Wednesday, May 23, 2007

Where Did the City's Money Go?

Crest Hill has once again used the excuse of lack of funds to answer a resident's question and refused further explanation. A gentleman asked the City Council when his street (Root Street) would be reconstructed. He explained that the rest of the streets in the area had been improved in recent years and that last June the City Council approved finds to reconstruct Root Street. The Mayor told him that the money was not there now to improve Root Street. The gentleman asked "where did the money go, since it was there less than a year ago and the project has been approved and funded almost a year ago?" This seemed to be a very reasonable question. However, the Mayor and City Administrator refused to answer it and instead suggested that the gentleman attend upcoming budget meetings.

I thought it was interesting that they would tell him this, but not even mention when these meetings were. Therefore, I stood up and asked for dates and times for these meetings. They answered that they had not set dates or times, but would post them and announce them at a future City Council meeting. If you are going to refer people to attend a meeting instead of answering their questions, it would be good to be able to give them information about that meeting.

I find it very interesting that suddenly the City has financial problem just a few months after the Mayor decided to eliminate the Finance Committee. And that previously approved and scheduled road projects are failing to be done soon after the Mayor decided to eliminate the Streets Committee. Now that these issues are in the hands of the Mayor, City Administrator, and City Treasurer alone, there seems to have been a decrease in City's abilities to deal with these issues. And not only do citizens no longer have a say on these matter via committees, but they also no longer can even get answers related to these issues. Maybe it is time to put some better skilled people in charge, namely our City Council members and fellow citizen volunteers.

Two Items of Note:
1) I was able to get some information about the recent decline in the City's financial health that the Mayor keeps referencing without giving any details. Apparently, the City is facing a $1,500,000 budget deficit. No details of how this occurred have yet come to light however.

2) Some people may question my background in criticizing those who oversee our City's finances or question what makes me think I know better than these professionals how to manage a City's finances. While, I certainly cannot claim to have more experience than any of those professionals except for the City Administrator (I have two years of experience as opposed to his few months), I instead rest upon my past accomplishments as a City Treasurer and a City Administrator for a different city. While, it was smaller than Crest Hill, its financial difficulties at the time I was hired exceeded those faced by Crest Hill. They were in debt to their debt limit, had issued short term revenue bonds in order to keep operating, and were in the process of deciding which city services to cut. Two years later, I left a city that was on firm financial footing, had completed and was in the process of completing a number of large infrastructure improvement projects. I did not shrink the budget and I raised taxes at a slower rate than inflation. What I did do was reduce costs for outside services such as legal fees, audit costs, and engineering fees. I also increased revenue by bidding out the City's back accounts to the various banks in the area in order to receive the best package of interest rates and eliminate all fees. In addition, I pursued state funds aggressively and reached agreements that ensured the the state prison in town would cover every cost associated with it from costs of utility extensions to road paving. City services were maintained and in many cases improved as employee morale increased along with the City's financial stability. Also, our water, sewer, and electric systems were in better shape than ever before and ready for growth. So, I think I have some experience behind me when I criticize others. Sure, it is only two years of experience, but compared to where a Treasurer with 20 years of experience has gotten us, I think I stand up pretty well.