Financial Features To Die For

In a recent retirement discussion with a colleague, he mentioned his retired parents having a lot of their assets in investment grade corporate bonds. I challenged whether this is a good idea, asking: “aren’t they worried about what rising interest rates will do to the value of those bonds?” His counter was that it wasn’t a concern because when they die, the estate can redeem the bonds at their full par value.

This feature in a corporate bond got me thinking about what other reset options are available at – or triggered by – death. In other words, what financial vehicles offer benefits that are specifically activated when a death occurs? This is a legitimate concern because an individual’s death often generates a need for spouses, families and businesses to rearrange their finances. A spouse suddenly needs survivor income, a family’s estate unexpectedly requires liquidity, and a deceased’s business abruptly experiences a cash crunch.

There are more financial vehicles to help with this challenge than you may realize. Often they have arcane names and are sometimes optional features lost in the maze of choices associated with financial instruments. Let’s look at a few of these features and, perhaps most importantly, the benefits.

Death puts
This is the concept my colleague was referring to. A death put (also called a survivor option) is an optional redemption feature on a corporate bond allowing the estate of the deceased to put (sell) the bond back to the issuer at par value in the event of the owner’s death. This can prove useful in retirement income planning because a highly rated corporate bond will generate a secure stream of income. The concern, however, is that the bond’s market value could sink when interest rates rise. If the owner of the bond dies during a high interest rate market, the beneficiary may suffer a significant loss of principal should the bond be sold. Investing ina bond with a death put assures that the beneficiary can still receive the bond’s par value at the owner’s death.

POD bank accounts
A payable-on-death (POD) account is an individual bank account with a beneficial feature at the owner’s death – it avoids probate. The account owner designates one or more beneficiaries to receive the proceeds upon the owner’s death. Because the proceeds pass directly to the beneficiaries designated by the account owner, the proceeds are not subject to the delays and expenses associated with probate. Further, the beneficiaries of the account have no rights in the account during the account owner’s life, and the owner may change the beneficiaries at any time.

Immediate annuity refund feature
An immediate life annuity provides an income that the annuitant can’t outlive. For an agreed upon amount of money, an insurer will pay an income based on the individual life being measured. The challenge is that a loved one may suffer financially if that individual dies prematurely. Say a husband invests $100,000 in an immediate annuity based on his life, and he dies a year later. The wife suffers a financial loss; the principal is gone, as is the stream of income. For this reason, insurers can price in a benefit in this type of annuity that will mitigate such a loss. Typically called a refund feature, the insurer will pay an income for the annuitant’s life, but guarantee that the total amount paid out to the beneficiary will not be less than the initial investment. The beneficiary will at least get back the initial investment. This benefit is priced into the annuity quote, and offers liquidity and more assurances for survivors.

Deferred annuity death benefits
People often think of annuities as the flip side of life insurance. Annuities are insurance against living too long, while life insurance covers dying too soon. What happens, however, when a policy owner dies before an annuity has started paying out an income? A deferred annuity is an annuity that builds up value currently, with the intention of paying out income in the future. Sometimes these annuities are invested in separate accounts chosen by the owner. The challenge is that if the owner dies when the market is down, the annuity may be worth less than the initial investment, and the beneficiary will suffer a financial loss. To mitigate this loss, insurers often offer a death benefit feature for their deferred annuities. For example, the annuity may provide that if an owner dies when the value of the contract is less than its initial investment, the beneficiary will still receive no less than what was invested. Some annuity contracts will even include, for a price, a step-up feature, where the death benefit rises to a new value at designated points in time.

No lapse guarantees
When one thinks of a “death benefit,” the first financial contract typically considered is life insurance. The whole point of a life insurance policy is to provide liquidity that is triggered by the death of the insured. Modern day policies have a plethora of riders, options and features focused on the death benefit aspect of life insurance. Consider, however, the issues involved with making sure the life insurance policy itself is in force at the insured’s death. The risk may be that, because of market conditions, an ongoing premium is insufficient to continue the policy in force. In other words, the policy is at risk of lapsing. Some life insurance policies offer a feature that covers this contingency. A no lapse guarantee, as the name implies, states that as long as the insured pays an agreed upon premium, the policy will not lapse, even if the policy has run out of cash value. This guarantee can be for a certain number of years, up to a particular age, or for the life of the insured.

