Friday, November 23rd 2007

8:00 AM

City Accountability Is the Darkest When the Sun Never Sets PART 2

Editorial

In 2001, the voters of Liberty, Missouri passed 2 ballot tax initiatives aimed at providing primarily additional capital improvements to the city Parks and Fire Department. Neither of these taxes have a sunset provision. After Seven Years of collecting that tax, we think the citizens deserve an accounting for what the city has done with that tax. In both cases, you might be shocked to find out how much of those funds intended for capital improvements have been transferred into the general operating fund or used to pay for items that should have come from the general operating fund. This is the 2nd article in a 2 part series, Part 1 looked at Proposition P the parks tax and PART 2 focuses on Proposition F the Fire tax.

The essence of what you are going to see is that the city will defend a failed project to the death. They will use all means possible to fund and defend a failed project like Fountain Bluff. They will use enterprise funds, general funds, ballot taxes, facility fees and asphalt for potholes before they will back off their pet project. This is a very dangerous way to run a government.  

They robbed the 2010 tax fund to cover the cost overruns, and followed it up by implementing a fire tax with the primary goal of building a 4th fire station without bonding it. They went so far as to claim they would purchase it with 'cash". In 2008, if the budget is approved, 97% of the tax collected will be transferred to the general fund to cover salaries and benefits. There is no money for a fire station and never will be from this tax.

PROPOSITION F – Fire August 2000 Ballot Language

 Shall the City Of Liberty impose a sales tax of one fourth of one percent (1/4 of 1%) for the purpose of providing revenues for the operation of the municipal fire department for construction of a new fire station, and for the acquisition of other fire equipment, including storm sirens.

In July of 2000, The City of Liberty sent out its newsletter Liberty Citizen outlining what it intended to use these tax dollars for. Again underestimating costs and over promising deliverables is the secret to tricking taxpayers into voting in these taxes.

 Excerpt from the newsletter:

How will the ¼ cent fire protection sales tax revenues be used?

About $700,000 will be generated annually and will allow the hiring of 6 additional firefighters for a second full time ambulance, cash for the construction of a fourth fire station, and the financing for the 12 new firefighters needed to staff that fire station.

 

Why Does Liberty Need A Fourth Fire Station?

Simply: Our city is growing. Growth in the Southeastern part of the city is resulting in increased response times because fire stations are farther from those locations. It should take less than 5 minutes 15 seconds from the time of a call to dispatch to the arrival of emergency equipment at the scene – and never more than 7 minutes. A new station, located somewhere south and east, will keep response times at or below appropriate levels.

 

Summary of what the ¼ cent tax will achieve:

*To put in place a 2nd ambulance necessitates an addition of 6 firefighters at a cost of more than $200,000 annually.

*A fourth fire station will be constructed with CASH, thereby avoiding expensive interest costs.

*Once a 4th fire station is constructed, 12 more firefighters will have to be hired to operate that station.

 

Where Is Our Fire station?

 According to city documents on Prop F, obtained by Liberty Forward, the City of Liberty has not followed through on what was promised.  The fire sales tax has generated over $5.5 million, with $2.6 million or almost 50% of those revenues have been transferred out of the Fire Sales Tax Fund into the general operating fund. Starting in 2008 virtually 100% of those funds will be transferred into the general fund (97%) for salaries and benefits. They spent $616,000 spent to remodel fire station one.  This was not a part of the ballot language nor mentioned in city communications.

Fire station 4 has not been built as promised in the ballot language and touted by then Mayor Steve Hawkins and the City Council in the July 2000 edition of Liberty Citizen

So, where is our fourth fire station?  City officials will tell you that revenues have fallen short of projections.  However, the July edition of Liberty Citizens estimates Prop F will generate “about $700,000 annually”.  According to revenue reports obtained form Liberty City Hall, the tax has not only met, but exceeded those projections.

2002: $709,760

2003: $781,372

2004: $750,677

2005: $788,932

2006: $867,719

2007 $880,300 *budgeted*
 

Why isn’t this fund not being used for what it was intended for?  Why were voters made promises that the city is not delivering on? How can the city deliver on it’s promise to build a 4th fire station with cash? Why do these ballot sales taxes just become an extension of the general fund to mask past inept spending decisions?
 

According to city records only $305,000 has been set aside for the new fire station, $105,000 for land acquisition and $180,000 for Engineering & Design. We have seen in Proposition P what the city considers Engineering and Design.

Again the city made promises it could never fulfill.

By promising that the 4th fire station would be built with cash, it would have had to immediately set aside money to build the facility.

The city never even factored in the cost of equipment necessary to man the station. The city staff never intended on fulfilling these promises and the City Council was asleep at the wheel.

In the most recent city council  study session both the city administrator and the fire chief made mention of the past administration's faulty projections.

Liberty Forward, The Only Citizens Watchdog Group strongly suggests the following: 

1. Oppose any *new* taxes while carefully considering  the manner in which accountability is integrated with the proposed 1/2 cent capital tax extension (with sunset provision) before supporting it.

2. The city Charter should be amended to allow for repeal and referendum, as well as require that all ballot sales taxes sunset. There is no way to repeal or recall anything or anyone.

3. A Citizens Finance Committee should be formed as an executive order by the mayor IMMEDIATELY to analyze past expenditures and re-establish priorities for Proposition P and F based on original promises made by the city like enacting the funding of the police department from Proposition P as promised.     

4. Audit the Sports Complex Operations and determine exactly what revenue and expenditures can be attributed to it. Based on the findings consider outsourcing its operations.

5. An internal investigation should be launched on how monies spent for maintenance and repair got coded to Design & Engineering without city council approval in 2003 and 2004. 

6. Immediately discontinue the use of transfers out of ballot tax funds into the general fund. Taxpayers should be able to more easily track expenditures made from the ballot tax funds.

7. Re-evaluate accounting methods, including the re-creation of the Sports Complex Fund and the Community Center fund.

8. Get back to basics. The city staff and elected officials need to focus more on providing basic city services at fair prices.  Keeping this in mind in every task would steer them in a direction to better serve the citizens.    

Until the current mayor, city staff, and council begin focusing on the real problems instead of the byproduct of these problems the city of Liberty is destined to continue to fail at offering it's citizens basic city services at fair prices. Not only is the city going to propose new taxes they are planning on raising your water and sewer bills for the next 6 and 13 years respectively. Potholes and storm drainage are not our problems, they are what results from the real problems.  

If we continue to ignore the real problems: fiscal irresponsibility, and address why the real perception of developers and businesses are that Liberty is a place to locate as a last resort, we will continue to kid ourselves about where our city is going.

If you are happy with the condition of your streets, if your neighborhood does not have storm water problems, you are prepared to vote in higher taxes, and are excited about the proposed increases in water and sewer bills (already one of the highest in the metro area) then do nothing, don't call your city councilman, don't start attending council meetings, and certainly don't send Liberty Forward a contribution.

At least we will all have memories of what Liberty once was, they can never take that away from us! 

Be happy with a fleeting memory or join Liberty Forward and get Involved and demand excellence and accountability from your elected officials!

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