charter Cable who spoke during public comment.

Where will the revenue come from for this budget? TAX PAYERS OR MORE BORROWED MONEY FROM STIMULUS.
The tax payers now, their children, Grandchildren and their children to infinite, stimulus money is not free money!

A venture of this magnitude that will be affecting every citizen and their families for years to come should be
required to be brought up for a special vote to the taxpayers. This should not be a decision made by 5 elected
officials.

It is fine for someone to smile give a speech and tell you to look at the world as if it were a dream. Sorry but most
of us all live in the real world of reality.

The county bought 61 foreclosure homes, 6 sold. Woo Hoo! bring out the band!, unemployment rate is 10.3 for
Henry county and 10.2 in Georgia, now that is reality.

The commissioners of this county need to listen to the citizens and allow a county wide vote on fiber optics

Why do our elected commissioners continue to ignore the voices of the citizens of Henry County, we do not want
or NEED a county owned fiber optics network! IF you our commissioners do not believe me, then let the people of
this county vote on this issue! that is the fair way to handle this huge out lay of tax payers monies.

The manner in which this county is being managed now reminds me of a dictatorship. 5 people plus our chairman’s
input vote on these issues, who are they to vote on what we the tax payers have to pay for.

I have said it before. THEY ARE OUT OF CONTROL! To all that read this, you need to vote in 2010 and 2012, VOTE
FOR CHANGE FOR THE BETTER. If you want to start a vote recall just contact any of us we will back any of you on
that endeavor. www.henrycountycitizensvoices.com

Henry Commissioners are CLUELESS

By Larry Stanley for The Citizen newsletter
Read in the AJC that Teachers face more furloughs in Perdue budget proposal and Engine for growth has
run out of fuel.

Watch the Henry commission meetings to see District II commish Jeffares move SPLOST funds from a replacement
fire station to the Hampton senior center project. The problem is that the fire station is a replacement building
that requires no new staff or maintenance and operating costs. The senior center, on the other hand, will
require all new staff and M&O.

County tax revenues are projected to fall between $10 Million and $15 Million in 2010. Some county officials say
estimates are much higher.

Lady Mathis, with her head firmly planted in the sand, continues her agenda to waste $millions on a broadband
network to be owned and operated by local government.

District I Commissioner Holder made a bid at the last meeting to commingle SPLOST funds with General Fund
monies. The commitment to purchase the Locust Grove Conference Center is already underway. Yet, Holder tried
to ‘save’ money by using general fund budget for the Hampton senior center. The blatant and obvious problem
being such commingling of funds violates Georgia law! Oh, sure, he said the general fund could be repaid IF future
SPLOST revenues allow it. Oh, sure, he knew his proposal was both illegal and immoral. Thankfully other
commissioners saw the truth and tabled it.

The school board is already at the top of their taxing ability at 20 millage points on our property taxes. There is an
additional 3.5 millage points tacked on for their existing bond debt. It is very possible the BoE will be unable to
meet payments on that bond debt in 2010!

The reality of this travesty is we have elected representatives with no clue about the consequences of their
actions. The county commission is the governing authority and their first responsibility must be toward the people
of our county. It is not. We see no forethought or consideration or planning for the true economic situations.

When the real waste products hit the oscillating device, the board of commissioners will be
compelled by law to raise our taxes. That is the reality of bond debt – it must be paid through
the county taxing authority.

Please make contact with each commissioner to voice your opposition to their finding ways to spend money we do
not have!

On the County website, click on Board of Commissioners. Then click on Contact Us. Choose “ALL” from the drop-
down box. Each member will get your message directly on their taxpayer-funded Blackberry.

Let's Build a Door

On January 13, 2010, Chairperson Elizabeth “BJ” Mathis gave us the State of the County Address in it’s taped
format. She spoke giving a pep talk to the county that everything would be alright in the days to come. She
named off figures and numbers that the county has borrowed and will need to pay back down the road. And yes
we the taxpayer will be the one’s to pay for the numbers. She gave a good lesson in counter-talk and overplaying
one’s hand.

