
City Councilman Dan McGinn stated at an April 13, 2015 City Council meeting in response to complaints from other Councilmembers regarding the depletion of the City’s cash reserves, “I’m not at all surprised we have spent down our cash reserves, but look at what we now own that we did not have.†Councilman Dan McGinn, R-1st Ward, agreed that cash reserves have declined, but noted the city has bought large swaths of Downtown land for the Ford Center and future anticipated major developments (Courier & Press, City Council urges development of spending, revenue plan).
Former Mayor Jonathan Weinzapfel took issue with McGinn’s statements on his personal Facebook Page the yesterday: “Once again, we hear the completely inaccurate assertion, this time from Councilman Dan McGinn, that funds used to purchase property and construct the Ford Center and, in this case, other downtown development projects, have caused a decrease in operating cash balances. Nothing could be further from the truth. TIF, Riverboat and the food and beverage tax…all funds used to build the Ford Center and/or finance downtown development…cannot be used for operating purposes. Over the past three years, it appears that expenses have exceeded revenues by about $27 million when you include the advance on PILT from the Utility and health care expenses from 2014 carried forward to 2015. This represents a spending problem in the operation of city government, not a problem with downtown development.â€
The comments from Weinzapfel come after repeated attempts by the Winnecke Administration to deflect observations that it is overspending on an annual basis to the tune of $6 million dollars and that the problem is getting worse. Deficit spending in 2013 was over $5 million, but deficit spending in 2014 was more than $10 million. The original estimate of $6 million in deficit spending for 2014 was determined before City officials acknowledged that at least $3 million in bills had been deferred to 2015 and a last minute infusion of $2.4 million in cash from the Utility, which was an advance on 2015 payments, was used to shore up revenue.
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