Cincinnati would get less than half of parking deal's total value

Thanks for the great ripoff, city council!

New documents released by City Hall reveal Cincinnati may be leasing its parking system for less than half its market value over the next 30 to 50 years.

And exactly how much the city will get from outsourcing the parking system depends on whom you ask.

In today’s dollars, the lease of city-owned parking meters, lots and garages to the Port Authority is estimated to have a value of $475 million.

Meg Olberding, citing a New York-based financial consultant hired by the city to study the issue, said the city would get $197.4 million – or 41 percent of its current market value.

The city’s economic development director puts that number at $113 million – or just 24 percent of its current value.
City Council contentiously approved the lease deal by a 5-4 vote earlier this month, just 15 days after it was first proposed.

Proponents have said the move will generate millions in much needed revenue for the city and help spur further development.

Opponents have argued that locking the city into a long-term commitment is bad business and that the city is making a quick decision without fully evaluating its financial implications.

The lease is currently on hold until a judge rules on a citizen lawsuit asking that the issue be put to voters to decide.

Link: Cincinnati would get less than half of parking deal's total value

At least one city council candidate, Amy Murray, is thinking striaght

Running for City Council, support Amy Murray!

“Today we learned that the proposed bids for the streetcar have come in significantly higher than anticipated by our City government. The lowest bid for tracks and stations was 58% higher than what was originally budgeted for this aspect of construction. This is yet another example of the out-of-control spending at City Hall. In business, companies plan and make estimates based on real-world costs firmly rooted in their balance sheets and hard data. They know what they can and cannot do based on sound projections and cost estimates. To hear that the City received bids up to $43 million more than they estimated shows that we need more responsible stewards of taxpayer dollars. The lack of transparency thus far in the process has been astounding.

She even takes paypal, hit the button!

Western Southern says Cincinnati could face "tens of millions" penalty for misleading HUD

When it comes to Cincinnati City Council, you have to ask: is it incompetence or thievery (or both)?

Check this out - Anna Louise dispute escalates - Western & Southern: City, others made false claims

Western & Southern Financial Group has accused city leaders, advocates for the homeless and others of misleading the public and federal officials about plans to renovate the Anna Louise Inn.

Attorneys for Western & Southern, which wants to buy the inn and convert it to an upscale hotel, warned city officials in a letter that they could face tens of millions of dollars in penalties for making “false claims” to the Department of Housing and Urban Development.

WHAT??? Tens of millions in penalties???

The heart of Western & Southern’s argument is that city officials and the inn’s owner, Cincinnati Union Bethel, sought federal money to renovate Anna Louise without telling HUD the inn was intended to be a women-only facility.

Federal housing law generally requires facilities that receive federal dollars not to discriminate based on race, age or gender.

So HUD requires not discriminating based on race, age or gender, right? Here are some samples I found of HUD agreements.


See how they all mention gender?

So here's the City of Cincinnati's HUD agreement.


Wow! Looks like someone removed gender or sex from the agreement! Which would violate Fedearl Fair Housing laws? Resulting in possibly millions in penalties paid by the city, I mean US, THE TAXPAYERS?

Incompetence or thievery or both? I pick C.

Tilsley: No Risk in Pension System That Has $750 Million in Unfunded Liabilities!

What does a responsible management team do when its pension system is almost a billion dollars in the red? Answer at the bottom.

Some City Council members tried to reassure municipal workers who attended a special council meeting Wednesday evening about the city of Cincinnati’s troubled pension system, which is facing major shortfalls in the future.

Mayor Mark {"THE GENIUS"} Mallory told a crowd of about 100 people, "There is no one here (on council) that wants to see a single retiree go without their benefits."

...Councilmen Charlie Winburn and Christopher Smitherman called for the special meeting. Winburn, a Republican, and Smitherman, an independent, said they felt stymied from getting answers about the pension system by council's Democratic majority.

Winburn and Smitherman said they've tried to get the issue placed on council's Finance Committee agenda, but are blocked by Vice Mayor Roxanne Qualls and others... “The retirement system is in crisis and must be addressed,” Smitherman said.

Cincinnati’s $2.1 billion retirement system, which covers current and former municipal employees, has an “unfunded liability” estimated at $728 million.

But Paula Tilsley, executive director of the Cincinnati Retirement System, said its problems are long-term and current retirees shouldn't worry unnecessarily... "There is no risk in the foreseeable future that retirees won't get their pension checks," Tilsley said... The pension system covers 4,400 retirees or surviving spouses; there are about 2,900 active employees who pay into the system.

Smitherman, a financial planner, first began warning about pension problems in 2004 during his first council term... Each year, (the retirement system) is sending an estimated amount of $200 million in payments to current retirees,” Smitherman said.

“The current value of the pension being only $2 billion and not the needed $3 billion means the pension plan is sending out 10 percent of its value on an annual basis,” he added. “This is not sustainable. The health of a pension is defined as its ability to pay its future obligations not its present obligations. If you accept this definition, the (system) is not solvent.”

The system is funded at a 67 percent level, meaning that its assets do not cover projected future expenses. To be considered financially healthy, a pension system should be funded at a minimum of 80 percent.

Chris Smitherman is a hero, he's been calling out council for its crazy promises since he got into office.


Answer: Why, build a streetcar obviously!!!

WLWT: Streetcar bids could push price tag to $130 million

That's what WLWT is reporting.

Construction bids for the Cincinnati streetcar project have come in way over city hall's budget, and that's become more grist for the political mill... "They estimated $44 million on the track, (and) it came in, the low bid came in $71 million – $26 million over budget," said mayoral candidate John Cranley. "It shows incompetence." Combined with other potential changes, the higher construction costs for tracks and stations could push the price tag for the project to at least $130 million. "I and many citizens have always said that this project could not be completed at the $110 million price point," City Councilman Chris Smitherman wrote to the city manager. "Your office does not have authorization to spend any more money beyond the $110 million without bringing it back to City Council for a vote."

Yo Yo Yo: Cincinnati Streetcar Will Only Lose $5 to $10 Million a Year

Thankfully there are no other serious financial obligations the city has (ha!)...

• Even the most ardent proponents of the Streetcar acknowledge that it is not a worthwhile undertaking if it does not eventually extend up to Clifton.   
• But it has taken six years to get where we are, and it's another two years before we get the first 3.4-mile loop completed (if ever [we think never]).
• But remember, the state legislature has outlawed further State expenditures on the boondoggle, and Governor Kasich eliminated $52 million in state funds.
• Our two Congressmen, Steve Chabot and Lt. Col. Dr. Wenstrup, have foresworn providing any further federal funds for the project.
• In short, other than a massive increase in the City's earnings tax or the bonded indebtedness, resulting in a property tax increase, the Streetcar can't possibly extend up the Vine Street hill.  It's not going to happen in the lifetime of anyone reading this story.
• And in case you have not noticed, the City is flat broke, deeply in debt and crumbling from within.  We are not maintaining our streets and public buildings.
• The Streetcar will generate an annual operating deficit between $5 million and $10 million, further straining monies desperately needed for police, fire and trash collection. 

As COAST has said for years, the Streetcar will be a constant source of surprises, all of them negative.  Most of the surprises will be fiscal; some will be operational