Comments on: Ann Arbor Audit Clean, But Issues Identified

By: Steve Bean

Steve Bean — Mon, 14 Jan 2013 16:53:08 +0000

While the 2012 CAFR shows (on pp. 62-63) that the investments in the Pension and Employee Benefits Trust Funds are somewhat improved relative to 2011 (more higher grade bonds and less lower grade ones, for example), the percentage of cash and short-term bills and notes is still very small, while equities and bonds make up the majority of the portfolio. This is exactly the opposite ratio to hold at this juncture. (See my comment on the “What They Believe” article: [link].)

The small amount in hedge funds, even assuming that they are fully shorted the market with maximum leverage won’t come close to compensating for the losses that the other categories will experience over the coming 1-3 years.

By holding cash and cash equivalents through that period, the city could avoid falling much further below 100% funding of the trusts (though a drop is unavoidable). Then, at or near the bottom, those deflation-strengthened dollars could purchase enough assets to possibly fully fund the trusts in subsequent years.

If the city doesn’t successfully navigate this situation, residents will potentially be on the hook for long-term costs for those increased net liabilities, on top of also compensating for lower property values and increased foreclosures.

The work of the retirement board isn’t one of those aspects of city government that gets much attention. Now would be a good time for that to change.

This will be a global depression, and Ann Arbor WILL NOT be immune.

By: Rod Johnson

Rod Johnson — Sun, 13 Jan 2013 19:33:35 +0000

#19: I have to agree, of course. Is there anyone who takes the dot com seriously as a news operation? I hope not.

By: Alan Goldsmith

Alan Goldsmith — Sun, 13 Jan 2013 17:08:59 +0000

Re: 17. Thanks for sharing the Mode Shift link. Pretty interesting work.

By: Alan Goldsmith

Alan Goldsmith — Sun, 13 Jan 2013 17:06:46 +0000

@ 18. By ‘not a word’ was nothing other than posting the Freep link and cut and pasting the Detroit reporter’s work. No follow up, no calling any current City officials for comments, nothing you couldn’t have gotten from reading the Free Press. I wouldn’t give the dot com any credit for that. And, the story continues in Flint and Detroit and…of course, nothing further. But if you want to give credit for the paper thin coverage, I see your point. But literally nothing at all on the City Attorney story.

By: Rod Johnson

Rod Johnson — Sun, 13 Jan 2013 15:02:59 +0000

I read an article about the Jones case, which I pointed out the the Chronicle on Facebook, on Thursday: [link]. Admittedly, it's mostly reprised from the Free Press story, but that's kind of par for the course for the dot com. In fact, Alan, you commented there, so I must be misunderstanding what you're saying in #16.

By: Vivienne Armentrout

Vivienne Armentrout — Sun, 13 Jan 2013 14:13:44 +0000

Re (16) I missed it too, but they (the other online news source) published a story on January 10 about the Detroit/Flint issue (Barnett Jones employed two places at once).

It is true that we don’t have a one-stop Ann Arbor news source any more (though even when it was the Ann Arbor News, coverage was not complete). Coverage of state and regional news is especially thin here. But there is a plethora of online sources. I’ve been following Detroit News tweets lately with good results, and there is also a grant-funded blog, Mode Shift (http://wearemodeshift.org/) that has some decent reporting. It is frustrating that most legislative news is behind steep paywalls (Gongwer, MIRS) but Detroit News has a statehouse reporter who stays on top of many issues. Phil Power has an online magazine (Bridge) that has some summaries and reviews.

It takes a lot of work, though, to stay informed. Someone needs to write a summary/directory of a media program. Unfortunately, the idea of a centralized reliable all-encompassing news source seems to be so 20th Century. Even the New York Times has let go many reporters and just closed its environment desk. We’ll all either be ignorant or be really, really busy following all the bread crumb trails.

Meanwhile, we are fortunate to have Dave and Mary soldiering on to bring us our hyperlocal civic coverage. It is a great benefit to Ann Arbor.

By: Alan Goldsmith

Alan Goldsmith — Sun, 13 Jan 2013 12:37:56 +0000

Still not one word on the Sue McCormick/Barnett Jones case in AnnArbor.com. Or a word about the City Attorney’s expense account issue. Or no article on the financial audit in general either.

By: RICK STEVENS

RICK STEVENS — Sun, 13 Jan 2013 01:58:52 +0000

Be nice if we could see the SPARK audits but they’re secret.

By: Rod Johnson

Rod Johnson — Fri, 11 Jan 2013 23:05:34 +0000

Thanks!

By: DrData

DrData — Fri, 11 Jan 2013 21:25:49 +0000

[link 1] or [link 2]