Anyone who watches Crest Hill city council meetings has certainly noticed that there seems to be a closed session at every meeting and that when some council members ask questions the response is that it is a matter for closed session. Well, I am very uncomfortable with closed sessions and feel that government should be as open and transparent as possible. So I decided to read the actual law and to read legal opinions interpreting it. As should be expected the first thing I learned was that Crest Hill does not follow the law.
The motion for a closed session MUST state which of the specific exclusions in the Open Meetings law covers the matter that will be discussed in closed session. If they are meeting to discuss employee contracts, they must say that. If they are meeting to discuss a pending lawsuit, then they must say that. They cannot simply state that a closed session is needed without any further information.
A closed session is never required. The city council can discuss any matter they wish to in open session. If Alderman Vershay wants to know who worked overtime, when they worked, and for how many hours, the City Treasurer can and should answer that question instead of deferring it to closed session. The Open Meetings law states a limited number of topics than MAY be discussed in closed session, but does not limit what can be discussed in open session. In addition, there is no obligation of city council members to keep secret what happens in closed session. The law does not prohibit anyone in a closed session from disclosing any matter discussed and specifically states that there is no penalty or retribution for disclosure.
It is time for our city government to comply with the letter and the spirit of the law. I call upon the Mayor and the City Clerk to ensure that all future closed sessions are properly held and to inform the Council and the public that any subject may be discussed in open session if so desired. I also call upon the City Clerk to release full transcripts of all illegally held closed sessions. And finally, in order to fulfill the spirit of the law, I ask any City Council member who believes in open government to speak publicly about anything that occurs in closed session that should not be secret.
Thursday, August 30, 2007
Wednesday, August 29, 2007
Citizen Action
The situation with water rates has motivated local residents to get active and be heard. Not only are they making their voices heard on the issue of astronomically higher water and sewer rates, but they have also brought the issue of water quality to light. People are posting on the internet, going door-to-door talking to neighbors, compiling surveys, and packing city council work sessions. This is democracy in action and I hope to see it continue until these issues are resolved and beyond that until Crest Hill once again is run for and by the citizens. This city is not going to get better overnight, but it can get much better.
I am curious though as to how Mayor Churnovic next plans to stifle citizen involvement. I am looking forward to seeing quite a crowd at the next City Council meeting. Of course, I am willing to bet that they will not even consider moving it to a location with adequate parking and seating. That would allow the citizens to observe and participate in the meeting and we can be sure that Mayor Churnovic and certain others on the council do not want to allow that to happen.
I am curious though as to how Mayor Churnovic next plans to stifle citizen involvement. I am looking forward to seeing quite a crowd at the next City Council meeting. Of course, I am willing to bet that they will not even consider moving it to a location with adequate parking and seating. That would allow the citizens to observe and participate in the meeting and we can be sure that Mayor Churnovic and certain others on the council do not want to allow that to happen.
Thursday, August 16, 2007
Disappointing Mayoral Achievement
The City of Crest Hill has passed a budget that shows the sad state of affairs in the city. The mayor decided earlier this year that a finance committee was not necessary since a City Administrator had been hired. So the City Administrator brought a budget to the City that was over $1.5 million in the red. After slashing and raising fees and rates, it was passed still over $1 million short. So this is what is accomplished without a finance committee. How very sad. I hope the mayor is proud of his brilliant idea.
Some of the blame rests at the City Administrator's feet as well though. He is the one that brought a budget so out of line to the Council in the first place. When I served as a City Administrator, I would never have even considered bringing the City Council an unbalanced budget. And that certainly was not easy in a city that had seen its finances destroyed by years of poor spending and embezzlement. In fact, my aim was to have a budget that had 3% surplus and then to be able to work during the year to keep spending below budget and revenue above it. Even the most fiscally irresponsible person can put together a budget that is over a million dollars short of balancing. However, I believe that a City Administrator is a professional who should bring with them a set of skills in matters such as finance.
The third person bearing some responsibility here is the City Treasurer. While, I have seen nothing to indicate that he is not fulfilling his duties as specified, I think at this time Crest Hill needs something more. I feel that the City Treasurer needs to stand up and be the voice of moderation and reform. I call on him to watch every cent of the budget and not to release a cent of it that is not specifically budgeted. This type of discipline is the best we can hope for the coming months. He also should publicly release all the financial data of the City. This would allow citizens to know what is really going on and may help to spur a public demand for reform. Finally, the Treasurer needs to take a stand and be a leader pushing for fiscal responsibility even beyond what is role is. He should use his office to pound at the problem and keep it on the front burner. He should lead the call for change.
The City Council should never have approved a budget that sends Crest Hill closer to financial ruin. However, they had to work with a budget proposal that was badly out of balance, they lacked input through a finance committee, and they were threatened that State funding would be lost if a budget was not passed before the end of July. If I were in their place, I would have insisted on passing a bare bones balanced budget and then amended it after August 1st.
