GEORGE LUMLEY E-MAIL EXCHANGE BETWEEN JOHN FRIEND AND KELLY COURES

first_imgSent from my iPhoneOn Aug 28, 2015, at 2:48 PM, George Lumley wrote:John Friend, CPA City CouncilmanMr. FriendIt is my understanding that the DMD and city owned Brownfields attempted to by tax warrants at today’s sale.  I find this very odd that the city would be making this kind of investment because I hear that the General Fund is Cash short.  Also very unusual for local government to be purchasing this type of financial instrument.  Certificates of deposit or money market I could understand by why this type of financial investment?  If the city owned Brownfields club has that kind or cash, just laying  around, I think they should deposit it so the city can pay their bills a little faster.  I was reviewing expenditures out of the River Boat fund and was appalled at how long it takes a vender to be paid.Make no exceptions,  the parks department and street department should relinquish their off book funds as well.I know your busy in those Council Meetings but please bring that up for discussion so someone can explain it better.ThanksGeorge Lumley CPACitizenFacebookTwitterCopy LinkEmailShare Dear Mr Kelly Coures and Mr. John Friend, CPAMr Coures, You are correct that EBC could acquire lots at a Commissioners (tax) sale; however today was not a Commissioners sale.  Today was not a property sale.  You could not have bought any property there today.  Today’s sale was a “tax lien” sale.  For investors buying mortgages on the properties.  I am glad you are not getting our city owned Brownfields in the mortgage holding business any deeper than you have already.Mr. Friend, CPA,  maybe you can elaborate on where the funds the City owned EBC would go if returned to the proper controlling government.  In my opinion a significant part would go to the General Fund as it would have been generated from DMD’s activities at which time the expenses were charged to DMD general fund activities.  Grant funds  that they handled should have been expended on grant purposes or returned, I am thinking.  At least the cash balance of the city would improve and the controller would not have to hold the bills as long.  That is just my opinion from being a CPA for 30yrs and having worked Five of those with the State Board of Accounts.GEORGE LUMLEY-CPACITIZEN Subject: Re: City Cash InvestmentEBC can acquire lots at tax sale and does so when developable properties are there and they are strategic for future development for our agencies.EBC does not impact general fund.EBC did not acquire anything today.For the rest, the dealer passes.KMClast_img