One of my faithful readers has wondered why The Observer does not cover those delightful "fluffy little puppy" stories like all the other media outlets. Those special stories that checkout shoppers all over the world simply cannot resist.
I have replied with the usual: We cover the meetings, local news, business news. We are where the regular media get their news. Somehow that still disappointed my reader. So. Just this once.
Click on the post for "The Fluffy Little Puppy."
Thursday, November 15, 2007
Minyanvile; "Enhanced Cash Fund" breaks the buck
Click on the post for the first example of an "Enhanced Cash Fund" that did not redeem shares at $1, and provides a warning to all fund investors, schools, corporations, pension funds etc.....
Biofuels Corner: Connecting the Dots-----reflection
Recently I have posted some speeches of the Federal Reserve Chairman, Ben Bernanke, and have also published audio of the recent Common Council meeting regarding the North Prairie Production announcement of temporary suspension of construction of the biodiesel plant due to the large spike upward of soybeans. The purpose of this post is to connect some of the dots. I know some of you might have wondered why I was covering the Federal Reserve.
When The Evansville Observer posted the picture on the right of the blog of Governor Doyle and Mayor Decker announcing that Evansville, Wisconsin was the Soybean Capital of Wisconsin.....it may surprise you to know that very quickly a visitor from Dubai, Saudi Arabia came to view the story. Yes. For a minute, I thought maybe they were looking for something from The Tales from Normal.
Just imagining a little, if one was an investor, a speculator, and yes even an oil titan from Saudi Arabia, one would see that there was a speculation----and also that by driving the price up and profiting, one could also impair the competition. With the free reign that the "Hedge Funds" have been given we have lost the ability to control items of the national interest---energy---and everything is up to speculation. Even our Money Market Funds and pensions have been infiltrated with investments that are not "FIXED" in the traditional sense, but are junk if the public loses confidence in them. This is in stark contrast to a CD which is guaranteed by the Federal Government. But I digress....
The Federal Reserve Chairman, Bernanke was recently questioned after a speech and one Senator asked bluntly whether he in the Federal Reserve knew any more than the investment firms that seems to know so little about their own investments. He replied that they had not done "due diligence." The next step in the story is the new level of reporting required by banks, that will require that banks DETAIL the loans they are carrying and the specific risk of each, rather than aggregate them. Investors, retired folks, etc. who had invested in money market funds etc. had no idea that their investments were at such risk.
Now with the greater "TRANSAPARENCY" of reporting, they will know.
Now moving to the North Prairie Production decision to temporarily suspend construction. If you listen to Pres. Mike Robinson's video on the Observer, you will hear him say the banks could not close the loan because of the "securitization" of the investment, meaning that it was to be packaged to many banks to diversify the risk.----however---with the new reporting rules---if the loan was "non-performing" right at the beginning, investors would balk--and they did.
As I see it: Our nation and our state of Wisconsin have a huge interest in energy independence and stability, and have an interest in protecting emerging industry such as our biofuel industry. It is not a partisan thing. Governor Doyle was there at the ground breaking ceremony---as well as politicians from both political parties. The Governor even brought a check to the ceremony and pledged the support of the State of Wisconsin.
So stay tuned. There is more transparency in the banking system now than there was 6 months ago. That is good. I believe others will step up to figure a way to help our biofuel industry thrive here in Evansville---it is in the State, National and local interest. That is how I see it.
When The Evansville Observer posted the picture on the right of the blog of Governor Doyle and Mayor Decker announcing that Evansville, Wisconsin was the Soybean Capital of Wisconsin.....it may surprise you to know that very quickly a visitor from Dubai, Saudi Arabia came to view the story. Yes. For a minute, I thought maybe they were looking for something from The Tales from Normal.
Just imagining a little, if one was an investor, a speculator, and yes even an oil titan from Saudi Arabia, one would see that there was a speculation----and also that by driving the price up and profiting, one could also impair the competition. With the free reign that the "Hedge Funds" have been given we have lost the ability to control items of the national interest---energy---and everything is up to speculation. Even our Money Market Funds and pensions have been infiltrated with investments that are not "FIXED" in the traditional sense, but are junk if the public loses confidence in them. This is in stark contrast to a CD which is guaranteed by the Federal Government. But I digress....
The Federal Reserve Chairman, Bernanke was recently questioned after a speech and one Senator asked bluntly whether he in the Federal Reserve knew any more than the investment firms that seems to know so little about their own investments. He replied that they had not done "due diligence." The next step in the story is the new level of reporting required by banks, that will require that banks DETAIL the loans they are carrying and the specific risk of each, rather than aggregate them. Investors, retired folks, etc. who had invested in money market funds etc. had no idea that their investments were at such risk.
Now with the greater "TRANSAPARENCY" of reporting, they will know.
Now moving to the North Prairie Production decision to temporarily suspend construction. If you listen to Pres. Mike Robinson's video on the Observer, you will hear him say the banks could not close the loan because of the "securitization" of the investment, meaning that it was to be packaged to many banks to diversify the risk.----however---with the new reporting rules---if the loan was "non-performing" right at the beginning, investors would balk--and they did.
As I see it: Our nation and our state of Wisconsin have a huge interest in energy independence and stability, and have an interest in protecting emerging industry such as our biofuel industry. It is not a partisan thing. Governor Doyle was there at the ground breaking ceremony---as well as politicians from both political parties. The Governor even brought a check to the ceremony and pledged the support of the State of Wisconsin.
So stay tuned. There is more transparency in the banking system now than there was 6 months ago. That is good. I believe others will step up to figure a way to help our biofuel industry thrive here in Evansville---it is in the State, National and local interest. That is how I see it.
Stormwater Utility: List of Communities that have One: Charges; and More
Click on the post to access the list of communities that have a stormwater utility--this list goes with the memo below from Dan Wietecha, Evansville City Administrator regarding the Overview of a Stormwater Utility.
Background: Memo from Evansville City Administrator Dan Wietecha re: Overview of Stormwater Utility Concept
(Ed. Note: This memo was in the packet for last Tuesdays Evansville Common Council. The list of individual communites that have a stormwater utility will be in a separate post.)
October 23, 2007
To: Public Works Committee
From: Dan Wietecha, City Administrator
Re: Stormwater Utility Overview
A stormwater utility may be created to manage the stormwater system throughout the city. User fees would be established proportionate to the amount of stormwater runoff occurring from each individual property. It is primarily for maintenance, but also to fix existing deficiencies throughout the drainage system. New development still required to install ponds etc at own expense.
There are at least 60 stormwater utilities in the state, and they are becoming more common in response to tight budgets and increased requirements for water quality. A principal advantage to using a utility (rather than paying for stormwater taxes through property taxes) is that it more equitably allocates the costs based on the amount of runoff produced by each property.
Statutory authority for a stormwater utility is Wisconsin Statutes, Sections 62.11, 62.18 and 66.0821.
There may be two ways to charge utility fees for stormwater: 1) create a new utility district or 2) establish the fee as a separate line item on an existing sewer utility.
A stormwater utility is not an immediate fix. Several factors need to be considered beforehand, and (if creating a new district) it can still be four months for state approval.
Are the district boundaries the city limits or extend into the township?
What is the acreage categorized by residential, commercial, agricultural, etc?
How many parcels categorized by residential, commercial, agricultural, etc?
Equivalent Runoff Unit (ERU) is typically set at the average impervious surface area for a single family house. Is this the right mechanism for Evansville? And, what is the right measure for an ERU?
Some cities provide credits for properties or developments that reduce their runoff below some threshold; is this appropriate for Evansville?
Identify existing stormwater-related expenses (eg: streetsweeping, ditch cleaning, leaf collection, storm sewer maintenance, etc) – prelim estimate $79,000/year.
Identify future stormwater-related expenses (eg: items identified to improve our floodplain CRS score, capital improvements, billing).
Develop several-year budget.
Public education about the proposed utility – How will it benefit the entire city (not just one neighborhood)? How will it affect property taxes? What are long-term plans for the utility (not just dig a pond for one neighborhood)? How is it coordinated with other city practices (eg: effort to improve our floodplain CRS score)?
October 23, 2007
To: Public Works Committee
From: Dan Wietecha, City Administrator
Re: Stormwater Utility Overview
A stormwater utility may be created to manage the stormwater system throughout the city. User fees would be established proportionate to the amount of stormwater runoff occurring from each individual property. It is primarily for maintenance, but also to fix existing deficiencies throughout the drainage system. New development still required to install ponds etc at own expense.
There are at least 60 stormwater utilities in the state, and they are becoming more common in response to tight budgets and increased requirements for water quality. A principal advantage to using a utility (rather than paying for stormwater taxes through property taxes) is that it more equitably allocates the costs based on the amount of runoff produced by each property.
Statutory authority for a stormwater utility is Wisconsin Statutes, Sections 62.11, 62.18 and 66.0821.
There may be two ways to charge utility fees for stormwater: 1) create a new utility district or 2) establish the fee as a separate line item on an existing sewer utility.
A stormwater utility is not an immediate fix. Several factors need to be considered beforehand, and (if creating a new district) it can still be four months for state approval.
Are the district boundaries the city limits or extend into the township?
What is the acreage categorized by residential, commercial, agricultural, etc?
How many parcels categorized by residential, commercial, agricultural, etc?
Equivalent Runoff Unit (ERU) is typically set at the average impervious surface area for a single family house. Is this the right mechanism for Evansville? And, what is the right measure for an ERU?
Some cities provide credits for properties or developments that reduce their runoff below some threshold; is this appropriate for Evansville?
Identify existing stormwater-related expenses (eg: streetsweeping, ditch cleaning, leaf collection, storm sewer maintenance, etc) – prelim estimate $79,000/year.
Identify future stormwater-related expenses (eg: items identified to improve our floodplain CRS score, capital improvements, billing).
Develop several-year budget.
Public education about the proposed utility – How will it benefit the entire city (not just one neighborhood)? How will it affect property taxes? What are long-term plans for the utility (not just dig a pond for one neighborhood)? How is it coordinated with other city practices (eg: effort to improve our floodplain CRS score)?
Wednesday, November 14, 2007
Federal Reserve: Chairman Bernanke Speech 11-14-2007
Fed. Chairman speech on transparency changes at the Federal Reserve. On why improved transparency is essential for banking and the markets.
MP3 File
MP3 File
City Administrator Dan Wietecha's memo to Council on inpact of NPP suspension
November 13, 2007
To: Common Council
From: Dan Wietecha, City Administrator
Re: Effect of NPP Suspension
In spring 2007, City bonds and loans were issued totaling $4,065,000 to support biodiesel and associated infrastructure improvements. Approximately $1,710,000 of this is improvements benefiting neighboring properties and will be assessed accordingly; much of this property is not currently in the city so the assessments will be deferred until future annexation and/or development. Net result is $2,355,000 to directly support biodiesel; the full amount of which is expected to be financed through TIF and state grants.
The TIF assistance is scheduled to be paid during construction rather than all up front. The City has limited expenditures for the biodiesel facility to the following amounts:
$330,000 County Road M improvements specifically benefiting NPP site.
