Riley: Simple Questions in Need of an Answer by Providence Officials
Tuesday, July 28, 2015
Not only did Providence default on a $62 million dollar loan to the Police and Fire pension Plan Pension Plan on June 30, 2015. They will borrow $71.5 million dollars at 8.25 % in 2015 and 2016.In other States and Cities across the United States cash flow problems like the nearly insolvent city of Providence has are addressed by Tax Anticipation Notes. Yet Cicilline, Taveras and currently Elorza (a former accountant) borrow at 8.25% from their own pension plan when Tax anticipation notes are much cheaper. This has been going on for decades. This behavior is just one of 50 signs of distress in Providence Rhode Island and indicative of insolvency.
If you are a citizen of Providence or a reporter in the media here are some simple questions for the Mayor or Councilman Igliozzi.
• Did Providence Default on an approximately $62 million dollar loan due June 30 2015?
• Does Providence borrow money from its own Pension fund?
• What rate of interest rate does Providence pay on its “timing difference” for money due to pension plan that is paid late in October?
Those are simple Questions that every Providence Councilman, Treasurer and Mayor should know the answer to. Yes or no. The same question should be asked of our State Treasurer, Auditor General and Governor. There is something very wrong if they can’t or won’t answer these simple and very relevant questions. I recently produced a report contending Providence has borrowed regularly from the pension fund without knowledge of the investment commission. Providence has paid and continues to pay over 8% for the use of these funds when Tax anticipation notes would suffice an could yield only 2 %. My report shows that Providence has been purposely and materially misleading bond investors, taxpayers, ratings agencies and pension beneficiaries for at least 10 years and as a result violated federal securities laws.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTRecently, a Providence resident and supporter called the city hall and whoever answered the phone said the city had “no Knowledge” of a loan default. All I need is to get that person s name on the record. It’s clear that main stream media such as wpri, wpro, projo etal can’t afford to be cut off from City Government and its news flow so the tough questions will have to be asked by the citizens who are paying the freight.
Read the report and then contact Providence Officials if you are concerned.
Here is the email address for Finance Chair Igliozzi: [email protected]. Here is the Phone Number to town hall ask for the Mayor or Finance Director if you can’t ask them directly ask them using their voice mail. We will tabulate and publish how many taxpayers ask these three questions and don’t get an answer through emails and phone calls. 401.421.2489 https://www.providenceri.com/mayor/contact
Michael G. Riley is vice chair at Rhode Island Center for Freedom and Prosperity, and is managing member and founder of Coastal Management Group, LLC. Riley has 35 years of experience in the financial industry, having managed divisions of PaineWebber, LETCO, and TD Securities (TD Bank). He has been quoted in Barron’s, Wall Street Transcript, NY Post, and various other print media and also appeared on NBC News, Yahoo TV, and CNBC.
Related Slideshow: 10 Questions Elorza Has to Answer as Mayor
Related Articles
- Riley: Negative Return on Fiscal Year 2015
- Riley: Does the RI Treasurer Know his Senior Policy Adviser?
- Riley: Progressive Magaziner and the Discount Rate
- Riley: Pension Settlement Does Little to Help Rhode Island
- Riley: Repeating My Call for Providence Bankruptcy
- Riley: RI Has $600 Million Shortfall for Fiscal Year 2015
- Riley: Providence Pension Fund is Risky Business
- Riley: Mr. Magaziner, No More Spin - Just the Facts
- Riley: Why Aren’t Rhode Island Pension Plans Working?
- Riley: How Does Providence Arrive at 8.25% Discount Rate for Pensions?
- Riley: Institutional Investor Gives Bad Grades to RI’s Hedge Fund Picks
- Riley: How to Start Fixing the Rhode Island State Pension Fund
- Riley: Providence Pension Scam is Unraveling
- Riley: A Corrupt Providence Approaches Default
- Riley: Default in Providence. Where is our Governor?
- Providence Pension Watchdog Riley Releases Report, Calls for More Answers
- Riley: Comparing Providence to Greece
- Riley: Providence Rhode Island Defaulted June 30, 2015…So What
- Riley: Countdown to Default in Providence
- Riley: Raimondo and Mattiello Fiddle While Providence Implodes
- Riley: Providence Pension Scam Revealed in Print
- Riley: Leaders Silent on “Enron-esque” Providence Pension Debacle
- Riley: I’ll Gladly Pay You Tuesday for a Hamburger Today
- Fire Fighters Sue Providence After GoLocal’s Riley Unveils Missing $60 Million
- Riley: California Municipal Bondholder Law Follows Rhode Island