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State Auditor’s Report on O.S.
The State Auditor’s office today released reports on Ocean Shores.
Excerpt I:
The City continues to make expenditures in excess of its appropriations, putting it at risk of not being able to pay its obligations.
Description of Condition
During the 2006, 2007 and 2008 audits, we communicated concerns to City management regarding expenditures in excess of its appropriations. The audit for 2009 also found the City made expenditures in excess of its appropriations in seven funds, totaling $68,502, the largest being $37,698 in the Water Utility Fund.
We also noted concerns regarding the City’s financial condition during the 2006, 2007 and 2008 audits. These concerns continue.
The City’s ending cash balance for the General Fund continues to decline . . .
Excerpt II:
Debt repayment expenditures are 20 percent of the City’s budget. The City anticipates issuing a $45 million bond by the end of fiscal year 2010 to finance the cost of a Local Improvement District for street improvements. This bond includes refunding $39,689,914 in bond anticipation notes included in the figures in the table above. The $5 million difference between the $45 million bond and $39,689,914 in refunding the bond anticipation notes will result in a net increase in the City’s debt.
The City has issued inter-fund loans to 11 funds from the Water Capital Improvement fund to offset negative fund balances during 2007 through 2009. The City’s outstanding inter-fund loan balances are approximately $1.2 million as of December 31, 2009. Five of the 11 funds had a negative fund balance of $373,350 as of October 31, 2010.
In addition, the City did not properly authorize inter-fund loans, by Council resolution, to the Convention and Tourism Fund in 2007 and 2009 for $90,150 and $40,870, respectively. Furthermore, the City does not maintain debt repayment schedules for inter-fund loans.
Part of the tyranny here is that the state is powerless to enforce anything. Only the citizens can pursue change. The ballot box works about 25% of the time. We learned that in the last elections. What they tell you while soliciting your vote is one thing. What they do is another. Part of that is that they have to do their own independent research to verify what staff is saying. How many times have staff had to rewrite or redo tasks because they were wrong from the beginning. Quality Control is needed in the staff. If they can’t do the job at the highest level, find people that will. Stop hiring friends and family.
They will not veer from a process they have dictated for you and use your taxes to make that process perfectly legal. Wisdom, practicality and common sense are never considerations. Only citizens can change things.
This requires active, interested citizens willing to participate in city government. Sitting back waiting for others to do it won’t work. Democracy doesn’t function that way. They knew this in Greece in 550BC and again in 1776. Citizen apathy and ignorance always results in tyranny.
I would start/sign it in a flat second, if I had a vote, but no voice for me yet
i’ll bet the council has already figured out a way to have the voters pay for legal representation, for themselves, when the state files action against the mayor ans sitting city council.
the state has confirmed what we, as residents, have known for quite a long time now. hey neighbors, we have all said “enough is enough”. now we need some action. how about petitions for emmediate recall of all council members and the mayor? is there actually anything we can do or we stuck for ever in this eddy of our money swirling down the toilet?
Did you read any recommendations/mandates about what the city should do about this unchecked spending of money they are doing? NO!! They will just ignore this report like they ignored the recommendations about the cost allocation table indebtedness. Until the state gives the auditor some enforcement powers over this spending spree the city has been on, it will continue indefinitely. One alternative is to contact our state legislators to give the auditor some powers of enforcement, or it will go unabated. Another way of changing this is for an initiative to be signed by 10% the voters that voted in the last election to call for a city election to amend the city ordinances to provide for a balanced budget and repayment of this debt. Is there enough of you out there in “voter land” to start/sign such a petition? Is it time for the NCN to run a poll?
Aha, should have checked here first, you already got it : )
Paul just got his hand slapped! Peter, don’t hold your breath waiting to get the money back quickly! I think we need more Franchise Fees so vendors can pass the cost on to taxpayers. They will never notice it on their bills.