$ 80,000 Electric service and transformer for NPP site.
$ 60,000 Legal, engineering, and fiscal costs for development agreement.
$470,000 TOTAL approximate expenditures to date.
All costs are TIF eligible, meaning the collection of future tax increments may be used to satisfy any debts associated with the costs. This assumes that the project proceeds and will generate increment. The Development Agreement requires construction of the biodiesel facility by January 1, 2009, and the TIF projections are based on this date.
The Development Agreement also contains a guarantee that in any year that an insufficient amount of increment is generated (including the possibility of no increment), then NPP will pay the shortfall.
So between the TIF and the guarantee, the City’s expenditures are contractually covered. As long as NPP meets it guarantee, the City will not need to levy taxes against other residents and businesses to service the TIF debt supporting the project.
The City has received $250,000 in CDBG-PFED and TEA grants from the state. These require construction of the biodiesel facility and creation of 25 jobs by December 31, 2008. The state may require repayment or penalties for not creating 25 jobs; any required repayment or penalty is passed on to NPP in the Development Agreement. The City has not taken any of the grant money and has notified the Department of Commerce that it does not intend to draw funds with the project on hold. If the project does not proceed, this may cause a $250,000 cash flow problem for the City in spring 2008; this may reduce the amount of TIF provided as a development incentive to NPP.
Additional safeguards:
The TIF projections are conservatively based on $10 million in taxable equalized value; whereas, actual value after construction will more likely run $14-16 million. This means that (when completed) the facility should generate roughly 40-60% more increment than needed to make the projections.
The $2.3 million in TIF depends on revenues projected through 2027. A delay does not lengthen the end date; it simply reduces the time frame for collecting revenues. The longer the delay, the less TIF support for the project.
The $330,000 in County Road M improvements may be levied as a special assessment against the NPP property. This would provide an additional degree of protection for the City in the event the delay is lengthy, the project folded altogether, or it were impossible to collect on the guarantee that NPP cover any shortfall in the anticipated increment.
Development Agreement requires NPP to cover any repayment or penalties that may be imposed under the two state grants.
Development Agreement requires Landmark to pay taxes to Town of Union over next five years (total $36,000) if not covered by TIF.
Next Steps:
City meeting with representatives of North Prairie Productions and Landmark Service Cooperative anticipated within the next week to review Development Agreement and obligations therein.
Negotiate project extension for state grants beyond December 31, 2008.
Run TIF projections based on delay; consider revisions to Development Agreement to ensure progress of project without jeopardizing the City.
Consider impacts of additional development (crushing facility) on TID #7.
To: Common Council
From: Dan Wietecha, City Administrator
Re: Effect of NPP Suspension
In spring 2007, City bonds and loans were issued totaling $4,065,000 to support biodiesel and associated infrastructure improvements. Approximately $1,710,000 of this is improvements benefiting neighboring properties and will be assessed accordingly; much of this property is not currently in the city so the assessments will be deferred until future annexation and/or development. Net result is $2,355,000 to directly support biodiesel; the full amount of which is expected to be financed through TIF and state grants.
The TIF assistance is scheduled to be paid during construction rather than all up front. The City has limited expenditures for the biodiesel facility to the following amounts:
$330,000 County Road M improvements specifically benefiting NPP site.
$ 80,000 Electric service and transformer for NPP site.
$ 60,000 Legal, engineering, and fiscal costs for development agreement.
$470,000 TOTAL approximate expenditures to date.
All costs are TIF eligible, meaning the collection of future tax increments may be used to satisfy any debts associated with the costs. This assumes that the project proceeds and will generate increment. The Development Agreement requires construction of the biodiesel facility by January 1, 2009, and the TIF projections are based on this date.
The Development Agreement also contains a guarantee that in any year that an insufficient amount of increment is generated (including the possibility of no increment), then NPP will pay the shortfall.
So between the TIF and the guarantee, the City’s expenditures are contractually covered. As long as NPP meets it guarantee, the City will not need to levy taxes against other residents and businesses to service the TIF debt supporting the project.
The City has received $250,000 in CDBG-PFED and TEA grants from the state. These require construction of the biodiesel facility and creation of 25 jobs by December 31, 2008. The state may require repayment or penalties for not creating 25 jobs; any required repayment or penalty is passed on to NPP in the Development Agreement. The City has not taken any of the grant money and has notified the Department of Commerce that it does not intend to draw funds with the project on hold. If the project does not proceed, this may cause a $250,000 cash flow problem for the City in spring 2008; this may reduce the amount of TIF provided as a development incentive to NPP.
Additional safeguards:
The TIF projections are conservatively based on $10 million in taxable equalized value; whereas, actual value after construction will more likely run $14-16 million. This means that (when completed) the facility should generate roughly 40-60% more increment than needed to make the projections.
The $2.3 million in TIF depends on revenues projected through 2027. A delay does not lengthen the end date; it simply reduces the time frame for collecting revenues. The longer the delay, the less TIF support for the project.
The $330,000 in County Road M improvements may be levied as a special assessment against the NPP property. This would provide an additional degree of protection for the City in the event the delay is lengthy, the project folded altogether, or it were impossible to collect on the guarantee that NPP cover any shortfall in the anticipated increment.
Development Agreement requires NPP to cover any repayment or penalties that may be imposed under the two state grants.
Development Agreement requires Landmark to pay taxes to Town of Union over next five years (total $36,000) if not covered by TIF.
Next Steps:
City meeting with representatives of North Prairie Productions and Landmark Service Cooperative anticipated within the next week to review Development Agreement and obligations therein.
Negotiate project extension for state grants beyond December 31, 2008.
Run TIF projections based on delay; consider revisions to Development Agreement to ensure progress of project without jeopardizing the City.
Consider impacts of additional development (crushing facility) on TID #7.
Common Council: Stormwater Utility Explained
Mason Braunschweig, President of the Common Council, explains the Stormwater Utility concept
Download File
Download File
City of Evansville proposes 2007-18 that would allow for referendum of taxpayers only for projects OVER 5 Million Dollars
It was just a bit ironic. The Common Council was meeting to hear a presentation from the biodiesel folks on the suspension of their project, in part because they had not forseen the possiblity that with the biofuels industry demand for raw product, the cost of the commodity might soar---and it has over the past six months...and what is worse, the other fuels that one could switch to have also soared....and....
At a meeting where the possibility of creating a Stormwater Utility was discussed, in part, to remedy the oversight of prior projects created in the planning process,
That the city would propose that citizens who would of course have the usual mode of input to their alderman, would not be allowed to have a referendum on any city project unless it totalled 5 Million dollars or more.
In one simple three page ordinance that was a hymn to the beauty and all encompassing intelligence and foresight of professional planning, the city prepared the way for NO REFERENDUM on either the Lake Leota project or the Library expansion, even though some pundits have cautioned that with very low growth of residential and commercial valuation in the city, uncontrolled capital expenditure could cause property taxes to skyrocket in a town that is already on the high tax list.
As soon as I can obtain an electronic copy of the ordinance I will post it. Stay tuned.
At a meeting where the possibility of creating a Stormwater Utility was discussed, in part, to remedy the oversight of prior projects created in the planning process,
That the city would propose that citizens who would of course have the usual mode of input to their alderman, would not be allowed to have a referendum on any city project unless it totalled 5 Million dollars or more.
In one simple three page ordinance that was a hymn to the beauty and all encompassing intelligence and foresight of professional planning, the city prepared the way for NO REFERENDUM on either the Lake Leota project or the Library expansion, even though some pundits have cautioned that with very low growth of residential and commercial valuation in the city, uncontrolled capital expenditure could cause property taxes to skyrocket in a town that is already on the high tax list.
As soon as I can obtain an electronic copy of the ordinance I will post it. Stay tuned.
Biodiesel Corner: Ald. Fred Juergens Asks the Question
Following Mike Robinson, Pres. Of North Prairie Productions, presentation at Common Council on Tuesday, Ald. Fred. Juergens asks a question:
Download File
Download File
Mike Robinson of North Prairie Productions
Mike Robinson, President of North Prairie speaks at Evansville Common Council on Tuesday, Nov. 13, 2007 and explains suspension of construction of biodiesel plant and answers questions.
Download File
Download File
Federal Reserve Corner: The Importance of Basil II
Federal Reserve Member Kroszner's speech yesterday at the Standard and Poors Conference was about Basil II, the new risk assessment standards that are being implemented. It is tough reading, but in the middle of the speech, the standards go to the heart of the risk of the CMO crisis, in that specific assets were not differentiated in detail under the former standard.
Tuesday, November 13, 2007
Audio: Common Council: 11-13-2007: Creation of Stormwater Utility
Discussion on 11-13-2007 of creation of stormwater utility to provide source of revenue, outside of normal General Obligation bonds; Might be additional item on current utility bill.
MP3 File
MP3 File
Audio: Common Council: 11-13-2007: Biodiesel Suspension of Construction
Mike Robinson, President of North Prairie Productions speaks on cause of the suspension of construction
MP3 File
MP3 File
Common Council Meets TONIGHT: Public Budget Hearing On Agenda: Stormwater Utility Discussed
Click on the post for the full agenda.
Proposed 2008 Evansville Operating Budget
(Ed.note: The following is from the October 9, 2007 Common Council meeting packet of information.)
Memo
To: Mayor Sandra Decker and Members of Evansville Common Council
From: Eric Jepperson, Finance Director/Treasurer
Date: October 5, 2007
Re: Proposed 2008 City Budget
Summary of Proposed 2008 City Budget
The attached proposed budget has been prepared with the primary goal of continuing to provide basic services to a growing community, while maintaining a stable tax rate. In addition, the budget will be prepared to meet the guidelines of the State of Wisconsin Expenditure Restraint Program and to ensure that the City’s levy complies with any potential State property tax levy limit, if one is imposed through the State’s budget, which has not yet been finalized.
The State of Wisconsin Expenditure Restraint Program is a program where municipalities receive revenue from the state for voluntarily controlling the level of their general fund operating expenses. Each year, operating expenses can increase by no more than the cost of living and a portion of the growth in net new construction (60% of the growth in net new construction, capped at 2%). Evansville’s net new construction to be used for this budget period was 1.994%. The 2008 limit will be equal to the cost of living plus the 60% of 1.994%, or, 1.196%. The City’s Expenditure Restraint limit to qualify for a 2008 payment is 4.896%. The proposed budget currently includes a general fund operating expense increase of 1.697%.
The State of Wisconsin has not finalized its current budget. Until it does so, the City’s 2008 tax levy will not be held to a Property Tax Levy Limit by the State of Wisconsin. In the past this limit was equal to the ratio of the increase in equalized value from net new construction divided by the total equalized value as of January 1 of that year, or 2%, whichever was greater. In addition to this levy amount, any new debt service for the next budget year could be added. The levy is for the purposes of general operations, EMS, Library, Cemetery, Debt Service and Capital projects. The proposed budget includes a levy increase of $97,806, or 5.058%.
The levy included in the proposed budget would result in a modest property tax rate decrease of 0.34%. Under this scenario, the City tax on an average residential value would increase $16.09 from $1,003.04 to $1,019.13 because of an increase in the average residential assessed value.
