By Lisa Essig

click here to see the official document

What is a city to do that has so many needs and so little money when it receives a windfall in the form of a class action lawsuit settlement? Anyone who drives the streets of Liberty knows we have needs. More than we can attend to, an understandable quandary for city council for sure.
 
With dwindling cash reserves and a forecast that the city will be unable to meet bond obligations without either cutting promised projects or raising taxes would it be more prudent to save the telecom settlement money? That is the question one councilman (Nick King) continues to ask.

The funds in question are $1.385 million, most of which was not accounted for in the 2008 budget.

Early in the year Councilman Jenness proposed that we spend 100% of those funds on our ailing roads. A prudent use of the funds at the time of the proposal. It is true we can probably not spend enough on roads right now.

Some on the council feel it would be most prudent that we save the entire settlement to shore up the "financial management challenge" using the words of city staff who in a June 6th study session prefers not to use the word "crisis". Both councilman King and Brenton referred to the city's situation as a potential financial crisis. Equally as many members are ready to spend it all now.

Others on the council wonder why it has to be an all or nothing proposition? A compromise settlement seems to make sense, save back enough to raise our cash position while meeting the most immediate needs with some spending. We will refer to the plan as "Pave and Save".

City staff has a spending proposal currently in front of the council that would  spread the money out over a variety of projects. The outline is as follows:

$200,000-Improve the projected 2007 ending fund balance to 12.1%

What should be gleaned from this? It has been customary to maintain a cash position of 15% of the general fund budget, and this figure has been dwindling since 2005. We can only assume without adding cash from this settlement we are at or below 10%. This only brings our cash position to 12.1% as of 12/31/07 and does not guarantee we will remain there throughout 2008. 

$86,000-Secure replacement of IT equipment

$200,000-Implement Sewer / Water Main backup storm water mitigation program

$150,000-Traffic Calming and crosswalk repairs Kansas St. / downtown

$150,000-Storm and sanitary sewer repairs Kansas St. / Franklin St.

$426,000-Additional Street Overlay Funding

$25,000-Street Condition Update

After being directed by council in a study session to consider a scenario that would set aside more of the settlement they brought back a proposal that took all of the proposed spending cut from road overlay. (Scenario #2)
 

Liberty Forward's Plan: SCENARIO #3 as follows:

1. Add $426,000 to Street Overlay budget as proposed.
 
2. Prioritize the remaining items in the 2009 budget. And consider them within their own budgets on a case by case basis. If other budgeted 2008 spending falls short or comes in lower, use those savings to purchase these new items.

3. Save the balance $811,000 through the discussion of the 2010 tax extension discussion and the 2009 budget discussions. Remember in 2009 and for years to come we cannot meet bond obligations without raising taxes or cutting other projects. As part of their tax extension plan staff is proposing we cut or delay capital projects that have been in the works for many years. Discussions regarding prioritizing those cuts should include these new projects being recommended as new expenditures for the telecom settlement money.  

We would consider the roads an emergency need. Consider only other proposed items also classified as emergency needs. Unless we have missed something we have not heard that any of these items proposed would be classified in such a fashion.  Remember none of these items made the cut in the 2008 budget. 

It seems as though we need to take care of our streets and at the same time start shoring up the holes in the boat where we are leaking so that we can have the much needed discussions about the city's financial management challenge we so desperately need to have.

This plan significantly adds to the street overlay, holds back money that helps protect our city's dwindling cash position, and it provides incentive to look for ways to save money in the existing 2008 budget in a way that we can bring in some of these additional very worthy projects.

Let us know what you think, as the forecast for revenues continues to be flat, managing spending priorities will be more critical. Let us know where you think the city over spends, under spends, and spends just right!

by Simon Peterson - guest contributor

Tonight at the Liberty Community Center, a group of citizens filed in one by one, petitions in hand. In scarcely more than two weeks, the citizens of Liberty have spoken and spoken loudly. Grass roots democracy was alive and well in Liberty, Missouri tonight. The state audit is going to happen, and  rs fairly swiftly it appears. Approximately 2400 signatures are in hand. With the required number of around 1950, it seems certain there are more than enough signatures for the audit.

William Walker is someone we all owe a debt of gratitude to. His easy going, quiet demeanor can never be confused with apathy or lack of concern. This man has been criticized, and painted as a demon by the Liberty School Board.

Mr. Walker just had the fortitude to carry on and and do what is right, even though he knew some people he cared about would be impacted. Mr. Walker showed concern for the families impacted  in lieu of gloating about his accomplishments. He is the type of citizen our founding fathers would be proud of.