No one wants to die, but also no one wants a beneficiary to suffer financially because of a death. The examples above are just a sampling of possible options. As you review your financial portfolio with your advisor, consider financial products, features and benefits that can protect your heirs and beneficiaries. There are contractual tools available that can, at death, trigger reset options, provide liquidity and guarantee fulfilment.

Big Orange Give increases goal to $250000

Five hundred thousand in five days.

The time has come for the Big Orange Give, a yearly fundraising campaign held by the University of Tennessee through the Office of Alumni Affairs and Development. Started in 2013, Big Orange Give is held each fall during Homecoming week with the purpose of raising money for specific colleges and causes within the university while encouraging alumni involvement through donation.

Last years inaugural Big Orange Give saw the university double its initial goal of $125,000 and raise a total of more than $250,00. This year, the goal has been increased to $250,000.

The pressure to meet this years goal is particularly acute, as Alan Wilson, former UT Alumni Board of Directors president and president and CEO of spice-giant McCormick, will match the $250,000 if the goal is met by the end of the week, bringing the grand total to half a million dollars. In light of this, Big Orange Give is emphasizing the importance of each contribution, no matter how small.

Within the $250,000 goal, different UT colleges, libraries and other stakeholders on campus have individual funding benchmarks. For example, the College of Business has a final goal of $100,000, while the College of Social Work aims to raise $3,500.

Lance Taylor, the director of annual giving and student philanthropy, said funding goals are set by members of each college or program, often creating a large disparity.

The fundraising goals are based on goals set by the development offices of the colleges, Taylor said.

Taylor said the Big Orange Give is not meant to solely raise a large amount of money, but to increase the act of giving and interacting with alumni. Last year, 44 percent of the donors were new or had not given in years.

Donors are at liberty to decide where their contribution will be allocated, giving alumni the unique opportunity to give back to the institutions where they once studied.

At other universities, this sort of fundraiser is referred to as a money bomb, said Taylor.

While Big Orange Give is run through the Office of Alumni Affairs and Development, it is not limited to alumni or faculty. Students can also contribute to the push for $250,000 dollars.

Student giving is absolutely encouraged, said Daniel Richter, a senior student in business analytics. Big Orange Give matters to students because it gives everyone the ability to give.

Richter said the idea of donating money in addition to paying tuition and other fees may seem unappealing to most students, but contributing to the Big Orange Give is more than just another payment to the university.

Big Orange Give means philanthropy, Richter said. It means that future students that come through can have a better experience because of us … it means that our degrees will be that much more meaningful.

Financial Regulators Demand Clearer Picture Of Auto-Loan Risks From Banks

Regulatory bodies are pushing banks to provide more information on their auto-financing units. Auto financing has seen a rapid increase over the years. According to credit rating agency, Equifax, of the $924.4 billion loans since August, 20% are subprime.

Financial regulators like the Federal Reserve, FDIA , Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau are afraid that this rise in lending might stimulate economic growth, but at the cost of greater default rates. As a result, measures are being taken to restrict the exposure these loans pose to the financial system. GMs financial unit and Santander Consumer USA Holdings Inc. (SC) revealed last month that their auto-lending units are under scrutiny from the Department of Justice.

But auto-financing units are not alone in facing inspection. Regulators are asking details about loans banks have granted to other corporate borrowers in the market, including credit lines and commercial LCs.

This information is important to regulators because it helps them calculate the risk the system is exposed to. But financial institutions often fail to disclose such information, either by window-dressing their accounts or disguising instruments as security; in reality, of course, this is not the case. These incognito measures have the potential to be catastrophic for the larger financial structure.

Auto lending is just as risky as mortgage lending. Major banks, such as Capital One Financial Corp (COF), JPMorgan Chase amp; Co (JPM), and Wells Fargo amp; Co. (WFC) owed auto loans worth $50.8 billion as of last years reports. Out of these, around 30% were subprime loans. The countrys largest auto financer is also the largest securities underwriter, collateralized by second-chance automobile loans. Moreover, the banks Iowan unit, Wells Fargo Preferred Capital Inc., has issued credit lines of $1.5 billion in the last three years to various subprime auto-lending giants, as stated by Mamp;A consulting firm, Colonnade Advisors LLC. The bank owns assets worth $1.5 trillion and has a market value of about $264 billion.