Notable Budget and Staffing Changes
Assessed Value - The total assessed value used to determine the property tax rate was estimated at $309,125,944. The State assessed value for industrial property has not yet been finalized. We have incorporated an estimate prepared by the Wisconsin Department of Revenue for the City’s industrial property. The City’s current assessment ratio is 0.956541047.
Tax Levy (General Fund and Capital) –This budget incorporates the Council’s goal of a reduced tax rate. The tax levy has been held to an amount to provide for this property tax rate decrease of .34%.
Revenues – Property tax revenue supporting the general fund is decreasing by 2.34%. An increase in interest revenue on temporary investments, increased numbers of licenses and permits, and the additional revenues from the newly established police department vehicle registration service are expected in 2008. The City’s intergovernmental revenue (i.e. transportation aid, shared revenue, expenditure restraint payment) is remaining fairly constant.
Fire District, and Public Fire Protection - The City of Evansville’s share of funding the fire district will increase in 2008 to $127,382, which is a 6.72% increase. Public fire protection will remain at $175,000 as ordered by the Wisconsin Public Service Commission. Public Fire Protection specifically refers to the cost of maintaining the fire hydrant system. Communities throughout Wisconsin collect public fire protection charges either through the property tax levy or as a special charge on the water bill. Evansville collects this charge through the property tax levy.
Department of Public Works Staffing Increase – The additional full time Public Works employee that was approved in the 2007 budget is in the process of being hired now. The full impact of the salary and benefits will begin in 2008. This General Laborer is needed at this time to address additional workload. The salary and benefit cost for this position is $61,300 per year.
EMS Township Service Agreement – Revenues from the township service agreement have been increased to reflect an increase in the per capita payment to $20. The City tax levy currently provides a City resident payment of over $20 per capita.
EMS Expenses – Additional expense in 2008 for EMS pagers and ambulance laptop computers. Grants have been applied for and potentially will offset some, or most, of this additional cost.
Debt Service Fund – The property tax levy to fund the Debt Service Fund for 2008 will increase by 42.29%, or $167,862. This is due to additional borrowings by the City for various capital projects. Most of this additional debt will be reimbursed to the City by the TIF districts through additional tax increment.
Capital Projects Fund - Items from the 5 year Capital Plan for the year 2008 have been included.
Wastewater Treatment Plant – The budget for Waste Water Treatment Plant includes upgrades to the plant estimated at $1,000,000. This is expected to be funded by borrowing.
Water Utility Budget – The City of Evansville recently had an application to increase electric rates approved by the Wisconsin Public Service Commission. Rates had not been increased for approximately ten years. The rate adjustment is necessary due to increases in operating expenses and costs of various capital projects undertaken in 2007, and into 2008. This rate increase is reflected in the budget revenues.
Budget Schedule
The Council will hold a public hearing at their November 13, 2007 Council meeting, will make any appropriate modifications, and will adopt the Ordinance, which adopts the 2008 budget and sets the tax levy.
Check Mail Compose
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Memo
To: Mayor Sandra Decker and Members of Evansville Common Council
From: Eric Jepperson, Finance Director/Treasurer
Date: October 5, 2007
Re: Proposed 2008 City Budget
Summary of Proposed 2008 City Budget
The attached proposed budget has been prepared with the primary goal of continuing to provide basic services to a growing community, while maintaining a stable tax rate. In addition, the budget will be prepared to meet the guidelines of the State of Wisconsin Expenditure Restraint Program and to ensure that the City’s levy complies with any potential State property tax levy limit, if one is imposed through the State’s budget, which has not yet been finalized.
The State of Wisconsin Expenditure Restraint Program is a program where municipalities receive revenue from the state for voluntarily controlling the level of their general fund operating expenses. Each year, operating expenses can increase by no more than the cost of living and a portion of the growth in net new construction (60% of the growth in net new construction, capped at 2%). Evansville’s net new construction to be used for this budget period was 1.994%. The 2008 limit will be equal to the cost of living plus the 60% of 1.994%, or, 1.196%. The City’s Expenditure Restraint limit to qualify for a 2008 payment is 4.896%. The proposed budget currently includes a general fund operating expense increase of 1.697%.
The State of Wisconsin has not finalized its current budget. Until it does so, the City’s 2008 tax levy will not be held to a Property Tax Levy Limit by the State of Wisconsin. In the past this limit was equal to the ratio of the increase in equalized value from net new construction divided by the total equalized value as of January 1 of that year, or 2%, whichever was greater. In addition to this levy amount, any new debt service for the next budget year could be added. The levy is for the purposes of general operations, EMS, Library, Cemetery, Debt Service and Capital projects. The proposed budget includes a levy increase of $97,806, or 5.058%.
The levy included in the proposed budget would result in a modest property tax rate decrease of 0.34%. Under this scenario, the City tax on an average residential value would increase $16.09 from $1,003.04 to $1,019.13 because of an increase in the average residential assessed value.
Notable Budget and Staffing Changes
Assessed Value - The total assessed value used to determine the property tax rate was estimated at $309,125,944. The State assessed value for industrial property has not yet been finalized. We have incorporated an estimate prepared by the Wisconsin Department of Revenue for the City’s industrial property. The City’s current assessment ratio is 0.956541047.
Tax Levy (General Fund and Capital) –This budget incorporates the Council’s goal of a reduced tax rate. The tax levy has been held to an amount to provide for this property tax rate decrease of .34%.
Revenues – Property tax revenue supporting the general fund is decreasing by 2.34%. An increase in interest revenue on temporary investments, increased numbers of licenses and permits, and the additional revenues from the newly established police department vehicle registration service are expected in 2008. The City’s intergovernmental revenue (i.e. transportation aid, shared revenue, expenditure restraint payment) is remaining fairly constant.
Fire District, and Public Fire Protection - The City of Evansville’s share of funding the fire district will increase in 2008 to $127,382, which is a 6.72% increase. Public fire protection will remain at $175,000 as ordered by the Wisconsin Public Service Commission. Public Fire Protection specifically refers to the cost of maintaining the fire hydrant system. Communities throughout Wisconsin collect public fire protection charges either through the property tax levy or as a special charge on the water bill. Evansville collects this charge through the property tax levy.
Department of Public Works Staffing Increase – The additional full time Public Works employee that was approved in the 2007 budget is in the process of being hired now. The full impact of the salary and benefits will begin in 2008. This General Laborer is needed at this time to address additional workload. The salary and benefit cost for this position is $61,300 per year.
EMS Township Service Agreement – Revenues from the township service agreement have been increased to reflect an increase in the per capita payment to $20. The City tax levy currently provides a City resident payment of over $20 per capita.
EMS Expenses – Additional expense in 2008 for EMS pagers and ambulance laptop computers. Grants have been applied for and potentially will offset some, or most, of this additional cost.
Debt Service Fund – The property tax levy to fund the Debt Service Fund for 2008 will increase by 42.29%, or $167,862. This is due to additional borrowings by the City for various capital projects. Most of this additional debt will be reimbursed to the City by the TIF districts through additional tax increment.
Capital Projects Fund - Items from the 5 year Capital Plan for the year 2008 have been included.
Wastewater Treatment Plant – The budget for Waste Water Treatment Plant includes upgrades to the plant estimated at $1,000,000. This is expected to be funded by borrowing.
Water Utility Budget – The City of Evansville recently had an application to increase electric rates approved by the Wisconsin Public Service Commission. Rates had not been increased for approximately ten years. The rate adjustment is necessary due to increases in operating expenses and costs of various capital projects undertaken in 2007, and into 2008. This rate increase is reflected in the budget revenues.
Budget Schedule
The Council will hold a public hearing at their November 13, 2007 Council meeting, will make any appropriate modifications, and will adopt the Ordinance, which adopts the 2008 budget and sets the tax levy.
Check Mail Compose
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The Chart for Soybeans---the spike up
Click on the post to see the chart for soybeans---the price spike up has played a role in the delay of construction of the biodiesel plant in Evansville.
It is so that since 1969, there has not been but 8 spikes like this, but the past is meaningless when one considers that the biofuels industry has just emerged. The future is not predictable on the basis of a past chart. Make a note of it.
It is so that since 1969, there has not been but 8 spikes like this, but the past is meaningless when one considers that the biofuels industry has just emerged. The future is not predictable on the basis of a past chart. Make a note of it.
Soybeans----the longer view----
Click on the post for the futures for soybeans traded on the Chicago Board of Trade, with quotes and interest as far away as 2009.
yes, 2009 is an eternity away in the commodities industry. Still the numbers quoted do not suggest much of a lowering of pricing.
yes, 2009 is an eternity away in the commodities industry. Still the numbers quoted do not suggest much of a lowering of pricing.
Background: Biodiesel Development: Jeff Pieterick Presentation
Click on the post for the recent slideshow presentation of Jeff Pieterick of the Wisconsin Biodiesel Association reviewing the elements of development of the soy biodiesel plant in Evansville, as well as the risks involved.
One of the risks is commodity prices and he reviews this. A spike in soy prices could lead to research on some alternative fuel source----the question is how quickly this switch could be made in response to spikes due to commodity speculation or even increased commodity demand.
One of the usual highlights of economies going into recession is increased inflation--with lower volumes, retailers usually want to increase prices to compensate. The increase of commodity prices recently makes me wonder what percentage of the pricing is pure speculation.
One of the risks is commodity prices and he reviews this. A spike in soy prices could lead to research on some alternative fuel source----the question is how quickly this switch could be made in response to spikes due to commodity speculation or even increased commodity demand.
One of the usual highlights of economies going into recession is increased inflation--with lower volumes, retailers usually want to increase prices to compensate. The increase of commodity prices recently makes me wonder what percentage of the pricing is pure speculation.
Monday, November 12, 2007
Reflection: On E-trade; On Halloween Masks; On Footville and much ..more
Just a few days after the new E=trade commercial, featuring a bank robbery wherin all the robbers wore Halloween masks, we see in quick succession, the Footville bank robbery where the robbers wore halloween masks, and today, the write down of E=trade assets due to CMO investments.
I think the moral is clear. Halloween masks are a straight ticket to the slammer. Make a note of it.
I think the moral is clear. Halloween masks are a straight ticket to the slammer. Make a note of it.
Happy Veteran's Day
Let's not forget the reason for the holiday today. The Observer takes pause to salute all the veterans out there for their service, and the sacrifices they have made, and those of their families. May we never forget.
Code of Conduct-----a model ordinance
Click on the post for the Model Code of conduct for Woollahara---It sure would be nice to have a model like this incorporated into our uniform code---in fact, it would be nice to make it the first chapter.
School Beat: School Reports for November
Click on the post for the November Evansville School reports as well as a speech by Supr. Heidi Carvin on student assessment.
Dateline Normal, Mn.: "Progressive Meetings"----FICTION
Click on the post for the latest from the land of Normal, Mn, a land of FICTION, but other than that......
Sunday, November 11, 2007
"Chasin"s got the scoop:
Click on the post for the latest from "Chasin"----it seems the sleuth has tracked down what heros look like.
