Rio Nuevo Board to hold Budget hearing today

The new Rio Nuevo District Board, as of a few weeks ago, has added a Public Hearing on their new budget, to their agenda for tomorrow’s Board meeting. The hearing is required by statute to be held before the end of each June. With mere moments to spare, the new Board posted a nonconforming Notice of the Public Hearing on the controversial budget.

The public has been granted a total of 15 minutes to address the Board during the Public Hearing, now scheduled for 5 p.m., to address the District’s 2013 Annual Budget. Each speaker is allotted 3 minutes.

However, it is what will be presented to the public before what the agenda loosely terms the ‘Budget Hearing’ that should create the most confusion.

Chief Financial Officer for the City of Tucson, Kelly Gottschalk, will address the Board. She is expected to report that the City is working 24/7 to find receipts to show that they did not squander over $30 million on the west side projects.

The new Board members are expected to act like they are stern but sensitive fathers admonishing a child who claimed that the family dog ate their homework. The public is expected to buy it. and, Fletcher McCuckser will likely be elected Chairman of the Board.

The public is also expected to buy the news that the new Board has found somewhere between $35,000,000 to $9,000,000 in useable cash on hand or money to spend depending on the way they would like the Arizona Daily Star, otherwise known as Jim Click’s newsletter, to report it.

In reality, the new Board has about enough to make their operating budget, (unless it grows by at least $150,000 for their new CFO suggested by the new members), make their debt service payment, with little “extra’ with which to make repairs to the Tucson Community Center the City was supposed to make so long ago.

The sum of about $35,000,000 sounds good but is well over 80% bond reserve and debt service money that cannot be spent on actual projects. This is conveniently not clear.

Fletcher McCusker, who is reportedly quickly learning that all isn’t what he was told it was, has demanded that budget money be allotted for the final pending audits to proceed. McCusker said, “I have requested additional audit funds and see them (the audits) as absolutely necessary.”

Meanwhile, the Wells Fargo Bank accounts and who legally has and has had access to them has become a matter of concern.
The notice for tomorrow’s 5:00 p.m. Public Hearing, on the ever growing 2013 budget, was posted in the Revised Agenda at 4:49 p.m., on Thursday. As a result, it is unlikely that much of the public will know about the legally required Public Hearing.

Due to the fact that the 2013 budget will only be made available to the public at the time of the hearing, it is unlikely that the public will be able to ask informed questions of the Board.

Tucson City Councilman Kozachik has recently become interested in having the City staff cooperate with Rio Nuevo auditors.

At this week’s City Council meeting, he made a point of demanding accountability and cooperation after the audit had been released and the public outcry was too hard to ignore.

Pursuant to A.R.S. §38-431.02, notice is hereby given that the Board of Directors of the
Rio Nuevo Multipurpose Facilities District will hold the following meeting, which will be
open to the public.
NOTICE AND AGENDA
FOR REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE
RIO NUEVO MULTIPURPOSE FACILITIES DISTRICT
Friday, June, 29, 2012
1:00 p.m. MST Special Meeting At
400 W. Congress Street, Room 222
Tucson, Arizona 85701

____________________________________________________________

AGENDA

1. Pledge of Allegiance

2. Roll Call (2 min)

3. Announcements – Welcome to new board members. (3 – 5 minutes)

4. Board Meeting Minutes – Discussion and possible approval of May 10, 2012, May 23, 2012 and June 10, 2012 (10 minutes)

5. Executive Session-(1 hour)
* Cell phones will need to be turned off during Executive Session.
* No Conference call in for Board Members during Executive Session.

1. Personnel Matters

2. Legal Advice
i. Board Insurance
ii. Bond Questions
iii. Audits
iv. Lawsuits

Reconvene at 2pm

6. Election of Board Officers – Chairman Position only (5 minutes)

7. Forensic Audits (Susan Vos)
i. Depot Plaza Update
ii. Westside Update

8. Report from Counsel
i. Budget
ii. Forensic Audits
iii. Bonds

9. Remarks from the Secretary (Alberto Moore)

10. Report from the City (Kelly Gottschalk)
i. Merchant Compliance efforts-TIF
ii. Audits
11. Next Steps
i. Audits
ii Investments

12. Budget Hearing – To Commence at 5:00 PM.
Public Hearing Opened and called to order on the Rio Nuevo Multipurpose Facilities District Budget. The Board will be taking testimony on the Budget via speaker card submission (Presentations are limited to 3 minutes per speaker, for 15 minutes in sum. All those interested in speaking should submit a Speaker’s Card that will be made available at the meeting.)

13. Discussion and potential action/approval on 2013 Budget

14. Call to the Audience – Presentations are limited to 3 minutes per speaker, for 15 minutes in sum. All those interested in speaking should submit a Speaker’s Card that will be made available at the meeting.

15. Adjournment

2 Comments

  1. How are they DOING anything as Rio Nuevo is under CRIMINAL investigation by the FBI ?

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