Lloyd, per your request:
I have attached the audited financial statements reported by the State Board of Accounts concerning the four operational fund balances as of Dec 31, 2011 (the balance left over by the Weinzapfel Administration) Dec 31, 2012, and Dec 31, 2013.
In addition, I have attached the operating fund balances as of August 31, 2013 and August 31, 2014 which will demonstrate that during the most recent reporting of the operational period, i.e; Sept 1, 2013 to Aug 31, 2014.
Please notice the attachment that relates to Dec 31, 2011, the combined operational funds (General, Parks, LIT, and Hospitalization) totaled $22,730,324…please notice the attachment Dec 31, 2012, those funds previously mentioned totaled $15,667,010…please notice the combined operational funds, the same as mentioned above, for Dec 31, 2013 totaled $9,676,276. So, from January 1, 2012 to December 31, 2013, the operational funds declined by $13,054,048…as such, this 24 month period of time demonstrates that you were spending more than you are receiving in revenues by $543,919 per month [$13,054,048/24=$543,919]
In review of the previous twelve months ended August 31, 2014, the combined operating funds were upside down by $2,641,098 compared to the same period one year ago of a positive $2,389,957, or a decline of $5,031,055 or $419,255 per month over the past twelve months….
Lloyd, you can NOT sustained these declines in your operational funds. Russ, says that this is a timing issue…I strongly disagree. Over the 24 month period of time, from Jan 1, 2012 to December 2013, any timing issues would be resolved, then consider what has occurred from Sept 1, 2013 to Aug 31, 2014, plainly illustrates that you are paying the electric billing with your other funds, i.e. police and fire pensions, grants funds, the rainy day fund, roads and streets, and of course, the riverboat funds which were never intended to be used directly or indirectly for operations,
So, here’s the numbers: (SEE ATTACHMENTS) RE: THESE ARE YOUR NUMBERS as published by the Controller’s Office
(A) (B) (C)
Operational Funds Deficit Spending Operational Funds Balance Operational Funds Balance
@ Beg of Yr @ End of Yr
2012 $7,063,314 $22,730,324 $15,667,010
2013 $5,990,734 $15,667,010 $ 9,676,276
Fiscal Year Sept 1, 2013 to
August 31, 2014 $5,031,055 $ 2,389,957 $-2,641,098
So, as the reader can see, you have been averaging over the 24 months ending Dec 31, 2013 deficit spending of $543.919 ($7,063,314 + $5,990,734 = $13,054,048 divided by 24 months = $543,919 concerning your combined General, Parks & Recreation, Hospitalization, and Local
Option Income Tax. Actually, I did not divide the ending balances of the Local Option between what is used for Capital Expenditures and Operations. As you know, the LIT is also used for those sort of expenses for Capital Improvements, as well. Generally, spilt 60% operational and 40% Capital which understates the deficit spending in operations by more than I have calculated.
As such, your proposed reductions in the 2015 General Fund Budget of approximately 1,350,000, in the Local Option Income Tax of approximately 960,000, and a meager 35,000 in the Parks Fund covers only 35.9%% of your average deficit spending ($543,919 x 12 = $$6,527,028)… $1,350,000 + $960,000 + $35,000 = $2,345,000 divided by $6,527,028 = 35.9%…of course, I have not touched the hospitalization fund which, under the current conditions, is of suspect. By the way, Column A is determined by subtracting column B from column C.
So, it is very probably that if your budget is passed with your reductions as presented, other fund balances will erode by approximately 4.2 million. ($6.5 million less the reductions of $2.3 million) As you are aware, you are commingling other funds into ONE checking account in order to sustain this deficit spending which is not wise knowing that you have the hotel and IU Med school payments in the near future.
Please let me know if you have any questions.
Thanks,
John
ATTACHED ARE THE LINKS OF THE AUDITED OPERATIONAL FUNDS FOR THE CITY OF EVANSVILLE FOR YOUR REVIEW. Â WE URGE OUR READERS TO SHARE THIS INFORMATION WITH THEIR CPA”S, Â BOOKKEEPERS, Â FISCAL OFFICERS, INVESTMENT BANKERS OR ANY OTHER INDIVIDUALS Â THAT HAVE KNOWLEDGE OF Â FINANCIAL Â MATTERS. Â WE LOOK FORWARD TO YOUR COMMENTS CONCERNING THIS ISSUE.
Evansville Audited Operational Funds – Dec 31, 2011
Evansville Audited Operational Funds Dec 31, 2012
Evansville Audited Operational Funds -Dec 31,2013
Evv Operating Funds – Aug 2013
Evv Operating Funds – Aug 2014
THIS ARTICLE WAS POSTED BY THE CITY COUNTY OBSERVER WITHOUT OPINON, Â BIAS OR EDITING.