Evansville Community Theatre: Coming Attractions
ECT Presents “Christmas in the Grove”
Have you ever had the holiday doldrums? Has the spirit of Christmas not hit you yet? Well then it is time to get out of the house and come see our holiday show.
We will be featuring several people from the community that enjoy singing, laughing, and entertaining. We will also being featuring our aspiring chef Tim Franklin as he makes appetizers for the show on Friday (December 7th @ 6:30 p.m.) and Saturday December 8th @ 6:30 p.m.) Tim will also be using his culinary skills in preparing desserts for the (December 9th at 2:00 p.m.)
We plan to make this an annual event and fundraiser to help encourage others to come and share their gifts and talents. The tickets to the show are $15.00. Tickets can be purchased through Tom Beaver or Melissa Schnepper. Have yourself a Merry Little Christmas!!
Tom Beaver 295-1483
Email: beaver.t@sbcglobal.net
Melissa Schnepper 882-4523
Email: mschnepper123@yahoo.com
Have you ever had the holiday doldrums? Has the spirit of Christmas not hit you yet? Well then it is time to get out of the house and come see our holiday show.
We will be featuring several people from the community that enjoy singing, laughing, and entertaining. We will also being featuring our aspiring chef Tim Franklin as he makes appetizers for the show on Friday (December 7th @ 6:30 p.m.) and Saturday December 8th @ 6:30 p.m.) Tim will also be using his culinary skills in preparing desserts for the (December 9th at 2:00 p.m.)
We plan to make this an annual event and fundraiser to help encourage others to come and share their gifts and talents. The tickets to the show are $15.00. Tickets can be purchased through Tom Beaver or Melissa Schnepper. Have yourself a Merry Little Christmas!!
Tom Beaver 295-1483
Email: beaver.t@sbcglobal.net
Melissa Schnepper 882-4523
Email: mschnepper123@yahoo.com
Saturday, November 10, 2007
OpEd: Modify---Simplify---the Minimum Housing ordinance----It serves the Public Interest
As a young college student, I lived with my grandmother near the University of Minnesota, and studied in the living room, with the large Oriental rug. Taking a break one night, I asked her:
Grandma---where did this oriental rug come from?
She replied, "Your grandfather won it in a poker game at the James J. Hill Mansion one night back in 1929."
That made sense. The rug was a bit worn. Still....just the idea of a poker game with the legendary James J. Hill, the Robber Barron, really got my interest.
In the olden days, when Robber Barrons were robber barrons, the Federal Government had a development program-----they cut deals for the railroad, for states, for land....directly with the Robber Barrons. That was the development plan.
In the modern age, this policy has been modified-----now it is established practice that the Community has a role in establishing what is in the community interest. They have input in the development process. It is not just a back room deal.
So----mouthing by politicians about "The Market" ---you may have heard some of this in audio lately----is just nostalgia for the days of old when the Robber Barrons met and cut deals in the back room----nowdays, the public has a say----and some folks, namely folks who think themselves robber barrons, find this offensive.
In the Planning Commission meeting last week was a thoughtful dialogue on this issue. The developers noted that the current ordinance was too complicated. It needed simplification. It was too rigid. It needed some flexibility. Their remedy was to junk the ordinance completely. They accepted no ideas for limits of any kind.
The Smart Growth Plan of 2005 made a finding of fact that there was an excessive number of lower value homes in Evansville which has led to higher property taxes since new homes built did not develop enough revenue to pay for infrastructure for the city---and not enough revenue to pay for the building required for the school system. This finding of fact at the Smart Growth plan has been extensively documented by school and city officials. It represents a valid community need. That valid community need cannot be dismissed by mouthing by folks about the "Market."
To be successful in promoting Evansville to the hinterlands, we need a community that offers affordable family living---at the current time we are on the high end of the tax spectrum. To eliminate the minimum house size ordinance would make this worse.
I believe it is prudent to modify, simplify.....but NOT eliminate the minimum house size ordinance. It represents a valid community interest for Evansville. Please tell your alderman what your thoughts are about this issue.
Click on the post for the housing section of the Smart Growth Plan adopted by Evansville in 2005.
Grandma---where did this oriental rug come from?
She replied, "Your grandfather won it in a poker game at the James J. Hill Mansion one night back in 1929."
That made sense. The rug was a bit worn. Still....just the idea of a poker game with the legendary James J. Hill, the Robber Barron, really got my interest.
In the olden days, when Robber Barrons were robber barrons, the Federal Government had a development program-----they cut deals for the railroad, for states, for land....directly with the Robber Barrons. That was the development plan.
In the modern age, this policy has been modified-----now it is established practice that the Community has a role in establishing what is in the community interest. They have input in the development process. It is not just a back room deal.
So----mouthing by politicians about "The Market" ---you may have heard some of this in audio lately----is just nostalgia for the days of old when the Robber Barrons met and cut deals in the back room----nowdays, the public has a say----and some folks, namely folks who think themselves robber barrons, find this offensive.
In the Planning Commission meeting last week was a thoughtful dialogue on this issue. The developers noted that the current ordinance was too complicated. It needed simplification. It was too rigid. It needed some flexibility. Their remedy was to junk the ordinance completely. They accepted no ideas for limits of any kind.
The Smart Growth Plan of 2005 made a finding of fact that there was an excessive number of lower value homes in Evansville which has led to higher property taxes since new homes built did not develop enough revenue to pay for infrastructure for the city---and not enough revenue to pay for the building required for the school system. This finding of fact at the Smart Growth plan has been extensively documented by school and city officials. It represents a valid community need. That valid community need cannot be dismissed by mouthing by folks about the "Market."
To be successful in promoting Evansville to the hinterlands, we need a community that offers affordable family living---at the current time we are on the high end of the tax spectrum. To eliminate the minimum house size ordinance would make this worse.
I believe it is prudent to modify, simplify.....but NOT eliminate the minimum house size ordinance. It represents a valid community interest for Evansville. Please tell your alderman what your thoughts are about this issue.
Click on the post for the housing section of the Smart Growth Plan adopted by Evansville in 2005.
Gazette Corner: The Footville Bank Robbery--
The Gazette has the scoop. Click on the post for the latest.
Friday, November 09, 2007
Mailbag: ECP: PARTY Corner: Main Street Re-Opening Next Weekend-----
Happy Friday to you all!
Did you know there’s going to be a party on Main Street right here in Evansville next weekend? In case you didn’t know, the Main Street re-opening/ Downtown Holiday kick-off is set up to take place on Friday and Saturday, November 16th and 17th. There are lots of activities going on downtown next weekend. One part of the celebration is live music on the bricks on Saturday. That means we need people who like to have fun. Fun people like you!
We’ve got two fantastic live bands set to entertain on East Main on Saturday. Undercover a Country / Rock Band & welcome back to The Blue Olives – a local favorite famous during the 4th of July celebrations. We need people to stand by the “no alcohol beyond this point gates” so that shoppers do not leave the designated area with any alcoholic beverages. The hours needed for Saturday are 1 pm to 7 pm. The designated area is from Maple to Madison street . No intersections will be blocked. There will be two exits to cover. Shoppers will be able to visit various shops including the Eager Building carrying beverages of their choice purchased from local Main Street merchants.
We also may need people interested in helping with decorating duties Monday, Tuesday, Wednesday or Thursday of next week. This may include stringing lights and festive décor.
In total, we need about 20 volunteer hours to help make it all come together. What exciting things will you be doing? Decorating downtown spaces early next week for the holidays, watching the no alcohol beyond this point gates on Saturday during the bands, or helping with some general set-up on Friday and Saturday- just to name a few possibilities.
More details…
ECP is paying for the live music from our fundraising during the 4th of July. We will not be raising any money from this event. We want to see the community come downtown and give all the businesses a big boost as we celebrate the opening of the road. That’s the most important thing. What better way to do it but with a party?
Let us know how you want to join in on the fun.
Robin L. Grignon
Evansville Community Partnership
Community Coordinator
8 W.Main Street
608-882-0598
Building Our Future Together
Did you know there’s going to be a party on Main Street right here in Evansville next weekend? In case you didn’t know, the Main Street re-opening/ Downtown Holiday kick-off is set up to take place on Friday and Saturday, November 16th and 17th. There are lots of activities going on downtown next weekend. One part of the celebration is live music on the bricks on Saturday. That means we need people who like to have fun. Fun people like you!
We’ve got two fantastic live bands set to entertain on East Main on Saturday. Undercover a Country / Rock Band & welcome back to The Blue Olives – a local favorite famous during the 4th of July celebrations. We need people to stand by the “no alcohol beyond this point gates” so that shoppers do not leave the designated area with any alcoholic beverages. The hours needed for Saturday are 1 pm to 7 pm. The designated area is from Maple to Madison street . No intersections will be blocked. There will be two exits to cover. Shoppers will be able to visit various shops including the Eager Building carrying beverages of their choice purchased from local Main Street merchants.
We also may need people interested in helping with decorating duties Monday, Tuesday, Wednesday or Thursday of next week. This may include stringing lights and festive décor.
In total, we need about 20 volunteer hours to help make it all come together. What exciting things will you be doing? Decorating downtown spaces early next week for the holidays, watching the no alcohol beyond this point gates on Saturday during the bands, or helping with some general set-up on Friday and Saturday- just to name a few possibilities.
More details…
ECP is paying for the live music from our fundraising during the 4th of July. We will not be raising any money from this event. We want to see the community come downtown and give all the businesses a big boost as we celebrate the opening of the road. That’s the most important thing. What better way to do it but with a party?
Let us know how you want to join in on the fun.
Robin L. Grignon
Evansville Community Partnership
Community Coordinator
8 W.Main Street
608-882-0598
Building Our Future Together
Gazette Corner: Bank robbery in Footville
The Gazette has the scoop. Click on the post for the details.
Gazette Corner: On Line Video of Prep Football Coming
Click on the post for the latest. Soon. Also. On Line Video of meetings.
Stay tuned. The Evansville Observer.
We bring you the news.
Stay tuned. The Evansville Observer.
We bring you the news.
NYT: Consumers in Retreat?
The recent wild discounting by retailers signals the Christmas season may be one of gloom.
Click on the post for an article in the New York Times.
Click on the post for an article in the New York Times.
Thursday, November 08, 2007
Nostalgia: Dateline Normal, Mn.: "The Town That Couldn't Say NO"====FICTION
Click on the post for a classic tale from yesteryear.
Senator #4 Questions
Senator #4 questions for Chairman Bernanke; Reviews the human toll that the foreclosure is taking on families
MP3 File
MP3 File
Gazette: Orfordville: Police get grant for drinking-driving crackdown
Click on the post for the latest from Orfordville.
Fed Chairman Bernanke Testimony This Morn-11-8-2007
Click on the post for the prepared remarks of the Fed Chairman this morning. The fun part was in the questions and answers. Stay tuned. I will review some of those.
Mailbag: Karen Aikman Writes:
(Ed.note: This was posted on comments and I have brought it forward for better visibility.)
Karen Aikman said...
I will admit that my accusation of “reckless spending” is subjective and it is to each, their responsibility to consider if my term is applicable.
