July 23, 2014 at 2:10 p.m.
Redkey faces tough choices (7/18/05)
Clerk has failed to provide some information
By By Jack Ronald-
Redkey faces tough choices immediately if it’s going to get its financial house in order.
That’s the judgment of town attorney John Brooke, who has been trying for weeks to sort out the fiscal mess.
Though Brooke is still awaiting several key pieces of information from town clerk-treasurer Brenda Adkins, he outlined the situation Friday in a letter to town council members in advance of a council meeting set for 6 p.m. today at town hall.
Brooke told council members Redkey over spent its budget in 2002, 2003, and 2004, and is on pace to do it again this year.
If 2005 spending continues at the rate budgeted, Redkey will experience a loss of more than $28,000 for the year.
“I could find no evidence that Redkey has any surplus funds to satisfy this obligation,” Brooke wrote.
In 2003, he noted the town failed to advertise its budget and tax rate properly, leading the state to reduce the rate by about 37 cents per $100 assessed valuation. “This was a 30 percent reduction in the tax rate, but Redkey did not curtail its spending by the same amount,” Brooke said.
“The information as to the water and sewer accounts is not much better,” he wrote. The sewer fund had less than $100 in June after a large bond payment in May, and the water fund has outstanding bills of more than $14,000. “There seems to be insufficient funds in the account to pay them.”
Adkins said this morning she’s not sure borrowing will be necessary. “I will have to see what he’s come up with,” she said.
“Fault must not be discussed or assessed,” Brooke wrote in advance of today’s meeting. “The time for finding fault is past and the present town board must move to the future to bring Redkey out of its financial quagmire.”
Brooke recommends three immediate steps:
• “The first step is to get a true understanding of the exact nature of the town’s present finances.” An Indiana State Board of Accounts audit this summer of fiscal 2004 will be “a good start,” he added.
• “The next thing to do will be to hire a rate consultant and conduct a study on the water and sewer rates and increase them. There is little doubt that the water, sewer and trash rates will have to be increased.”
• “Redkey will have to borrow money to survive the rest of the year unless come changes are made in spending from the general fund.”
Despite repeated requests in writing, Adkins has still not provided Brooke with all of the information requested for an examination of the true state of the town’s finances.
Among those items not provided as of Friday were:
• A list of all persons who are delinquent in their water and sewer bills and the total amount due.
• Copies of all outstanding financial claims against the town.
• Information on budget line item expenditures in 2004.
• A list of bills from 2004 carried over into 2005.
• Information on outstanding payable accounts.
• Information on all encumbered funds from 2004.
• Information an additional appropriations by the council in 2004 and 2005.
• Total balances in all town accounts.
“I have been told that I can expect the information on Monday at the meeting,” Brooke wrote.[[In-content Ad]]
That’s the judgment of town attorney John Brooke, who has been trying for weeks to sort out the fiscal mess.
Though Brooke is still awaiting several key pieces of information from town clerk-treasurer Brenda Adkins, he outlined the situation Friday in a letter to town council members in advance of a council meeting set for 6 p.m. today at town hall.
Brooke told council members Redkey over spent its budget in 2002, 2003, and 2004, and is on pace to do it again this year.
If 2005 spending continues at the rate budgeted, Redkey will experience a loss of more than $28,000 for the year.
“I could find no evidence that Redkey has any surplus funds to satisfy this obligation,” Brooke wrote.
In 2003, he noted the town failed to advertise its budget and tax rate properly, leading the state to reduce the rate by about 37 cents per $100 assessed valuation. “This was a 30 percent reduction in the tax rate, but Redkey did not curtail its spending by the same amount,” Brooke said.
“The information as to the water and sewer accounts is not much better,” he wrote. The sewer fund had less than $100 in June after a large bond payment in May, and the water fund has outstanding bills of more than $14,000. “There seems to be insufficient funds in the account to pay them.”
Adkins said this morning she’s not sure borrowing will be necessary. “I will have to see what he’s come up with,” she said.
“Fault must not be discussed or assessed,” Brooke wrote in advance of today’s meeting. “The time for finding fault is past and the present town board must move to the future to bring Redkey out of its financial quagmire.”
Brooke recommends three immediate steps:
• “The first step is to get a true understanding of the exact nature of the town’s present finances.” An Indiana State Board of Accounts audit this summer of fiscal 2004 will be “a good start,” he added.
• “The next thing to do will be to hire a rate consultant and conduct a study on the water and sewer rates and increase them. There is little doubt that the water, sewer and trash rates will have to be increased.”
• “Redkey will have to borrow money to survive the rest of the year unless come changes are made in spending from the general fund.”
Despite repeated requests in writing, Adkins has still not provided Brooke with all of the information requested for an examination of the true state of the town’s finances.
Among those items not provided as of Friday were:
• A list of all persons who are delinquent in their water and sewer bills and the total amount due.
• Copies of all outstanding financial claims against the town.
• Information on budget line item expenditures in 2004.
• A list of bills from 2004 carried over into 2005.
• Information on outstanding payable accounts.
• Information on all encumbered funds from 2004.
• Information an additional appropriations by the council in 2004 and 2005.
• Total balances in all town accounts.
“I have been told that I can expect the information on Monday at the meeting,” Brooke wrote.[[In-content Ad]]
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