Do they understand?
It was rewarding for the Carmel City Council to approve the refinancing. But, do they understand? City Council mandated the use of the Clerk-Treasurer’s Office as the treasurer for the Redevelopment Commission. Let’s reflect on the statements made by council member Luci Snyder at the Nov. 19 meeting. She explained that the three-plus months of their consideration was necessary because of the complexity of the financial issues involved. Snyder noted that the financial consultants contracted by the council stated the refinancing was the most complicated financial structure with which they had ever dealt. Is it wise to put this degree of financial complexity on the CCTO? Do they have the resources to assimilate the financial management issues? Snyder mentioned $1.3 million in missing funds. The funds were never missing. In 2010 the CCTO made the semi-annual payment for one of the TIF bonds, not from the TIF revenues, but from the reserve fund for those bonds. Not only was this an error, but a material event under the Trust indenture for those bonds. Fortunately, the bonds in question are a portion of the bonds being refunded under the refinancing, but it could have created a negative impact. Despite the Council already having two appointees to the CRC, Councilman Sharp’s quest to “reform” only reverts to the old system and creates potential for financial chaos. Perhaps Sharp should pay heed to Jack Sparrow, who said: “The problem is not the problem. The problem is your attitude about the problem. Do you understand?”