Ira Rheingold, Executive Director of the National Association of Consumer Advocates, said: Banks are making a lot of money off these (auto) loans in many different ways.

Why Doral Financial (DRL) Stock Is Soaring Today

NEW YORK (TheStreet) — Shares of Doral Financial Corp.
(DRL) are higher by 31.19% to $6.94 on heavy volume in late morning trading on Monday, after a judge in Puerto Rico ruled in favor of the financial holding company, regarding its ongoing dispute with the territorys Department of Treasury, MarketWatch reports.

Depending on the outcome of an appeal, Doral will be entitled to an almost $230 million tax refund from the government of Puerto Rico.

Doral claimed that the government owed the company $229 million, but Puerto Rico fought the claim, alleging the company secured a2012 tax agreement through fraud, MarketWatch added.

Starwood Property Trust Announces Closing of Convertible Notes Offering …

Starwood Property Trust Announces Closing of Convertible Notes Offering, Including Exercise of Over-Allotment Option

October 08, 2014: 09:55 AM ET

GREENWICH, Conn., Oct. 8, 2014 /PRNewswire/ — Starwood Property Trust, Inc. (NYSE: STWD) (the “Company”) today announced that it has completed the sale of $431,250,000 aggregate principal amount of its 3.75% Convertible Senior Notes due 2017 (the “Notes”), including $56,250,000 aggregate principal amount of Notes sold pursuant to the exercise in full of the underwriters’ over-allotment option.  The Notes were issued under the Company’s currently effective shelf registration statement filed with the Securities and Exchange Commission.  The Notes are the Company’s senior unsecured obligations and rank equally with all of its present and future senior unsecured debt and senior to any future subordinated debt.

The Notes pay interest semiannually at a rate of 3.75% per annum and will mature on October 15, 2017.  The Notes have an initial conversion rate of 41.7397 per $1,000 principal amount of the Notes (equivalent to a conversion price of approximately $23.96 per share of common stock and a conversion premium of approximately 10% based on the closing share price of $21.78 per share of the Company’s common stock on October 2, 2014).  The initial conversion rate of the Notes is subject to adjustment upon the occurrence of certain events, but will not be adjusted for any accrued and unpaid interest.  Prior to April 15, 2017, the Notes will be convertible only upon certain circumstances and during certain periods, and thereafter will be convertible at any time prior to the close of business on the second scheduled trading day prior to maturity. Upon conversion, holders will receive cash, shares of the Company’s common stock or a combination thereof at the Company’s election.

The Company intends to use the net proceeds received from the offering to originate and purchase additional commercial mortgage loans and other target assets and investments.  The Company may also use a portion of the net proceeds for other general corporate purposes, including, but not limited to, the payment of liabilities and other working capital needs.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC served as joint book-running managers for the offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.

About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is the largest commercial mortgage real estate investment trust in the United States. The Company’s core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt investments. Through its subsidiaries LNR Property, LLC and Hatfield Philips International, the Company also operates as the largest commercial mortgage special servicer in the United States and one of the largest primary and special servicers in Europe.

Forward-Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  Factors that could cause actual results to differ materially from the Company’s expectations include: (i) factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, including those set forth under the captions “Risk Factors” and “Business,” and in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, including those set forth under the caption “Risk Factors”; (ii) defaults by borrowers in paying debt service on outstanding indebtedness; (iii) impairment in the value of real estate property securing the Company’s loans; (iv) availability of mortgage origination and acquisition opportunities acceptable to the Company; (v) the Company’s ability to fully integrate LNR Property LLC, which was acquired on April 19, 2013, into its business and achieve the benefits that the Company anticipates from this acquisition; (vi) potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; (vii) national and local economic and business conditions; (viii) general and local commercial and residential real estate property conditions; (ix) changes in federal government policies; (x) changes in federal, state and local governmental laws and regulations; (xi) increased competition from entities engaged in mortgage lending and securities investing activities; (xii) changes in interest rates; and (xiii) the availability of and costs associated with sources of liquidity.

