Last year, instead of a loss of $16 million (as they projected), UMC actually ended the year with a $800,000 surplus and they doubled their cash reserves:”cash reserves doubled from what was originally budgeted — from $30 million to $60 million”! Amazingly enough, this information came out just as the UMC Board was deciding what Jim Valenti’s bonus was going to be. They even raised his performance score so that he would be eligible for a larger bonus.
The news is not as cheery this year, according to UMC, they are looking at a loss of $15.7 Million for the 2017 fiscal year:
If you look closely, you’ll see that El Paso First and the UMC Foundation are both projecting net positives and it’s the positives from them that are pushing the NEGATIVE from UMC down from $22.1 million to $15.79 million.
So, what has happened? Did UMC and its CEO paint a more rosy picture so that Jim Valenti would be eligible for a bigger bonus in 2015 and then kick the problem to 2016 for the new CEO to handle? No doubt, UMC will try some creative ways to make up the deficit. But, we find it hard to believe that anything other than a property tax increase will cover the projected $15.79 million loss.