An excerpt from a scripted email response from one of the school board members goes as follows:

Who is William Walker,What political affiliations does he have in our community? Has Mr. Walker been mistreated or offended by anyone in the school district?  Why has all of this attention arisen at the same time of the bond? .....Is it coincidental? Why did none of the school board critics run for a board of education seat this past spring? How does taxation, TIF AND THE I-35 DIVIDE ALL FIT INTO this call decimate the Liberty  School District.

I will attempt to answer the questions of the unnamed school board member:

Who Is William Walker?
William is a compassionate caring man. He is a courageous person and I'd like to think we all have a little William Walker in us, we just don't always know how to introduce him to our friends. 
What Political Affiliations Does He Have In Our Community?
Based on observations of the people involved. it appears his affiliations are with Men & Women, Democrat & Republican, Young & Old, Liberal & Conservative.   
Has Mr. Walker Been Mistreated or Offended By Anyone In The School District?
Mr. Walker as a citizen has been mistreated along with the rest of us. The lack of proper oversight from the board, the theft of school money and resources, and the arrogance from most all involved is offensive to all of us.
Why Has All This Arisen At The Same Time As The Bond?  
This was clearly another clever way to make him a demon. Fortunately, the citizens saw this as two separate issues, even though the board tried their best to make them one. This district has always used the argument that if you are against their decisions you are against the children. You can see what this attitude has gotten us. 
Why Did None Of The School Board Critics Run for a board seat this past spring?
A very valid question that says maybe we deserve the government we elect. I don't think anyone has to worry, next time we will have a full slate to choose from.
How does taxation, TIF and the I-35 divide all fit into this call decimate the Liberty  School District?
Well just another example that if you disagree with the board, than you are the demon attempting to decimate the district.  This question alone tells the story. Anyone dare disagree with board policy or decisions, and you are against children and are out to destroy the district.

Thank You William for setting an example for our children.

If you would like to be a guest contributor please email us at: info@libertyforward.org


 Check out more at http://www.libertyforward.org.

 

Will the school board finally take some action tonight? Kicking and screaming it appears the board may do something tonight in a closed meeting. If it is a personnel decision it is unlikely it will be announced until the end of this week. Don't hold your breath as it appeared they were going to consider the State Audit in last week's special meeting and they simply dug their heels in further.

Certainly the citizens have spoken, now with an estimated 1700 petition signatures this group is well on it's way to completing the petition drive in short order.  It is estimated by the election board that the required number of signatures is around 1950.

The following was posted on the Board Of Education Website:

There will be a closed session of the Board of Education of the Liberty School District No. 53, Liberty, Missouri, at the District Administration Center, 650 Conistor, Liberty, on Monday, April 14, 2008, at 5:30 p.m. – closed session including any record or vote for the purpose of discussing legal action confidential or privileged communications with the District’s attorneys and personnel as provided by law (§ 610.021 (1), (3), (13) RSMo.).

For those who have not yet signed a petition or who have petitions that need to be turned in there will be a meeting at the Community Center this Thursday April 17th in the WHITE room from 7pm to 9pm. Documents will be on display for citizen review, petitions will be available to sign, and a notary will be present to certify petitions. We are all hopeful that the required number of signatures will be turned in by Thursday at this meeting.

Even though the Governor has ordered an audit, it is important to finish out the petition drive as it will ensure the State Auditor can begin expeditiously. Without the petitions the auditor will have to wait on a funding initiative from the legislature which will come in due time. In addition it eliminates the argument some board members are making about the Governor circumventing the will of the people.

We encourage everyone to take an active role as restoring the trust and confidence back to the district. It is going to take a community effort.

The LIberty Board Of Education has canceled their emergency meeting scheduled for tonight and rescheduled it for Tuesday April 8th at 6:30 pm.

.

Editorial - Jeff Moore

Last night I attended the citizens meeting led by Mr. Jim Moores and Mr. William Walker with respect to the petition drive for a state audit of the Liberty School District. As I sat and glanced around the room of approximately 50 citizens I couldn't help but feel humbled and proud of this group of Liberty residents.

All persons in attendance were respectful, calm, yet determined to complete the task at hand - obtain the necessary number of signatures required by state law to call in the state auditor. This is grass roots democracy at its best just as our forefathers must have had in mind for all local government when they founded our great country.

