Q) Is there a long term liability for IVGID retirement and if so what is it?
A) IVGID makes annual contributions to two pension plans and two deferred compensation plans. According to Note 10 and Note 11 on pages 50 and 51 of the 2016 Comprehensive Audited Annual Financial Report (CAFR) for June 30, 2016, IVGID contributed $1,368,000. The long term liability we believe would be the requirement to fund these Plans in the future.
Q) Why are you not addressing the Army Corps of Engineers funds for the Effluent Pipeline? This question was asked of Mr. Dobler after his presentation on the District’s finances and the Utility Fund’s deteriorating financial condition.
A) IVGID currently employs a Washington D.C Lobbyist to procure funds from the Army Corps of Engineers and/or other Federal programs to help with the cost of this $23,000,000 project. The Lobbyist has been working on this for quite some time. The Board of Trustees has not announced any Army Corps or other Grant funding for the Effluent Pipeline to date.
Q) Why have operating expenses at the beaches grown so much since 2014?
A) IVGID’s budgeting process aggregates most of the Beaches operating expenses. This limits everyone’s ability to identify the specific causes for the escalating increases in operating our beaches and limits specific measures for prudent cost reductions. General Manager Pinkerton has pointed to increasing the days of Beach operation, additional staffing, professional services, rising supply costs and ongoing maintenance for the increased expenses. Over the last two years, Trustees Dent and Callicrate have challenged the District’s escalating operating expenses and failure to adhere to the District’s own approved Policies and Practices and have voted NO on approving the District’s Budgets. On the other hand, Chair Wong and Trustee Horan have not raised any objections to the General Manager’s Budgets and have always voted Yes. This year newly elected Trustee Morris joined Wong and Horan in what appears to be another rubber stamp for the General Manager’s wishes.
Q) Why has IVGID added so many new employees?
A) Since 2014, IVGID budgeted for 104 full time and 452 part time employees. The 2018 budget has 114 full time and 496 part time employees. The stock answer we have heard is to provide superior service.
Q) Why are you not addressing depreciation in your presentation as it is good business practice? This question was directed to Mr. Dobler based on his presentation of IVGID finances.
A) Prior to 2016, all of the District’s Funds other than the General Fund were accounted for under Enterprise fund accounting and reporting which required depreciation to be an expense of operations. We think it is a good business practice. After Pinkerton’s arrival, he along with Director of Finance Eick convinced the then seated Board that the District should be using Governmental Fund accounting which does not require depreciation to be reported as an expense of operations. We disagree with the change in accounting as it violates NRS 354. By eliminating depreciation it makes operations look so much better.
Q) Why didn’t our Rec fees go down when the bonds were paid off?
A) When the bonds were issued, the Trustees at the time assured us that when the bonds were paid off the Rec Fees would be reduced. Instead, when the 2003 and 2004 bonds were retired in 2013 and 2014 the $170 of our Rec Fee that was no longer needed to pay down the bond principal and interest the Rec Fee was not reduced. Instead this money was repurposed to fund operating costs and some capital projects. In 2018 another bond will be retired and the $110 of our Rec Fee collected for this Bond will be repurposed for the funding of NEW capital projects like the Diamond Peak Master Plan and the Parasol Lease Buyout.
Q) Why is there so much opposition to IVGID financials?
A) Over the past three years, we have found several misleading financial disclosures and a long District track record of incorrect, improper or inaccurate accounting and reporting. We have developed several memorandums on each subject which have either been ignored by the Board majority and Audit Committee or answered with empty statements that did not address the issues. We will continue to press forward. We have engaged forensic accountants to review our memos and they have agreed with our conclusions. We will not rest until the District makes all the necessary corrections and commits to providing accurate and complete financial accounting and reporting.
Q) Why does IVGID oppose a State Law that would require the state to audit their books? (This proposed law never made it out of Legislative Committee)
A) Trying to derail more oversight?