The whole message led up to the fiber optics initiative that she has strongly been in force behind to get it done.
She has spoke about the good it will do, and the place where the money will be coming from to build such an
entity. The only thing she has not placed on the table is the cost to maintain such a venture. There will have to be
a separate budget and the taxpayer money will fund it. The citizens should be given a chance to vote on such a
high priced program that will not affect everyone who will be paying for it.

Ms. Mathis did mention that land had been acquired for a technical/vocational school here in the county. This is a
good program that will help many people who will not be attending college and those who must change their jobs.
This is the one program that most people will be in agreement with.

Ms. Mathis mentioned acquiring the five acres of land next to the jail that used to be the RV center. She said that
she had received $175,000 from Washington to help expand the 911 and emergency center. She failed to mention
the cost of the land at $1.15 million.

This clearly offsets any money from Washington.

The county unemployment is at 10.3% being .1% higher than the State of Georgia. Thus giving a great hardship to
those involved. Ms. Mathis could give no clear answer as to how to help these families. Here again this is one of
the greatest problems to hit this county in decades and our leadership is depending too much on outside aid that
will have to be paid back with interest by you and me.

What we need is more clear understanding between those in the government including Ms. Mathis with those in the
community who are living in the real world. Many of the citizens of Henry County are on Social Security and there
will be no cost of living raise for them this year and possibly next year. Five or ten dollars means a lot to a person
who does not have it buy medicine or see a doctor. There is a solid sector of the county that is aging and many
are already disabled and that leads to further hardships that have not been addressed.

With closing, this speech was clearly a pep talk to the citizens of the county. She wants a door to be built so
someone may knock upon it. Maybe one day she and those she shares her seat with will understand that people
will not knock on your door knowing that nothing is behind it. Thank you for listening.

The Doctor

Real Ethics Reform: What it Takes

J. Randolph Evans
Column No. 999 (01/15/10)

Ethics - again. Shortly after Republicans captured control of the Georgia Legislature for the first time since
Reconstruction, ethics was front and center. On January 25, 2005, here was the prediction in this column:

"Ethics legislation will almost certainly make its way to the Governor's desk for signature. Stronger ethics
laws have been blocked for years by the Democrats in both the house and Senate. Now, there will be no
excuses for the failure to pass legislation designed to clean up some of the more unseemly aspects of state
government."

In 2005, the diagnosis was simple and straightforward: "The problem in Georgia is that there are no effective rules
or mechanisms for governing the conduct of members of the Legislature in their official capacity. Hence, for official
wrongs, there are no meaningful and enforceable boundaries for acceptable conduct. And, not surprisingly,
legislators for hundreds of years have liked this system just fine."

Fast forward to 2010.

Now the 150th Georgia General Assembly moves forward with a new Speaker and a newfound bipartisan
commitment to ethics reform. Many Democrats see the issue as an opportunity issue hoping for a repeat of their
success in 2006 in Washington, D.C. Some Republicans see the issue as vulnerability which must be addressed to
avoid political calamity. In reality, meaningful ethics reform is just good government. It was then and it is now.

Yet, even with this new ethics fervor, it will not be easy. Candidly, few legislators will be eager to readily give up
the perks of power that they enjoy. Moreover, some of the quick fixes currently bandied about do little to
accomplish meaningful ethics reform.

As the ethics debate progresses over the coming weeks, there are some things to watch for in deciding whether
the "new" ethics proposals help, hurt or just put lipstick on a pig.

First, the rules must be clear, precise and specific. The more explanation, the more likely it is that there is a giant
loophole. The beauty of the Ten Commandments is the clarity. "Thou shalt not steal." It works.

In the world of ethics, the same is true. To be effective, there should be one overriding approach - Keep it simple,
stupid.

Second, the rules must mandate transparency. Every Georgia voter should be able to determine whether their
legislator is complying with the rules. In the internet/information age, this is easier to accomplish than ever
before. Electronic filings posted on the internet for the world to see will do more to raise the ethics of legislators
than all the rules imaginable.

Third, the rules cannot depend on legislators to investigate themselves. Instead, to be effective, there has to be
some entity with adequate resources to investigate allegations of wrongful conduct.

