Tallahassee Florida : CAFR (THEY HAVE TONS OF MONEY)

I have been writing about the CAFR and sharing information on it since the 1990’s when I had a radio show at WFLA and shared how this system works along with other top issues affecting Americans.  I am going to present information that is on the 2012 City of Tallahassee Comprehensive Annual Financial Report (CAFR).   I want you to imagine that you make a million dollars a year, and your spouse does not know it.  Now, I want you to spread out all that income into a massive accounting book.

The Spread looks like various accounts you hold, one of which is your general budget that you and your spouse run the family everyday living expenses from.  That budget is $50,000.00 this year.  That is what your spouse thinks you both have, and they are completely unaware that you have been taking money they have earned and been putting it in investment funds for twenty-five years.  They have gotten multiple part-time jobs, worked very late hours for the family and are happy to make sure the family is healthy and happy.  Now, you ask them to do more work to pay more money into the family budget because of an issue costing $10,000.00  has come up and the family needs more money.

They are already working 85 hours a week and just don’t know how much more they can do.  Then, one day, they are looking for something and come across the comprehensive budget, and discover that through investments you have purchased massive holdings in every major company and put them into funds allocated for various things.  They discover you have a rainy day fund of of two hundred thousand dollars!  Do you think they might wonder why they need to work even harder?  They also see that fund has a projected growth of $10,000.00 this year!

I imagine their first emotion is confusion because they trusted you, then it is hurt and sad, and then it is anger!  Now, before they knew about this, you two were a team.  They felt peace, loved you and you loved them.  All was well, but when the truth was revealed that they have worked themselves very hard to support the family and keep the general budget on the plus side for twenty-fire years, it was just too much!  The relationship is over and there is no recovering from the betrayal they feel, especially when they bring the books to you and ask for an explanation and you tell them, “Oh honey, that is for retirement and projects we have been working on!”

I mean, come on, if you were getting by on 50k a year and working 85 hours a week to get it, and found out you had 250k sitting aside and now your spouse wants you to add another 10 hours of work a week you might be angry.  This is exactly what is happening in all the governments around America from local, state, to Federal, and the taxes keep getting raised, we are in debt, and now jobs are becoming scarce.  Why exactly did the City of Tallahassee, Florida need to put a 5 cent per gallon of gas tax which will go in effect January 2014?  They say they need the money, but from what I can see, they have over 259 million in unrestricted assets on the 2012 CAFR!  But that is just the beginning:

Download the CAFR

Cover

Assets

This is not the full story though. It’s not just 259 million, because people will say, that’s just to run the city and meet it’s obligations.  Is it?  Is that all it is?  You see, you need to read the CAFR to see where the money is hidden.

On page 23 of the CAFR we see how it is broken down:

An Overview of the Financial Statements:

The City’s basic financial statements comprise three components: 1) government-wide financial statements,
2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements.
I am particularly interested int he “fund financial statements” and the notes.  Let’s have a look:
The first category is the basic stuff.  It says,
The government-wide financial statements of the City are divided into three categories:
•  Governmental activities
– These include the basic services provided by the City including police, parks
and recreation, public works, and general administration. Property, sales, and other taxes finance the majority
of these activities.
Business-type activities
– These include services for which the City charges specific fees which are meant
to cover the cost of providing the services. These include electric, gas, airport, fire protection, solid waste
collection, water, sewer, stormwater management, transit services, and the Hilaman Golf Course.
Component units
– These are legally separate organizations for which the City Commission appoints the
governing board and the City has financial reporting responsibilities. The City has one discretely presented
component unit, the Downtown Improvement Authority, which is an agency created by the Florida Legislature
to regulate downtown growth. The City also has a blended component unit, the Community Redevelopment
Agency, which is blended as a major special revenue fund into the primary government (see Note I–A for
more details).
The Second area is the off general budget stuff , like where the real money goes.  This is what the CAFR says about this area from pg 24:

FUND FINANCIAL STATEMENTS –

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The focus is on Major Funds, which provides detailed information about the
most significant funds. The City, like other governmental entities, uses funds to ensure and demonstrate compliance
with financial requirements imposed by law, bond covenants, and local administrative and legislative actions. All
of the City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary
funds.

