LETTER FROM FINANCE DIRECTOR
I was notified that you submitted a question on the City’s Web QA regarding the City’s investments. I apologize, but I never received this request due to the fact there were problems with the web site, which now have been resolved. The City’s investments are diversified and secure. The City is only allowed to make investments that are permitted by the Ohio Revised Code. All of the City’s investments are in accordance with the City’s Investment Policy and the Ohio Revised Code. All of the investments are backed by the banks pledged collateral. The majority of the City’s investments are in Certificates of Deposits. The City also has investments in U.S Treasuries, and some Agencies, which include Fannie Mae, Freddy Mac’s and FHLB. The City has about 10% of our total investments in Fannie Mae’s and Freddy Mac’s. The Fannie Mae and Freddy Mac’s are secure and the City has not lost any money in any of our investments. As of June 2008, the City is no longer investing in Fannie Mae’s and Freddy Mac’s. The City’s investment broker, Productive Portfolios, is recommending the City keep our investments in the FNMA and FHLMC. I appreciate the concern you have over the City’s financial well being, but as I stated all of the City’s investments are secure and the City has not lost any money in any of our investments. I hope this answers your question, but if it doesn’t please feel free to call me, I am always happy to talk to concerned citizens.
Sincerely,
Andy
Andrew A. Unetic
Finance Director
City of Painesville
posted by terminator1 @ 1:07 PM
22 Comments
22 Comments:
How can you have a 10% investment in Fannie Mae and Fredie Mac and havent lost any money? Or is Andy just saying you only loose money if you cash in?
Mr. Rellik
I cant believe anyone at city hall would answer a question from jackass term. Thats their first mistake.
A real city employee
I can't belive Mr. killer would post what he did.
You can tell the one's that just don't know crap.
What is this Killer statement and does not know anything?
Okay, Andy, Finance Wizard. Instead of posting the FHLB,FNMA, and FHLMC - be totally straight with the poster instead of Rita dictating what you may say: as we know she micro-manages everything including the finance office.
I know the last two alpha postings, try being real honest please. You know also what these alpha letters mean.
Kindly provide the exact names for these alpha letters. Most people will be shocked when they find out what they are.
If you are going to answer a question from any citizen, you need to spell the answer out in normal English language, not in alpha letters.
Just another way to turn-off and deter citizen's requests - does not surprise me at all.
Do yourself a favor, do not get caught-up in the vine from - - - -!
The former finance person, who was just as educated as you are, could not stand the FORCE of Evil, nor the dictatorship of no knowledge - but the force to make this position do anything to satisfy an agenda.
Post the truth as the truth is: we will be on your side and no other side of corruption/everyday statements of mis-truth.
Grass may be real green on other sides: unfortunately the grass of Painesville is a really Brown color as it has been and always will be - under the current management.
If the city is limited what its investments can be in, why is the investments controled by Productve Portfolios. Look them up on the net. to see what were paying them.Again Why?
Mr. Rellik
There on Mr. GUTLESS list. and there not idiots there just rocking his boat!
"Most people will be shocked when they find out what they are."
What's with the letters? You apparently know what they are and you are hiding them from me too. You try and be so dramatic. I you know them why do I have to look beyond your post? Just post them and we don't have to be kept in suspense. You are just trying to build a scandal. I have a feeling it will be just like all the other "scandals" on this site. More hype than any hint of wrong-doing.
Prove me wrong. Post the letters and if it looks bad, and it may look bad, but at least I can ask the finance director again to explain. I am sure everything is ok but I will ask to make sure. The answer is likely benign and that won't help your agenda with the blog so you won't ask. Lord knows someone has to debunk you guys.
FALMC FREDDIE MAC
FNMA FANNIE MAE
WHATS YOUR POINT?
just some information to clarify a couple things in the letter:
I am not sure if the city has a public financial record of where the city has it's assets but the sentence in the letter:
"city investments are sound and secure" is the same thing our federal government was saying as we watched the economy melt into oblivion.
Fannie Mae (Federal National Mortgage Asso.) had a 12 month high on the DOW at $68.60 per share. Today Fannie Mae stock is selling (as of noon today)
for: $1.15 per share.
