How Many Consultants Does It Take?
Do you remember the old adage: “It takes a village?” Well, in the case of IRB, it takes a village…OF CONSULTANTS…to run the village. (Does that then make us the village idiots?)
Lions and tigers and bears, oh my. Garner and Milestone and Burton, oh my. Just how many consultants does it take to run IRB anyway? And the more important question: WHERE IS ALL THIS CASH COMING FROM TO PAY THIS BEVY OF CONSULTANTS?
Meet the consultants…
The Government Consultant Services Group (GCSC)
Robert R. Garner, CPA, CMA/CGFO
Initially, Rob Garner’s company, GCSC, was hired to hold a $750 Budgeting 101 Workshop to familiarize the commission with the budgeting process. If Commissioner Wollin’s Belleair Bee comment is any indication, at least one commissioner slept through Garner’s class. “That’s when the drive to roll back taxes took hold with a commission bent on reducing taxes at any cost, depleting our reserves,” Wollin said. This commissioner, anxious to blame the situation on a previous commission, totally ignored that the current problem in IRB’s Sewer and Solid Waste Funds has NOTHING to do with a shortfall in ad valorem taxes calculated via millage. In fact, when you stop to consider that the General Fund of our tax revenues was solvent enough to loan our enterprise funds over $1 million (unbeknownst to us!), the millage rate was probably just fine—or possibly even a little high—even with the rollback. If the millage rate had been set too low, girlfriend, there wouldn’t have been any funds to borrow! With a 60% sewer and garbage rate hike looming, shouldn’t this mean that several hundred thousand dollars per year will now be freed up to cover other expenses instead of being used to prop up the enterprise funds? Is the proposed millage rate increase over and above the “raise” the General Fund will enjoy, once the enterprise funds are self-supporting? Is a pool of money being amassed to fund library expansion, park renovations and other things that’s shouldn’t even be on the radar screen in these tough economic times?
As a follow-up to the instructional workshop, Garner was apparently hired to produce a report on the financial condition of the enterprise funds. This $2,000 expense resulted in the “Garner Report,” which, for the first time, projected an unbelievably grim financial future for IRB. No one has yet to explain away the discrepancy between Garner’s claims and management’s statements as to the condition of our enterprise funds.
Garner:
“In summary, the funds had only one year out of seven with a positive Operating Income (2001 for Sewer Fund and 2006 for the Solid Waste Fund). This negative trend in financial performance is also reflected in a decreasing cash balance, to a negative balance, requiring a cash infusion from the General Fund to provide liquidity.”
IRB 2005 Comprehensive Accounting Financial Report (CAFR):
“The City has no general obligation debt outstanding and enterprise funds operate WITHOUT DEBT.”
“Many factors point to a positive long-term financial outlook for the City…”
Less than three years later IRB is crying poor-mouth. During the same time that Garner concludes the enterprise funds were upside down, the City’s take was that they were operating debt free! Where is the nexus between these statements?
At the request of the City, fees for additional projects were also quoted by Garner:
1. ’08-’09 Budget Facilitation - $5,000
2. Revenue Diversification Study - $4,000
3. 100 days of Financial Management Consulting - $5,000
Just how many of the above three projects were actually awarded to GCSC is anyone’s guess. The subject of Garner's contract has yet to pop up in the public purview at commission meetings. Some citizens wonder how the requirement for obtaining a bid has been circumvented since the Garner expenditures at least appear to be getting into RFP (Request for Proposal) stratosphere.
Nancy Obarski
Beach Trail/IRB
Links to the City’s Web site for all reports cited above:
Analysis of Enterprise Funds/Garner:
http://www.indian-rocks-beach.com/documents/Report_to_The_City_of_Indian_Rocks_Beach_Sewer.pdf
Utility Rate Study/Burton:
http://www.indian-rocks-beach.com/documents/IRB_URS_Final_Report_08-4-08.pdf
2005 Comprehensive Financial Accounting Report (CAFR):
http://www.indian-rocks-beach.com/documents/CIRB_CAFR_9-30-05.pdf
Lions and tigers and bears, oh my. Garner and Milestone and Burton, oh my. Just how many consultants does it take to run IRB anyway? And the more important question: WHERE IS ALL THIS CASH COMING FROM TO PAY THIS BEVY OF CONSULTANTS?