GOVERNMENT FUNDS-

Governmental funds are used to account for essentially the same functions as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as
balances of spendable resources available at the end of the fiscal year. Since the focus of governmental funds is
narrower than that of government-wide financial statements, it is useful to compare information presented for
governmental funds with similar information presented for governmental activities in the government-wide financial
statements.
The City maintains thirteen (13) individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes
in fund balances for the General and the Community Redevelopment Agency Funds, both of which are considered
major funds. Data from the other eleven (11) funds are combined into a single, aggregate presentation. Individual

fund data for each of these nonmajor governmental funds is provided on pages 98 to 101 in this report

They are telling us here things are separate and accounted for separately.  The Citizens of Tallahassee think they have 50k to live off of, when in effect it’s a LOT more, and yet the City Commission has put in a NEW TAX!
So, there are 13 different funds and they are:
Proprietary Funds (consisting of Enterprise and Internal service Funds)
The City maintains two different types of proprietary funds.
Enterprise fundsare used to report the same functionspresented as business-type activities in the
government-wide financial statements. The City maintains ten (10)individual enterprise funds.
Internal Service Funds
are used to account for activities that provide goods and services to the City’s other programs

and activities. The City maintains thirteen (13) individual internal service funds.

Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds
are not available to support the City’s programs and activities. The City reports two fiduciary funds. The basic

financial statements for these funds are provided on pages 44 to 45 in this report.

Govt wide assets
From this we would see the city grew a small portion, and has 2.1 billion in total net assets an increase of  29 million dollars, not bad it seems.
Yet, on the following page we see this chart and it does not seem we are doing very well in Tallahassee:
expenses vs revenue
In my house, it’s never good when expenses are greater than revenues.
The following chart (p. 27)  illustrates the City’s Revenues by Source for the City’s governmental activities.
revenue by sourceprogram revenueThat big blue bar stood out immediately, and as one who has lived in Tallahassee for years I can tell you that the electric company is their golden goose in many ways.  Citizens pay a great deal more for there electricity under the City of Tallahassee than those who are in the cooperative pay.  That money is moved around to various programs, and citizens have to pay it if they want electricity!
Here is where the “Woe is me” story comes from (p. 29):
woe is me story

THEY LOST MONEY!

They want to show they were responsible and in the end eeked by via transfers to not go in the red on the final report.  They summed it up on p. 31 saying:
GENERAL FUND BUDGETARY HIGHLIGHTS
The City’s general fund generated a positive variance of approximately $408,000 between the final amended budget
and actual results of operation. Actual revenues were less than final budgeted revenues by $2.2 million, or 1.6%;
these variances were spread across most revenue sources as the City’s revenue stream continues to be impacted by
the economic environment. Actual expenditures for the year were less than final budgeted expenditures by $2.6
million, or 1.9%, these variances were spread across most expenditure line items due to regular budget monitoring

and continuation of soft freezes on hiring for vacant positions.

Anita Favors: City Manager
They cut jobs is basically what this is saying.  I wonder if that means the City Manager, Anita Favors let go some of her sorority sisters she apparently gave six figure salaries to without advertising the jobs as reported local watchdogs.  It was my experience that when cuts in jobs are made, it’s the little people who suffer, not the friends of the boss and actual workers.  So, they froze hiring and added work to the peons.
Personnel expenditures account for approximately 24.7% of the City’s Operating Budget. The City’s fiscal year
2013 operating budget includes a net decrease of 44 positions, bringing the budgeted full time equivalent staff

count to 2,802.  (p. 33)