You bring up a point I have often ranted about on this very blog; that it is difficult to get good information without attending every meeting. It is my opinion that it is not enough to attend a Council meeting or Planning Commission meeting. The formation of so many additional sub-committees has made it difficult to know through casual observance where any item of interest will be discussed.
You mention that the problem for you is that the people who complain…don’t tell you enough so you can make your own judgment…
I think that’s a commendable sentiment, however I would tweak it to point the finger of blame at the lack of ready quality information coming out of City Hall. If you read this site, and compare these topics to the topics of the Mayors column in the Review, you will notice a definite difference in type of information being included in her summary of city activity.
It is nearly impossible to get a clear picture of what is being done and how much it is costing around here.
The bricks were indeed paid for by a grant, but the grant included all street enhancements. I am not sure how much of the grant money went to other enhancements, thereby freeing up those tax dollars to be spent elsewhere, like the west side park.
You requested that I identify some reckless spending. I’m not going to.
It is nearly impossible to say this brick or that door was an irresponsible expense. Budget items need to be weighed between each other to determine the best use of available funds. Were the bricks a better expense at this moment than the lake? Does the East side commercial TIF negatively impact the downtown TIF? Who knows? I think time will tell.
For me, these kinds of discussions were lacking. For me this is reckless.
It is my understanding from listening to the audio provided on this site that the city is very near if not at its credit limit on borrowing. For me this is reckless.
Looking up reckless, we find: careless of consequences.
The city runs a budget based on the property taxes it collects from the parcels within its boundaries. If new homes are built of larger size, then they will generate more tax dollars per home that the city can use to pay back what it has borrowed. If the city doesn’t grow in size, either by number of new homes built or size of new homes built, or through increased commercial developments, generating increased tax revenue, then the city may have little choice but to raise our taxes to pay for the recent spending spree.
If you think the recent spending was necessary and worth a potential tax increase, then it wasn’t reckless. If growth that covers the costs of the recent spending without a tax increase is obvious, then again, the spending wasn’t reckless.
These are matters of opinion, and I can’t help you form your judgment.
4:03 PM
Karen Aikman said...
I will admit that my accusation of “reckless spending” is subjective and it is to each, their responsibility to consider if my term is applicable.
You bring up a point I have often ranted about on this very blog; that it is difficult to get good information without attending every meeting. It is my opinion that it is not enough to attend a Council meeting or Planning Commission meeting. The formation of so many additional sub-committees has made it difficult to know through casual observance where any item of interest will be discussed.
You mention that the problem for you is that the people who complain…don’t tell you enough so you can make your own judgment…
I think that’s a commendable sentiment, however I would tweak it to point the finger of blame at the lack of ready quality information coming out of City Hall. If you read this site, and compare these topics to the topics of the Mayors column in the Review, you will notice a definite difference in type of information being included in her summary of city activity.
It is nearly impossible to get a clear picture of what is being done and how much it is costing around here.
The bricks were indeed paid for by a grant, but the grant included all street enhancements. I am not sure how much of the grant money went to other enhancements, thereby freeing up those tax dollars to be spent elsewhere, like the west side park.
You requested that I identify some reckless spending. I’m not going to.
It is nearly impossible to say this brick or that door was an irresponsible expense. Budget items need to be weighed between each other to determine the best use of available funds. Were the bricks a better expense at this moment than the lake? Does the East side commercial TIF negatively impact the downtown TIF? Who knows? I think time will tell.
For me, these kinds of discussions were lacking. For me this is reckless.
It is my understanding from listening to the audio provided on this site that the city is very near if not at its credit limit on borrowing. For me this is reckless.
Looking up reckless, we find: careless of consequences.
The city runs a budget based on the property taxes it collects from the parcels within its boundaries. If new homes are built of larger size, then they will generate more tax dollars per home that the city can use to pay back what it has borrowed. If the city doesn’t grow in size, either by number of new homes built or size of new homes built, or through increased commercial developments, generating increased tax revenue, then the city may have little choice but to raise our taxes to pay for the recent spending spree.
If you think the recent spending was necessary and worth a potential tax increase, then it wasn’t reckless. If growth that covers the costs of the recent spending without a tax increase is obvious, then again, the spending wasn’t reckless.
These are matters of opinion, and I can’t help you form your judgment.
4:03 PM
Wednesday, November 07, 2007
Mailbag: Tracy from Dean Youth Center writes re: Youth In Action
From: Tracy Schroeder
Subject: YIA
To: fre2observe@yahoo.com
Date: Wednesday, November 7, 2007, 3:31 PM
Hi!
Could you forward my email to Sharon Kline who had a post on your blog RE: youth in action? I would love to volunteer the use of the center to her for meetings and see how the youth center can get involved with her!
Thanks!
Tracy Schroeder
Evansville Youth Center Director
YMCA of Northern Rock County
We build strong kids. Strong families. Strong communities.
Subject: YIA
To: fre2observe@yahoo.com
Date: Wednesday, November 7, 2007, 3:31 PM
Hi!
Could you forward my email to Sharon Kline who had a post on your blog RE: youth in action? I would love to volunteer the use of the center to her for meetings and see how the youth center can get involved with her!
Thanks!
Tracy Schroeder
Evansville Youth Center Director
YMCA of Northern Rock County
We build strong kids. Strong families. Strong communities.
Reflection: Money Corner: DOW plunges: NY investigates inflated appraisals
The problem of inflated appraisals becomes a ticking timebomb in the cycle of home mortgage securitization-----when the time comes for a homeowner to be foreclosed, the home is nowhere near worth what the lender had presumed. When the homeowner who is in financial trouble seeks alternative financing, he is checkmated by any straightforward appraisal that might have helped finance his way out of the situation. Hence, Freddie Mac, or Fannie Mae, the two government mortgage agencies have an interest in making sure that the home is appraised properly in the first place. So does every single homeowner in America. However.....
That being said for the record. Inflation of home appraisals is a national problem. In my view, it is a circle of silence that is only uncovered in the situation of tragedy such as we confront today. The bank...the builder....the appraiser, the insurer.....none of these has a motivation to be the whistleblower to overappraisal. Yes. It is true that the appraiser has an ethical obligation to lower as well as raise the appraisal of properties that are reviewed. You could put that measure of ethical obligation in a thimble and ...there is a debate of how much room might be left. There is no way that the appraiser, who is not loved anyway by folks, would ask for problems with the very bank that hired him, or financed the property, since to discover a very low valuation might jeopardize current banking interests in the property.
So----the headline today that the two government agencies are being investigated was big news----and it sends a fear through the market that this problem is just the tip of the iceberg.
This problem of overappraisal may be more pronounced in areas of "hot" real estate, such as Florida and California and not in the Midwest. My impression is that the traditional lending institutions in the Midwest are historically very conservative. However. There are exceptions.
That is how I see it. And you?
That being said for the record. Inflation of home appraisals is a national problem. In my view, it is a circle of silence that is only uncovered in the situation of tragedy such as we confront today. The bank...the builder....the appraiser, the insurer.....none of these has a motivation to be the whistleblower to overappraisal. Yes. It is true that the appraiser has an ethical obligation to lower as well as raise the appraisal of properties that are reviewed. You could put that measure of ethical obligation in a thimble and ...there is a debate of how much room might be left. There is no way that the appraiser, who is not loved anyway by folks, would ask for problems with the very bank that hired him, or financed the property, since to discover a very low valuation might jeopardize current banking interests in the property.
So----the headline today that the two government agencies are being investigated was big news----and it sends a fear through the market that this problem is just the tip of the iceberg.
This problem of overappraisal may be more pronounced in areas of "hot" real estate, such as Florida and California and not in the Midwest. My impression is that the traditional lending institutions in the Midwest are historically very conservative. However. There are exceptions.
That is how I see it. And you?
Mailbag: Sharon writes:
* Would you please post on your site.
My name is Sharon Kline and I am a parent of 3 teenagers!!!
We have lived in Evansville for only 18 months but what I have seen of Evansville teens scares the heck out of me.
This town, as you have stated has a serious underage drinking problem. We can only all guess where they are getting this alcohol. However as you have posted on here before I have gone and contacted the Wis. Division of M.A.D.D. and they got me in contact with a rep from ' Youth in Action.' we are working on picking a time and place to meet in Evansville with other concerned parents.
What we will be working on is:
* Putting together a group of parents who are willing to man a cell phone and go and pick up kids that have been drinking and deliver them safely home.. This is not to 'encourage' drinking but to encourage safety if they are going to drink. It will not be up to the driver that day to lecture these kids , just to get them home safely.
We are not going to stop them from drinking, that is clear. But what we do could possibly save lives.
*** Work with the police dept in targeting people who buy for minors.
*** Work with the merchants to make sure they are carding every time, there is also some material they can place in there stores, and on alcohol products that lists penalty's for buying for minors.
***Get back the post prom activities, what happened with that? I understand they used to do that. That is such a simple thing to do , it just takes some effort.
*** Work on putting together a ' club' 'group' of students at both the junior high and high school that works with their peers to promote sobriety, that its 'cool' not to drink and to respect your body. We are looking in one form or another to name this club after Dane Wourms. We can never let these kids forget about Dane. That his actions cost him his life, and that is not what he would want for his friends.
I am sorry but neither the Junior High or the High School do enough to combat drinking, not until the kids are in trouble.. That is very clear.
When we have a date and time set up we will have it posted here, in the Evansville Review, and The Observer and Chasin.
We may start out small, but we will grow as I know this town over all has the best interest of the kids.
Thanks
Sharon
My name is Sharon Kline and I am a parent of 3 teenagers!!!
We have lived in Evansville for only 18 months but what I have seen of Evansville teens scares the heck out of me.
This town, as you have stated has a serious underage drinking problem. We can only all guess where they are getting this alcohol. However as you have posted on here before I have gone and contacted the Wis. Division of M.A.D.D. and they got me in contact with a rep from ' Youth in Action.' we are working on picking a time and place to meet in Evansville with other concerned parents.
What we will be working on is:
* Putting together a group of parents who are willing to man a cell phone and go and pick up kids that have been drinking and deliver them safely home.. This is not to 'encourage' drinking but to encourage safety if they are going to drink. It will not be up to the driver that day to lecture these kids , just to get them home safely.
We are not going to stop them from drinking, that is clear. But what we do could possibly save lives.
*** Work with the police dept in targeting people who buy for minors.
*** Work with the merchants to make sure they are carding every time, there is also some material they can place in there stores, and on alcohol products that lists penalty's for buying for minors.
***Get back the post prom activities, what happened with that? I understand they used to do that. That is such a simple thing to do , it just takes some effort.
*** Work on putting together a ' club' 'group' of students at both the junior high and high school that works with their peers to promote sobriety, that its 'cool' not to drink and to respect your body. We are looking in one form or another to name this club after Dane Wourms. We can never let these kids forget about Dane. That his actions cost him his life, and that is not what he would want for his friends.
I am sorry but neither the Junior High or the High School do enough to combat drinking, not until the kids are in trouble.. That is very clear.
When we have a date and time set up we will have it posted here, in the Evansville Review, and The Observer and Chasin.
