Union continues to put City Manager Mike Good under a microscope

HALLANDALE BEACH–  As a smaller city we still have many of the same issues to address as larger cities here in Florida and around the nation. Recently a mailer was sent out to every resident in Hallandale Beach including my home that I believe needs to be addressed. If you have not seen the news reports, television or the flyer they are the same union protests that are taking place around the nation. At our previous commission meeting a question was raised about the flyer.

   Ask the Mayor? Why is the union singling out the city manager and not the city commission? I personally thought this was an excellent question and addressed it in the following manner during the commission meeting. The flyer should direct the residents to contact the city commission since we are the deciding body that gives direction to the city manager to negotiate in good faith all our contracts. He is our representative.  He is our lead negotiator and has been negotiating in good faith under extraordinary financial circumstances.

   Is our city under siege? At the same commission the city commission adopt one of 4-0 vote (Commissioner London was absent) to adopt our comprehensive annual financial report CAFR. This report addresses many items including staffing levels.  The CAFR is done annually and is financial statement created by staff and audited by an outside auditing company. The report includes a complete balance sheet for the city that includes a thorough review of assets and liabilities, revenues and expenditures and additional notes to the financial statements that cover pensions, special revenue funds and schedules analyzing demographics and specials districts for the period ending September 30, 2008.

   In reporting on the CAFR I pointed out the schedule which covers full-time equivalent FTE of all employees from 1999 to 2008. In 1999 there were 90 sworn police officers and in 2008 there are 101 sworn officers. The highest amount of sworn officers on duty was in 2003 at 105. Last year it was 103. These fluctuations have been due to retirements and terminations. In 2007 the city started to look at hiring freezes in all departments in order to reduce our budgets without jeopardizing the safety and security of our residents. Most importantly we have the goal of avoiding any layoffs.  Both Chiefs and all directors have the ability to make direct requests to the city manager requesting the ability to fill vacancies.  In addition our city has been firm in its commitment to do more with less. In 1999 FTE’s were at 522. Last year the FTE was 471.5.  As a note we have continued to be a full-service city. This means we do not contract out our services to outside agencies.

   These are extraordinary budget times. Many readers know that I am an Advisory Board Member of the US Conference of Mayors. This organization works with mayors from all around the country to address mutual concerns and study best practices of our colleagues to bring back to our communities. This past conference was quite unique in the fact that the Obama Administration decided not to send VP Biden, any secretaries or staff to participate. Their decision was based on the fact the local firefighter union was protesting.  They have been in arbitration with the city of Providence over their union negotiations for two years. To say the least this was quite disappointing to all the mayors. The Obama Administration offered to have a special meeting at the end of June at the White House with mayors instead.

   At a press conference Pres. Manny Diaz eloquently summarized the sentiments of the US Conference. “Our Organization started almost 80 years ago as a partnership with Pres. Roosevelt to pull America out of the Great Depression. A partnership built on trust respect and deep commitment to improve the lives of the American people. And today when in the midst of the most serious economic crisis since the Great Depression, the importance of the partnership is more important than ever.” The mayor continued to describe the challenges being faced from city to city and why now it is even more important for mayors come together to address the issues with the President.

   “None of us in this room are insulated from economic challenges faced by the city of Providence. This choice may not differ from future choices of going to Chicago LA New York Philly or Miami. This administration is setting a very dangerous precedent. Our president has called on all Americans to sacrifice. Mayors sacrificed before and we will do it again. We must not be asked to bear the burden alone.    Sacrifice often means doing things that we don't want to do; doing things we don't like to do; doing things that keep us up all night.” Unlike   DC we do not talk about sacrifices we make them every single day. Unlike DC we do not print money. Unlike DC we balance our budgets every year. Unlike DC we are often forced to layoff valued employees; employees we genuinely like and whose work we appreciate. We cannot run away from our problems.”  