proprietary funds transfers
Funds are where they hide the money folks.  We see cash paid to other funds totaling in thousands 67,612.  We see transfers to other funds of 38,349.  That is money put off into enterprise funds that go to investments, and thus are a plus, and not a minus.  It becomes even more clear with this chart:
proprietary funds transfers 2
I think those enterprise funds should be pretty interesting based on these numbers.
enterprise unrestricted
Unrestricted means it can be used in any way the people representing the citizens of the City of Tallahassee wish to use them.  I see a plus of 159,653!  That is money sitting there available IF they choose to use it.  Or they can choose to raise taxes and pretend they need money.
Tallahassee is a self funding retirement system.  Employees of the city of Tallahassee do not pay into social security and go into this pension plan which they contribute to and the city contributes to in matching contribution up to a certain percentage.  When you read, the city contributes, that means YOU the citizen is paying into city employees retirements because all money the city gets comes from the citizens.  If you are not a government worker, you either save or don’t save and your employer may contribute some to your retirement plan, but the guy working down the street doesn’t pay just because you live in the same city.
Pension fund
There are certain portions of the Pension Fund that are restricted and other portions that are unrestricted.  That money can be moved to other funds or to pay off a debt if the commissioners wanted to do that, or they could raise taxes.  Let’s look at how much the citizens contributed to the City of Tallahassee Employee’s retirement which unless that citizen is an employee does not benefit them one slim dime!
Pension fund 2
I hope you can see what I am seeing.  The generous citizens of Tallahassee put more into the employees retirement fund than the actual beneficiaries did.  The Employees contributed a whopping 8,483 while the rich citizens gave 20,110.  Does it not seem a little peculiar to you that since you are also an important part of Tallahassee that you don’t get to keep more of your money? That the City can’t just say, “Hey, let’s be fair.  You all already give so much, we don’t need to raise gasoline taxes.”  I am not a fan of Bush, I am not a Republican.  I am a believer in freedom and allowing people the joy of working hard, earning their money, and sharing it as THEY choose to.  When Obama took office, gasoline was less than $2.00 a gallon.  The price has sky rocketed to $4.00 a gallon at one point, and now is hovering in Tallahassee at around $3.30 per gallon.  Imagine how much money that is for the working poor in Tallahassee.

A ten gallon tank at $2.00 / g  cost $20.00 to fill up.   A lot of people live 20 to 30 minutes from where they work, and fill up twice a week.  So, when Bush left office, they were paying $40.00/ week to get around, drop children off to school, get to work and do other things.  Now, they are paying $3.30/g  which comes up to $33.00 per fill up and totals $66.00 / week.  Times that by a round number of 4 and we get $264.00 per month the citizens of Tallahassee are paying to drive now compared to $160.00 five years ago.   The City is cutting jobs, raising taxes, and lying to the Citizens.

Here is a little discussed taxing scam going on now (p.56):
City of Tallahassee-Leon County Blueprint 2000 Inter governmental Agency
In October 2000, the City entered into an interlocal agreement with Leon County as authorized by Section
163.01(7) Florida Statutes. This agreement created the Blueprint 2000 Intergovernmental Agency to govern
the project management for the project planning and construction of a list of projects known as the Blueprint
2000 projects. The Board of County Commissioners and the City Commission constitute the Blueprint
2000 Intergovernmental Agency.
The revenues to fund the projects under this agreement are the
collections of the local goverment infrastructure sales surtax, which began December 1, 2004. This tax was
extended pursuant to the provisions in Section 212.055, Florida Statutes, until December 31, 2019.
Periodically, the Agency provides construction management services to the City. For these services the
Agency and the City enter into Joint Participation Agreements (JPAs) whereby the City agrees to pay an
administrative fee to the Agency. During the fiscal year ended September 30, 2012, the City paid nothing
under these JPAs.
Current audited financial statements may be obtained from Blueprint 2000, 2727 Apalachee Parkway,

Suite 200, Tallahassee, Florida 32301

Remember Obamacare’s wonderful website that was projected to cost some 90 million dollars and the final bill was over 400 million?  This is where your money goes folks!  They have all these funds to pay for projects.  They put aside money and if the people really want it, then great, but did they want it at 4 times the cost?  Did they want to have taxes increased exponentially?  Who got that money?  Is this where the thieves really are?
Andrew Gillum : City Commissioner
Commissioner Gillum got a sweet deal to open a new business using CITY MONEY to renovate (2.1 MILLION Dollars) the establishment of which HE will be in direct competition with other local businesses!  That is YOUR money going to improve a location owned by the city that Mr. Gillum will be prospering from, and it’s YOUR MONEY!
In the best of times, a city government spending $2.1 million to renovate a government owned building to facilitate a restaurant would be tough to justify. But given the facts surrounding the City of Tallahassee’s venture into what is now called the Brew Pub at Cascades Park, it is hard to believe that the City Commission could vote 5-0 to move forward with such a project. Read about it here:

Pull the Plug On the Brew Pub

Let’s get back to the CAFR.  I just wanted to show how YOUR money is going via the commission and Ms. Favors to their friends.  How you the citizen are being charged for it, and they want to raise taxes and lay off employees.