Just as the group had completed the process of making sure all the polls were covered on Tuesday, Representative Tim Flook arrived with news:

The School Board Had Called A Special Meeting For Tonight April 7th at 6:30 PM to address the request for a state audit.

In addition, he announced that all 3 of the elected officials that represent the district Luann Ridgeway, Doug Ervin, and Tim Flook have signed a letter that was to be delivered to Governor Blunt this morning requesting that he intervene today with his power to request the state audit from his office.

If either the school board votes unanimously for the audit or the Governor calls for the audit the petition drive would be unnecessary.

It is important for the citizens to attend this meeting tonight. The following statement can be found on the agenda for tonight's meeting:

The board of education will meet to discuss and take action on the request for a State Audit.

It is important to note that this vote must be unanimous in nature and everyone on the board must be in attendance.

This is a critical vote that is the very first step in the healing process.

We at Liberty Forward urge you to please attend this very important meeting tonight.

Check out more at http://www.libertyforward.org.

Liberty Forward is in full support of the effort the citizens requesting a state audit of the Liberty School district. Waste, fraud and abuse is rampant in the school district. The top Liberty School District administrators have acted recklessly and they have disrespected Liberty taxpayers, our fine teachers, and most importantly our children.

While these leaders were actively involved in a lawsuit against the state because they stated state funding was insufficient, they were treating the tax dollars they had in this fashion. This is arrogance in it's purest form.

Tomorrow at 3:30pm, these citizens are holding a meeting at the community center to unfold the information they have in hand. We urge everyone to go to this meeting and participate in learning about what exactly goes on with their tax dollars.

We stand in support of the Citizens Against Unethical School Spending.

Shame on the Liberty School Board for not doing their job in overseeing their employees.

The school's proposed audit is disingenuous. This auditor is not going to audit for fraud or performance, but a state audit will.

We urge you to attend this meeting,  and we pledge our support to help this group get the needed signatures for a state audit.

         


       

What drives Liberty Forward?

If you wish to simply explain Liberty Forward’s platform of Fiscal Accountability you have to look no further than the basic needs our city has. Yes we need more Police on the streets, yes we need to a see a road crew now and then, and we certainly don’t need sewage or storm water in our basements.

The simple answer is to throw new money at these problems. The sensible but difficult answer is to figure out why these needs have not been met? City revenue growth has kept pace with the population growth. We find it very difficult to blame the population growth on the other side of the highway for wearing down our infrastructure or draining our emergency services. This argument works for the schools but not the city.

It is a simplistic solution to think we can grow our way out of this without adopting better fiscal policies. We agree that sales tax growth is needed; however there are no guarantees, and further deterioration of our streets and further increases in the load on our police department is not acceptable.  

We commend the Police Department as the city department that does the most with the least. We see professional, hard working, and visible officers, in our opinion the best in the business. If we could get as much out of the rest of the city departments as the Police department gets out of their budget we would not be in the predicament we are in now.

As April approaches we fully expect city cash reserves to be lower than expected or predicted. The time has come to tighten our belts at city hall. However as we tighten our belts it is time that a larger piece of the pie be spent on basic services such as Police, Streets, and Storm Drainage.

Liberty Forward makes the pledge to continue to be the watchdog on city spending. 

 

Moving Liberty Forward requires public safety, clean neighborhoods, and good streets.

Liberty Forward pledges to participate in the solution, however that does not always mean going along with status quo.

On Tuesday February 26th, Mayor Bob Steinkamp delivered his state of the city address. In this address it is clear that he feels the city must "develop" its way into the future. And to accomplish the development we need to spend and to spend we need to borrow and to borrow we need lots of leverage so we can borrow big, only then can we develop enough to save the day.

His speech failed to give the state of the city's cash position which is roughly 1/2 of what it was in 2005. In his speech, the mayor acknowledges that prior administrations committed the city to projects inconsistent with voter intent,  what he doesn't make clear is the impact of those decisions on the city's fiscal health. Underfunded mandates, like Fountain Bluff, though there are others, has created a serious cash flow problem for the city. He fails to acknowledge that poor spending habits have continued on through his administration.

Liberty Forward would like to thank the Mayor for acknowledging our efforts. In his speech he says:

"As is the case throughout this country, and as it should be, there are citizens within our community that scrutinize all things government. Groups in this community have spent considerable time and effort looking into the decisions and actions of past administrations. Like some of the residents, I have voiced concerns over decisions related to Fountain Bluff and other aggressive projections and questionable strategies of former administrations. With the benefit of 3 years in this position, it is my belief (mayor Steinkamp) that practices of the prior administration followed an overly broad interpretation of what voters might expect from the use of those tax revenues....."

