Intro

News articles - Notice the consistent trend, none of the councils understands what they are looking at. None know how to read a financial statement. How could they even hope to fix the issue??

Here was the problem.... No Deferred Revenue or Draw on equity to balance the equation. Though, Expenses has amortization & Depreciation. Resulting in expenses being overstated, wrongly suggesting losses, when there was no loss.

How did this happen? Simple answer, 2012 when they rolled out assets from the City into CUI. They made a mistake. They rolled out the assets, but not the equity of the assets. 

Concern: 

• How did no one at the City or CUI recognize there were no losses or not as much losses, when they still had money in the bank? 

• Was this intentional?

• Did the City raise Utility rates saying there was a loss, when there wasn't?

• Why? Was there too much debt taken out and the City needed money to service the debt? Was the debt improper, inflated, kickback? 

• Did this falsely inflate the City's equity on their assets to let them borrow more? Try to look better to banks? Did they borrow money based on fraudulent misrepresentation????

• Would they have gotten the debt for the Civic Fieldhouse $40M, if they told the truth and lowered the asset equity that belonged to CUI?? What did they tell the bank?

• Falsely inflating assets is a crime, if used as representation to lenders to borrow funds. 

• Are the Directors of CUI liable for this fraud? Are the Councilors?