BREAKING NEWS: MAYOR REQUESTING TRANSFER OF $8 MILLION FROM FUNDS FOR CASH FLOW AND EMPLOYEE PAYROLL

1. Employees be damned! We have a new Hotel to build. Evidently this resolution:

   http://www.vanderburghgov.org/modules/showdocument.aspx?documentid=18743

   was more important than this resolution:

   https://city-countyobserver.com/wp-content/uploads/2015/09/filename-12.pdf

   • Incorrigible.

     in·cor·ri·gi·ble
     inˈkôrəjəb(ə)l/
     adjective
     r/ 1. (of a person or their tendencies) not able to be corrected, improved, or reformed.
     “she’s an incorrigible flirt”
     synonyms: inveterate, habitual, confirmed, hardened, dyed-in-the-wool, incurable, chronic, irredeemable, hopeless, beyond hope; More
     noun
     r/1. an incorrigible person.

     • In Winnie’s case, the nouns to be modified with “incorrigible” are “liar”, “spendthrift”, “failure”, and “dim-wit” to name a few.

2. Is this is routine procedural request for paying expenses/bills/payroll, etc?
   or
   Is it a request for new funding for new business?

   PAK, are you saying you are surprised to see a resolution to pay bills?

   Or are you simply saying you are upset that there is ANY request to pay bills as you are upset about downtown development financing?

   • This sure looks like a request for an advance on Real Estate taxes that will be paid in Oct and Nov. but that money is supposed to be for 2016.

     Sure looks a CC cash advance to me.

3. in·cor·ri·gi·ble
   inˈkôrəjəb(ə)l/
   adjective
   1.
   (of a person or their tendencies) not able to be corrected, improved, or reformed.
   “she’s an incorrigible flirt”
   synonyms: inveterate, habitual, confirmed, hardened, dyed-in-the-wool, incurable, chronic, irredeemable, hopeless, beyond hope; More
   noun
   1.
   an incorrigible person.

4. Holy Crap, this tells me that not even Old National Bank will give the City a pay-day loan ? I presume that the Mayor having to grovel before the City Council is a last resort move ?

5. The City should keep its mitts off the Rainy Day Fund and the Riverboat Money. A ‘Rainy Day Fund’ implies its for emergency situations, this is just regular business. Say no. The Riverboat Money has been nicely guarded by Conor O’Daniel, and I hope he keeps the faith in his lame-duck months before leaving office.

   On the heels of Winnecke going to the Courier and getting them to print a novella about how fiscally sound the City is, this makes for some great drama.

6. Ordinance G-2015-14 wasn’t passed so it could be repealed or amended at Spendecke’s whim. It was passed to rein in an out of control administration, ‘transparency & accountability’ in the language of the ordinance. Safe Seat Butterfly McGinn carried the plea, letting the twins off the hook.

   This is no way to run a city. The citation referring to ‘other Indiana Controllers’ and their alleged ‘unanimous reaction’ is quite telling. It’s the excuse for when you have no excuse.

   • “Spendecke” is a homerun. Perfect name for our failed Mayor!

7. Winnecke: ” The City of Evansville is fiscally sound by every metric !; and I’d like to borrow $ 8 Million to cover payroll”.

8. There is most definitely something wrong with city government finances when they must rely on “riverboat funds” or “rainy day funds” to make payroll for its employees.

   The city has $8. Million in its Foundation, why not borrow what you need from there and pay it back in December?

   • Better yet, the Indiana Bond Bank’s Tax Anticipation Warrants are lower now than they have been in years. Take advantage of the low rates and use the City’s Foundation Fund to pay the interest on the warrants.

9. The C&P has his attempt to clear the air about city finances today. Basically it is a whiny finger-pointing session about property tax caps and that mean old City Council forcing them to keep money in the accounts they belong in, instead of throwing it all in one big pot. He topped the whine-a-thon with the usual lie about more jobs and development. He didn’t mention that downtown development is such that they can’t give away a restaurant at 4th and Main, nor did he mention that the jobs are mostly retail (low-paid and part time), and located near the surrounding counties. He surely didn’t make mention of any of the jobs lost during his administration. So much for his version of transparency!

