Another day, another go at being treasonous.
Treason: (v)[cleeng_content id="218362364" description="Why stop now? It's just getting interesting!" price="0.99" referral="0.10"]According to Commissioner Asschaps, treason is the act of sharing damaging, but true, information.
For those interested, this post will highlight the “clear and present” dangers offered up by the City of Lauderdale Lakes to the taxpayers of Broward County. Apologies in advance for getting wonky.
And so with that, let the games begin.
- On 12/31/2011, the City presents a financial report (download) to the County listing a $1.2M cash carryforward in the General Fund for FY11 Ending.
- On 2/7/2012, the City’s financial report (download) shows the funding now at $2.6M.
- The City’s FY12 Cash Flow Analysis (download) shows the FY11 Beginning at $600,000.
Here’s where the
fun starts problem begins.
- With a $600,000 cash carryforward GF balance, the ending balance would be $855,834.
- With a zero cash balance, the ending balance would be $255,834.
- We noted, and the OIG verified, the city “magically” projected to collect more cash than budgeted in state revenue sharing.
- Results of the MAOS independent cash flow analysis (download) projects a $1.2M cash deficit at FY12 Ending, based on the adopted 2012 budget with zero beginning C/F balance as of FY11 Ending.
And it is not only us who is really concerned about the City’s ability to get the numbers right:
- The OIG auditors could not reconcile the city provided numbers.
- The city’s own auditors have also stated a lack of confidence.
Question: Is the OIG also to be accused of treason?
You will recall from our own reporting, the City increased the BSO debt to the County at the last minute. So, if there was money in the General Fund, why couldn’t the City pay BSO?
Also recall the City admitting to “borrowing cash” from Special Assessment funds (i.e. the $422,000 now owed to Waste Management).
If you think budget issues are so FY11, here’s a choice few items from FY12:
- The City’s debt was misstated by over $500,000
- Money is still improperly being transferred from the Fire Assessment, Gas Tax and other Special Assessment funds (noted as an issue in the OIG report)
- Revenue Sharing numbers appear to be high (another OIG report issue)
- The Fire Assessment Fee was increased by 25%, making many question its legality.
- The Stormwater Fees were increased by 160%. And for what?
- The vaunted Lease/Buyback plan to generate cash withered and died on the vine.
So what’s the City’s position now? Besides being on track to go belly up by the beginning of summer (is that a mountain goat in the clouds?).
- With the certified audit six months late, no one knows exactly the City’s FY11 Ending position.
- This is the time of year to make FY12 budget adjustments and begin the FY13 budget process. How can that be done given what we now know? And given the clear lack of talent on the city’s payroll.
- Next month, the City will present the County with their long range plan. Using what data exactly? Any long range plan would have to use 2012 data, which we have proven to be misleading.
As so eloquently stated by The Big Lebowski,
The Dude: Look, nothing is f***ed, here, man.
The Big Lebowski: Nothing is f***ed?
[shouting] The Big Lebowski: The god damn plane has crashed into the mountain!
Finally let me ask you this.
:JA: has no prior CM experience and has never worked a city budget. His Finance Director, who he personally choose, isn’t a Finance Director.
Would you want those two blithering f***ing idiots leading your city?
On the CRA agenda next week, there is a resolution to waive the interest on the City’s payment since is was made after Jan 1.
For those not in the know, Florida Statutes requires interest be charged/paid if the TIF is paid after Jan 1.
- 2012- waive interest for late payment from City
- 2011- waived interest for late payment from City
- 2010- City payment not made, included in $2.5M debt agreement
We note the other three payers (aka non-dirtbags) paid on time.[/cleeng_content]