Recently in Current, CRC President Bill Hammer opined that ‘CRC Funds are on track.’
Simple math, using the CRC’s own 2014 annual report and 2015 budget shows that NOT remotely to be the case. We’re told ad nauseam the CRC is a ‘going concern.’ Business 101 says a going concern has revenue EXCEEDING expenses. The CRC’S doesn’t. Their own report CLEARLY states TIF expenses EXCEEDED TIF Revenue by $5 million. These are their numbers. CRC Resolution 2014-7 states “to fulfill obligations, the CRC need(s) to capture ALL TIF for budget year 2015.” Only through “Non TIF” reserves and one-time cash infusions was the total deficit just under $1million in 2014. State law says these two types of funds are not to be mixed, but the CRC does.
When evaluating the 2015 CRC budget using this criteria, expenses again exceed revenues. The CRC acknowledges that in 2015 the TIF deficit will be about $100K based on ‘projections’. When non TIF revenue and expenses are considered it will be ANOTHER half million in the hole. And the mayor says he’s not finished.
When queried, he points to “reserves.” What is left unsaid is the reserves being relied on have yet to routinely match ‘projections.’ It is more gimmickry than business acumen.
A $200 million bailout ‘just’ happened to occur after the last election (including a Special Benefits Tax with OUR property as collateral). One billion dollars in total CRC debt ends up taking taxes from schools (watch for a CCS 2016 Referendum). One can only reach a realistic conclusion: The CRC, under present leadership, is NOT a going concern.
So which is it, Mr. Hammer and Mr. Mayor? Is the CRC “on track” or it is in a deficit?
Is this even remotely good governance?