   • LKB: So….the resolution IS a request for routine expenses/bills/payroll for city operations. And not a resolution to simply fund new business?
     AND elkaybee, what you are upset about is that there is ANY request for ANY operating matters, because you are mad about Evansville government focusing on ANY development efforts downtown?
     QUESTION:
     Won’t the way this is structured, won’t Mayor Gail Riecken as a city administrator, won’t Mayor Riecken also be forced to generate resolutions to do exactly the same thing? Isn’t that what Indiana Enoch is trying to point out every time he uses the term “Giddy for Gail” …questioning what it is that your are insisting will be different?

     I’m glad Indiana Enoch is back.

10. I wonder if any of them are heading to Owensboro’s outstanding riverfront to take in that FREE airshow featuring the United States Air Force Thunderbirds? Maybe they didn’t hear about it, only one of your LOCAL mainstreams had much coverage on the event…….. 🙂

    • Owensboro is Owensboro. It is the third largest city in Kentucky, and it is not a sister city or suburb of Evansville. They have a daily paper. The Messenger and it is mainstream. Owensboro has funded its riverfront growth with heavy tax levies on business through insurance premiums. Evansville has the option to do the same if their financial situation is dire enough. I a
      Can assure you it is currently cheaper to do business in Evansville than it is Owensboro.

      • Fitz , Owensboro is not 3rd , Louisville,Lexington and Bowling Green are bigger , Owensboro is 4th largest

        • Bowling Green is not as big as Owensboro

11. Russell LLoyd is absolutely right on a couple of his statements in the memo. He indicates the ordinances is negative to City operations. That is exactly the consequence: Transparency and public opinion – negative if we are overspending and positive if we are living within our means. At this particular time after a few years of continually spending more than we take in it is negative.

    Also I see how this is negative to city operations. It makes it more difficult to charge large amounts of operating expenses to the wrong funds. Now this has not stopped the city from charging a couple of hundred thousand, small amounts at a time, to the river boat fund. That is one reason we have so many zombie houses. Upon recent inspection of the actual invoices I found hundreds of thousands in operating expenses (not demolition) have been charged against the riverboat demolition appropriation. Mr. Lloyd is right in general that more transparency is negative to city operations when you are cooking the books. There is just no positive spin to this.

    Mr. Lloyd is also right in his statement that daily cash management is hampered and payments to vendors are delayed when you can not raid other organizations funds. Of course it is hard to manage and pay your bills if you have no money. If you could only get a hold of your neighbors check book to pay a few of those bills.

    I don’t understand his statement about reduced investments. I think he is spinning that one backwards or upside down. The investment income is lost If you have a CD and I have no money, so you cash your CD and give me the money. The ordinance actually preserves the earnings on investments for those accounts that have money. Which is it, has he got it backwards or upside down?

    Now I think Mr. Lloyd is wrong about the “normal cyclical operating cycle”. It is cyclical in that major revenue streams only come in twice a year but the problem is not normal. The problem is his cyclical cycle is out of time. The revenues are supposed to come in and then the expenses incurred. It is the same cycle for a lot of things in life. You have to first put the gas in and then drive the car. The cars engine has to have the fuel before the ignition spark. It is hard to make an engine run when it jumps time. Get the timing right and city finances will run smooth. Sounds like the administration took off down the road and now they are standing there holding up a gas can.

    I also disagree with Mr Lloyd’s take on the necessity of approving the ordinance for the sake of making payroll. I see two problems with his due or die choice a or b propaganda. Are these the only solutions he could come up with? If the operating funds need cash there are other places to borrow it besides raiding the neighbors. Will a bank not loan the operating fund money? I think that is the transparent place to go for the money rather than trying to hide the issue. Also, fund accounting principles allow funds to run in the red. It is like all money is pooled in the “unit” similar to one bank has many individual account holders. The checks will not bounce but the fund will run in the red and red equals red flags for the State Board of Accounts. It may sound crazy but funds in the red will trigger a comment in the financials but if borrowing or transfers are approved by the council it is acceptable because the financial overseer approved. Does the Council approve of this deficit spending?

    I could go on for a few pages; however, this is turning into a rant. Maybe if I sleep on it, things will look more promising in the morning.

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