Meet the consultants…
The Government Consultant Services Group (GCSC)
Robert R. Garner, CPA, CMA/CGFO
Initially, Rob Garner’s company, GCSC, was hired to hold a $750 Budgeting 101 Workshop to familiarize the commission with the budgeting process. If Commissioner Wollin’s Belleair Bee comment is any indication, at least one commissioner slept through Garner’s class. “That’s when the drive to roll back taxes took hold with a commission bent on reducing taxes at any cost, depleting our reserves,” Wollin said. This commissioner, anxious to blame the situation on a previous commission, totally ignored that the current problem in IRB’s Sewer and Solid Waste Funds has NOTHING to do with a shortfall in ad valorem taxes calculated via millage. In fact, when you stop to consider that the General Fund of our tax revenues was solvent enough to loan our enterprise funds over $1 million (unbeknownst to us!), the millage rate was probably just fine—or possibly even a little high—even with the rollback. If the millage rate had been set too low, girlfriend, there wouldn’t have been any funds to borrow! With a 60% sewer and garbage rate hike looming, shouldn’t this mean that several hundred thousand dollars per year will now be freed up to cover other expenses instead of being used to prop up the enterprise funds? Is the proposed millage rate increase over and above the “raise” the General Fund will enjoy, once the enterprise funds are self-supporting? Is a pool of money being amassed to fund library expansion, park renovations and other things that’s shouldn’t even be on the radar screen in these tough economic times?
As a follow-up to the instructional workshop, Garner was apparently hired to produce a report on the financial condition of the enterprise funds. This $2,000 expense resulted in the “Garner Report,” which, for the first time, projected an unbelievably grim financial future for IRB. No one has yet to explain away the discrepancy between Garner’s claims and management’s statements as to the condition of our enterprise funds.
Garner:
“In summary, the funds had only one year out of seven with a positive Operating Income (2001 for Sewer Fund and 2006 for the Solid Waste Fund). This negative trend in financial performance is also reflected in a decreasing cash balance, to a negative balance, requiring a cash infusion from the General Fund to provide liquidity.”
IRB 2005 Comprehensive Accounting Financial Report (CAFR):
“The City has no general obligation debt outstanding and enterprise funds operate WITHOUT DEBT.”
“Many factors point to a positive long-term financial outlook for the City…”
Less than three years later IRB is crying poor-mouth. During the same time that Garner concludes the enterprise funds were upside down, the City’s take was that they were operating debt free! Where is the nexus between these statements?
At the request of the City, fees for additional projects were also quoted by Garner:
1. ’08-’09 Budget Facilitation - $5,000
2. Revenue Diversification Study - $4,000
3. 100 days of Financial Management Consulting - $5,000
Just how many of the above three projects were actually awarded to GCSC is anyone’s guess. The subject of Garner's contract has yet to pop up in the public purview at commission meetings. Some citizens wonder how the requirement for obtaining a bid has been circumvented since the Garner expenditures at least appear to be getting into RFP (Request for Proposal) stratosphere.
Nancy Obarski
Beach Trail/IRB
Links to the City’s Web site for all reports cited above:
Analysis of Enterprise Funds/Garner:
http://www.indian-rocks-beach.com/documents/Report_to_The_City_of_Indian_Rocks_Beach_Sewer.pdf
Utility Rate Study/Burton:
http://www.indian-rocks-beach.com/documents/IRB_URS_Final_Report_08-4-08.pdf
2005 Comprehensive Financial Accounting Report (CAFR):
http://www.indian-rocks-beach.com/documents/CIRB_CAFR_9-30-05.pdf
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