Contact:
Zachary Tanenbaum 
Starwood Property Trust 
Phone: 203-422-7788 
Email: ztanenbaum@starwood.com

SOURCE Starwood Property Trust, Inc.

 

RLPC-Geberit lines up $1.78 bln in loans for Sanitec buy

LONDON Oct 16 (Reuters) – Swiss sanitary systems firm
Geberit said it is lining up $1.78 billion-equivalent
of loans to back its acquisition of Finland-based bathroom
ceramics company Sanitec.

The financing includes a 900 million Swiss franc ($950.47
million) bridge loan to a bond issue and a 400 million
euro($509.32 million) bridge loan which will be refinanced by a
term loan.

The bridge loans have been fully underwritten by JP Morgan,
a banking source said.

In addition, Geberits existing revolving credit facility
will be refinanced through a new five-year 300 million franc
revolving credit.

The financing is expected to launch at the end of this week.

Geberit has offered 97 Swedish crowns ($13.41) per Sanitec
share, giving an equity value of 1.29 billion francs and a 1.52
billion franc enterprise value. Foreign exchange risk is covered
by a hedge agreement.

Sanitec last tapped the loan market in May, when it agreed a
275 million euro term loan and revolving credit from Danske
Bank, DNB Bank and Nordea.

That financing was used to redeem 250 million euro of senior
secured Floating Rate Notes and terminate a 50 million euro
super senior revolving credit facility.

Private equity firm EQT bought Sanitec in 2005, backed with
1.015 billion euros of leveraged loans which were arranged by
Royal Bank of Scotland, HVB and Mizuho.

EQT and Sanitecs lenders negotiated a refinancing of the
companys loans in 2009. EQT injected 115 million euros of new
equity and lenders cut Sanitecs debt in return for a stake in
the company.

Geberit is rated A by Standard Poors.

(1 US dollar = 0.9469 Swiss franc)

(1 US dollar = 0.7854 euro)

(1 US dollar = 7.2329 Swedish crown)

(Editing by Tessa Walsh)

Paul Mathieson, IEG Holdings Corporation Chairman, Announces Mr. Amazing …

Paul Mathieson, Chairman/CEO and Founder of IEG Holdings Corporation, stated, Mr. Amazing Loans continues to rapidly grow loan volumes with growth set to accelerate further post the closing of our new $100m debt facility anticipated in late November 2014. We are targeting record monthly loan volumes for the traditionally strongest consumer loan demand period in the last quarter of 2014. Our aim is to continue maximizing the number of new customers at the lowest acquisition cost and with the optimum risk diversification. Our near term monthly loan volume target is $3 million per month driven predominantly by continued state expansion and also by new loan lead sources.

NASDAQ Up-Listing Intention Update

IEGH plans to lodge its S-1 registration statement with the SEC in early October. IEGH intends to up-list from OTC Pink to OTCQB upon clearance by SEC of S-1 registration statement. The intention is to further up-list to NASDAQ in April 2015 post completion of the December 31, 2014 audited annual report. In preparation for a NASDAQ up-listing, IEGH intends in February 2015 to effect a 1 for 1000 reverse split of its common shares, preference shares and authorized shares, followed by a 10 for 1 forward split. The reverse/forward will reduce the administrative burden and expense of communicating with shareholders who own less than 1000 shares via IEGH repurchasing these shares, which will reduce the number of shareholders by approximately 1000 from 2325 to approximately 1325. The net effect for remaining shareholders, after the combined reverse/forward split, will be a 1 for 100 reverse split with the aim to place the stock in the appropriate price range for a NASDAQ up-listing.

Make sure you are first to receive timely information on IEG Holdings when it hits the newswire by signing up for IEG Holdings email news alert system at http://www.investmentevolution.com/alerts. 

About IEG Holdings Corp.

