The City Budget Season is upon us. It is hard to comprehend that over one year ago, Mr. Hedden partner of the Umbaugh & Associates, CPA group suggested that our City institute a “Spending Plan”  The Winnecke Administration never presented from July of 2014 to now any specifics on that recommended “Spending Plan”.   we were supplied a tweet from the Mayors Chief of Staff,  Steve Scheafer that the “Spending Plan” was the 2016 proposed budget?

After reviewing the fiscal year ending June 30. 2015, the operational funds declined by $9 million dollars compared to a decline of $5.9 million  dollars for the same period ending June 30, 2014.  Obviously, we have had an approximate shortfall issue of $9.0 million  dollars which has proven to be the exact amount of overspending deficit the Administration has been recording over the last three years. an average of $9 million of deficient spending in the operational funds.

The composite of total spending in the the 2016 budget for the City is $205,000,000 and the revenue estimates are $209,000,000.  It appears that City have a surplus under the way.  In 2014 the Winnecke Administration estimated that our revenues to be $202,000,000 but we only collected $185,000,000, a  collection rate of 92% . In 2013, the estimates were $198,000,000 but we collected only $180,000,000, a collection rate of 91%. History has proven, between 90% to 92% collection rate should be expected. In review of our proposed budget as presented.   the actual revenues collected would be approximately $190,000,000 and the expenditures as presented are $205,000,000 a mere $15,000,000 out of balance budget.

Mayor Winnecke boosted that he spent $5 million dollars less than what the City Council authorized him to spend in 2014.  We should expect him to make the same claim in 2016.   Consequently,  City  Council  been patiently waiting for that “Spending Plan” that Mr. Schaefer’s tweeted that stated “it’s in our budget.”

Could an alternative “Spending Plan” actually could be a  “Revenue Enhancement Plan”?  Mr. Lloyd indicated to City Council that “Fees and Licenses” were going to be considered.   Could an increase in the County “Income Tax Rate” be up for consideration?

What a dreadful notion that Evansville could  follows the lead of Ft. Wayne and raise  the “County Option Tax Rate”.

Based on the above facts, that  City Council has much to consider concerning the 2016 City budget.

Respectfully Submitted,

John E. Friend, CPA

5th Ward City Council

© 2015 Microsoft Terms Privacy & cookies Developers English (United States)

EDITOR NOTES:  Attached below are comments made by local GOP Chairman Wayne Parke that he posted in the CCO this morning.

Looks like Mr. Parke has awaken a “Sleeping Giant” by putting the above post in todays CCO.

So far the Mayor has done a masterful job in keeping his budgetary challenges from being a major campaign issue.  It looks like Mr. Parke has forced the Mayor alleged over spending habits to become a front and center public debate. It  also looks like the Gail Riecken For Mayor Campaign Committee has just received a major political boost from GOP Chairman Wayne Parke!  Get ready for members of City Council to start exposing the alleged Financial Mismanagement of the Winnecke Administration.

ATTACHED ARE THE COMMENTS POSTED BY MR. PARKE IN THE CCO TODAY. 

• Wayne Parke_Aug 24, 2015 at 7:01 am_ (https://city-countyobserver.com/unpaid-medical-bills-due-key-benefits/#li-comment-2248564)

The Indiana Code says the City Council serves as the Fiscal Agent of
the City  of  Evansville. The City Council approves all expenditures. There
are currently eight (8) Democrats and (1) Republican on the Council. John
Friend and his fellow councilmen have no one to blame except themselves if
there is a problem–by the way there is not a major financial problem.

Their will be at least four (4) new City Council members next year. The current Democrat controlled City Council has been an embarrassment for our great City with John Friend leading the pack.  Fortunately in a few months he will not be in that position any more.

Fact: The City financial condition is in good shape.
Wayne Parke

ATTACHED BELOW IS A COPY OF THE POINTED E-MAIL SENT TO CITY COUNCIL PRESIDENT DR DAN ADAMS BY COUNCILMAN JOHN FRIEND CPA.

Dear Dan

There should be a demand that a FOIA request to  be  submitted to this
Administration asking for the number of checks written that bare the
name of any council member.  In addition, a list of council member names
that approved transfers of money between the checking accounts, the
selection of investments, the payment of claims, execution of over
priced DMD real estate deals, list of those council members that sit on
the Public Works and Utility Board that bare their signature on one
sided contracts and the mid-night raid on the Utility Treasury in the
tune of $2.5 million dollars. The non-payment of 5.8 million to medical
providers.  If this council has blame, it  is gullibility. Last year we
needed to cut the budget by 12 million dollars, mostly in operational
funds. This is very evident in the June 30, 2015 fiscal year ending
results of operation analysis I passed out to all council members.  The
lost in operational funds were 9 million compared to 5.9 million in the
prior fiscal year. Of course, once the email started rolling in during
last year’s budget cycle, we lost resolve and thought compromising would
bare fruit and now it is perfectly clear that compromising was not the
thing to do. Over the past three years, it should have become evident
that this administration lacks in it’s ability to control costs.  Why is
it that Ft. Wayne operates stem to stern at a $1,210 per person and
Evansville operates at $1,877 per person based on the published data per
the SBOA website. By the way, for those who may not know the absolutes
on this, the number is 9 million dollars.

During this budget cycle, I provided each council member an analysis of
2012, 2013, and 2014 six months and full year actuals.  In that study,
the historical percentages were determined, i.e. what is the average
percentage of collections received in the first six months.  From that,
my analysis indicates that the revenue will miss the administration 2015
budget by nearly 15 million dollars.  However, their projected
expenditure adjustments in the 2015 budget appears to be 5 million. So,
for the third year in a round, the Winnecke Administration  will fail to
adjust for the shortfall in revenue by nearly 10 MILLION DOLLARS.  The
last time we had a budget that proved to be somewhat on target was under
Mayor Weinzapfel.  Why, ask his former Dept Heads.  At every Monday
morning meeting, finances were the topic.  Under the direction of Lisa
Acrobert, Dept Heads had to beg Lisa for a stapler.

My question is this, are we going to rain in this out of control
spending by this Administration in this budget cycle? This is HIS
budget.  Gullibility must stop. We MUST do the heavy lifting because
this Mayor is not.  There has been talk about increasing the County
Income Tax.  I WILL NOT SUPPORT this.  Why, I was looking for the
“Spending Plan” which, according to Mr. Schaefer would be in this year’s
budget.  Instead, I see an increase in the overall budget spending of
around 2%. in absolutes, 12 million.   Apparently, they must have
overlooked the Plan.  Question: Is it now the “Revenue Enhancement
Plan”?  Increase in fees to our financially challenged, lack of basis
services in exchange for more projects after projects, overruns after
overruns. And, please keep in mind any increase in income taxes is
regressive to the poor.  We do not have a progressive income tax system
in Indiana. I CAN afford to pay a few hundred dollars more and still
meet my basis needs, but those much less fortunate, can NOT.  I feel
honored that Mr. Parke has me leading the pack because if I was leading
the pack, we would have cut Mr. Winnecke’s absurd 2015 budget by 12
million instead of the 4.9 million, mostly in capital and not
operational.

WE MUST BE THE ONE’S THAT ARE RESPONSIBILITY FOR THE
PEOPLES’ MONEY BECAUSE, APPARENTLY, WE ARE THE ONLY ONES.  

John

John Friend, CPA, CVA, CGMA

5th Ward City Council Member