Certainly, there has to be a sensitivity to abuses of the system for political purposes. There are rules that can
minimize the risks of abuse. Confidentiality during the investigative phase, limits on filings shortly before
elections, and minimal evidentiary requirements for allegations are all good starts. Yet, the risk of abuse can never
be a sufficient excuse for avoiding meaningful investigations
altogether.

Fourth, decisions regarding violations must be bipartisan. Constitutionally, it is not possible for the legislature to
effectively delegate review of legislators' conduct in the performance of their official duties to a third party. This
self-regulation should not be dominated by any one political party. The temptation for whitewashing or political
witch-hunts is simply too great for one party to control the process. Instead, a bipartisan committee with equal
representation of both parties is the only meaningful solution.

Finally, anyone should be able to file a complaint. At the same time, steps must be taken to ensure that the ability
to file a complaint is not abused. The best protection from a frivolous and politically motivated complaint is a real
penalty for completely frivolous complaints.

In the end, effective ethics reform requires clear rules, more reporting, better transparency and an equally
balanced bipartisan committee with the jurisdiction to investigate and enforce the rules.

Anything less is just cosmetics.

Your Voice
Posted at Henry County Times

Hey Henry! The January 2010 weather is God’s way of saying Al Gore doesn’t know squat.

Hey Henry! County libraries are funded like all other departments and programs, from the same tax dollars as
everyone else. I saw a sign at Fairview that makes me question the Library Board, though: “We no longer give out
pens, pencils and school supplies due to budget cuts.” If the Library Board was providing free school supplies,
they deserved a budget cut!

As my good friends have stated, the Veteran's Wall of Honor needs some help. As this old man remembers walking
along the creek below the hill where the monument resides during my childhood and never realized that a
monument to those who have served their nation would rise from the field above.

When Ms. Mulvaney and her father Mr. Consalvo began the chore of creating such a monument, they never knew
how difficult it could be to get aid from friends and neighbors. Her father would not live to see it finished but she
worked hard to see that it would be the vision her father had realized.

Damages and poor workmanship can be expected on many projects, but not on one that represents the people
who gave a part of their lives and many the ultimate price. Those who took over the project away from the founder
did a rush job to get things finished for photo opts in the push for helping those politicians involved.
To make matters worse the county has been lagging in repairing concrete, lights, and other items at the
monument. People have created vandalism to the site out of shear ignorance. This site means something more
than just a monument to veterans. This is a site where loved ones can come to and remember those who served
and did not return from the horrors of war.

It is a fact that the new Chairman pushed this monument to the back burner and took it away from the founder
Ms. Mulvaney. This was all over a push to make the architect of the site look better. His wife works for the
Chairman and creating this monument would be a feather in the cap of his business. But this is in the past. We are
dealing with today.

The citizens would like to know how much money has been allocated to the budget of the Parks and Recreation to
keep the monument looking as it should. It was made aware months ago that money to advertise fireworks at
Nash Farm was in the budget for the Parks and Rec. How much money has been allocated for other projects as well
through this budget?

We the people of Henry County deserve better and this monument should be taken care of in a reasonable time. It
angers veterans who this monument stands to represent that they don't mean enough to the government of the
county than leaving this site unfinished. It angers me because I am one of those veterans and would love to see
this monument made all it can be through those hands that care in this county.

But they must learn to care first.

Caring enough to say let's do the right thing should be a beginning.

Those that this monument represents cared enough to leave their homes and kept this country free. Are you free
of mind enough to say that I want this monument fixed and not because someone says it needs it but because it is
the right thing to do. Show your appreciation and good will toward your fellow man by doing so.

The Doctor

The Citizen: If things turn as I expect the county revenues will be down $10-15 million, and the school board
may even be unable to make payments on their bond debt. Increased millage rates to cover debt are the legally
required recourse. The fires will burn hot and everyone in government will be in focus.

The facts are what they are. I will do all I can to educate and inform about the processes. A lot will ride on the
commissioners to stop spending - and even cut some sacred cows out of the budget. Let us pray everyone works together
to make the coming year less painful than we expect.