We may start out small, but we will grow as I know this town over all has the best interest of the kids.
Thanks
Sharon
Minyanville: "Market to Fantasy?"--- Level III assets at Citigroup at 134 Billion
Click on the post for the article from Minyanville this morn that quotes the 134 Billion in Level III assets---the number is shocking in that one wonders how much will really be written off.
Stay tuned.
Stay tuned.
Yahoo: Finance: Sharp Move Down for Market Opening this Morn
While you slept last night, the Chinese announced a realignment of its currency reserves, away from the US dollar, and with its feet ------noting the the dollar is losing respect as the benchmark currency.
Click on the post for the complete article in Yahoo.
Click on the post for the complete article in Yahoo.
Tuesday, November 06, 2007
USA Today; School Beat: Free Online Software may save schools billions
Click on the post for the latest.
"Let the Market Decide"----the Poem
"Let the Market Decide"
( I found this little poem wrapped up in jar, lying in the gutter near a local Park. I have reproduced it without alteration.)
I love
my old
friend
Laissez-Faire
I call on him
whenever I
like to be
alone
whenever I
feel someone wants
some money
I love
my old
friend
Laizzie Faire
except when
I need
a grant or
two,,,,or even
three if
need
be
"Let the
Market decide"
that's the
cry
and it's
so nice I know
so well
it's what
I do
or say
Just
stand
or maybe
sit,
bow
or kneel
or whatever ..just do as
I say
that's the
special
lazzai faire
way
( I found this little poem wrapped up in jar, lying in the gutter near a local Park. I have reproduced it without alteration.)
I love
my old
friend
Laissez-Faire
I call on him
whenever I
like to be
alone
whenever I
feel someone wants
some money
I love
my old
friend
Laizzie Faire
except when
I need
a grant or
two,,,,or even
three if
need
be
"Let the
Market decide"
that's the
cry
and it's
so nice I know
so well
it's what
I do
or say
Just
stand
or maybe
sit,
bow
or kneel
or whatever ..just do as
I say
that's the
special
lazzai faire
way
"Some Fun with Books and Hats"
(Orig. Post 8-12-2007--classic Observer.
This was just a video focus test but I thought it was fun.
Download File
This was just a video focus test but I thought it was fun.
Download File
Mayor Decker speaks:
Mayor Sandy Decker speaks on new code formulation that could substitute for current ordinance that could expire;
Download File
Download File
Observer speaks: Cites Housing sect of Smart Growth Plan
The minimum house size ordinance arose out of the factual finding of the Smart Growth Plan, pages 34-36, that cited the lack of diversity of housing stock, and a surplus of entry level housing. This created inadequate revenue to fund schools and cities, and caused rising taxes.
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Plan: 11-5-2007: Mr. Roger Berg Speaks
Roger Berg asked that the minimum house size ordinance be allowed to expire and not be renewed, indicating that the conditions in the contractor community are adverse, and the ordinance hurts builders
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Plan Commission: 11-5-2007 Bill Hammann speaks:
Bill Hammann explains the background of the minimum house size ordinance set to sunset; The objective of diversity in housing stock, and higher priced homes. He was on the original committee drafting the ordinance.
Download File
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Minyanville: On the Choices that Bernanke Has
Click on the post for an analysis of the choices that Fed Chairman Bernanke has.
Gazette Corner: Dommerschausen to run for Janesville Council Again
Click on the post for the full story in the Janesville Gazette today.
This candidate ran for Council previously and urged Janesville to place its Council packet and agenda on the internet for better information to citizens. Janesville has done so. This is in contrast to Evansville which has packets with the supporting detail for only council members.
This candidate ran for Council previously and urged Janesville to place its Council packet and agenda on the internet for better information to citizens. Janesville has done so. This is in contrast to Evansville which has packets with the supporting detail for only council members.
Holiday Kickoff and Street Opening Celebration
- Evansville Holiday Kickoff & Street Opening Celebration-
Friday, November 16:
3:00 PM ribbon cutting ceremony for Main Street ’s opening.
4:00 -7:00 PM Horse drawn carriage rides on the brick streets.
3:00 - 8:00 PM Tour the Eager Building and shop all of Main Street while you enjoy: holiday music, food, artwork, and decorations. There will be bands and specialty vendors in the Main Street store fronts.
Saturday, November 17:
10:00 AM Visit with Santa and Mrs. Claus after they arrive at the Grange Building by fire truck.
10:00 AM - 12:00 PM Children can ride on the fire truck.
More details to follow. Come out and help us kick-off the holiday season!!!
Friday, November 16:
3:00 PM ribbon cutting ceremony for Main Street ’s opening.
4:00 -7:00 PM Horse drawn carriage rides on the brick streets.
3:00 - 8:00 PM Tour the Eager Building and shop all of Main Street while you enjoy: holiday music, food, artwork, and decorations. There will be bands and specialty vendors in the Main Street store fronts.
Saturday, November 17:
10:00 AM Visit with Santa and Mrs. Claus after they arrive at the Grange Building by fire truck.
10:00 AM - 12:00 PM Children can ride on the fire truck.
More details to follow. Come out and help us kick-off the holiday season!!!
Finance: Sub-Prime: "One Trillion in Debt"
Click on the post for an article from "The Independent" in the UK that puts a number on the total financial exposure involved in the subprime problem. I realize that some folks might have been amused by the notion that the Federal Reserve might not have enough money alone to solve the problem. This article sheds some light on that. Enjoy.
Monday, November 05, 2007
Mailbag: Bill Connors Writes:
(Ed.note: This was a posted comment that I have brought forward for better visibility.)
Bill Connors has left a new comment on your post "Plan Commission: 11-5-2007: Minimum House Size":
So much for the Smart Growth Plan. A lot of us wasted a lot of time on the process to create that document, and a lot of taxpayer dollars were wasted as well, since the Plan Commission has now abandoned it. When I was the city administrator, residents would occasionally suggested that the city government was run exclusively for the benefit of the developers and home builders. I thought that was nonsense. Now it does not seem so far fetched.
The city is spending money like a drunken sailor on shore leave, borrowing money as fast as it can, and now there will be less tax base per additional citizen to pay off the debt service. Short-term gain, followed by decades of financial pain.
Bill Connors
Former Evansville City Administrator
Bill Connors has left a new comment on your post "Plan Commission: 11-5-2007: Minimum House Size":
So much for the Smart Growth Plan. A lot of us wasted a lot of time on the process to create that document, and a lot of taxpayer dollars were wasted as well, since the Plan Commission has now abandoned it. When I was the city administrator, residents would occasionally suggested that the city government was run exclusively for the benefit of the developers and home builders. I thought that was nonsense. Now it does not seem so far fetched.
The city is spending money like a drunken sailor on shore leave, borrowing money as fast as it can, and now there will be less tax base per additional citizen to pay off the debt service. Short-term gain, followed by decades of financial pain.
Bill Connors
Former Evansville City Administrator
Re: Janet Porter re Zoning Issue
Re: Janet Porter: Liberty Street: Request for definition of what would be necessary for separate living quarter to be considered rental unit.
MP3 File
MP3 File
Evansville Hotel Presentation
Presentation of Mark C. Pomerenke of the site plan for the new Evansville Hotel coming to Brown School Road.
MP3 File
The Evansville Observer. We attend the meetings. The Evansville Observer. Where the main stream media gets its local news.
MP3 File
The Evansville Observer. We attend the meetings. The Evansville Observer. Where the main stream media gets its local news.
Plan Commission: 11-5-2007: Minimum House Size
Evansville Plan Commission: 11-5-2007--Discussion re minimum house size----Commission elects to allow current ordinance to expire;
MP3 File
MP3 File
Nostalgia: Reflection: Thoughts on the Great Crash : October 2007
Classic Posts from the past:
Monday, October 22, 2007
Reflection: Thoughts on the Great Crash
OpEd: "The Great Crash" by Galbraith
If you have read the recent book by Alan Greenspan, "Turbulence," and I have not yet completed it, although I have skimmed parts, and if you have listened to the coverage of the G7 in Europe, as well as pundits in the press, there is the spin that we just cannot do anything about "busts" of markets. The Fed is just helpless it seems when it comes to taking any action to deflate "Irrational Exuberance."
Bold action CAN be taken to rescue banks that have been packaging "mortgage securities" and of course bold action CAN be taken to rescue banking entities that are "too large to fail." That being said, other than rescuing the big guys, they are helpless.
The cause of the Great Crash as explained in the book by John Kenneth Galbraith, was the severe disparity of wealth in America which had widened in the 1920's. The only time in our history that has equaled this is TODAY.
Frequently, the Big boys, as they are called, can be heard saying that this is NOT THEIR PROBLEM. It is true that one does not get to be a "big boy" through meditative exercise...however that being said, without buyers, sellers cannot prosper. In some marketing equation then, one is one's brother's business keeper. Any seller must therefore make sure the buyers can still buy.
How long could such a period of "NON BUYING" last. This is the eyeopener. In 1929, when my father turned 18, and his father died, he went off to college. Then in 1933 when he worked for a few years before going into the service---till the Korean War...the fact that the depression lasted from 1929 to 1950 meant that a whole generation of folks waded through twenty years of "NON BUYING".
The pundits have said that thank goodness we know a lot more about economics now than then.
Show me.
Monday, October 22, 2007
Reflection: Thoughts on the Great Crash
OpEd: "The Great Crash" by Galbraith
If you have read the recent book by Alan Greenspan, "Turbulence," and I have not yet completed it, although I have skimmed parts, and if you have listened to the coverage of the G7 in Europe, as well as pundits in the press, there is the spin that we just cannot do anything about "busts" of markets. The Fed is just helpless it seems when it comes to taking any action to deflate "Irrational Exuberance."
Bold action CAN be taken to rescue banks that have been packaging "mortgage securities" and of course bold action CAN be taken to rescue banking entities that are "too large to fail." That being said, other than rescuing the big guys, they are helpless.
The cause of the Great Crash as explained in the book by John Kenneth Galbraith, was the severe disparity of wealth in America which had widened in the 1920's. The only time in our history that has equaled this is TODAY.
Frequently, the Big boys, as they are called, can be heard saying that this is NOT THEIR PROBLEM. It is true that one does not get to be a "big boy" through meditative exercise...however that being said, without buyers, sellers cannot prosper. In some marketing equation then, one is one's brother's business keeper. Any seller must therefore make sure the buyers can still buy.
How long could such a period of "NON BUYING" last. This is the eyeopener. In 1929, when my father turned 18, and his father died, he went off to college. Then in 1933 when he worked for a few years before going into the service---till the Korean War...the fact that the depression lasted from 1929 to 1950 meant that a whole generation of folks waded through twenty years of "NON BUYING".
The pundits have said that thank goodness we know a lot more about economics now than then.
Show me.
Gazette Corner: Brodhead-Juda gets revenge----
Click on the post for the article in the Janesville Gazette re the Brodhead victory over the Evansville Blue Devils last Saturday, and the comments.
Evansville Smart Growth Plan---Housing section
In preparation for the Planning Commission meeting tonight, click on the post for the Smart Growth Plan Housing section.
