* Disbursement in Excess of Appropriations:
For the year ending December 31, 2008, disbursements exceeding budgeted appropriations in the following funds by the amounts below:
General Fund.................$1,294,292
Motor Vehicle
Highway.........................$300,745
Stormwater Fund...........$1,575,556
Communication
Non Reverting................$65,000
Street Maintenance
and Parking Meter..........$2,882
Fire Contract Runs.........$78,092
_________________________
Total..............................$3,316,567
These disbursements were funded by UNAPPROPRIATED available cash balances "without Council's approval!"
Violation of IC 6-1.1-18-4
* Temporary Transfer of Funds:
In June 2, 2008, the Common Council passed resolution 08-32 declaring an emergency existed and authorized the temporary transfer of funds from the TIF Allocation Fund to the General Fund in an amount not to exceed $2,500,000. On October 6, 2008, the Common Council passed resolution 08-41 amending the previous resolution and approved the temporary transfer of an additional $1,000,000 from the TIF Allocation Fund to the General Fund. The resolution required the temporary transfer of funds to be "PAID BACK" at the time the City received its 2008 spring and fall tax settlement.
The amount of temporary transfer outstanding at December 31, 2008, was $1,500,000. On June 17, 2009, the City had received all monies due from the 2008 spring and fall taxes settlement and therefore should have "BEEN REPAID" the balance of the outstanding transfers.
* As of September 29, 2009, temporary transferred of $1,500,00 "have not been repaid," which is a violation of IC 36-1-8-4 concerning temporary transfers.
What we need to be asking is this: where is that $1.5 million, what was it used for and why wasn't it paid back!
So far our city is in additional debt of:
1. Over spending without
Council's approval.................$3,316,567
2. TIF owed............................$1,500,000
3. Overdrawn Cash Balances.$5,890,535
_______________________________
Total.....................................$10,707,102
note: Overdrawn Cash Balances of $5,890,535.
"Cash and investment arose primarily from disbursements exceeding receipts due to the underestimate of current requirements; these deficits of: $5,890,535 are to be REPAID from FUTURE receipts."
According to Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7. The cash balance of any fund may not be reduced below zero. Routinely overdrawn funds could be an indicator of "serious financial problems" which should be investigated by the governmental (Council) unit.
Source: State Board of Accounts 2008 Audit
Freedom Of Speech would like to say:
First, NO one in this city should be ABOVE the LAW.
Second, we understand since this audit has been released the Controller has been shifting and appropriating funds to cover certain accounts.
Third, a new computer system is NOT the answer to our problems.
Our final thoughts:
Just think how much more money the General Fund would have IF they paid off the TIF's and put it back in the General Fund as intended, instead of spending and expanding TIF areas.
What the England adminstration is doing: is playing a political shell game with our Tax and TIF dollars from one account to another!