County Official: My estimates are much higher. School portions will be down accordingly, but there is much more
that is going down. Henry County will be in for difficult year and most likely again in 2011.

Anything we can do to let the people know is great.

Quiet Demise

As with all that is said in Washington, D.C. about many subjects that are to be in our best interest, but they lead
us to having more money on the debt line. That same idea has been pouring right down to Henry County. There
are some people wanting a fiber optics program for the county which is really not a good idea. There is the silence
on the Tara Field attempt to buy or not.

We are sitting among those who have run into something they have not figured upon and that is the quiet demise
of the public dollar in our county. People are not buying goods as much thus less tax money and leaving the folks
who wanted the money to begin with for their folly sitting with an empty pot.

One day these that run our county will learn that we the citizens do have a say whether they want us to or not.
Just as with the upcoming State of the County Address, how much of it will be sugar coated and filled with
promise? There is no politician in Henry County who has the answers that need answering for those on the street.

I asked a young couple with three children and he works at menial work due to the fact he has no High School
diploma. They worry about the payments on their small home, their car notes, insurances, and feeding the kids.
The young man is working himself to death trying to make ends meet. He doesn't care about a fiber optics
program or an airport. He just worries about bringing in enough money to stay ahead. That is also a quiet demise
between the politicians and the real world. A disconnect that they cannot see because they who lead us do not live
in this world. And bringing food to the needy is not a new thing. The needy have been helping each other for
years.

It is an ugly world in which we live. It is made ugly by the people who live in it and they can't see what they are
doing to this world because they have money in their eyes. Money is not what makes the world go around but
many feel that it does. That will be the quiet demise of the world and society we have made for ourselves. Take a
good look folks because what we have today may not be here tomorrow.

The Doctor

Patriots Corner
Tea Parties Unite

Democrats vote to protect voter intimidation

Along party lines, the House Judiciary Committee voted 15-14 Wednesday against compelling Attorney General Eric
Holder to tell Congress why he refused to prosecute Black Panthers who brandished weapons at a Philadelphia
polling place during Election 2008...
Continues here.

~~~~~~~~~~~~

Tenth Amendment Center

The American Dream: Why the Tyrants Can Never Win

Our Founders had a profound understanding of human nature and of the burning desire for freedom that is planted
in the very essence of who we are as human beings. This is why the Constitution was written so as to allow that
yearning for freedom to flourish and grow.

Click this link below to read, share - and comment - on today's featured article:

In liberty,

Michael Boldin
Tenth Amendment Center

~~~~~~~~~~~~

Tea Parties United.

Obama launches another illegal attack on the free market

Obama announced Thursday that he is now going to impose a new tax on banks--in the middle of a severe
recession--to pay for his needless and widely unpopular bailouts...

Continues here.

Filing a Property Tax Return

Henry County will have a new Chief Appraiser March 1 or earlier. Mr. Voss’s contract was not
renewed. He has provided following information and advice.

When filing a property return, please attach any information that would assist our office in the review process.
Information would include recent appraisal, photographs, repair estimates, etc.

The media recently hammered the Tax Assessors Office. There were good points indicated and some that were not
quite correct. But that does not matter. What matters now is how the citizens of Henry County will respond in
2010.

As the Chief Appraiser of Henry County I would like the readers of the Henry Citizen to do the following:

Between January 4, 2010 and April 1, 2010 all property owners should file a property return. The return according
to O.C.G.A. 48-5-15(a): “All improved and unimproved real property in this state which is subject to taxation shall
be returned in person or by mail by the person owning the real property or by his agent or attorney to the tax
receiver or tax commissioner of the county where the real property is located.”

The individual who files a return must also state what he/she believes the Fair Market Value of their property is as
of January 1, 2010.

The filing of a return protects your rights in the appeal process.

Please come to our office located at 140 Henry Parkway , McDonough , GA or call 77-288-7999 x2 to file a return
in person.

Thank you for your attention in this matter.