On page 35-36 one of the areas needed for improvement as identified by the Smart Growth Plan was the necessity for higher priced homes. This was needed so that the revenue stream created could support school growth and municipal expenses that come with added housing development.
The issue of minimum house size will be on the table at tonight's Planning Commission meeting.
On page 35-36 one of the areas needed for improvement as identified by the Smart Growth Plan was the necessity for higher priced homes. This was needed so that the revenue stream created could support school growth and municipal expenses that come with added housing development.
The issue of minimum house size will be on the table at tonight's Planning Commission meeting.
Yahoo: Finance: Debate over whether Credit Card 900 Billion is Next
Click on the post for the argument both ways on whether the mortgage CMO problems will stretch to the credit card area----there is the example of Britain which has seen falling home valuations and rising credit card problems and the question of whether we are next.
Click on the post for the full story.
Click on the post for the full story.
Yahoo: Finance: 11 Billion in Write Offs announced for Citigroup; Figure does not include SIV exposure
Click on the post for the full story in Yahoo News.
The announcement this morning of 11 Billion in additional write offs for Citigroup is in addition to the 6.5 Billion they announced last month. This may be just the beginning to a larger exposure that has not been precisely accounted for....and the SEC is examining the transactions off the balance sheet of Citigroup to see if they have been proper.
Stay tuned.
The announcement this morning of 11 Billion in additional write offs for Citigroup is in addition to the 6.5 Billion they announced last month. This may be just the beginning to a larger exposure that has not been precisely accounted for....and the SEC is examining the transactions off the balance sheet of Citigroup to see if they have been proper.
Stay tuned.
Sunday, November 04, 2007
Evansville Planning Commission Meets Monday: Minimum House Size on Agenda; Hotel; and more
Click on the post for the full agenda.
Bernanke: The Background: The Challenge He Faces
In November 2002, Mr. Bernanke, the current Federal Reserve Chairman, made a speech that is wonderful background in understanding his approach to the current crises he faces. He got his PHd from Yale, and his thesis was on the Great Depression. His one overriding theme of the thesis was to avoid deflation at all costs, and in the speech cited---click on the post----he goes over the actions that the Federal Reserve should take in the event of declining asset prices.
Take some time to click on the post and skim his speech. If you are following current events today, you know that Citigroup has replaced its Chairman, Mr. Prince III, and announced that in addition to the 6 billion writedown they did last month, they are doing another writedown of 8 billion tomorrow.
The question is what?
If the role of the Federal Reserve is to prevent rapid panic and deflation of assets such as the Great Depression of the 1930's, it would be nice to have enough money to do so. As I understand it, the SIV's that are being discussed have been held off balance sheet. It is thus unclear how much money is necessary to solve the problem that is being faced, and ....whether the Federal Reserve has the money to solve it. If in fact they do not, who would they seek help from. The Chinese? The Saudi's. There is a list and one wonders what the terms might be.
In summary. Bernanke believes in active intervention. There might not be the money at his disposal to solve the problem. Whether it be to bail out the banks or the consumer. ....and the consumer is not really on his list it seems to me.
Take some time to click on the post and skim his speech. If you are following current events today, you know that Citigroup has replaced its Chairman, Mr. Prince III, and announced that in addition to the 6 billion writedown they did last month, they are doing another writedown of 8 billion tomorrow.
The question is what?
If the role of the Federal Reserve is to prevent rapid panic and deflation of assets such as the Great Depression of the 1930's, it would be nice to have enough money to do so. As I understand it, the SIV's that are being discussed have been held off balance sheet. It is thus unclear how much money is necessary to solve the problem that is being faced, and ....whether the Federal Reserve has the money to solve it. If in fact they do not, who would they seek help from. The Chinese? The Saudi's. There is a list and one wonders what the terms might be.
In summary. Bernanke believes in active intervention. There might not be the money at his disposal to solve the problem. Whether it be to bail out the banks or the consumer. ....and the consumer is not really on his list it seems to me.
Mailbag; "Sonic" writes: "On Not Connecting the Dots To A Bridge To Nowhere"
On Not Connecting The Dots To A Bridge To Nowhere
By Sonic
Did you know that you learn a lot about political power when you clean your basement? But I am getting ahead of myself; I’ll go back down to the basement in a moment.
Have you noticed that to many of our national politicians, the fall of the sub-prime mortgage market is becoming “old” news, just as the fall of the I35W bridge here in Minneapolis is becoming “old” news to some Minnesotan politicians. The political focus has shifted to “new” legislation, “new” mortgage restructuring, and a “new” I35W bridge.
Unfortunately, to those affected by these colossal and catastrophic events, the reality is ongoing in their daily lives.
Now, back to my basement. So what did I find? It was a two-year old magazine with no centerfold. It was the June 18, 2005 issue of The Economist, a British publication. On its cover was a gold brick, “Housing Prices,” falling from the sky with the title “After the fall.”
In the editorial on page 13, I had marked four passages in yellow highlighter. Here they are: (1) “We have been warning for some time that the price of housing around the globe was rising at an alarming rate. Now that others have noticed as well the day of reckoning is closer at hand. It is not going to be pretty.” [No kidding!], (2) “Two-fifths of all American jobs created since 2001 have been in housing-related sectors such as construction, real-estate leading and broking.” (3) “Ideally the Fed [US Federal Reserve Bank] should have tried to cool the housing boom by raising interest rates sooner and by giving clear verbal warnings to buyers, as Britian’s and Australia’s central bank have done. . . . Of course, by the time America’s prices begin to fall sometime next year, they will not be Mr Greenspan’s headache.” (4) “The housing boom was fun whiles it lasted, but the biggest increase in wealth in history was largely an illusion.”
So, my question from my damp basement last weekend was why, in 2005, didn’t the Washington politicians who make the rules and the regulators who are supposed to connect the dots? The Economist is available everywhere; I suppose I should have passed on my copy to Washington instead of storing it in the basement. Those who make the system rules must be equally responsible and accountable for the system. When they do not act responsibly, the consequences make news as the New York Times wrote in the editorial on Sunday, October 28th: “Until there is an overreaching solution to the coming wave of foreclosures, estimated at 500,000 to 2 million by the end of 2008, individual efforts like Countrywide’s [restructuring mortgages] will be overwhelmed.” I have to end here—I need to run this copy of the Times editorial down to the basement, and wonder if our future is a bridge to no where.
By Sonic
Did you know that you learn a lot about political power when you clean your basement? But I am getting ahead of myself; I’ll go back down to the basement in a moment.
Have you noticed that to many of our national politicians, the fall of the sub-prime mortgage market is becoming “old” news, just as the fall of the I35W bridge here in Minneapolis is becoming “old” news to some Minnesotan politicians. The political focus has shifted to “new” legislation, “new” mortgage restructuring, and a “new” I35W bridge.
Unfortunately, to those affected by these colossal and catastrophic events, the reality is ongoing in their daily lives.
Now, back to my basement. So what did I find? It was a two-year old magazine with no centerfold. It was the June 18, 2005 issue of The Economist, a British publication. On its cover was a gold brick, “Housing Prices,” falling from the sky with the title “After the fall.”
In the editorial on page 13, I had marked four passages in yellow highlighter. Here they are: (1) “We have been warning for some time that the price of housing around the globe was rising at an alarming rate. Now that others have noticed as well the day of reckoning is closer at hand. It is not going to be pretty.” [No kidding!], (2) “Two-fifths of all American jobs created since 2001 have been in housing-related sectors such as construction, real-estate leading and broking.” (3) “Ideally the Fed [US Federal Reserve Bank] should have tried to cool the housing boom by raising interest rates sooner and by giving clear verbal warnings to buyers, as Britian’s and Australia’s central bank have done. . . . Of course, by the time America’s prices begin to fall sometime next year, they will not be Mr Greenspan’s headache.” (4) “The housing boom was fun whiles it lasted, but the biggest increase in wealth in history was largely an illusion.”
So, my question from my damp basement last weekend was why, in 2005, didn’t the Washington politicians who make the rules and the regulators who are supposed to connect the dots? The Economist is available everywhere; I suppose I should have passed on my copy to Washington instead of storing it in the basement. Those who make the system rules must be equally responsible and accountable for the system. When they do not act responsibly, the consequences make news as the New York Times wrote in the editorial on Sunday, October 28th: “Until there is an overreaching solution to the coming wave of foreclosures, estimated at 500,000 to 2 million by the end of 2008, individual efforts like Countrywide’s [restructuring mortgages] will be overwhelmed.” I have to end here—I need to run this copy of the Times editorial down to the basement, and wonder if our future is a bridge to no where.
Saturday, November 03, 2007
Finance Corner: Rocky Ride on Wall Street Predicted for Next Week
Click on the post for the article from Marketwatch.
Finance Corner: The Problem at Citigroup
The chairman of Citigroup is thought to be resigning on Sunday. There are further rumors, click on the post for the full story on Yahoo news, that there are 80 billion of SIV, or Structured Investment Vehicles, that have been held off balance sheet, and the SEC is investigating whether the accounting has been done right. This could all hit the fan on Monday.
The Observer has to be somewhat humbled to realize that he previously wondered why a simple mortgage moratorium could not be called like they did in the 1930's---and the answer is that the mortgages are all sold and they are packaged in a million pieces into various investment vehicles. So---when the mortgage holder wants to renegotiate the mortgage, which one of the holders of the mortgage does one talk to?
And now that the packaged products have been trashed in the marketplace, and the revaluation has threatened the banks, how would a holder of a mortgage particle be motivated to take further losses?
The back to back events at Merrill Lynch and Citigroup are pretty stunning. Stay tuned for the news on Monday.
The Observer has to be somewhat humbled to realize that he previously wondered why a simple mortgage moratorium could not be called like they did in the 1930's---and the answer is that the mortgages are all sold and they are packaged in a million pieces into various investment vehicles. So---when the mortgage holder wants to renegotiate the mortgage, which one of the holders of the mortgage does one talk to?
And now that the packaged products have been trashed in the marketplace, and the revaluation has threatened the banks, how would a holder of a mortgage particle be motivated to take further losses?
The back to back events at Merrill Lynch and Citigroup are pretty stunning. Stay tuned for the news on Monday.
Friday, November 02, 2007
Gazette Corner: Evansivlle picks firm for Lake Study
Click on the post for the decision in Public Works today.
Evansville Plan Commission Meets Monday: Minimum House size, Hotel, Allen Creek Plan on Agenda
click on the post for the full agenda.
Newspaper corner: Print media moves to redefine "circulation"
The past several years have seen disappointing circulation numbers for many US print papers. The usual way of measuring success was that of "paid circulation." Even papers that had online distribution or unpaid circulation were not given any credit for this when calculating their market share, or in more money terms--their charges for advertising.
Click on the post for an article which suggests US papers are beginning to include their online distribution in their numbers.
At the Evansville Observer, our site meter is public, and displays who visits the site, as well as the historical visits and page views. It would be nice if online media in Wisconsin made their circulation transparent to the viewers.
It would also be helpful if local dailies kept their stories on file, or archive, for a longer time. The storage costs are minimul, and many times, stories are hot off the press, and then alas, deleted. So much for the test of time.
