From the Email InBox:

Gramps:

IF and I say IF there is a 5.5 million reserve in CASH why not pay for the Air Conditioner with CASH. WHY have the Finance Charges?

WELL there is not 5.5 or 4.8, million in reserve, in the way we folk think of a Savings Account or Reserve Account.

In one type account there is a BIG DEBT to be Paid in the Future. That is about 15 to 17 Million.

In another Account is Cash ON HAND, and Tax Revenue Expected.

You have to have a BUDGET to say how you are going to spend the Cash on Hand and Expected receipts. The claim the Budget "Surplus" means that the City has a Real positive Net worth is an error in the representation of the City's Financial Status.

Much of the Reserve or Cash the City Manager identifies as being on the Plus side is dedicated to specific expenditures. This is why he had to "Refund" an account for the money he took to pay for the Air Conditioner we had to get a loan to Pay for. Apparently this taking money from one account to then have to refund that account was not information Mr. Schwab felt he had to share with the public or council until it is a done deal. This is at least questionable governance, if not fraud of some sort. Spending money for the wrong thing is not legal even if you later return the money. How dare him do this. How dare the Council to let it be done.

Much of the Debt is a result of obtaining Tax Debt Bonds. These bonds require 20 percent is spent on Low and Moderate Income Housing as part of the condition of the issuance of the bonds. The spending of this 20 percent has been a problem in the past. The State has declared that the Senior Villa's is not sufficient as it only serves the seniors. So that 9 million will be spent, and it will cause a NEED to obtain more Debt to pay for Low and Moderate Income Housing. Or to FUND the set aside for that purpose, after having miss directed that amount to the Senior Villas.

Oh as you say it is much like a shell game. The Pea is the Tax Payer's Money, or Debt.

A balanced budget, means you don't have DEBT after all your budgeted expenses.

It does not mean at the end of the year you are not increasing the long term debt.

A surplus is when you have money left over after paying for all your expenses and debts, long and short term.

This city and its Redevelopment Agency are in a NET DEBT. Lee Ann Garcia, and Marretta Ferre have burdened this city with this bad management and bad governance long enough.

We need a real accounting. We need to get a City Manager who is the Servant of the Council and City, not the inverse. We need members of the City Council who will say NO to the City Manager, and will DEMAND a proper and clear accounting of the status of the City/RDA finances.

Gramps Reply:

You are right. Also right about the Council being Dictated to by Mr. Schwab. The question was put to Lee Ann Garcia, and it was Mr. Schwab's mouth moving. His answer couldn't keep the figures consistant. The statement or question was explain the 5.5 million surplus. Tom Schwab had figures all around that number. Yet, he never said NET amount less the Debt. He only spoke about one half of the Ballance Sheet.