Ken Voss, MAI, SRA, CAE

Chief Appraiser
Henry County

The Case Against Public Broadband

Part One

By Dave McClure ¦ President, US Internet Industry Association

Municipal networking is the latest confidence game to hit the street. A real razzle-dazzle, fast-talking, high-tech,
keep-your-eye-on-the-peanut kind of pyramid scheme that keeps the intended marks – consumers and taxpayers
– so mesmerized by the prospect of getting something for nothing that they don’t see their wallets being lifted
until it is too late.

When the game is done, municipal governments will have seized control of the Internet, telephone and cable sys-
tems for their communities; driven out competition by private companies; balkanized a communications infrastruc-
ture that once was the envy of the world; and secured for themselves a continuing stream of revenue with
unlimited potential for rate increases.

The problems are so numerous and obvious it is difficult to

narrow them down to one short article. One need only look to
other developed nations that are busy dismantling their
 government-run monopoly communications networks.
This isn’t the first time that cash-strapped municipalities have cast greedy eyes on private markets. There was a
time that street lighting, health care, public transportation and even electrical power were provided by competing
private companies. But when cities are no longer able to squeeze consumers for more tax dollars, they seize
control of the most lucrative businesses they can find within the city limits.

Now it is broadband’s turn. Only it turns out there isn’t enough money in just broadband, so the goal of the game
has morphed into the “triple play” of Internet, cable and telephony. Plus whatever else isn’t nailed down.

Interestingly enough, it is not the elected officials who are behind this scheme. Sure, they like the idea of new
sources of revenue in a time when taxpayers are resisting new sales and property taxes. But elected officials are
also painfully aware of what happens to their careers when they are caught lying to the public or promising more
than they can deliver. The real forces behind this new con game are the people who more directly benefit – the
electric utilities and government agencies, the hardware manufacturers, and the paid consultants.

What’s wrong with using public resources to bring people the broadband they want, particularly if you can bundle
it with other services and operate it through a central government office? As it turns out, plenty.

The Problems

The problems with the municipal networking model are so numerous and obvious that it is difficult to narrow them
down to fit in one short article. One need only look to other developed nations around the world that are busy
dismantling their government-run monopoly communications networks in order to emulate our success in the US.

But there are five problems that tower above all others – the widespread availability of low-cost broadband;
voodoo Razzle

economics; marginal impact on the Digital Divide; marginal impact on business development; and consumer
resistance.

These five don’t include the obvious problem of small towns investing in technologies that turn over every two to
five years, requiring massive re-investment and continuing upgrades just to stay current with the state of the art.
Nor do they include the limitations inherent in some technologies, such as the high cost of Broadband over
Powerlines, or the fact that we’ve never successfully deployed a massive-scale Wi-Fi mesh network. And they don’t
address obvious management problems, such as city officials entering a business they know nothing about, and
the high levels of management distraction incurred as mayors and city managers spend time and resources
dabbling in this new high-risk venture instead of doing their appointed or elected jobs.

What’s Killing Municipal Networking

It’s not the technology problems that are killing municipal networking, but these and other management issues:

• Widespread availability of low-cost broadband. The publicly announced premise of these networks is that
broad -band is not currently available to those who want and need it. But such statements – other than in the
most remote rural areas – border on being outright lies. The latest FCC report – now nearly 18 months old –
shows that broadband use has tripled in the US since 2002. Broadband is available to more than 108 million US
households, at an average monthly cost of $35. And business broadband, which commands higher prices that can
help defray the installation costs, is available to more than 99 percent of businesses through cable, telephone,
private wire, satellite or optical wireless (FSO) systems.

Pundits claim that US deployment of broadband is falling behind, and that building municipal broadband monopo-
lies is necessary because other countries offer higher speed broadband at lower prices. But the countries boasting
higher penetration rates for broadband are tiny compared to the 3.8 million square miles that encompass the
United States – Japan, the largest super-wired country, is smaller in area than California. These countries have
very dense population patterns, allowing for easier reach by DSL, fiber and wireless. And they have built their
networks largely through public-private partnerships rather than through municipal monopolies. They also make
liberal use of incentives to private companies, including subsidies – a lesson not lost on the state of Arkansas,
which this year is considering a bill to implement similar incentives as an alternative to government-run networks.