   This prominent issue is playing out throughout the nation and mayors are on the forefront of what is the next critical challenge facing our nation. We are required to balance our budgets and address long-term obligations while not bankrupting our communities. Providence’s battle was over the fire union not wanting to contribute any of their salary to health benefits. They are still pursing resolution. Other cities have been laying off numerous first responders and police officers. These are very difficult decisions to make. As Mayor Diaz stated we all need to realize that now is time to work together and understand that everyone must make sacrifices to get through these extraordinary times.

   Our CAFR pasted this year’s audit with no material deficiencies. This means there was no abnormalities that showed lack of internal controls to protect our city's assets from fraud and loss. This year is the 22rd year the city has received A Certificate of Achievement for Excellence and Financial Reporting from the Government Financial Officers Association of United States. 

   As with all organizations we continue to strive to improve all our operations and reporting. To complete the CAFR during this reporting process there were over 58 responsibilities for the fair presentation of financial statements, financial positions and cash flow that must conform with generally accepted accounting principles of the United States. These obligations continue to grow and will continue to include new GASB regulations providing for true accounting of lands held as investment, intangible assets, reporting of derivatives and all other financial obligations tied to city long-term costs.

   There were recommendations made by the audit team and noted by the auditors. This year there was a delay in conducting a recording of all our capital assets. This was due to the retirement of Central Services Director Dent McGough. The change adopted by the city will provide for cross training to accountants specifically assigned to this task. Another recommendation suggested was to tighten up the reporting of accounts receivable and subsidiary ledgers related to CRA loans. This delay was a result of changeover in the Department. The one last recommendation was to hire a second Assistant Finance Director/ Controller due to the additional work required by GASB. Now all documents must be prepared by the city not the auditors. Due to budgetary restraints the city manager has directed Assistant City Manager   Mark Antonio and former Finance Director this duty. The city commission concurred with this direction and also suggested the continuation of Internet technology upgrades. 

    With all the special issues that have been addressed by the commission my last few columns has been dedicated to offering some understanding of actions of the commission. Even with the economic doom and gloom the city commission still continues to be fiscally prudent in monitoring all of the city's investments and pensions. All the reports of slow recovery have been accurate. While the majority of our funds have been stabilizing there are still reports of negative returns on investment. In both the general employees and professional management pensions the funds have improved to a smaller negative number. Principal Financial Group reported that they are anticipating at least moving out of the negative returns. 

   As a note of all these funds are long-term and based on a 30 year horizon.  The commission questioned whether there should be a change on the assumed rate of return which is now 7.75 basis points. It was agreed to stay the course understanding that reducing assumptions would create even a larger burden on our general funds. The continued approach will be to smooth losses and gains along while striving for full funding.

   We also monitor as commission investment results for our surplus funds. Surplus funds include all our contingencies and operating funds that are not encumbered. Our investment strategy includes that there is sufficient liquidity so we have access to all funds in case of emergency. At least this quarter report continues to show promise and continues to outperform the benchmark. 

   On a more upbeat note Hallandale Beach has many groups and residents to be proud of. They are the ones that always make lemonade out of lemons. One of those individuals is Stephen Greenberger. Greenberger is the President of Broward County Crime Stoppers but most importantly he is the Vice President of Hallandale Beach PAL. Stephen knows all too well of how crime impacts our community on a day-to-day basis. Even with the increase of crime nationwide due to the economic crisis he can find a silver lining. He informed me that Crime is Stoppers has been more and more successful due to witnesses coming forward to receive reward money. 

   He also understands that without a proactive approach to keeping children off the streets we cannot fully address crime in our communities.   He was recognized by the city commission and the PAL Board of Directors for his outstanding service to over 2000 children that participate in PAL sports. Stephen is simply an outstanding caring individual that realizes we need to be engaged in solutions. He dedicates an amazing amount of time and resources to PAL, simply because he loves our community. I like to joke with him that he has adopted all the kids in Hallandale Beach so he definitely needs to stick around for many years.  Stephen received his award and the presence of the two award-winning Championship PAL Soccer Teams. This is the second year in a row at our soccer teams have placed first in the area competing with many teams around Broward. Not only did the one boy’s team win a championship they had a perfect season. 

   GREEN TIP:  We are still under water restrictions even though there has been a tremendous amount. Please make sure your sprinklers are set properly.