EDITIORIAL OF THE PAST: RECKON CHARGES THAT WINNECKE CONTINUES TO DENY CITY HAS SERIOUS FINANCIAL PROBLEMS

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RIECKEN CHARGES THAT WINNECKE CONTINUES TO DENY CITY HAS SERIOUS FINANCIAL PROBLEMS

Reading the article from the September 29th newspaper about the transfer of casino and rainy day money reminds me yet again that the city has a serious financial problem that Mayor Winnecke continues to deny. He uses the bond rating and audits to proclaim a solid financial situation. He is confused on the issues. In his September 12 Letter to the Editor he said, “It has been confirmed time and time again by the state’s independent audits and the independent bond rating agencies that the city has operated in a financially sound, efficient and prudent manner.”

Even if you take Winnecke’s position, he cannot make that claim. The audit for 2014 has not been completed by the State Board of Accounts, so no one has any idea where we stand. Also, it was the dissention over the 2013 audit last year that caught many people’s attention, including mine, that something is wrong with the finances. As for the hotel bonds, why weren’t they higher? After all, payback is guaranteed with casino and COIT (local income tax) monies, just like the arena, which was rated higher than the hotel.

The reality is the city is not financially sound. During his term, the Mayor has decreased the city reserves – with the starting general fund balance going from approximately $4,000,000 to $307,000 in in just three short years. At the same time, the Mayor has increased the city’s debt from $396 million, to $514 million by the end of this year. That is $4,278.32 dollars of debt for every man, woman, and child in the city of Evansville.

Just to stay in the black for 2014 and continue to paint the picture that all is well, the Mayor shored up the general fund with a $2,400,000 advance from the water and sewer utility. Now, we see the Mayor had to borrow from the casino monies and emergency rainy day fund. He has no reserves, he cannot control spending and he does not plan to.

One indicator of government spending is efficiency. There is a table of comparisons on the Gateway Indiana website. From 2012 to 2014, looking at the per person efficiency rates of the top four cities of comparable size to Evansville, Fort Wayne cut their per capita spending by 1.66%. South Bend raised their per-capita spending by .72%. Indianapolis cut their per-capita spending by 4.82%. Evansville increased per capita spending by 4.98%! That is spending $1,877.14 for every man, woman, and child in the city of Evansville. Not only are we the highest in spending, we are way out in front, and the spending is spiraling out of control.

The other issue that came to mind about the City Council meeting on Monday was how the administration refused to tell us exactly how the monies to the casino and rainy day fund will be repaid. If you spend more than you take in (about $600,000 per month) and the November tax monies must help pay the bills till next property tax monies, you tell me how the Mayor is going to pay back the monies.

You can’t ignore the fact there is a shroud that covers the details, whatever the issue, such as why the administration left one accounting method that gives a true picture of the finances or why the council and the public could not get solid financial information on the hotel project.

Time and time again we hear Mayor Winnecke say that “Since taking office, our administration has spent less than what has been budgeted by our City Council every year.”

This has been the rallying cry of Mayor Winnecke in 2015. However, the details are that he absolutely spent more money than he has brought in (from controller’s financial books). He greatly over-projects revenues during budgeting, and then recognizes the over projection later in the year. However, the problem is, when the revenues are reduced and not coming in, the Mayor does not address reducing spending to be in line with the actual revenues the city is receiving.

Evidence is a budget meeting in the mayor’s office in August or early September of 2014. Mr. Hedden of Umbaugh was on the phone with Councilmembers Dr. Adams, John Friend and Conor O’Daniel, the Mayor. Controller Russ Lloyd and Steve Schaefer. There was one more person from the Controller’s office. In that meeting Mr. Hedden said that the Mayor Needed a spending plan. There has been none to date and it is over a year later and millions more wasted.

The Mayor has nothing in his checking account, and rather than trying to curtail the spending, he simply looks for other bank accounts he can borrow money from to continue his spending spree. If we truly want to get our city back in strong financial standing, we must change the philosophy of government and that means starting with a thorough assessment to find out exactly where we stand financially, department by department. Then we must create a spending plan and a strict budget to make sure that we know where every dollar is. To move forward we must have the continued resources to do so. That means conserving and spending wisely.

Our “cash flow” issue that was addressed at the September 28th City Council meeting is not a cash flow issue at all. The Mayor cannot boldly claim we are financially strong when all evidence is to the contrary. There is an over-spending problem that Mayor Winnecke must face.

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20 COMMENTS

  1. This is a really good article by Gail.

    My question: for the Hotel and the IU Med School, I believe the public’s share is $ 20 Million and $ 57 Million respectively: if the TIF fund is broke (ONB appeal of property tax bill, i.e.), where will the money come from to pay these two new bonds ??

    • Seeing as how the Ultimate holders of the purse strings,–The City Council–doesn’t give a damn–full speed ahead on nearly $80+ Million dollars of Bonded borrowing says the Council, and it’s President Adams.—Where will the Money come from,–you already know the answer folks,—Out of your wallet, there is nowhere else to get the money, the Council and their assorted Concubines, DO NOT OWN A PRINTING PRESS,——-they only OWN–
      YOUR ASS(ets)!!!! In the end game, You can look for taxes/fees to rise in every “venue” they can muster to pay for their smug folly. I

      • I think the bottom feeding thieves are banking heavily on holding the water out of your tap hostage for ransom, they can’t meter the air you breathe yet.