Click on the post for an article which suggests US papers are beginning to include their online distribution in their numbers.
At the Evansville Observer, our site meter is public, and displays who visits the site, as well as the historical visits and page views. It would be nice if online media in Wisconsin made their circulation transparent to the viewers.
It would also be helpful if local dailies kept their stories on file, or archive, for a longer time. The storage costs are minimul, and many times, stories are hot off the press, and then alas, deleted. So much for the test of time.
Gazette Corner: Evansville woman in critical condition after motorcycle accident
Click on the post for the latest from the Gazette.
Point of Law Corner: "The Federal Rules"
In legal cases where there is a pleading regarding violation of a constitutional right, these cases are always heard in Federal Court, and the rules regarding these legal cases are covered by the Federal Rules of Civil Procedure.
Click on the post for the Wikipedia resources.
Historically there are some very interesting cases in the Federal cases since under Federal Rules, the objective is to provide "simplified pleading", and every effort is made to get to the issue that the person, even without a lawyer, such as a prison inmate, might complain about. The theory is that every citizen should have the right to be heard and responded to regarding his complaint of a violation of civil rights.
Click on the post for all the details.
Click on the post for the Wikipedia resources.
Historically there are some very interesting cases in the Federal cases since under Federal Rules, the objective is to provide "simplified pleading", and every effort is made to get to the issue that the person, even without a lawyer, such as a prison inmate, might complain about. The theory is that every citizen should have the right to be heard and responded to regarding his complaint of a violation of civil rights.
Click on the post for all the details.
Q&A: On Reassessment: The Process
(Ed.note: I had a question from a reader from the West side about the process of requesting reassessment and asked our City Administrator, Dan Wietecha for the answer:
Q: I have had a question from a reader that wonders what the process is for homeowners who feel their property on the West side has been damaged by flooding, and wants to have it "reassessed" since by the nature of things, things go up....and down...and the assessor has an obligation to respond appropriately. Is there a form that the homeowner fills out to have this done? I realize that there is a formal appeal process each year, but wonder if another process is also in place?
Dan: "As for water damage: They should send a letter and photos directly to Dean Peters at Associated Appraisal, PO Box 2111, Appleton, WI 54913-2111. I’d also appreciate they copy Judy Walton at City of Evansville , PO Box 76 , Evansville , WI 53536 . One thing to remember is that values are based on January 1 of the prior year. So the January 1, 2007 property value will be used in calculating the 2008 tax bill. Damage that occurred during 2007 may result in a lower assessed value on January 1, 2008 which would be used in calculating the 2009 tax bill."
Dan: Clarification on a technical point. The January 1, 2007 property value will be used in calculating the 2007 tax bill payable in 2008 (not the 2008 tax bill as I wrote earlier). Similarly, the January 1, 2008 property value will be used in calculating the 2008 tax bill payable in 2009.
-Dan
-Dan
Q: I have had a question from a reader that wonders what the process is for homeowners who feel their property on the West side has been damaged by flooding, and wants to have it "reassessed" since by the nature of things, things go up....and down...and the assessor has an obligation to respond appropriately. Is there a form that the homeowner fills out to have this done? I realize that there is a formal appeal process each year, but wonder if another process is also in place?
Dan: "As for water damage: They should send a letter and photos directly to Dean Peters at Associated Appraisal, PO Box 2111, Appleton, WI 54913-2111. I’d also appreciate they copy Judy Walton at City of Evansville , PO Box 76 , Evansville , WI 53536 . One thing to remember is that values are based on January 1 of the prior year. So the January 1, 2007 property value will be used in calculating the 2008 tax bill. Damage that occurred during 2007 may result in a lower assessed value on January 1, 2008 which would be used in calculating the 2009 tax bill."
Dan: Clarification on a technical point. The January 1, 2007 property value will be used in calculating the 2007 tax bill payable in 2008 (not the 2008 tax bill as I wrote earlier). Similarly, the January 1, 2008 property value will be used in calculating the 2008 tax bill payable in 2009.
-Dan
-Dan
Yahoo: Finance: Job Growth Surprise: Up 166,000----Service Sector shines
Click on the post for the news in Yahoo this morn----after plunging yesterday, the market has stabilized a bit as payroll numbers were stronger than expected, with 166,000 jobs created---though manufacturing lost jobs, and construction lost, service sector shined.
Speculation has been all over the place on whether the Fed will ease further and this mornings data only makes the waters muddier. Older investors think the market has not been concerned enough about the negative financial sector results, and concern that service jobs will not compensate for the very bad performance in construction and financial.
Stay tuned. The future is in doubt. Stay alert. Stay tuned to
The Evansville Observer.
Click on the post for the full story.
Speculation has been all over the place on whether the Fed will ease further and this mornings data only makes the waters muddier. Older investors think the market has not been concerned enough about the negative financial sector results, and concern that service jobs will not compensate for the very bad performance in construction and financial.
Stay tuned. The future is in doubt. Stay alert. Stay tuned to
The Evansville Observer.
Click on the post for the full story.
Thursday, November 01, 2007
yahoo Finance: Will the Fed rate cut save Christmas?
Click on the post for the full article. A real eye opener.
It seems that if one owed $10,000 on credit cards, at a variable rate of 17%, the rate cut of the Fed might translate to a saving of $4.17 that one could use to purchase a little something for the Christmas Holidays. WHOA.
It seems that if one owed $10,000 on credit cards, at a variable rate of 17%, the rate cut of the Fed might translate to a saving of $4.17 that one could use to purchase a little something for the Christmas Holidays. WHOA.
Stocks Plunge: All Indicies Negative
click on the post for the three graphs, advance/decline, hi/lo, and up/down volume.
The one index that did the best was the AMEX, on which the energy and commodity stocks are located.
The negative news on Wall Street seems to be following on the Asian markets. Stay tuned for the market open tomorrow----Friday. Should be interesting.
The one index that did the best was the AMEX, on which the energy and commodity stocks are located.
The negative news on Wall Street seems to be following on the Asian markets. Stay tuned for the market open tomorrow----Friday. Should be interesting.
Evansville Youth Center Announces 9th/10th Grade Night--Nov. 9th
Evansville Youth Center
Announces
NEW 9th/10th Grade night!!
Friday November 9th
6pm-8pm
209 South 1st St, Evansville
The Evansville Youth Center (EYC) invites all 9th and 10th grade youth to a special night at the EYC just for them!! The EYC will be offering all its usual activities: video games (GUITAR HERO!), computers, pool, ping pong, foosball, air hockey and a place to hang out. The EYC will, also, be showing a movie and providing snacks. This is a FREE event! EYC staff will be checking school ID’s when you enter, so please be sure to bring it with you! Call 882-0372 for more information.
Announces
NEW 9th/10th Grade night!!
Friday November 9th
6pm-8pm
209 South 1st St, Evansville
The Evansville Youth Center (EYC) invites all 9th and 10th grade youth to a special night at the EYC just for them!! The EYC will be offering all its usual activities: video games (GUITAR HERO!), computers, pool, ping pong, foosball, air hockey and a place to hang out. The EYC will, also, be showing a movie and providing snacks. This is a FREE event! EYC staff will be checking school ID’s when you enter, so please be sure to bring it with you! Call 882-0372 for more information.
Aware: Julie Hermanson Speaks
Julie Hermanson of Aware Agency, a program of Community Action, Inc. gives an update of the Snackpacker program as well as the Holiday gift campaign that is coming up and holiday activities.
Download File
Download File
Knitting Corner: Joy Carpenter Speaks
Joy Carpenter, one of the knitters that creates hats for distribution at Aware, speaks of the need for more knitters; and she speaks of the old days...when Cracker Jack was slightly different....and had better prizes.....
Download File
Download File
Aware: Julie Hermanson Speaks:
Julie Hermanson program director of Aware, a Program of Community Action, Inc., speaks of the coats for kids delivery dates and times, and the toys program as well as the love lite Tree for the Holidays.
Download File
Download File
Yahoo: Business: Oil hits $96 per barrel. $100 in sight
click on the post for the latest. Time to switch to your favorite alternative fuel, alternative vehicle, or alternative home, or one or all of the above.
Taher Corner: Minnesota: Taher Accepts Union Contract
Click on the post for the latest from Minnesota---the food service company, Taher, which provides food for the State Capitol, agreed to a union contract. Taher is also the company that provides food service for Evansville Schools.
Gazette Corner: School Beat: The Lawsuit and the Comments
Click on the post for the updated story in the Janesville Gazette on the lawsuit against the Evansville School District that is filed in Federal Court. There are extensive comments.
The Evansville Observer will be providing audio and video coverage of the lawsuit when it reaches court. I will also be reflecting on the Federal rules, and much, much more. Stay tuned.
The Evansville Observer will be providing audio and video coverage of the lawsuit when it reaches court. I will also be reflecting on the Federal rules, and much, much more. Stay tuned.
London Fly Girl Corner; Flygirl comes to Evansville
Last weekend, just a little jetlagged, London Fly Girl came to Evansville for the mandatory once a year check in with blogger headquarters.
Over a strong coffee, extra whipped cream, she simply gave her report: "Well, Pres. Bush was right about one thing."
We all were silent. Wondering what it might be.
"The President said that Heathrow was a mess. He was right about that."
Click on the post for the short report from London regarding the recent accident. Flygirl indicated that Heathrow is going to a new competitive bidding for airline slots in 2008, and there have been some snags----she went over a list of the changes that was very confusing to listen to, and might require extensive diagramming---in fact, she said that one airline is having the baggage picked up not at the ramp where it docks, but across the highway at another node of the airport---just a nightmare situation for a traveler tired after a long trip---
The other little tidbit:
Her most ominous comment for the weekend was, "When you think of Civil War, don't think of Iraq.....think of England." Having lived in London in the 70's, she has been stunned by the tremendous influx of immigrants, and the fact that they have not assimilated into British society---which is no small matter given the huge stratification of that society---but noted that this matter is a much bigger deal than the media has talked about.
Stay tuned to the adventures of the London Fly Girl. exclusively on The Evansville Observer.
Over a strong coffee, extra whipped cream, she simply gave her report: "Well, Pres. Bush was right about one thing."
We all were silent. Wondering what it might be.
"The President said that Heathrow was a mess. He was right about that."
Click on the post for the short report from London regarding the recent accident. Flygirl indicated that Heathrow is going to a new competitive bidding for airline slots in 2008, and there have been some snags----she went over a list of the changes that was very confusing to listen to, and might require extensive diagramming---in fact, she said that one airline is having the baggage picked up not at the ramp where it docks, but across the highway at another node of the airport---just a nightmare situation for a traveler tired after a long trip---
The other little tidbit:
Her most ominous comment for the weekend was, "When you think of Civil War, don't think of Iraq.....think of England." Having lived in London in the 70's, she has been stunned by the tremendous influx of immigrants, and the fact that they have not assimilated into British society---which is no small matter given the huge stratification of that society---but noted that this matter is a much bigger deal than the media has talked about.
Stay tuned to the adventures of the London Fly Girl. exclusively on The Evansville Observer.
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