Sunday, January 12, 2020

City Financial Audited Statements

A slice from the cities audits on the redevelopment authority first one is from 2015 the second is from 2016 and the third is 2017, Notice the fair market in 2015 is fair market then a reduction in 2016 and 2017. Why was Sam Azarian paid below market value and Greta Jensen paid well over market value?. The audit is commingled with the city audit, why would the RDA not be audited separately? The RDA has it's own tax Id #. Is there culpability on the part of the audit co? I found no where that the $4.5 million was accounted for or the 1% payments collected.  We need to have an accountant look at this audit statement. I think a well written letter from HOT to the audit company informing them of the fraud on the lending of MR monies and the fraudulent grant from the DNR. This I think this will accomplish 2 goals 1. To make the audit Co. aware and to place liability on them. 2. To set a base to start a campaign to AUDIT THE CITY. I welcome discussion.

NOTE IV- DETAILED NOTES ON ALL FUNDS (cont.) 
J . COMPONENT UNITS  December 31, 2015
This report contains the Downtown Racine Business Improvement District #1 (BID) and the 
Racine Redevelopment Authority, which are included as component units. Financial information 
is presented as a discrete column in the statement of Net Position and statement of activities . 
In addition to the basic financial statements and the preceding notes to financial statements 
which apply, the following additional disclosures are considered necessary for a fair 
presentation. 
CITY OF RACINE REDEVELOPMENT AUTHORITY 
a. Basis of Accounting/Measurement Focus 
The Redevelopment Authority follows the modified accrual basis of accounting and the 
flow of current financial resources measurement focus . 
b. Transactions with the Primary Government 
At December 31, 2015, the Redevelopment Authority has advances from the City in the 
amount of $2 ,736 ,585. There has been no amortization schedule established. 
c. Assets Held for Resale 
The Authority obtains land and buildings to redevelop and resale . All assets are 
recorded at estimated fair market value. Donated assets are recorded at fair market 
value at the date of donation . The Authority's assets are being held for resale and are 
therefore not depreciable. 
At December 31, 2015 the Authority had assets held for resale of $2,996 ,978 . 
d. Cash and Investments 
At December 31, 2015, the carrying value and bank balance of the Redevelopment 
Authority 's deposits are $323,873 . These monies are commingled with other City funds 
and therefore FDIC coverage is not able to be determined.

   CITY OF RACINE REDEVELOPMENT AUTHORITY  December 31,2016
a. Basis of Accounting/Measurement Focus
The Redevelopment Authority follows the modified accrual basis of accounting and the flow of current financial resources measurement focus.
b. Transactions with the Primary Government
At December 31 , 2016, the Redevelopment Authority has advances from the City in the amount of $2,736,585. There has been no amortization schedule established.
c. Assets Held for Resale
The Authority obtains land and buildings to redevelop and resale. All assets are recorded at lower of cost or market. Donated assets are recorded at fair market value at the date of donation. The Authority's assets are being held for resale and are therefore not depreciable.
At December 31 , 2016 the Authority had assets held for resale of $2,896,478.
d. Cash and Investments
At December 31 , 2016, the carrying value and bank balance of the Redevelopment Authority's deposits are $231 ,459. These monies are commingled with other City funds and therefore FDIC coverage is not able to be determined.
Page SUBSEQUENT EVENT 
In May 2017, the Redevelopment authority and City of Racine reached a tentative settlement agreement with Main Lake, LLC for the partial payoff of an $800,000 home fund loan. The City is anticipating receiving more than half of the payoff amount due, however, a final settlement amount has not been reached.
In December of 2014, the City made a loan to a developer in the amount of $4,500,000 with an interest rate of 1%. The loan requires interest only payments in 2016 with the loan due in full on August 31, 2016. The loan has been classified as a long term receivable. The loan remains unpaid as of December 31 , 2016 and the developer has been notified of default. The City is working on reaching an agreement with the developer

As of and for the Year Ended December 31, 2017  CITY OF RACINE page 91
NOTES TO FINANCIAL STATEMENTS 
NOTE IV - DETAILED NOTES ON ALL FUNDS (cont.) 
I. COMPONENT UNITS 
This report contains the Downtown Racine Business Improvement District #1 (BID) and the Racine 
Redevelopment Authority, which are included as component units. Financial information is 
presented as a discrete column in the statement of Net Position and statement of activities. 
In addition to the basic financial statements and the preceding notes to financial statements which 
apply, the following additional disclosures are considered necessary for a fair presentation. 
CITY OF RACINE REDEVELOPMENT AUTHORITY 
a. Basis of Accounting/Measurement Focus 
The Redevelopment Authority follows the modified accrual basis of accounting and the flow 
of current financial resources measurement focus. 
b. Transactions with the Primary Government 
At December 31, 2017, the Redevelopment Authority has advances from the City in the 
amount of $2,286 ,585 . There has been no amortization schedule established . 
In December of 2017, the Redevelopment Authority acquired almost 15 acres of land and 
buildings from a developer to be used for redevelopment. The land is located in Tax 
Incremental District #18 and the transaction resulted in a contribution of $3,885,260 to the 
Redevelopment Authority from the District. The land is being held by the Redevelopment 
Authority for resale in the amount of $3,8852,260 . Any proceeds from the sale of these 
properties will be proceeds to the Tax Incremental District #18. 
c. Assets Held for Resale 
The Authority obtains land and buildings to redevelop and resale. All assets are recorded at lower of cost or market. Donated assets are recorded at fair market value at the date of donation . The Authority's assets are being held for resale and are therefore not 
depreciable. 
At December 31, 2017 the Authority had assets held for resale of $6,781,738. 
d. Cash and Investments 
At December 31 , 2017, the carrying value and bank balance of the Redevelopment 
Authority's deposits are $434 ,999. These monies are commingled with other City funds 
and therefore FDIC coverage is not able to be determined . 
Page 78

1 comment:

TSE said...

Just off the top of my head- and I may be wrong - doesn't Greg Helding
also work for the RDA - and A Lawyers Office in Milwaukee - Michael
Best & Friedrich - which I believe has been involved with litigation
concerning City of Racine?

https://www.michaelbest.com/People/Gregory-Helding

https://cityofracine.legistar.com/PersonDetail.aspx?ID=141129&GUID=15B97630-A3C4-4C2D-B4BE-C627FFE45A25&Search=

and then this:

https://journaltimes.com/news/local/rda-chairman-helding-stepping-down-because-of-time-conflicts/article_e32151c3-30ad-5cc7-814c-291476167fad.html

So Greg Helding was head of the RDA - working for Michael Best &
Friedrich - a firm which was also involved in litigation either for or
against City of Racine - I don't remember which - who knows might have
been both - I'm just not that interested to search it out - but at one
time I had the info.

And how about the Bondholder - Lender - and Financial Advisor to City
of Racine - BAIRD. They make a killing living off the interest on
money City of Racine borrows from them - on their advice - but it's
all private - There is NOTHING that appears on Moody's -

http://www.rwbaird.com/

BAIRD is "employee owned"

http://www.rwbaird.com/who-we-are/leadership/