January 19, 2011

Micro-loan Addendum

Alot of comments (from Jahn) have focused on the unpaid balances of these loans.   For the record, I got no problem with these people who have unpaid balances.   Let me explain.   Say I had a VISA card with a 20,000 balance and VISA forgot all about me and the 20,000 balance just sat there without accumulating at interest.  Would I call them?  No--I would wait for the to call me.

My problem is with the administration of these loans and that they were not actively trying to collect the monies due or enforce any of the terms of the loan.  This is not the borrower's fault?   All the more reason why this had to be transferred to the Treasurer's office, who will do a good job administering these loans.

Again these micro-loans are only a small portion of the 4-5 million dollars per year that are administed on this side of Front Street.    Open that checkbook to see who is getting these monies. 


Jahn said...

You have to be kidding me..........whether the interest continues to accumulate or not the borrower has an obligation under their loan contract.

I want to rent a flat from you and when no monhtly rent bill comes in the mail, I shall ignore my obligations.

Homer said : "Marge the Visa bill didnt come this month so we dont have to make a payment"

Marge says: "Great Homer, we can buy some reefer and go to Foxwoods"

Yes the city is remiss, too

Do we know for sure if therre is a provision for add'l interest & penalties on these unpiad balances?

Do we know if the city sends out monthly bills/statements for these loan...i am guessing probably not.

Also how can the city administration knot have known about these non payments, given that the city ungoes a huge annual audit by mean, profit driven beancounters with green eye shades and 3 piece suits who count every last dime.

Additionally, if some sporadic payments were made how can the treasurers office not take some of the blame. I mean some months the payments come in and get on the city books and other months they dont, and no one at headquarters asks any questions?? We are not all mushrooms.

And where's the city auditor at? City auditor has to be ordereer to do an audit of 44 Front St before thsi comes to light (assuming here it's 44 Front St that maybe that handled this micro mess?)

Look at it this way, the money that was not paid back timely now creates and/or contributes to a cash flow deficit for the treasurers office...... Now the city has to go into the bond market and borrow to cover the unanticipated negative change in city cash flow.....and the city has to pay interst to borrow that money.............and to pay the interest we have to tax comm. property owners twice the residentail rate.

I am publicly calling on you to retract your position. :)


P.S. the city council s/b playing for the Steelers......bunch candy-assed, feminized, whiney wuzzes that cancel a council meeting b/c there"s a littel ice on the ground. Send em 11 pink caps, some eye shadow, and a Priscilla's Nail Saloon gift certificate for next Tewsday knight...then send em Packin' next Nov..GEEEEESHHHHHH

Bill Randell said...


If you did not pay rent for a couple months, you would owe more money each month you do not pay.

Under the scenario I explain, VISA gives you a $20,000 unsecured cash and they forgoet about never adding interest. Although I know that I owe it, I wouldn't say a thing. I think most people would do the same????

My point is that I blame the City department, who was in charge of this, much more then the borrower. Trust me now that the Treasurer is handling this, it will be run much differently (for the better).


Jahn said...

I do not expect the treasuer himself to be involved in the month to month minutae of overseeing loan payments, but some one at some time during the course of a quarter or a year has to be looking at city books and asking why are some loans not being paid each month. Frankly, I wonder if the loans were even on city books.

I am not sure in what particular order , but i'd say the following at some point has to be looking at teh city records:

a. CFO
b. Treasurer
c. City auditors
b. year end auditors
c. the clerical help

And why didnt Sutner and caywood name the city dept that originated these laons

Bill Randell said...


The Treasurer's office top to bottom is one of the better offices in the City. Ironically on the same floor as the City Clerk--another great office.

ON the other hand, across the street there are some good people there but there are simply no accounting systems in place. Let me say that again --NONE!!!

They get free money from the Federal Government, as teh stroy on the Telegram said (4-5 million per year) and it is doled out. No accounting to track results or if the money is spent well just crank it out.


Jahn said...

BILL....!!!!!!!!! I completely understand that.

I also understand all cash record keeping, disbursemtne and receipts is best handled in a central office....be it Jahn Consolidated Industries or the City or Worcester.

Here's my issue. Many Payments were made on these deliquent loans as well as those loans which adhered to repayment terms who were not featured in teh T&G piece.

So if payments are being made at some point the money makes it way back the city treasury (I hope?). SO the tresury has to know that these loans are out there. When the payments stop, or come in late, or sporadically, someone has to be asking...whats up? Those "somebodies" are listed in my last post, not nec. in any order and I will add in to that list accountants who work in treasurers or CFOs office.

If the payments are not making their way back to city treasury then where are the payments being deposited and who is overseeing this bank acct(s)....unless they're sitting in someone desk drawer....at which point the payor at some point eventually stops payment on them

iN a $500,000,000 organization like the City someone has to be watching the books monthly, quarterly, annually, whenever..even if the books ate not at 44o Mains st but are at 44 Front St?

BTW, do we know for sure that these loans came under the auspices of 44 Front St. I've said it before...time for some heads to roll over there.

Bill Randell said...


These loans 100% came under the auspices of 44 Front Street...

Good point on the monies had to end up back at the Treasurer's office. My guess is that they just deposited the monies and left the servicing to 44 Front Street.

Now they (Treasurer) will do servicing. Good move by Mike O'Brien.


Jahn said...

Bill when the TO (Tr. off.) rec's money they have to charge it to an account like property taxes, parking fines, sewer hook fees, etc....or a loan acct.

A Loan acct w/o any payments showing or with anything less than a regular monthly pymnt rec'd would stand out the minute anyone looks at....whether its looked at monthly, quarterly ,etc. Frankly the city software should be flagging the acct AUTOMATICALLY if no monthly payment is rec'd.

Finally WTH are high priced bean counters who review city books every year.

NO EXCUSES .....!!!!!!!!!!!!!