Comments on: Annapolis To Seek Another $10 Million Line Of Credit http://www.eyeonannapolis.net/2010/07/26/annapolis-to-seek-additional-20-million-line-of-credit/?utm_source=rss&utm_medium=rss&utm_campaign=annapolis-to-seek-additional-20-million-line-of-credit ...it's about the quality of life! Tue, 22 May 2012 19:22:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Bill Kardash http://www.eyeonannapolis.net/2010/07/26/annapolis-to-seek-additional-20-million-line-of-credit/comment-page-1/#comment-5722 Bill Kardash Wed, 28 Jul 2010 02:23:41 +0000 http://www.eyeonannapolis.net/?p=11067#comment-5722 This may be a new record for cash burn by a municipal government. Keep in mind loan documents weren't even signed until May 26. Now, just 60 days later, it's "gone"?Better still is the mantra that "this is just a cash flow problem". No kidding. Incredibly, the Mayor continues to talk about sources of revenue that "we HOPE to realize": 1. the lawsuit for the APD (btw, the City filed the suit one week ago .. how fast do you think THAT cash will come in?); 2. reimbursement for snow removal (est @ $300K); 3. increase in permit fees from developers: "hello?" .. has anyone seen much new construction under way; 4. savings from the (gulp) ... Transportation Dept . The City would have to eliminate the bus company and even THAT wouldn't solve the short-term cash needs. The word is the City will be out of cash at the end of July. The City's payroll will be almost $3MM starting Aug 1.That's $6MM beyond the $10MM before tax revenues start to come in on Oct 10. And even if the Council makes (another) Charter Amendment it won't take effect for 50 days (about Sept 13). Where does the cash come from until then? The Mayor needs to understand that "HOPE" is a great campaign slogan ... but it is not an asset class and has no worth on a balance sheet. Maybe it's time for a Charter Amendment that requires Accounting 101 for all elected officials. This may be a new record for cash burn by a municipal government. Keep in mind loan documents weren’t even signed until May 26. Now, just 60 days later, it’s “gone”?Better still is the mantra that “this is just a cash flow problem”. No kidding. Incredibly, the Mayor continues to talk about sources of revenue that “we HOPE to realize”:
1. the lawsuit for the APD (btw, the City filed the suit one week ago .. how fast do you think THAT cash will come in?); 2. reimbursement for snow removal (est @ $300K);
3. increase in permit fees from developers: “hello?” .. has anyone seen much new construction under way;
4. savings from the (gulp) … Transportation Dept . The City would have to eliminate the bus company and even THAT wouldn’t solve the short-term cash needs.

The word is the City will be out of cash at the end of July. The City’s payroll will be almost $3MM starting Aug 1.That’s $6MM beyond the $10MM before tax revenues start to come in on Oct 10. And even if the Council makes (another) Charter Amendment it won’t take effect for 50 days (about Sept 13). Where does the cash come from until then?

The Mayor needs to understand that “HOPE” is a great campaign slogan … but it is not an asset class and has no worth on a balance sheet. Maybe it’s time for a Charter Amendment that requires Accounting 101 for all elected officials.

]]> By: Fred Shubbie http://www.eyeonannapolis.net/2010/07/26/annapolis-to-seek-additional-20-million-line-of-credit/comment-page-1/#comment-5718 Fred Shubbie Tue, 27 Jul 2010 14:17:08 +0000 http://www.eyeonannapolis.net/?p=11067#comment-5718 What ? one step forward 20 steps back., is it possible Josh is way, way out of his league ? You can fool some of the people some of the time, josh but......... What ? one step forward 20 steps back., is it possible Josh is way, way out of his league ? You can fool some of the people some of the time, josh but………

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