Staff Reports
Niagara Gazette
WHEATFIELD —
Although I have not seen the entire draft report for Wheatfield’s audit, Mr. Hart and I did discuss some of the issues discussed by that report, and the corrections that should be made.
First: It is absolutely incorrect to say that my administration did not give monthly financial reports to each elected official and town board. We did in fact give a detailed financial statement at each and every meeting of the tax levy, bond accounts, surplus accounts and cash on hand. This report was developed by Winston Moeller and Ed McAllister and showed the status of all accounts to the council each month. I have issued over 150 of these reports since my administration began. I have included some samples of our monthly report. This absolutely needs correcting as to suggest anything otherwise would be an out-in-out lie. The town board knew the financial condition of the town at all times, as well as saw the status of investments and surpluses.
Although the cell phone issue is now redundant, as I told the auditors, the use of cell phones was originally developed for use in the rank and file of work crews for better communication with all employees on their work site, and we also found that the cost of the phones was far less than equipping radios on all town equipment and better enabled us to direct crews as needed. As a result of the fixed amount of minutes the town purchased, we found that we could actually generate revenue for fixed minutes (at .41 cents each) to employees that went over their fixed minutes and provided the opportunity for volunteers on committees and family members to receive phones, billed monthly, and charged a minimum of $18.95 per month for a lot of 150 minutes, which helped pay for the town’s fund. Similar programs, we now find out, usually cost about $13 per month, so the town was actually generating revenue from the billed units. But in hindsight, although we did save money from the use of phones, for the taxpayer, the system was flawed, as too many people did receive phones, and really didn’t need them. The only glitch that occurred was in 2008, and continued into 2009, when the phone provider distributed all new phones (at no cost) but unfortunately, the phones did not contain the two-way radio function that was not only free, but was the option used by most of the phone holders. I know this lack of function cost the town money that needed to be recouped, and after an almost year-long battle, we did receive the credit, and as a result we cleared up any and all outstanding invoices for individual phone use as of September and October of 2009. Also in September, My administration, with the town board, did take back the private use phone program and cut back substantially on the use of phones by non-rank and file employees.
I also understand that the audit report is critical of our annual planned use of surplus up until 2007, which has always been done, by my administration, as well as previous ones, and the purpose of this was to provide the great programs, and do so without a town tax. We have always been able to regenerate surpluses through prudent investment and interest earnings as well as dedication of mortgage taxes and fees to the surplus. Because I knew the economy was going to do damage to our budget, after the decline in 2007 and ultimately the crash of 2008, we did not dedicate surplus funds to the budget, and balanced it according to cuts in unnecessary spending. However, as your report shows, the highway and recreation department did consistently go over budget, which called for the need for the board to dedicate more funds from surplus to fill the gap. This occurred in both 2008 and 2009, which ultimately cost our surplus reserves in excess of $500,000. I know the auditor insists on new taxes on the residents of our town, but I do believe that can be avoided, simply by better budget management and cuts that should have stayed in the 2010 budget that have all been restored by the board. The economy is not going to remain this bad forever, and I believe the town, like all other communities and of course, New York state, will be back to generating the revenues they need in a renewed economic climate. My belief is that the bad economy will go away — but the bad new tax never will!
Again, I wish I was given the opportunity to actually see the written draft report, as I am sure that there are other areas that need clarifying, and for obvious political reasons, you will probably not get the real clarification in responses from the current town board, but I am shocked that you spend time on cell phones, which is an important issue, that was addressed, but literally no time on the water department credits that were given to elected officials and others, behind closed doors. Error or otherwise, these are issues, too, that need clarification, and are issues that residents of our town have a right to know. You are critical of the board’s spending of surpluses and of their allowing of over-budget expenditures yet you don’t go into detail on the Wendel Engineers charges to the town, which in a standard year are in excess of $450,000! Although they are a “service” and not required to be bid, are they not still draining town accounts of needed cash? Does your office recommend the bidding of some of these services? Or is it that a TAX is the only way to go? These are issues and they need correcting too. And, although the board will never tell you, I have been fighting to bid these things and put a procedure in place for years, only to be rebuffed by the board.
Are you critical of the board's deliberate inaction on budgetary items approved by them, to re-generate surpluses, by the sale of 11 frontage lots on the new parkland? Parkland the town paid $680,000 for only to have it sit, undeveloped, and next year, go back on the school tax roles at a cost to our residents? Two of the items that I budgeted for in 2008, the sale of two cell phone tower easement rights totaling over $240,000 have finally been complete, putting that much-needed money back into the budget, but again, why did they wait so long? Maybe had the town board not played politics with budget items, there would not be a short-fall or a town tax?
Lots of good questions.
Timothy Demler
Former supervisor