IEG Holdings Corporation (IEGH) provides unsecured consumer loans under the brand name Mr. Amazing Loans via its website www.mramazingloans.com. After lending approximately $48 million to over 11,500 borrowers in Australia, the Company Founder and Chairman/CEO Paul Mathieson moved to the US market in 2008 to replicate the successful business model. IEGH now operates online in the USA covering the 8 US states of Nevada, Arizona, Illinois, Florida, Georgia, Missouri, Virginia and New Jersey. IEGH is rapidly expanding and plans to offer loans in 25 states covering approximately 250 million people equating to 80% of the US population by early 2015. The Company launched advertising for its online loan origination platform in mid-2013, partnering with top lead generators in the United States. The Companys loans range in value from $3,000 to $10,000 and have a term of four to five years with a 19.9% to 29.9% APR. Significant growth is expected from the online loan origination business, which is scaling much more rapidly and at a higher net margin than the previous brick-and-mortar business. IEGH intends to up-list to NASDAQ in April 2015. For more information about the Company, visit www.investmentevolution.com. 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Companys future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Companys control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Companys current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Image Available: http://www.marketwire.com/library/MwGo/2014/10/1/11G022920/Images/IEG_Holdings-206961677302.jpg

Carrick gran presents cancer drugs petition

A Carrick cancer patient has helped to present Health Minister Jim Wells with a petition calling for equal access to life-extending drugs.

Vera Saunderson (72), a widow and grandmother who has advanced liver cancer, joined fellow campaigners at Stormont on Tuesday.

The Cancer Focus Northern Ireland Equal Access petition, signed by over 24,000 supporters, calls for local cancer patients to be given the same access to 40 cancer drugs as those living in England.

Vera, who shared her story with readers in last week’s Carrick Times, said: “My oncologist confirmed that a drug was available through the Cancer Drugs Fund in England and had I lived there I would be in a better position to access it.

“I replied, ‘Aren’t I a UK taxpayer? Do I not also live in the UK?’ I couldn’t understand why people in England can benefit from this drug while Northern Ireland patients are denied it.”

The campaign has resonated strongly with the Northern Ireland public and the handover at Stormont represents the next phase, the call for the Assembly to act now.

Roisin Foster, chief executive of Cancer Focus NI, said: “England has had a Cancer Drugs Fund to pay for costly non-NICE approved drugs since 2011. Just this week, Scotland announced the creation of a £40m New Medicines Fund, paid for by the pharmaceutical industry under the Pharmaceutical Price Regulation Scheme (PPRS), effectively doubling its current special drugs fund giving patients in Scotland better access to expensive drugs.

“While we fully understand the pressures on the budget, there is a solution to this particular problem that needs to be seized. The PPRS is an avenue that would give much needed access to these drugs in Northern Ireland with little or no extra cost to the Health Department. In the first quarter of this year, Northern Ireland has already received a £2.89 million rebate through the scheme, and a similar amount is to be expected every quarter for the next five years. We would ask that the Northern Ireland Executive establishes a similar fund, which could be adequately funded via the PPRS rebated monies without delay.”

In May the previous Health Minister announced a review of the Individual Funding Request (IFR). At the end of September an evaluation team was established with the review set to begin later this month.  The findings of this review will be available at the end of the year.

Accepting the petition on behalf of the Executive, Mr Wells said: “Let me stress that I empathise entirely with patients undergoing treatment for cancer and other serious conditions and want to assure them that my aim is to ensure they receive the most effective treatment possible.

“Due to the concerns raised by patients, survivors, charities, colleagues in the Assembly and the pharmaceutical industry that the current process around access to specialist drugs could be improved, and to the calls for the establishment of a cancer drugs fund, my predecessor began an evaluation of the Individual Funding Request (IFR) process which governs access to unapproved specialist drugs. I endorse this measure.

“The evaluation will take full account of the measures that other devolved administrations are considering in their approach towards access to specialist drugs.

“The Chief Medical Officer is leading on this work which will be completed by the end of the year. I want to be absolutely sure that patients have the best access to the right drugs and I will be looking closely at the results of the evaluation.”

Flint emergency manager’s report to state says city still in financial emergency

FLINT, MI –Emergency managerDarnell Earley says progress has been made in the year since he was appointed to help fix the citys finances, but Flint remains in an ongoing financial emergency.

Significant work has been accomplished to stabilize the financial situation of the city of Flint, Earley wrote in an Oct. 8 letter to state TreasurerKevin Clinton. The whole organization has been restructured to reflect a smaller, leaner government operation.