Freddie Mac (Federal Home Loan & Mortgage Asso.) had a 12 month high at $65.88 per share.
Today Freddie Mac is selling for $1.35.
If you sell off all the stock you are out of the market and suffer deep losses. You must stay in the market. The market suffered greatly last week. Today at noon when I checked the market is up 572 points or 5%.
Your 401K is tied to the market and if you check your statements you probably need CPR but the city as too your 401K will ride it out.
The FHLB or Federal Home Loan Bank is another story........ the closest is Pittsburgh. If you want to
read their financial report go to this link and read it.
http://www.fhlb-pgh.com/pdfs/weeklyfin/wfs1010.pdf
They post weekly.
The $900.000 bond issue.......
1. The city doesn't have $900,000, they need $900,000. A bond generates money for the city.
2. The city offers a bond, per guidelines of the Ohio Revised Code (according to my sources the ORC is a quite a read & good luck getting through it)
3. Anybody can buy municiple bonds with an average rate of gain in the 3-4% interest rate.
4. It is considered a safe way to invest but offers very very slow growth over long periods of time. At 4% interest you are only going to make $36,000 over the life of the bond.
5. There are no rules on who can buy the bond.
6. I don't know if the bond can be split or P'vlle is offering it as one entire lump sum of $900,000.
If you truly love & believe in this city you might want to buy part of the bond.
MP
You can have investments through both those companies and not necessarily have bought their stock.
Explain what you bought, and is this what the citys investments are in? NYSE @3:40 Stock at $1.30 this with the market up 900 points.
My guess the city has lost over $700,000 on Fred and Fannie. Close Andy.,
and that is awfully close to the $900,000 bond they are trying to sell......... interesting......
I believe if anyone has an investment in a mutual fund they probably own Fannie and Freddie........
mp
The city has lost 0 so far, until they sell they are ok, the market will re-line it's self, and things will get back to normal.
If the city had 7 million in investments and 10% were in Fannie, and Freddie thats wher the $700,000 figure must comes from . They are not selling a Bond to make up this loss. The Bond is for bills that they want to rollover.
No one here is trying to start a scandal. We just want facts from city hall. Living here less than 5 years seems one one ever asked before. Just the facts city hall.
Please stop sending out the waste of paper Painesville Pride, its a waste of paper.
KAREN I'm already on the list.
There you go again, the number of posts went from 20 down to 19
Term. The big brother of the blog.
delete-delete-delete-delete
Great Job MP. I knew that there were others that knew the mysterious letters of inventment. It is just disappointing that this city group could not spell them out for others that do not understand/know.
What baffles me is that absolutely no one has asked for the proof, on paper/computer print-out, of this cities particular investment areas/their growth-loss/and the cities exact plan to move any investments due to the negative volatility of the markets.
When questions are asked, this city should prove and provide the justification for their statements.
Unfortunately, this city does not provide the real information as they should because they do not feel it is any of our business.
Shame on them: This is OUR money, not theirs.
When this type of mental thinking does not exist anymore, all of us will then have a true justified picture of where our taxes (you know, the $$$ you spend on them every year) are going.
If the idiots who call us idiots cannot fathom financial areas, so be it. You are always the ones, after the fact, that say: "when did this happen, where did this happen, why is it affecting my taxes; on, on, and on.
Stay tuned for more bad votes/decisions by the council members that you think are there for you and your best interests.
"Stay tuned for more bad votes/decisions by the council members that you think are there for you and your best interests."
More? What do you consider was a bad vote? What do you think will be a bad vote in the future?
Again you are assuming wrong doing. You are assuming this guy lied to you. It shows your bias.
looks like andy gave you your answer. now you cant handle the truth.
looks like karen has accepted that she is on the dumb ___ list and now she just has to take rellik by the hand and whisper in his ear that he is the number one dumb ___
Just for the "hay of it", I invite all of you negative "know it alls" to provide the same or new detailed information/knowledge (printed out) regarding the investments - profit or loss of the city of Painesville. Also provide written proof that you have had conferences with the city manager and the finance director to prove and justify your no knowledge comments.
