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untanglingwebs
El Supremo
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Walling and Easons disregard for early budget amendments may bring the city down! They have been promising council a new budget amendment for over a month now.
Flint mayor's office proposes borrowing at least $13M to pay off deficits
By Kristin Longley | Flint Journal
April 06, 2010, 6:00AM
Flint Journal file photoGregory Eason
FLINT, Michigan — The city of Flint might borrow $13 million or more — again — to help dig itself out of debt.
Flint Mayor Dayne Walling’s administration is considering asking the state to allow the city to take out a multimillion-dollar financial recovery bond to help relieve the city’s past and current deficits.
Without the bond, the resulting cuts that would have to be made could be like an “atom bomb” to the community, City Administrator Gregory Eason said Monday night.
“If we cut too deep we have to talk about shutting down some services,” Eason said. “That’s not something we want to do right now.
“We’re trying to figure out how to set the clock at zero to have some breathing room to deal with some real difficult problems.”
The bond discussion arose during the presentation of the mayor’s proposed budget for next fiscal year, which begins July 1. Walling was not at the meeting.
Eason said the city already is cut to the bone. The proposed budget shows a 14 percent decrease in the general fund, from $66.3 million this year to a proposed $57.1 million general fund budget next fiscal year.
The city is facing a mounting financial crisis fueled by population loss and decreased tax revenue, he said.
Finance Director Michael Townsend said the bond would be used to pay off the city’s current deficit reduction plan, spreading out the payments over a longer period of time. The bond would be paid back out of the public improvement fund.
Without the bond, Townsend said it would be difficult for the city to make its payments on the $10.1 million deficit, putting the city in violation of the state-approved plan. Townsend said the city of Pontiac, which violated its plan, is now under state takeover.
The bond will not restore all of the 46 police officers and 23 firefighters the mayor recently laid off to help trim the budget deficit, Eason said.
“What it will do is help stop the bleeding,” he said, adding the city would focus on economic development.
City Council President Delrico Loyd as well as Councilmen Sheldon Neeley and Michael Sarginson voted against receiving the proposed budget.
City Council members also questioned the lack of staff numbers in the proposed budget. Previous budgets have included projected staffing levels.
“I’m disappointed,” Loyd said. “This proposed budget is incomplete not only because the mayor is not here to present it, but it lacks the pertinent details.”
Raul Garcia, president of the Flint firefighters union, said he hopes the proposed budget won’t mean more public safety cuts, but he can’t say for sure without the personnel summary.
“I just don’t have the information,” he said. “I’m hopeful, but I just don’t know yet.”
City Councilman Scott Kincaid said he was concerned that the mayor’s proposed budget showed a $50,000 increase for his office’s budget as well as a $40,000 increase in the city council’s budget. The council did not request the increase, Kincaid said.
"That's troubling to me," he said.
The city council will receive more information on the proposed budget and the bond issue over the next week.
The council has several weeks to make its own amendments. The budget must be adopted by June 30. |
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Tue Apr 06, 2010 7:54 am |
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Crowfeeder
F L I N T O I D
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I hope the State WILL take over ASAP.The present situation is dangerous and will become much worse if the running of Flint is not put into responsible hands. |
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Tue Apr 06, 2010 8:30 am |
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Derrick1965
F L I N T O I D
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| Wow these guys have no clue do they? |
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Tue Apr 06, 2010 9:01 am |
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Dave Starr
F L I N T O I D
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"The bond will not restore all of the 46 police officers and 23 firefighters the mayor recently laid off to help trim the budget deficit, Eason said.
“What it will do is help stop the bleeding,” he said, adding the city would focus on economic development. "
Economic development with almost non-existent police & fire departments? Why can't they understand that a city that's unsafe, or even perceived as unsafe, has no chance of any kind of development! |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Tue Apr 06, 2010 9:31 am |
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untanglingwebs
El Supremo
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HUD told the city they could not pay for the proposed new positions on economic development with HUD dollars. Word is they are prepared to go forward with emergency contracts, like the one for jackie Foster, Eason's codefendent in a sexual harassment case when they were with Jobs central.
