This past week Mayor Winnecke gave his State of the City Address. As usual, there was a great delivery, and he was very positive. One gets the feeling everything is fine in River City. However, the facts are at odds with the Mayor’s claim our city is “fiscally strong.â€
And it isn’t just me. Mayor Winnecke’s City Controller Russ Lloyd Jr. reported there are problems with city finances (See Langhorne, Thomas Lines Drawn in the Sand over City Fund Transfers, Evansville Courier and Press, 31 January 2015). Despite the Mayor’s cheerful spin, Russ Lloyd Jr says that the city’s cash balances are declining.
Evansville Redevelopment Commissioner and fellow Republican Cheryl Musgrave agrees with her statement “there are real problems with the finances†(See Evans, Zach. Strong City Finances? Not necessarily, some say, Evansville Courier and Press, 24 February 2015).
Far from accepting the challenge to answer these concerns of a negative trend in our finances, the Mayor has continued over the last three years to overspend his operational funds on a monthly basis. In 2012, the administration spent more than it took in by $6.8 million dollars. In 2013, it was $7.1 million dollars, and although it’s not yet official, 2014 will show $7.4 million dollars in overspending.
How can the Mayor claim the strong finances when, under his leadership, our city’s cash balances have declined so rapidly?
The Mayor’s answer to his overspending is just as troubling. City Controller Russ Lloyd, Jr. said recently, “We’re paying bills out of the general fund and using other accounts to offset it…†(See Lines Drawn in the Sand over City Fund Transfers).
Mayors have transferred funds before to cover expenses, but they make sure that expenditures don’t exceed revenue by controlling spending. As early as last July the Administration said they were designing a spending plan. Where is that plan today?
The administration’s lack of transparency and poor planning has effected economic development in Evansville. The prime example is the downtown hotel. This project suffered from poor planning from the start. As the Mayor admitted in his speech, the hotel project first stumbled over geotechnical issues due to his proposed site location. There were additional problems with private partner financing and bids for construction that were nearly $13 million more than what was budgeted. The Mayor’s office led the community through a symbolic groundbreaking in March of 2014 and followed that with press release after press release that the real groundbreaking was just weeks away.
All of this happened before we were finally told in December of 2014 by the Mayor that the project “cannot move forward†(Martin, John, Winnecke: City cannot move forward on current hotel deal, Evansville Courier and Press, 18 December 2014). The poor planning and a lack of transparency cost city residents and development partners $1.6 million as of September 30, 2014 with more bills to come.
Poor planning and a lack of transparency led to the downtown hotel project as originally proposed by this Mayor failing. The public endured yet another attempt to build a hotel that lasted eighteen months with over half of that time spent assuring the public that the project was about to start. When it failed, the City Council was blamed despite the Mayor agreeing in September of 2013 that a $20 million bond was sufficient for the project.
As Mayor, I will always be forthright about our challenges, and engage the community at every opportunity with the truth. As I’ve done as State Representative, I will continue to ask people their opinion and even more so when we disagree. I want to serve the community, not blame others. I will always take responsibility for the actions of my administration.
Given the Mayor’s lack of leadership on the hotel project, I am concerned that he is celebrating too early on the funding allotted by the state legislature for the transformative project proposed as the IU/UE/USI/Ivy Tech medical campus. The Mayor talked a lot about his recent meetings with the Governor where he asked for funding for the project, but the Governor’s budget fails to provide enough money to complete the project as envisioned. I offered an amendment within the Ways & Means Committee to fully fund the project and did not get Republican support.
Like with the hotel, the Mayor is holding celebrations before getting enough funding and will be satisfied with less than what our community wants and needs. Without the funding, these projects don’t get done, and without getting done they can’t bring jobs and development to Evansville.
We cannot afford four more years of Mayor Winnecke’s reckless spending, poor planning, and lack of transparency. This administration fails to understand that words and press conferences are not enough to pay our bills. The Mayor is blind to our current financial struggles and therefore cannot offer a solution.
I know that you are worried about our spending and our recent failures to complete important projects. I hear your concerns and will continue to be your voice. As Mayor, I will be a good steward of your tax dollars while we all dare to dream of what this community can achieve.
Gail Riecken
IN State Representative and Candidate for Mayor