I acknowledge that substantial progress has been made, however, the city is still experiencing an ongoing financial emergency. Resolution of the financial emergency will not be complete without providing a basic framework for, and implementation of, an objective model for the organization to follow.

Part of what Earley sees as the framework was expected to be presented to the City Council Monday, Oct. 13.

Earley said the citys finance director will propose two draft ordinances for council committees — one to spell out the process for developing and updating a strategic plan and another for the development and adoption of biennial budgets and three-year financial forecasts.

Financial Director Jerry Ambrose in an Oct. 10 letter asked the council to approve bothordinances to establish the new strategic planning and budgetary processes.

Earlier this year, the council adopted a strategic plan for the city, which included a vision, mission and goals for the next five years.

The strategic plan covers areas such as governance and administration, police, fire and public works and lists key objectives for various goals as well as whether the city has started, completed or is in progress of achieving each of the goals.

Aldermen approve $18M operating budget for FY ’14-’15

Starkville aldermen concluded a months-long budgetary process Tuesday by passing the citys financial operating parameters in a 4-3 vote Tuesday.

Since March, most city department heads promised the three-person Starkville Audit and Budget Committee, comprised of Aldermen Scott Maynard, Lisa Wynn and Roy A. Perkins, they would produce budgets relatively level from their current Fiscal Year 2013-2014 levels.

The Dispatch used a Sept. 11 budget worksheet to compare individual departments line items after the board approved the document without any changes Tuesday.

Many departments are relatively flat, but human resources, building department-code enforcement and offices of the city planner and mayor all saw their individual funding streams increase at least $48,000 from the current years budgeted amounts.

Also, the citys primary debt service fund increased $196,345 for the upcoming fiscal year, which starts Oct. 1. Starkville is forecasted to make roughly $1.41 million in principal and interest payments for various projects, including an estimated $541,525 for construction of its new administrative building.

Potential payments for Cadence Bank, which could cost the city an estimated $1.55 million to acquire the structure for Starkville Police Department purposes, are not yet budgeted as a deal is not solidified.

Starkville is forecasted to collect about $4 million in ad valorem revenues alone in the upcoming fiscal year, a figure staff told aldermen this week was budgeted at 90.7 percent of the actual expected amount. Adding intergovernmental revenues, including licenses, forfeits, services and other miscellaneous line items, total predicted revenues increase to $18.19 million. Intergovernmental revenues also include numerous grants for fire and police services, a $200,000 brownfield grant and portions of the 7 percent sales tax and 2 percent food and beverage tax.

Comparatively, the city budgeted revenues at $17.29 million, $18.83 million and $18.43 million for FYs 2011-2012, 2012-2013 and 2013-2014, respectively, while reporting its total activity for those years at $16.13 million and $17.34 million for the first two time periods. The proposed budget The Dispatch received from the city was prepared Sept. 11. As of that date, the town received $15.14 million in general revenues for the current fiscal year.

Starkville Police Department will receive the highest budget increase as the FY 2014-2015 budget shows an additional $128,522 for line items including personnel services, supplies, contractual services and debt payments. Its total departmental budget, not including administration and outliers, such as individual line items for training and animal control, is budgeted at $3.98 million.

Its personnel services, which include salaries and contributions to insurance and retirement, increase from about $2.9 million to $3.3 million. Specifically, wage payments are budgeted to increase from $1.68 million to $1.85 million.

The police departments supplies line item increases by about $9,000, but its gasoline and oil budget within supplies remains budgeted flat at $150,000. A line item for uniforms increases from $25,800 to $35,800 in the upcoming fiscal year after the current year-to-date total shows it went over at $35,936.90.

SPDs administrative budget, which is specifically for the department heads salary its associated city personnel contributions, decreases from $103,072 to $95,710 in FY 2014-2015. The document shows that the city is almost $12,500 over that line item for the current year as of Sept. 11.

The mayors office is the second-highest budgeted increase for FY 2014-2015, as it forecasted to receive an additional $98,807 in the upcoming financial year. Approximately $321,025 is set aside for the office, while $228,218 was budgeted this current fiscal year. The budget worksheet obtained by The Dispatch shows its total line item went over budget by about $12,000 this fiscal year.

