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Letter From Mr.Paul Nagy

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    Posted: May 02 2010 at 9:21am

Getting City Finances Under Control

 

 Paul Nagy

 

“City could face bankruptcy if public safety levy is not renewed”

“Levy loss a ’death knell’?”

 

     These recent headlines alert us that once again the city has not proposed any options but tax levies to a bankrupt citizenry. The cuts made by the city have been minimal and token at best.

 

      The city has declared 54% of our population below the poverty level. The city is over its head in Section 8 housing and intends to increase that  while confusingly claiming they are  going to reduce it by attrition 10% per year. The city needs to get out of the Section 8 business before it scandalously breaks wide open.

    

      The school system wants a  permanent levy.  Let’s make it three years and see what happens.  Three years is the time with our new Superintendent. If it is only a continuing levy why is it ending if this levy doesn’t pass? The fact is it is a new levy and with different terms. They want it to be without a time limit. That’s different from the present levy. They continue to insult the public’s intelligence.. Who knows what is in the future?  We have also observed that in the selection of a new superintendent the issue was mostly about how he would get along with staff instead of how he would raise grade scores. I very much liked his recent article and I’m all for him but the School Board has already put him at a disadvantage. Let’s vote this down on Tuesday and have them put it back on in a couple of months for three years and everyone will be happy. 

     

      The Library wants a levy. Let’s fund our library and let the other communities fund their libraries. We don’t need to be paying for West Chester and Liberty Townships libraries. We have a wonderful and necessary library. Lets keep it where we can afford it. Lets vote it down and let them come back with separate levies.

 

     The city wants to renew a ¼ percent public safety renewal levy,  instead let’s have a three year moratorium and explore all of the options., the County is talking tax increase and so is the State.  We can’t afford it all.

    

     Is there no other alternative for our city and citizens? Yes, there is, but it would take courage, integrity and a real determination to change our city for the better instead of maintaining the status quo. Let us insist that the city get back to providing the very basics for five years. Just for the record, here is an alternate plan:

 

     First, let our financial department come clean. Let us outsource this department. Reduce the number of funds from over sixty to something closer to the number of city departments. All of these funds have allowed for financial deception and manipulation far too long. Cincinnati has about twenty funds. The reduction of financial accounts would bring more efficiency and transparency.

 

     Since the city has been shrunk financially, business-wise and population–wise, let us reduce it otherwise. Let us continue to reduce it physically with demolition of residential and commercial properties that are no longer useful and make them grass areas with signs that say, “Available for commercial development. Contact your local real estate agent”.  Not grassing these plots makes the city look financially depressed. Let the professional real estate community market our properties. We don’t need city staff in the real estate business on any level.

 

     Let us reduce our bureaucracy to the minimum necessary to operate our city. The bureaucrats will detest this suggestion but it is necessary for survival. We can always increase the bureaucracy as the city grows again. We cannot continue the salaries, increases, pensions and benefits without further bankrupting the city. Taxpayers cannot afford it. We could outsource so many departments and operate for much less costs. Lets outsource the planning and engineering department and use the counties departments. Outsource the legal department and health departments. Most city employees live outside of the city.  Certainly we could cut back a large portion of the Administration. No one wants to suggest and do this because they fear the political consequences.  These are the times that demand integrity and courage. No one wants to see jobs cut but we have to do what other cities in our circumstances are doing.

 

     Let us stop unnecessary spending for pet projects for five years. We must make cuts everywhere we can. It is not time for non-productive departments like the golf courses, airport, visitors bureau, etc., to be given big tax dollars.  What they get from grants is different. For five years we could call a moratorium until the city becomes  financially sound.

 

Public safety is basic. But the unions and the city need to stop monopolizing our funds on salaries, increases, pensions  and benefits. We need to get real about what is affordable. Bill Becker our past Police Chief and city manager has repeatedly warned us of the public safety crisis for several years.  There are options and they are difficult. If we can’t get it under control then we need to outsource it. I’m not in favor of that  but something has to change. The unions have offered some hope in their proposals and they should be seriously considered.

 

     Our infrastructure is basic.  Infrastructure funds have been funneled elsewhere for years. It should be accounted for. Our streets and sewer systems have been ignored by the city. They would still be ignored  if the Federal funds didn’t come in for street repairs.  Our downtown sewer system is in need of a plan. There is trenchless technology that can repair our sewer  system that could collapse at any time. It repairs the sewer system without tearing up the streets, houses, sidewalks, etc. at half of the costs, in half the time or less.  The costs could be spread over five (or ten) years and we would probably receive some Federal help for this. It is time to get this done before it costs us a lot more than tens of millions of dollars.

There is a lot more we could be doing but these would show serious intent and draw new business and jobs to Middletown. Can you imagine how rejuvenated our city would be in five years following such a plan?

 

    

Call me for a www.CameraSecurityNow.com quote 513-422-1907 x357
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spiderjohn View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote spiderjohn Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 9:36am
basic-sensible-real
 
nice letter, Mr.Nagy
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 9:47am
Pretty much what most of us have been saying for quite a while on here in one way or another.  The problem is getting City Hall to take any action on any of the above recommendations.  Many cities have taken at least some action on the items above, but for some reason Middletown just refuses to do anything other than start in with the "Bankruptcy" threat if the Public Safety Levy fails and keeping up the Mantra of protecting the Castle/Ivory Tower and it's inhabitants, at big $$$$$$$$$$, at One Donham Plaza.
 
