BREAKING NEWS: COUNCILMAN ADAMS NOW SUPPORTS LOANING “RAINY DAY” AND “RIVERBOAT FUNDS” TO BE USED FOR CITY OPERATIONAL FUNDS

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Dr. Dan Adams

Press Release – Wednesday – September 23, 2015

This coming Monday, the Evansville City Council will vote on the transfer of ~$ 8 million from the Rainy Day and Riverboat funds. These transferred funds will be used by the Administration to pay the City’s regular/routine bills.

Normally, the Rainy Day Funds are used for emergencies; the Riverboat Account is set aside for capital projects. Local Option Income Taxes and Property Taxes are used to fund City Operations. According to the Administration, a cash shortfall has occurred because the funds (LIT & property taxes) allotted for city operations have already been spent.

We all have been promised that when the second installment of property tax monies arrives later this Fall, the cash from the loans will be repaid. By State Statute, the loan must be repaid and returned to the Rainy Day and Riverboat funds by 12/31/15.

Previous transfers have been hidden from public view. It was never the intent of the City Council to interfere with the normal financial flow of the City’s capacity to conduct business. It was, however, our goal to inject a degree of transparency into the City’s financial management that allows you, the taxpayer, to understand how, when and where your money is being spent. We must make absolutely certain that Rainy Day and Riverboat Funds will not become a permanent source for City operations and that the police and fire pension funds are never invaded.

Since said transfers have become an apparent recurring issue as opposed to an emergency, I make the following recommendations going forward. The Administration’s bi-annual fund transfer request should go through the Finance Committee. Additionally, the transfer requests should be given to the City Council at least three weeks prior to the move over date of the monies.

This ordinance is the first step in providing you, the taxpayer, with full transparency regarding the Administration’s management of the City’s finances. Let me be clear! I support loaning the Rainy Day and Riverboat funds for operational purposes now. I fully expect the repayment of these loans when the Fall property tax installment is received. However, this transaction must remain transparent.

H. Dan Adams, MD MBA

PRESIDENT OF EVANSVILLE CITY COUCIL

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8 COMMENTS

  1. “Well. What I would prefer is that city operations cease by preventing the temporary transfer, whatever the damage to the lives of the thousands of people affected, because I would absolutely delight in the embarrassment it would cause the current Mayor of Evanvsille”
    (Bandana)

  2. CHAPTER 20
    MISCELLANEOUS GUIDELINES:

    RAINY DAY FUND

    A political subdivision may establish a rainy day fund to receive transfers of unused and unencumbered funds under IC 36-1-8-5. The fund should be established by resolution and the resolution should state the purposes and sources of funding for the fund.

    IC 36-1-8-5 states that whenever the purposes of a tax levy have been fulfilled and an unused and unencumbered balance remains in the fund, the governing body of a political subdivision shall order the balance of that fund to be transferred to the general fund or rainy day fund of the political subdivision, as provided in IC 36-1-8-5.1, unless a statute provides that it be transferred otherwise. Transfers to a political subdivision’s rainy day fund may be made at any time during the political subdivision’s fiscal year.

    IC 36-1-8-5.1 states that the rainy day fund is subject to the same appropriation process as other
    funds that receive tax money. Before making an appropriation from the rainy day fund, the governing body shall make a finding that the proposed use of the rainy day fund is consistent with the intent of the fund.

    If a political subdivision receives supplemental distributions of CAGIT under IC 6-3.5-1.1-21.1 or COIT under
    IC 6-3.5-6-17.3, such distributions must be receipted into the rainy day fund. The Indiana Department of Local Government Finance may not reduce the actual or maximum permissible levy of a political subdivision as a result of a balance in the rainy day fund of the political subdivision.

  3. Winnecke is going to take your recommendation of transparency straight to the men’s room and wipe his hands with it. When Dan Adams caves to the machine you know your city is EFFFFD.

  4. Get it in writing Dan , in April they transferred 1.7 mil and in May they transferred 1.8 mil. Did they repay that money???

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