Councilman Friend,
It is disappointing that you have made your budget vote decision without having attended both of the meetings set up for council leadership to discuss the 2016 budget with Mayor Winnecke. As the budget vote is currently scheduled for Monday, the Administration is certainly willing to sit down and discuss your recommended cuts or additional budget adjustments.
Please let us know if you would like for our office to set up another meeting.
Steve Schaefer
Mayor Winnecke Chief Of Staff
ATTACHED IS AN E-MAIL THAT CITY COUNCILMAN JOHN FRIEND SENT CITY CONTROLLER RUSS LLOYD JR CONCERNING THE ADMINISTRATION BUDGET ADJUSTMENTS BEING LOWER BY $3 MILLION THAT THE MAYORS CHIEF OF STAFF STEVE SCHAEFER MADE REFERENCE TO.
Dear Russ,
Thank you for the attached information. In review of the data, the General Fund adjustment of 1.5 m will not bring the fund into a balanced budget. Based on the actuals of 2014 and projections of 2015 and not withstanding the fact that the PILOT revenue increase costing the Water Utility Ratepayer (80%) is not justifiable . .just a backhanded way of increasing taxes . . is out of balance by 6.5 m. For the year ending July 31, 2015, the administration’s General Fund cash balance declined by 6 m during the period . .Park declined by 1.1 m . . .Downtown TIF declined by 3 m and the remainder of the operational funds declined by 3 m totaling nearly 13 m decline in operational fund cash. In review that the administration is reducing their original budget by 3 m, an additional reduction of 7 m is needed.
The days of phase in are over based on the alarming declines in operational funds as illustrated by the fiscal year ending July 31, 2015 cash balances in operations. Regrettably, last year I was persuaded to support the 4.9 m cuts knowing that the number was 12 m which is supported by the July 31, 2015 fiscal year results. When Mayor Winnecke took over the financial well- being of our City, the total Civil City fund balances were 118 m and at the end of 2014, the total fund balances are 71 m a decline of 47 m. This is verifiable on the Indiana Gateway website. What also give me mega heartburn is the fact that there are 550 cities and towns in Indiana and according to the Department of Local Government Finance (Also obtainable on the Indiana Gateway website) the average cost of municipal operations is $853 per citizen while Evansville is $1,877 per citizen. Out of 550 cities we rank in the lower 8 percentile.
In other words, we have 510 cities operating at lower costs then Evansville. If the average is $853 per citizens and we are at $1,877, a difference of $1,024 times 120,000 people = $12.3 million. Oddly enough, the approximate figure of the overall decline in operational funds for the year ended July 31, 2015.
The Administration is virtually spending every last dime of revenue this city expects to receive and then some. The administration has not allowed for any reserves and unlike some cities, Evansville does not have an ordinance requiring the establishment of any reserve within any particular fund which is unwise and foolish. Unfortunately, I will not be persuaded to support the revised budget and unlike some individuals on Council of which one is a republican and assume he has been in counsel with the administration, are floating the balloon to increase income taxes by 25%, this I will not support as well. If the cost of operating government equaled that of Indianapolis, Ft. Wayne and South Bend and we had implemented a spending plan as strongly suggested by Dan Hadden of Umbaugh in July of 2014, but still fell short maybe just maybe I would entertain the notion of an income tax increase. If tax and spend is the order of the day, count me out.
Russ, I appreciate your service and efforts in this budget process. Of course, my door is open for suggestions.
Respectfully,
John Friend
5th Ward City Councilman
Please take time and vote in today’s “Readers Poll”. Don’t miss reading today’s Feature articles because they are always an interesting read. Please scroll at the bottom of our paper so you can enjoy our creative political cartoons. Copyright 2015 City County Observer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without our permission.