But where will the money come from to pay for these position?
The Genesee County Economic Development Corporation has very little money and the same is true for the Flint Economic Development Corporation.
Political Cronies raided the Flint Area Investment Fund and less than 30% is left. The previous council got the details in a Round Robin fashion, depriving citizens of a true accounting. They met in groups of three to circumvent the open meeting act by never having a quorum at one time. The state backed down, but HUD has never decided on what they are going to do.
The Chamber of Commerce has had very little success with bringing investment to Flint, despite their million a year for staffing. Herman makes over $200,000 a year according to their own IRS 990. |
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Tue Apr 06, 2010 10:58 am |
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lacyw
F L I N T O I D
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We are going to need state intervention. An EFM who owes no political favors and has no agenda other than turning around the city's financial mess would be the best choice at the moment. If the city is asking the state for money, there should be strings attached. City hall has already proven they can't manage the city's finances in an appropriate and responsible manner. If those funds come from the state, they should come with a state appointed babysitter.
It is also disheartening that for a meeting as important as this, the mayor couldn't be bothered to show up. Maybe he has given up, knows it's over and that his sorry butt is going to be recalled now that the petition has been approved. With an EFM we won't need him anyway. |
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Tue Apr 06, 2010 11:24 am |
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Dave Starr
F L I N T O I D
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| I'm sure the mayor would have liked to attend, but he has so many commitments that he just doesn't have time for something as mundane as the city budget. A look at his twitter page explains a lot. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Tue Apr 06, 2010 12:30 pm |
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1pissedoffguy
F L I N T O I D
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quote:
Crowfeeder schreef:
I hope the State WILL take over ASAP.The present situation is dangerous and will become much worse if the running of Flint is not put into responsible hands.
HELL YA,, turn it over to the state NOW!! If things keep going as they have been though all they will have to oversee is one giant open lot,the whole city will have been burnt down. What good is fighting a state takeover anyway? The city is broke, has little to nothing left to it, why be so territoral over who oversees it's total collapse? Someone tell me what difference it makes who runs the city when nobody ain't got no money and the leadership of the city is really deficent? I mean other that a very laughable point of "honor". The city is burning, god, the whole scenario just screams for a historical allusion . And guess what, the knucklheads in charge seem oblivious to the THAT historical paralel it scares me. Wonder if the Flint Institute of Music is missing a violin? |
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Tue Apr 06, 2010 1:26 pm |
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Derrick1965
F L I N T O I D
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| PLEASE BRING THE STATE IN!! WE NEED WALLING RELIEF! |
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Tue Apr 06, 2010 2:01 pm |
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LakeWoman50
F L I N T O I D
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| We need Pastor Randolph to serve our people. |
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Tue Apr 06, 2010 11:00 pm |
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untanglingwebs
El Supremo
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quote:
LakeWoman50 schreef:
We need Pastor Randolph to serve our people.
No way. The Concerned Pastors can't even manage their own funds. They attempted to put in a request for federal funding and couldn't turn in a complete application.
Separation of Church and State! |
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Wed Apr 07, 2010 6:51 am |
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Dave Starr
F L I N T O I D
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quote:
LakeWoman50 schreef:
We need Pastor Randolph to serve our people.
You're right;
SERVE
the people. Not milk them for every dime they have to pay for his Bentley, mansion, custom suits, etc. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Wed Apr 07, 2010 7:31 am |
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lacyw
F L I N T O I D
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I never want to see any level of government ran by a religious leader. We have a separation of church and state for a reason! Reading any history book will remind people why maintaining that separation is so important now.
Anyway, why were the pastors even applying for a federal grant? As a religious organization, I thought they were exempt from paying any taxes. If they are exempt, they should not get a penny of federal money that the rest of us will be paying back and cannot even write off as a charitable donation.
As I've said before, let the state come in with a non-affiliated EFM and start cleaning house. |
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Wed Apr 07, 2010 12:34 pm |
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