In summary, Mayor Churnovic and the City Administrator should have been the leaders of improving Crest Hill, instead the City is facing unprecedented financial difficulties because of the choices and actions of these two officials. It is sad that the time for change has come so soon.
Some of the blame rests at the City Administrator's feet as well though. He is the one that brought a budget so out of line to the Council in the first place. When I served as a City Administrator, I would never have even considered bringing the City Council an unbalanced budget. And that certainly was not easy in a city that had seen its finances destroyed by years of poor spending and embezzlement. In fact, my aim was to have a budget that had 3% surplus and then to be able to work during the year to keep spending below budget and revenue above it. Even the most fiscally irresponsible person can put together a budget that is over a million dollars short of balancing. However, I believe that a City Administrator is a professional who should bring with them a set of skills in matters such as finance.
The third person bearing some responsibility here is the City Treasurer. While, I have seen nothing to indicate that he is not fulfilling his duties as specified, I think at this time Crest Hill needs something more. I feel that the City Treasurer needs to stand up and be the voice of moderation and reform. I call on him to watch every cent of the budget and not to release a cent of it that is not specifically budgeted. This type of discipline is the best we can hope for the coming months. He also should publicly release all the financial data of the City. This would allow citizens to know what is really going on and may help to spur a public demand for reform. Finally, the Treasurer needs to take a stand and be a leader pushing for fiscal responsibility even beyond what is role is. He should use his office to pound at the problem and keep it on the front burner. He should lead the call for change.
The City Council should never have approved a budget that sends Crest Hill closer to financial ruin. However, they had to work with a budget proposal that was badly out of balance, they lacked input through a finance committee, and they were threatened that State funding would be lost if a budget was not passed before the end of July. If I were in their place, I would have insisted on passing a bare bones balanced budget and then amended it after August 1st.
In summary, Mayor Churnovic and the City Administrator should have been the leaders of improving Crest Hill, instead the City is facing unprecedented financial difficulties because of the choices and actions of these two officials. It is sad that the time for change has come so soon.
Wednesday, June 27, 2007
Utility Rates To Skyrocket
Crest Hill is set to raise water and sewer rates substantially. Overall revenue will increase by over 50%.
I recognize that Crest Hill's rates are currently very low and do not oppose raising rates if necessary. However, the city has not done an actual rate study. They merely projected how much they would take in if rates were raised and called that a rate study.
A real rate study would look at capital structure, operation costs, depreciation, and rate of return on the money that has been invested into the city utilities over the years. Other cities run their utilities as efficient businesses, but Crest Hill refuses to. They prefer to just raise rates arbitrarily. Instead, of creating a multi-year capital plan, they are just going to collect a lot of money and then spend it.
The State of Illinois would not allow an investor owned utility to raise rates without a formal rate study and would not allow it to operate under the logic of spend money and then raise rates randomly when more money is needed. It is time for the city to begin running the water and sewer utilities as businesses and begin to focus on efficiency can controlling costs.
I recognize that Crest Hill's rates are currently very low and do not oppose raising rates if necessary. However, the city has not done an actual rate study. They merely projected how much they would take in if rates were raised and called that a rate study.
A real rate study would look at capital structure, operation costs, depreciation, and rate of return on the money that has been invested into the city utilities over the years. Other cities run their utilities as efficient businesses, but Crest Hill refuses to. They prefer to just raise rates arbitrarily. Instead, of creating a multi-year capital plan, they are just going to collect a lot of money and then spend it.
The State of Illinois would not allow an investor owned utility to raise rates without a formal rate study and would not allow it to operate under the logic of spend money and then raise rates randomly when more money is needed. It is time for the city to begin running the water and sewer utilities as businesses and begin to focus on efficiency can controlling costs.
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.
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.
Thursday, May 10, 2007
Proposed Sewer Solution
I previously criticized the Mayor and City council of Crest Hill for not better assisting residents with sewer back flow problems and for giving them unhelpful suggestions. Now, I will be fair and propose how I think it can be done better.
First, I need to explain the current overhead sewer program. The City of Crest Hill has a 50/50 cost sharing program for overhead sewer installation. The homeowner hires a contractor to perform the work and pays them for the full cost of the work. The homeowner then submits a copy of the bill to the city. The city reviews the work to ensure it was completed correctly and if so will reimburse the homeowner for 50% of the cost up to a total reimbursement of $4,000.
My proposals will assume a continued 50/50 since I do not expect city officials to be willing to commit to anything more. In addition, there is some sensibility to the idea that homeowners should shoulder some of the cost since this improves the value of their home and is an improvement that has benefits regardless of the condition of the city's sewer system. I would also continue to have it to be a voluntary program.
