Good afternoon. I took down my first blog because it apparently was a bit too controversial. I mean, all I did was to read the City's financials and apply a little common sense.
By the way, I am a citizen of the City of Kennesaw, I am not running for any office (although I thought about it but came to my senses which is why I'm writing this blog), and have talked to a few Council Persons about the issues that really bug me. Seems like a little bit of a logjam down in City Hall and that this election could decide how we could proceed going forward with some changes to the financials of this City.
And because I took down my last post, let me revise the things that bug me and they should bug you. City of Kennesaw financial report can be located at (http://www.kennesaw-ga.gov/city-services/finance)
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1. Why does the Mayor and City Council people receive life time pensions for their part-time service? Even if it was full-time, why get a pension anyway? (See Page 48, Financial Note 11). If my math is correct, Mayor Matthews will be getting a nice, cushy pension for his close to 20 years of part-time work.
2. Why is the Mayor and City Council folks immediately vested in the pension (which they should not receive anyway) and the guy that rides the trash truck have to wait one year until he is eligible? (Page 48, Financial Note 11).
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3. Are any of the elected servants or those running for office concerned that the City's pension fund is underfunded? I believe there are as I've spoken to two of them, but there seems to be gridlock in City Hall and they cannot get anything accomplished on the subject.
4. Are any of the elected servants or those running for office concerned that the Other Post Employment Benefits (OPEB) are severely underfunded. By my calculations the off-the-books liability to the City grew 41% to $2.1 million as of 9.30.2012 (page 53, Note 12). The City only put in $6,195. The Annual Required contribution of $642,560 was 3% of revenues. Taken another way, the Unfunded Actuarial Accrued Liability (UAAL) of $3,784,934 (page 52, Note 12), is 22% of Total Assets of the General Fund of the city which was $17,463,932 (page 17). You will see that the UAAL is not included on the balance sheet, but that is just how it is done in government.
5. Business-Type Activities (Page 15). The Sanitation Department, the Museum and the Smith-Gilbert Gardens are "business-type activities" (See page 4 of Management's Discussion and Analysis). "These include services for which the City charges specific fees which are meant to cover the cost of providing the services." For 2012 the Museum expenses ran $1.3mm and they charged for services $378,466. The Gardens were also unprofitable. Thankfully the Sanitation department earns enough money to subsidize those two "enterprises".
6. How can we continue to run unprofitable enterprises while the pension fund is underfunded and the post retirement benefits are growing like kudzu? Ask the Mayor or City Councilperson, or those candidates running for office at the upcoming Locomotive Chase what they are doing about this?
7. Line item budget for the Mayor and Council of $490,000 (page 20). I know it covers salaries for them and a couple of staff, which I calculate is about $150,000, so what is the other $340,000 for? Why do part-time public servants need a that line item.
Okay, that's it for now. Hopefully that gives you voters something to really chew on. I'll have some additional thoughts on this stuff in my next post. In the meantime, grill anyone who is running for office, or in office, about the financials of the City. I know I am.