• Voodoo economics. Where the municipal networking con game breaks down completely is in the numbers. It’s
not just that the assumptions used to derive the numbers are hopelessly optimistic or that monopoly utilities have
little concept of the cost of customer acquisition or retention, much less marketing. It’s that the majority of muni
networks to date have failed to meet their published objectives for revenue or for subscriber levels.

Some of the failures have been catastrophic – like Tacoma, Washington, which built the Click! Network to provide
broadband in the late 1990s with an initial estimate that capital costs would be $40 million. By 2002, the city had
spent more than $100 million on Click! In Ashland, Oregon, a municipal broadband network fell 18 months behind
schedule during construction. The city’s initial 1998 plan called for profitability by 2004, with a 10-year gain of
$3.8 million. After the income did not meet original estimates, the plan was revised and now projects a 10-year
loss of $6.9 million. The network in Marietta, Georgia suffered a $24 million loss; a Washington public utility
district has been absorbing losses of $15,000 to $17,000 per year; and the Iowa Communications Network has yet
to achieve breakeven – it cost taxpayers $21 million last year alone.

The Truth About Failure Rates

Advocates for municipal networking argue that such failures are the exception, not the rule. But to make their
case, they have to combine different kinds of networks – wireless, fiber, wired, public, private, large and small –
into one great jumble. When you consider only large-scale municipal networks that sell services to the public, the
failure rate becomes much more daunting.

Success is not defined simply as the absence of catastrophic failure, or the ability to use continued grants or cross-
subsidies to attain break-even. Success is the attainment of the stated business goals and objectives in the time
frame established for their attainment. And by that measure, there are few successes.

The problem is this: In order to keep prices lower than competitive private services – where prices continue to
drop almost every month – municipal networks networks are excused from paying some or all of the fees and
taxes paid by private competitors. Bristol, Virginia’s OptiNet municipal network claims that consumers of its phone
services save about $10 per month because they don’t have to pay the access fees, number portability fees or
contributions to Universal Service required of other phone services. Cable and other services are also advertised as
being “more economical.” Even where the system contributes “fees” to the government, these are often lower than
the total taxes – including income, payroll and property taxes – paid by private business entities.

This leads to three problems for consumers. First, of course, is that many of these fees will eventually catch up
with the system and the “savings” will evaporate. Federal proceedings regarding access charges and Universal
Service are already underway, and the bootleg networks will not for long escape their fair share.

Second, the tax bills not paid by muni network services don’t simply disappear into thin air. Since municipal
budgets are not shrinking, and the revenue from the broadband and cable services is used to fund future growth,
taxpayers are expected to make up the difference either directly or by guaranteeing bonds.

Third, the equation fails to recognize the further loss of administrative fees, license fees, property taxes, payroll
taxes and income taxes, paid by the existing broadband providers who will be driven out of the community to
make room for the new municipal monopoly. Nor does it recognize the loss of the employees of those companies,
who will likewise no longer pay sales, income, property and other taxes.

Success is not simply the absence of catastrophic failure . . . Success is the attainment of the
stated business goals and objectives in the time frame established . . . And by that measure,
there are few successes.

The result is a devastating but hidden blow to the municipal economy and its taxpayers.

Part Two will include:

• Artificially Low Prices

• Marginal impact on the Digital Divide
• Marginal impact on Business Development
• Resistance by Consumers

About the Author

Dave McClure is President, US Internet Industry Association. He can be reached at david.p.mcclure@usiia.org.

Asa's View on The State of the County

My View of the State of the County Address Jan 2010

Well again this year under the rule of the Queen Bee we the ordinary taxpaying citizens get to see the taped
version instead of what was said at the event for the power players of Henry County. I guess the lonely taxpayer is
too common to see the big event at Eagles Landing Country Club for the Snobs of the County, that’s right I said it.

B.J. Mathis starts out by saying that 2009 was a challenging year but it brought new ideas on how to bring in more
money for the County. When you have a full staff, it is not that hard to find new ways to rip off the taxpayers of
the County.