My suggestion is to have the city coordinate an annual overhead sewer replacement program. The city would contact homeowners to determine who is interested in having an overhead sewer installed. The city would then go out for bids to get all of the work done. This would allow for a lower cost to be obtained. The city would pay half the cost and charge the other half the cost to the homeowners. Each homeowner could either pay the cost at that time or have a special assessment placed against their property allowing the cost to be paid off over a period of up to ten years at a reasonable interest rate. I think this would be more appealing to homeowners, less expensive, and allows for an alternative payment method.
First, I need to explain the current overhead sewer program. The City of Crest Hill has a 50/50 cost sharing program for overhead sewer installation. The homeowner hires a contractor to perform the work and pays them for the full cost of the work. The homeowner then submits a copy of the bill to the city. The city reviews the work to ensure it was completed correctly and if so will reimburse the homeowner for 50% of the cost up to a total reimbursement of $4,000.
My proposals will assume a continued 50/50 since I do not expect city officials to be willing to commit to anything more. In addition, there is some sensibility to the idea that homeowners should shoulder some of the cost since this improves the value of their home and is an improvement that has benefits regardless of the condition of the city's sewer system. I would also continue to have it to be a voluntary program.
My suggestion is to have the city coordinate an annual overhead sewer replacement program. The city would contact homeowners to determine who is interested in having an overhead sewer installed. The city would then go out for bids to get all of the work done. This would allow for a lower cost to be obtained. The city would pay half the cost and charge the other half the cost to the homeowners. Each homeowner could either pay the cost at that time or have a special assessment placed against their property allowing the cost to be paid off over a period of up to ten years at a reasonable interest rate. I think this would be more appealing to homeowners, less expensive, and allows for an alternative payment method.
Tuesday, May 8, 2007
An Horrifying Meeting
I attended a portion of the Monday, May 7th Crest Hill City Council meeting and was simply amazed at how badly citizens are treated by the Mayor and some members of the City Council. I have never seen local leaders be so dismissive of citizens.
The Mayor especially took it to a whole new level. He suggested that residents who have had their homes flooded by human waste because of deficiencies in the city's sewer system should take out home equity loans to pay to install overhead sewers in their homes. As an alternative he also suggested finding a plumber who would arrange a payment plan. The obvious solution is for the city to take responsibility for their deficient sewer system and for the damage caused by its failures. He also suggested to a resident that they park in their neighbor's driveway because the city will not allow them a driveway.
The city seems to have an excuse for everything. They do not have enough money because they do not have riverboats. That was definitely a good one. I hope you do not wish to look at the city's finances to see if that is true because they do their best to hide those facts. After having seen them, I could understand why. Revenues have exceeded the budget and expenses have been below budget. Most governments would publicize such a good financial position, however Crest Hill is afraid that if people knew they would come to expect better city services. Their other excuse is that portions of the city were built before the city was incorporated. Never mind that these existing neighborhoods formed the basis for the creation of Crest Hill or that the city has had over four decades to make improvements. These excuses are outdated, it is time for our city leaders to realize that it is 2007 and not 1967.
The real proof of just how poorly Crest Hill citizens are treated can be seen in the parking lot after any council meeting. There are large groups of people milling about talking about their many problems with the city. Crest Hill would be a nice progressive city with happy residents if not for the council and some of the staff they have hired. It is too bad. Hopefully, the two new faces on council will improve the situation. And maybe the mayor will be reigned in someday.
The Mayor especially took it to a whole new level. He suggested that residents who have had their homes flooded by human waste because of deficiencies in the city's sewer system should take out home equity loans to pay to install overhead sewers in their homes. As an alternative he also suggested finding a plumber who would arrange a payment plan. The obvious solution is for the city to take responsibility for their deficient sewer system and for the damage caused by its failures. He also suggested to a resident that they park in their neighbor's driveway because the city will not allow them a driveway.
The city seems to have an excuse for everything. They do not have enough money because they do not have riverboats. That was definitely a good one. I hope you do not wish to look at the city's finances to see if that is true because they do their best to hide those facts. After having seen them, I could understand why. Revenues have exceeded the budget and expenses have been below budget. Most governments would publicize such a good financial position, however Crest Hill is afraid that if people knew they would come to expect better city services. Their other excuse is that portions of the city were built before the city was incorporated. Never mind that these existing neighborhoods formed the basis for the creation of Crest Hill or that the city has had over four decades to make improvements. These excuses are outdated, it is time for our city leaders to realize that it is 2007 and not 1967.
The real proof of just how poorly Crest Hill citizens are treated can be seen in the parking lot after any council meeting. There are large groups of people milling about talking about their many problems with the city. Crest Hill would be a nice progressive city with happy residents if not for the council and some of the staff they have hired. It is too bad. Hopefully, the two new faces on council will improve the situation. And maybe the mayor will be reigned in someday.
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