We can and have proved our statements/we have seen them in writing and on-line.
Go for it and justify all of your comments.
If you cannot do this, then you are just like the non-readers on council who have for many many years not provided all of the justifications for their votes and actions. They read what mgmn't states and just agree - and never show any indication that they have any knowledge of the presentation nor do they ever ask any questions before they cast their vote. We would welcome a job where we would not have to read any paperwork/decipher it and then cast a vote and then get paid
$6,000 per year to be a rubber stamp.
Everyone is held accountable for everything that they do and say: the total written justification process is the only way to prove that anyones statements or actions are believable.
Examples: If your street is deplorable, justify the reasons why it is this way. If the water you drink or use is yellow or gray, justify wht you see by providing a sample. If your neighborhood is corrupt, justify this problem with examples of the problems/plate numbers/names/pictures in order to prove your point.
So far, the folks that call us idiot/stupid have not provided one ounce of evidence/nor justification for their differences.
Go for it - that is your challenge.Go to Council meetings and experience the blank looks and no answers. Go read the Charter, Zoning Issues,and anything you may choose to read. Bring these up to council members and at meetings and you will soon discover that your questions and statements are met with blank stares and "our hands are tied" statements and you need to speak with this one and that one - only to find out that the answers to your questions may never be answered. If your questions are simplistic, you may gain an answer. If your question digs deep into any policies, an answer will be provided way down the road, with conflicting statements by all - which in the end never answers your questions nor do they ever resolve the problem.
Then there is the ward issue. If you ask questions or ask why you do not receive the same services as other areas of this city - you are met with moot answers. Proven reason for this is if your Ward representative asks too many questions or does not vote yes yes on many of the management's issues: your ward is placed on the bottom of the list for any questions/improvements/problem solving/etc.
We have been there and already experienced this type of discrimination.
If you have not had this problem, we are sure that you will try to negate these statements. Just wait, your turn is coming. This type of venom started many years ago and it is now going through this city like a slow lava slide.
WE cannot believe that the majority of you are so narcisstic (self-centered) to not see that this cities direction is all to the new developments; with no regard to all of us who live in the great areas that have made this city what it has been for so many many years before the intrusion by an individual (formerly here) that only chooses to now concentrate on providing all services to the areas that have been seized by stealing them from Township ownership.
If you think that this wonderful development on Diamond properties is going to be an asset, please think 2,3,4,10 times. This mamagement is flying under the radar regarding this issue. This management wants to take over the township portion and the Fairport portion. With this thought process will come the installation of new Electric, sewer, water and every utility that you can imagine. Any coalition with Fairport on their utility services will be acid reduced and you the folks of this city will incur the costs. Secret meetings have already happened. These meetings are never under the Ohio EPA regulations.
There is more to all of this than meets the eye, and unfortunately for all of you who do not pay attention/ask questions/believe what we say and then ask more questions - you will be lost, and then come forward and say as you have before: "When did this take place?"
Do any of you know that with the relocation of the Lake East Hospital that there is a coalition to examine the respond times for all communities? They are grouping, by circles of communities, to see who can respond first. The coalition will be producing their results and recommendations very soon. This study/results will be on a voluntary basis by all communities involved. I stress that it is only voluntary that any community joins.
As of this date, ask the city of Painesville who covers their new Cobblestone Dev. in Mentor?
Negotiations with Painesville Twp were negated by (lack of attendance)by City Management. Then City mgm's went to Grand River and procured an agreement. One problem, Painesville Twp provides the means for protection with Grand River. Painesville Twp stated that if they have any agreement with the city of Painesville that they would negate and delete their vehicle and EMT from Grand River because they have a contract and the city of P'ville does not.
Mgmn't of the city of P'vile just hopes that this coalition agreement goes forth - because at this date the Cobblestone development has absolutely no fire/emt protection.
The City of Mentor has no absolute agreement on either of these protections with the city of Painesville. Ask Mentor, you will gain the real truth!!
The management does not care nor take care of all of us nor are they demonstrating that they can take care and be responsible of the current or future developments.
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