Those, in essence, were the words of Treasurer Keith McLiverty at a special meeting of the Board of Alderman on July 16 to consider the reissuing of the city’s municipal bonds, which he advocated to replace some of the money lost through the gross multimillion dollar financial mismanagement that has occurred right under the noses of our elected officials and city employees.
At the Aldermanic meeting on July 16, as recorded in the minutes of the meeting we are told: “Mr. McLiverty stressed that if the Board did not approve this, the city would go bankrupt and the State would take over.”
Finally, the seriousness of the gross multimillion dollar financial mismanagement that occurred during the watch of our city’s current elected officials and employees has been admitted and disclosed. But that is only the tip of the iceberg when it comes to the damage caused by this gross multimillion dollar financial mismanagement that has occurred.
In addition to a 2.5 mil increase that resulted in homeowner’s taxes going up annually by hundreds of dollars, the damage caused by this gross multimillion dollar financial mismanagement, has resulted in our fund balance being 1.4 million dollars in the red, as reported in the Valley Indy. This has resulted in the city’s bond rating being lowered, which means we will pay a higher cost for issuing bonds, such as those used to finance the sewer project in progress.
The damage caused by this gross multimillion dollar financial mismanagement has our top financial officer advocating rob Peter to pay Paul financial tactics, such as refinancing debt to lower the current payments even though it means an additional cost to the taxpayers of 1.6 million dollars over the long haul as recorded in the minutes of the meeting where we are told “The Board discussed the associated costs. Mr. McLiverty stated that its $80,000 per year that it’s stretched out. So for 20 years it will cost $1,600,000.00.”
The damage has been so great by this gross multimillion dollar financial mismanagement that it necessitated the VARCA building be sold, instead of fulfilling a promise to our Senior Citizens that the building could be used for the home of a new Senior Center.
The damage has been so great by this gross multimillion dollar financial mismanagement that when the VARCA building was sold the proceeds had to be used to replenish the fund balance instead of being used for plenty of better uses such as cutting taxes (the amount of the sale was worth about a mil tax cut instead of the resulting brutal 2.5 mil increase.)
The proceeds from the sale of the VARCA building could have been used to purchase property in the Rt 34 development zone the city still does not own, which represents a major impediment to quickly moving forward with any plan.
And let’s not forget our children. The damage has been so great by this gross multimillion dollar financial mismanagement that their education has been held hostage as the education budget was flat lined for a second year in a row.
It’s time those responsible for the gross multimillion dollar financial mismanagement pay the price, the citizens of Derby have only begun to feel the pain that it has caused.
The letter writer is a Derby resident running for city treasurer on the Democratic line.