She stated that revenue is down all fees are down and the SPLOST are down by about 12%. She said that some
projects had to be put on hold until the money becomes available. Is this why the Veterans Wall of Honor is in the
shape it’s in and Nash Farm is getting things done? Whatever happened to priority first, Veterans come over a lie
for Mathis to play dress up at ( Nash Farm).

Then it started getting deep. She was very happy about the award winning financial report that sited honesty,
openness, and fiscal integrity. What is she thinking with? There has been so much lying, backroom deals and
temper tantrums going on mainly by her to get what she wants so she can pay back friends that helped her get
into office it would make for a great movie of the week.

She even talked about the five acres of land the County just bought that was the RV center. It struck me as funny
that she said it was a SPLOST 3 purchase that we voted on in 2008. My question is how did the County know that
the RV center would be going out of business back then, or did the County help them go out of business,
something to think about.

One of the things I agreed on was the remodel of the old police station to turn it into the new elections office it was
needed very badly. However my concern is that we used Spalding County inmates to do the work so we could save
money. What is wrong with our own County inmates it seems it would be even cheaper to use ours.

The County has secured Millions of dollars from grants and stimulus funds for projects that would have been put on
hold until the money was found. What ever happen to saving money up until you have the money to do what you
want to do with it? This County has gotten about $50 Million in stimulus funds and grants that will have to be paid
back by you and I the taxpayers of Henry County. And with the County joining all the other Counties across the
Country grabbing this money left and right, they are helping the downfall of this Country economically.

The program to buy foreclosed homes and fix them up and sale them is working according to Mathis. The County
has bought 61 homes and has sold 6. That’s right people 6, that’s .10% success rate. If that’s Mathis’s idea of a
working project than she is more mentally challenged than I thought and has no business running the County and
needs to step down.

We got $ 226,380 in federal earmarks to make the exit 218 at I75 the gateway to the speedway. This is a total
waste of money on something that was started by bootleggers and promotes drinking and then get in your car and
drive home if you don’t wreck and kill your self or someone else.
She pleaded to the citizens of the County to make sure and fill out the 2010 census form so they would get an
accurate count. Because if the County can show a certain number of citizens live in the County than they could get
more grants and federal money to better the County. I say the way the County has abused the taxpayers of the
County, they don’t deserve no more money until they learn what it means to serve the citizens first and not them
selves. I will refuse to fill it out and will ask my friends and family to do the same, this County must learn that it’s
we the people with the power and not them!! That’s right folks I am mad, when our Chairman of the Board of
Commissioners says its “Easy Money”. It’s not easy money Chairman it’s money people worked hard for and you
want it to pad the pockets of your friends and not help the County.

Then Mathis had the audacity to say that most of the jobs holders in Henry County are in the 5 lowest sectors. This
is a nice way of telling us that we are below herself and the people in the government. Again Chairman this County
was founded on honest hard working people who did not mind getting their hands dirty. That is this County’s
history and it will not change no matter how much you try it won’t happen, we are who we are and that’s it. She
harped on the quality of life here in Henry County. Those are just buzz words to demean the average citizen in the
County. Chairman Mathis again school is back in for you. Your value of quality of life is different than mine and it’s
different than any one in the County, we all are different and the sooner you learn that fact the better you will be.

Everything Chairman Mathis said was just a big talk up for getting the fiber optic program she wants to shove
down our throats, which will bring the County closer to being big brother to all of us and we will have to pay for the
upkeep of the system that will watch over us, now that’s a fine kettle of fish.

If you sit back and study this article about the State of the County Address you will find it is all true. And you will
come to the conclusion I have the Current Chairman of the BOC is unfit for the job and needs to step down or get
recalled. If not than this County will be in worse shape than we are in now. And it will be our children that will pay
the price for our inactions of today and they deserve better than that.

Asa Brown
Henry Citizen Newsletter is provided by Henry Citizen Mail List Opt-In

Henry Citizens for Responsible Government, a

Georgia political action committee. Larry Stanley, Editor Unsubscribe