According to the 2016 Audited Financial Report the City of Racine’s RDA is Operating at a Loss – Plus a New Lawsuit

Raw Data From the City of Racine 2016 Audited Financial Report:

The Full Audit is available by clicking on the link: Racine 2016 Financial Statements.

Meanwhile –

From the Journal Times:

Racine sued for Machinery Row relocation costs

RACINE — The City of Racine, the Redevelopment Authority and two city officials are named in a lawsuit seeking more than $659,000 tied to relocating for a development plan previously called Machinery Row.

Patrick Fagan of Mount Pleasant filed a lawsuit in Racine County Court this week requesting compensation related to damages he said he incurred because of the city’s handling of the development plan.

 

The Defendants include:

The ever beleaguered TAXPAYERS of the CITY OF RACINE

The RDA led by Amy Connolly:

JAMES SPANGENBERG

and

MATTHEW SADOWSKI

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Meanwhile – and to no one’s surprise:

From Madison.Com:

Racine Development Director Amy Connolly sued by Illinois city that formerly employed her

RACINE — City Development Director Amy Connolly is being sued by the Village of Tinley Park, Ill., where she was director of planning for nearly a decade, over her role in the review of a low-income housing development.

Filed Monday in federal court, the lawsuit alleges that Connolly violated her “fiduciary duties” as director of planning in regards to a plan to revitalize the village’s downtown.

In the complaint, the village asserts that Connolly “ignored and actively concealed” that a pending development, The Reserve, didn’t meet village requirements in order to show she was succeeding in bringing development to the village’s downtown. The village is suing for $75,000 in returned salary as well as possible additional punitive damages.

“Connolly engaged in a pattern of willful, deliberate conduct that was adverse to the Village’s interests, violated Village policies, procedures and Rules of Conduct/Code of Ethics, and was intended solely to benefit Connolly’s self-interest,” the complaint reads.

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From the Fagan Complaint:

The full Fagan Complaint is available by clicking on: Fagan Complaint

The Determination Letter is available here:  letter-to-city-of-racine-determination-fagan

Excerpt from the Determination Letter:

Overheard:

One relocation suit has been filed in circuit court and two are prepared for submission to federal court because of HUD involvement.  Lawyer complaints are already at the OLR for Ekes and Letteney and possibly someone else, it’s hard to keep up.  A criminal complaint was filed against Dickert, Friedel and Letteney back in April and it’s been getting bounced around from the DR to the RPD to the Sheriff’s Dept. to the AG.  Ekes and Letteney actually have given power point presentations about relocation costs, portraying themselves as “experts”, except the DOA has rendered an opinion in opposition to them that all persons and businesses displaced by Machinery Row are entitled to relocation reimbursements and have standing to file civil suit if the city doesn’t bargain in good faith to compensate them. And so on and so on….

And from the 2017 City of Racine Adopted Budget – available HERE:

City of Racine costs are exceeding benefits:

As of 2016, the City of Racine is being operated at a loss of nearly $100,000,000; which is why Property tax rates are out of control.

Even with a property tax rate nearly twice that of Chicago – the City of Racine is being operated at a loss of $22,461,765.

According to the 2016 Audit – the Long Term Debt of the City of Racine now stands at $ 273,101 ,515.

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From Charles Hugh Smith – Of Two MINDS:

The Lifecycle of Bureaucracy  


When an economy is growing rapidly, then the waste, fraud, duplication, inefficiency and bloat go unnoticed because tax revenues and the budget are rising even faster than the bloat and inefficiency. The problem arises when tax revenues fall. Then the bureaucratic impulse to never-ending growth is stymied, and the various bureaucracies turn inward as they muster their forces to wage internecine warfare with other protected fiefdoms.

(That’s straight from the Survival+ critique.)

Self-preservation become the paramount concern, and the original purpose of the bureaucracy is buried beneath the urgent priority of saving perquisites, benefits, staffing, and budgets.

When cuts are required, the actual service provided is slashed to maintain bureaucratic bloat. Thus the Administration of a university suffers simulacrum cuts (a “hiring freeze,” etc.) while the teaching and graduate-student teaching assistant staff levels are slashed and burned.

“Tip of the spear” military forces and readiness are left twisting in the wind while the thousands of senior officers in the Pentagon and Services jostle for promotions. At the point of implosion, there are more captains, colonels and generals than actual war-fighters. (There are plenty of barbers, cooks, waiters and assistants, though, to serve the senior officers.)

Benefits for the survivors are left basically untouched while new hires are fired to preserve the budget for those with seniority.

At some point, the mission of the bureaucracy is completely lost, and the citizens’ patience with institutional incompetence and self-aggrandizement finally runs out. Although it seems “impossible” in an era where the Federal Reserve just conjures up $1 trillion and the Federal governments sells $1.3 trillion in bonds every year to fund its ballooning deficit, bureaucracies can and will implode.

On a small scale, we are seeing this process in action as small-town police forces are disbanded. This process will eventually be seen in smaller cities merging with adjacent cities to cut costs.

Where the City of Racine is now in relation to the visual representation of the bureaucratic lifecycle:

 

 

From Talking Racine:

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