One of the statements made in the CAFR about the funds is:

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements. (p.57)
On page 58 we can see the various governmental funds.  It reads as:
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The Community Redevelopment Agency Fund accounts for the general tax revenue collected and the
expenses incurred in the redevelopment of properties in the Community Redevelopment area.
The government reports the following major proprietary funds:
The Electric Fund accounts for the assets, operation and maintenance of the City-owned electric generation,
transmission, and distribution system.
The Gas Fund accounts for the assets, operation and maintenance of the City-owned gas system.
The Sewer Fund accounts for the assets, operation and maintenance of the City’s wastewater system.
The Water Fund accounts for the assets, operation, and maintenance of the City’s water production and
distribution system.
The Airport Fund accounts for the assets, operation, and maintenance of the City-owned regional airport.
The Stormwater Fund accounts for the assets, operation, maintenance, and expansion of the City-owned
stormwater utility system.
Additionally, the government reports the following fund types:
Internal Service Funds account for various services provided to other departments of the government and to
other governments on a cost reimbursement basis. The services provided include an 800 megahertz
system, revenue collection, information systems services, accounting operations, fleet management, employee
relations operations, employee retirement plan’s administrative operation, risk management operation, internal
loans program, utility services functions, and wholesale energy operations.
• The private purpose trust fund is used to account for resources legally held in trust for Florida Power
Corporation (FPC) for the future decommissioning of the Crystal River Unit 3 Utility Plant (CR3 Plant).
On October 1, 1999, the City sold its interest in the CR3 Plant to FPC and was released from any
decommissioning costs in excess of the amount held in trust. The plant’s decommissioning is anticipated

to begin in 2016.

I highlighted the accounting operations because it goes to maintaining all these different funds.  The people at the top know exactly what is going on, where that money is being moved and who gets it.  I also want to mention that the group doing the CAFR wants to keep their contract so they make it appear as complicated as possible, they assist in the cover-up of where the money is moved by their silence.  These are YOUR fellow citizens living amongst you who know exactly how much money the City of Tallahassee really has.  They know it’s a matter of choice that the City Manager and the Commissioners want to sit on millions of dollars in investments and funds rather than use that money to help build Tallahassee.  The media is complicit in this as I have tried for years to get Preston Scott to talk about the CAFR.  I have written to Steve Stewart and Irwin Jackson about the CAFR and the millions of dollars hidden which by one vote could release money to help the citizens, and they will NOT talk to me.
I was told by someone who worked with Preston Scott that he was directly told about this, that I wanted to come on his show and talk about the CAFR or have him interview Walter Burien, the preeminent expert on this issue who told me he would be very happy to go on Preston Scott’s morning show and explain the numbers.  I was told that Preston refused to investigate this, and that the subject is DEAD!  You see, you think there is an alternative news station.  You think Fox News, Preston Scott, Steve Stewart, Irwin Jackson and others are here to help you.  I am telling you that they are scared of this issue, they keep their jobs if they keep their mouths shut!
I highlighted the employees contribution administration because people get paid a LOT of money to manage these accounts.  They know how rich the City of Tallahassee is, and they keep their mouths shut to keep their jobs.  All the while Americans can’t find work, can’t afford basic things, and are told we are lazy and need to get a better skill.  The system is designed to turn us into slaves dependent on our government masters.
On p. 59 we are told more about the funds:
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the enterprise funds, and of the City’s
internal service funds, are charges to customers for sales and services. The water and sewer funds also recognize as
operating revenue the portion of the tap fees intended to recover the cost of connecting new customers to the
system. Operating expenses for enterprise funds and internal service funds include the costs of sales and services,
administrative expenses, and depreciation on capital assets.
All revenues and expenses that do not meet this definitionare reported as nonoperating revenue and expenses. When both
restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then
unrestricted resources as they are needed.
I don’t know about you, but if the city has millions in unrestricted funds, then they don’t need to raise taxes.  It’s just that they refuse to vote to release those funds to help Tallahassee grow and benefit the citizens of Tallahassee.

To be Continued

If you want to see how this works, then please give yourself some time to watch:
Tallahassee is a business. It is a corporation, and when I searched for this information, this came up on Bing:
tally incIf you click the link you cannot find that text. I clicked the cashed page and it’s still not there, but it must be in a sub-category.  My point is you must start to look at how things are happening, and when I was in college we were taught the number 1 rule for a corporation is to make a profit for their share holders.  Thus, giving money back is not in their best interest.  They want to grow and gain more power.

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