IN THE COMING DAYS LIBERTY FORWARD WILL POST THE ENTIRE SPEECH TRANSCRIPT  FOR YOU TO READ.

Liberty Forward has spent both time and money to uncover these practices the mayor mentions in this speech, and the facts are undeniable as the mayor is acknowledging them publicly now, however televised council meetings and mayoral forums does not equal behavior change.

Growth is only one aspect of the solution. Fiscal accountability is the component to the solution no bureaucrat or long time elected officials wants to address. A citizens oversight committee is a start, but the jury is still out. Currently the proposal limits the citizen oversight to special purpose sales tax revenues (those underfunded mandates from the prior administrations) and does not allow for a budget review as it pertains to those taxes. Four councilpersons agree, that by excluding the budget from the oversight process there is little substance to the process.It becomes little more than an election tactic to pass the tax extension.

The mayor goes on to urge citizens that we must renew the 1/2 cent sales tax for a *minimum* of 20 years. Are you kidding me? You just acknowledged how poorly it has been used but turn around and ask to extend the tax for a period of twice as long as the past? Why should the citizens trust you especially with no clear cut solution to the spending problem city staff has?

It is becoming clearer and clearer that the only solution to the fiscal problems is a State Performance Audit.  To our knowledge the city has never had a full performance audit. A performance audit is quite different from the process audits the city obtains annually. These annual audits do not address the appropriateness of spending patterns nor inquire about things like city staff credit card usage, personal cell phones, or contracts with former employees.

In the coming weeks Liberty Forward will begin to bring forth what occurred in the City of Springfield Missouri and its recent performance audit. In addition we will bring forth the case for a Performance Audit along with the petition process that is necessary to get the audit started.
 
Liberty Forward would consider supporting a tax extension in excess of 10 years IF the ballot language calls for a State Performance Audit in 2009.

Come on! What do you have to hide? An unbiased outside look at the city’s operations over the last 10 years is exactly what we need. This is the tool that will allow us to finally stop gathering old data and move forward. We urge Liberty’s elected officials to voluntarily submit to the Performance Audit as part of the tax extension.

Let us know what you think? Would you support a Performance Audit by signing a petition? Go to the “Links” section of our website and click on “Vote Today on a City Audit!” and tell us what you think.

In the mayor's speech he says: "We need to act now. We can no longer afford to sit around and wait." We could not agree with him more.

For the record, we think the mayor is a good man.

Stay tuned.......

Check out more at http://www.libertyforward.org.

A Quote From Dan Estes - Assistant City Administrator

For clarification purposes, The Hy-Vee deal protects the current store's  retail sales.  

TIF allows only for the capture of new, incremental sales and the respective sales taxes generated.  The development retains 50% of the incremental sales tax to assist in the payment of TIF related costs.  The remaining 50% of all new, incremental sales taxes generated flows to all taxing entities that have sales taxes in place.  A simple example:  Assume the current retail sales base is $100.  The projected new store sales are $200.  Thus the expected increase in sales is $100.  The retail sales base for taxing entities is $150 (100% of the old base + 50% of the new incremental sales).  The sales tax base for tax incentive purpose is $50.  

Since the Hy-Vee deal is a relocation within Liberty, the City required that the current stores retail sales be a protected base.  Thus, Liberty will continue to enjoy 100% of the sales taxes currently being collected and 50% of the expected growth that will come from an expanded, modern grocery store.  In addition, when a replacement concern is located at the current Hy-Vee location and, assuming the concern will be retail based, the City will receive additional sales tax revenues over and above the amounts described earlier.  

In our opinion, the Hy-Vee deal is a wining situation.  Liberty government will see real growth in its retail base.  Residents will be afforded modern, expanded grocery amenities and services.  

Thanks to Mr. Estes for the above clarification.

Check out more at http://www.libertyforward.org.

According to Curt Wenson, Liberty City Administrator:

"Lou DeMarco called on Friday and asked why "Liberty Forward" was distributing  information that the existing Price Chopper in Liberty was closing.  He wanted me to pass along that it is completely false information.  There is a new store planned in Kansas City and the Liberty store will remain open.  His other comment was that they need to keep that location because it serves a very important demographic area".



Liberty Forward simply reported a well traveled rumor that Price Chopper was "moving".

Thanks to Mr. Wenson for assisting in setting the record straight so quickly!

Check out more at http://www.libertyforward.org.