About $152,000 is budgeted for Mayor Parker Wisemans and Chief Administrative Officer Taylor Adams salaries, but the departments total personnel services combines to a budgeted $237,125, which is about $43,000 more than last years amount.

It is believed Adams salary transfer — he was city clerk in the last fiscal year — led to the spike in the mayors offices salary figures and a significant decrease for the city clerks total budget cost.

Contractual services for Wisemans office will more than double next fiscal year, jumping from about $35,000 to $76,300. An additional $4,000 is provided for the mayors travel budget, while $11,000 was added for the CAOs travel budget, a line item previously left blank. The departments administrative assistant is also budgeted for $3,000 in travel, another line item that was nil before the upcoming fiscal year.

The FY 2014-2015 budget worksheet completed Sept. 11 show the mayors travel budget went over about $6,000 this fiscal year from its budgeted $7,000 line item. The year-to-date total showed $13,085.11 was spent.

Starkvilles human resources office has the third-highest increase in regular departmental funding as personnel administration is budgeted to receive about $65,000 more than it did in the current fiscal year. Its total line item increases from $117,467 to $184,725 primarily because of increased salary requirements after aldermen added an assistant personnel director to shadow and assist Randy Boyd.

Other significant departmental increases include:

The city planners office will receive $53,000 extra in funding next year. While personnel services for the department is forecasted to decrease, contractual services are budgeted at $100,050, almost $70,000 higher than the current fiscal year.

Building department and code enforcement line item increases from $218,911 to $266,919 — roughly $48,000 — for FY 2014-2015. Personnel services alone jumps from $191,407 to $239,365, and the budget worksheet shows that line item over budget at $202,833.83 for the current fiscal year.

Other major line items reporting minor increases include figures for Starkville Municipal Court (about $12,000), engineering (about $2,000), fire administration (about $2,000), the fire departments overall operating budget (about $3,000), street department (about $2,000) and animal control (about $2,000).

While most departments remained level or experienced increases in their upcoming budgets, Starkvilles Information Technology department trimmed its budget by $100. The city clerks office, the board of aldermen and Starkvilles line item for other administrative costs had more considerable decreases at about $105,000, $10,000 and $30,000 respectively.

City Clerk Lesa Hardins office is budgeted for a significant decrease in personnel services, as it will drop from $421,164 to $313,500. The departments overall line item for the current fiscal year is $543,214, and the budget worksheets year-to-date total shows it well under that figure at $397,000. Overall, the office is budgeted at $435,600 for the upcoming fiscal year.

Starkvilles capital projects fund also drops significantly in the upcoming financial year, decreasing about $217,000 from $862,654 to $658,000. The city reserves $100,000 for its municipal building fund, $20,000 for Americans with Disabilities Act sidewalk improvements, $300,000 for street projects, $50,000 each for Carver Drive ditch and Russell Street projects and $70,000 for storm drainage in that specific line item.

The citys sanitation department predicts $2.71 million in revenues, of which are mostly fees, for the upcoming year. Its total expected revenues fall $4,000 short of what was predicted for FY 2013-2014, but the year-to-date tally had that figure at $3.16 for FY 2013-2014.

As of Sept. 11, it had collected $2.8 million in fees for the current fiscal year.

Sanitations expenses are expected to increase about $40,000 to $1.96 million in the upcoming fiscal year, primarily due to an additional $40,000 that will be spent on higher quality garbage bag distributions.

Combined water and sewer revenues are budgeted for a decrease from $10.03 million to $9.77 million. Water sales alone are forecasted to drop from $3.2 million to $3.1 million, while sewer sales are expected to increase from $1.9 million to $2 million. Those only constitute a portion of the departments combined revenues, however, which are also derived from tap fees, material sales, wastewater revenues and miscellaneous income.

Year-to-date figures show sewer sales exceeded its current fiscal year forecast by $130,000 as of Sept. 11, while water sales were only about $150,000 shy of hitting its predicted mark.

The water departments general expenses are budgeted about $500,000 shy of FY 2014-2015s $3.82 million level. It will add a $290,608 line item to help purchase automated metering systems, as previously approved by aldermen.