Larry Ryles Responds to David Schmidt's Claim that Park Ridge is "Back in the Black"

PRESS RELEASE

LARRY RYLES FOR MAYOR FOR PARK RIDGE

Park Ridge, IL, March 13, 2013 - Today, Larry Ryles responded to David Schmidt’s claim on his recently distributed color flyer that “Park Ridge is Back in the Black”.

Ryles stated:  “In this flyer, David Schmidt offers this claim to our voters:

 “Since taking office, Dave Schmidt has overseen three straight annual General (Operating) Fund budget surpluses, generating a total surplus of $2.5 million.”

Initially, I thought to myself, if it is true, it is a good claim by my competitor during this mayoral campaign, where we both strive to offer truthful leadership to the voters of Park Ridge.

 So, I reached out to my campaign supporters who are excellent in the creation and auditing of municipal finances.  I shared David Schmidt’s flyer with them and asked if this claim, on side one of the flyer: “After Dave Schmidt - $2,500,000 Surplus” is true or, to paraphrase Carroll D. Wright, is simply, “…a theory that David Schmidt wishes to establish.”

 With the help of these experts, here is what we discovered about David Schmidt’s claim.

He calculated the difference in the General Fund between 2010 and 2012 as follows:

Fiscal Year – Fund Balance Amount

2012 - $10,137,836

2011 - $8,308,896

2010 - $7,667,529

2009 - $11,378,347

 2012 minus 2010 equals change in General Fund of = +$2,470,307

 Because I believe that I do indeed possess the “Big Heart” that is printed on my campaign brochures, I will not quibble and I will chip in a further $29,693 needed to round up this change in the General Fund to the $2,500,000 amount claimed by David Schmidt in his recent flyer, "Back in the Black".

However, my municipal finance experts pointed out an additional financial observation that could be fairly shared with the voters of Park Ridge:

Observation:

Three Year Decline in the General Fund Under David Schmidt is actually (Minus $1,240,511 ) not the +$2,470,307 he claims.

Oops, David Schmidt seems to have left off a year when calculating the change in the Fund Balance since he was elected.  Here is our reasoning:

- David Schmidt took the oath of office and was installed as Mayor of Park Ridge on Monday, May 4, 2009

- This is four days after the city’s 2008-09 budget closed on April 30, 2009 with a General Fund balance of $11,378,347

- So, I believe that David Schmidt should be held accountable for the change in the General Fund from the first day he served as Mayor of Park Ridge on Monday, May 4, 2009

Therefore the correct calculation is as follows and shows a decrease in the general fund balance under David Schmidt of $1,240,511. 

This simply means that there is less money in the General Fund on April 30, 2012 (i.e. the last audited statement date) than the amount David Schmidt inherited on Monday, May 4, 2009.

David Schmidt should have calculated a change in the General Fund between the fiscal years 2012 and 2009, not 2012 and 2010. 

The correct calculation to show the change in the General Fund since his first day as mayor is as follows:

Fiscal Year – Fund Balance Amount

2012 - $10,137,836

2011 - $8,308,896

2010 - $7,667,529

2009 - $11,378,347

2012 minus 2009 equals change in General Fund =  Minus ($1,240,511)

Summary:

I ask each Park Ridge voter to decide for themselves if David Schmidt should be held accountable for:

 a) All three years of changes in the General Fund balance since he was installed as mayor.

or

b) Only two years of changes in the General Fund balance that allow him to claim a nice number that makes him look good during this campaign.

(End)