        Winnecke has been an abysmal failure as mayor. It is not the property tax caps fault. We must not compound the travesty by letting him slither back into office on a series of lies. The only thing transparent about him is his dishonesty. See the picture at the link. Study the looks Mr. Wozniak elicted from the city brain trust. While you’re there, who doesn’t belong in this picture? Is that a smirk on Hollywood’s mug or is he thinking this little question & answer session is just another hoop he has to jump through to get wealthy? Is the umbrella in his ‘coffee’ so Ken Haney can’t swoop in for another free $200,000 and piss in his drink? Can’t believe a single word he says, that much is for sure. Big public works projects leave room for big graft, that much is also for sure.

        At this point It doesn’t matter what Gail would do. Anybody is better than Winnecke. Mrs. Riecken has published her postitions for all to read, which apparently many refuse to do, instead defaulting to the much easier question ‘what would Gail do’. She is not the mayor or city council and can do nothing about what has transpired so far. Llordie will get his votes from these people and having the power of accidental incumbency he could conceivably get elected again. The fake conservatives, the ones that are all for fiscal responsibility until some little cipher like Winnecke comes along, will have no one blame. Their mindless questions are generated by a desire to sound serious and a dislike of Gail Riecken. A vote for Llittle LLord Winnecke is a vote to pick your pocket.

        http://s26.postimg.org/8q5xdxq7t/Smug.jpg

        • In 5 years, when Evansville is bankrupt, right wing idiots like balloon pilot will still blame democrats even though Winnie and his goons will control the council and the mayor’s office. We’re about to be robbed big time. Get out if you can.

    • Easy one. The city has not been able to generate any investor interest in its proposed bond issues for some time now unless those bonds have a description of COIT revenue being pledged as a backstop. That should tell everyone something.

      By this point in time even the COIT, which is capped, must be about maxed out, which is probably why Councilman Conor O’Daniel suggested raising the cap. This city is circling the drain now, financially speaking, and the blissfully uninformed electorate is poised to return to office a mayor who wants to spend another $77. million by your count.

      The sooner the bankruptcy hits, the better. Then this city will finally get the financial scrutiny it so desperately needs.

  2. I get Winnecke’s problems, but what are you committing to? I see more spending and yet cutting debt. The only way to do that is increase per capita share. I am much more interested how you will cut that share than how Winnecke, and Weinzapfel, got us to this low point.

  4. I thought I’d post this once again until one of the other news organizations picks this up and does some investigating.

    Recently I received an official copy of the “Restraining Order Petition” between At-Large City Councilman Jonathan Weaver and one of his ex-wifes thats on file at the Vanderburgh County Clerk office. I find the Court findings concerning this petition extremely interesting.

    I originally thought that I would make this public document available to the local media. However after a second thought, I decided to let our local media do the research and report the findings of the Court concerning a “Restraining Order Petition” filed against an elected public official.

    If Courier and Press, TV Channels 25, 7. 14 and 44, and the City County Observer would like to have an official copy of this “Restraining Order Petition” they could pick one up at the Vanderburgh County Clerks Office. For your information I also understand that Mr. Weaver may have two (2) such petitions on file but the Judge sealed one of them from public view.

    Finally, in my opinion the local media are duty bond to research and make this information public!

    AFTER HEARING TESTIMONY FROM BOTH SIDES THE COURT CAN MAKE THE FOLLOWING FINDINGS:

    a. The Court could rule that Petitioner has shown, by a preponderance of the evidence, that domestic or family violence, stalking, or a sex offense has occurred sufficient to justify the issuance of this Order.

    b. The Court could rule if this order does/does not protect an intimate partner or child.

    c. The Court could determine if the Respondent represents a credible threat to the safety of the Petitioner or a member of the Petitioner’s household.

    d. The Court could determine if relief is necessary to bring about a cessation of the violence or the threat of violence.

    THE COURT COULD ORDER:

    1. The Court could enjoined the “Respondent” from threatening to commit or committing acts of domestic or family violence, stalking, or a sex offense against the Petitioner and the following designated family or household members.

    2. The Court could prohibited the “Respondent” from harassing, annoying, telephoning, contacting, or directly or indirectly communicating with the “Petitioner”.

    3. The Court could remove the “Respondent” and excluded him from the Petitioner’s residence.

    4. The Court can ordered the “Respondent” to stay away from the residence, school, and/or place of employment of the Petitioner. The Court could further ordered the “Respondent” to stay away from the following place(s) that is/are frequented by the Petitioner and/or the Petitioner’s family or household members.

    Submitted to the City County Observer

    Greg LaMar-Evansville

  5. Gail is offering us a much-needed “reality check”, which is about the only kind of check that Whiney has no interest in.

    • Maybe it’s just me, but I seem to have missed the “reality check” cut in spending in today’s article.

  6. Is Gail offering a “reality check” or is the same bulls#!t that all challenging candidates say? We’ve all heard the “more transparent government, reduced taxes, smaller, more efficient government” song and dance. However, the idiot Winnecke and the a$$ clowns in city council MUST BE FIRED ON ELECTION DAY!!!

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