Personally I will vote "NO" on all Levy's pertaining to City hall for any reason until such time as City Hall comes to it senses and begins to act in the best intertest of all of it's citizens financially. 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Bill Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 9:58am
I'm not sure how realistic it is to just say we should "outsource" everything.  Should we be outsourcing legal, planning and financial decisions to a county than doesn't give two hoots about this town or to some company?  Is that even legally possible even if we wanted to?  I think we can do with the Health Dept and maybe others (is there an IT Dept?  maybe them)
I don't think his last point is realitic either -- that we can make any dramatic changes that will significantly entice businesses to move here. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hermes Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 10:04am
Very nice letter and straight to the point Paul !!  Clap
 
Someone correct me if I'm wrong because my memory is going to the dogs...but didn't the school board say that one of the main reasons for hiring Rasmussen was that he could "get levies passed" ? Or was that the guy from Mansfield ?
 
I agree with everthing in Pauls letter. These levies are out of hand ! City Hall is not producing anything but rhetoric and so is the BOE. The teachers agreed to a wage freeze until fall, but in my opinion that is nothing but a ploy to get the school levy passed and then come fall they all get a big raise and whatever in benefits.
 
Vote down ALL issues !!! "JUST SAY NO !!" 
 
No more democrats no more republicans,vote Constitution Party !!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hermes Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 10:08am

Did anyone see the article about Ken Dixon ? He is buying a house in West Chester and works in Middeltown but apperently doesn't want to live here nor have his kids go to Middeltown schools according to the article.

Can Middeltown get anymore pathetic ?
No more democrats no more republicans,vote Constitution Party !!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote spiderjohn Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 11:44am
Bill makes a very valid point about out-sourcing. It is not as convenient, seamless and the improvement that Mr.Nagy implies and suggests.
 
Health Dept.--Butler Co. can hardly handle what they have now. They really don't want to take on Middletown and it's glut of Section 8/low income issues either. The total cost of a takeiover could well exceed the current cost of running our own Health Dept.(and doing so more effectively).
 
Legal--who would do it better or more cost-effectively?
 
Planning/Engineering--Same
 
Mr.Nagy--please give examples of other local entities who are doing this. Who are they using? How much are they saving? What are the results?
 
Granted--it all sounds good on paper and in a perfect world.
 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 11:53am
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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 12:05pm
Mr. Nagy- "basic, sensible, real".......later-" it is not as convenient, seemless, and the improvement that Mr. Nagy implies or suggests".......... "granted, it all sounds good on paper and in a perfect world".

Is it basic, sensible and real or does it have some major flaws, Spider? Do you agree with your original critique of Mr. Nagy's article or does it need some "major repair" work in its content?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 12:20pm

What do we basically have now an "outsourced" bunch of City employees who live elsewhere, have no financial ties to the community as far as property or business interests, other than a Paycheck and the best benefits around.

These people make decisions which impact everyone that lives in Middletown and has an investment in Middletown and many times don't agree with the decisions they make.  These people determine our Water Rates, the amount we pay for garbage pickup, how much we pay for a ride to the hospital, how much Section 8 we have, which roads will be fixed, etc., etc., etc.
 
These people determine what will be done legally and financially in our city and then go home to another place, where their decisions have no impact on them at all.  They try to affect the outcome of our elections to benefit themselves financially through their paychecks and benefits, yet most can't vote in the election.
 
I would say we pretty much have an outsourced work force already, yet we have no say how it was outsourced.
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Bill Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 1:13pm

Nagy's simplicity, while reminicent of a Merrill Wood article, probably isn't practical. I doubt there are municipalities out there that outsource much on a grand scale, otherwise we would have heard or read about them.  And the blanket blame game doesn't really get much action accomplished because he is painting with too broad of a brush.

While it may feel good for many of the populists/tea partiers on this board to rail about every governmental decision and every city employee or council member as if they just came from Mars, but I tend to think most do care and most are trying to make a bad situation a little better.  The tough part about finding solutions is separating the wheat from the chaff -- where the actual waste, incompetence, or fault lies and not constantly engage is hyperbole and exaggeration about "all the crooks" and "all the idiots".  That kind of language is what gets you ignored by others as part of the crazy blogosphere.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote spiderjohn Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 1:23pm
All of the above, Vet.
 
Mr.Nagy's premise on coming clean by simplifying the finances and making them public(warts and all) is wanted by most.
 
Concentrating on core responsibilities(Public Safety and infrastructure) at the expense of frills,festivals, pay raises(yes--those by "re-categorization") and breaking away from real estate purchases/development and select private business subsidy.
 
The out-sourcing is not as simple and the cost-saver that Mr.N implies.
And to do so, we must find someone to do it better and of course, for LESS MONEY.
Easier said than done imo.
 
Once again--read 2day's Cincy Enquirer for the latest case of retirement overkill.
It ain't the salaries that bone us, but the legacy/retirement costs that are choking the life out of us. No different than the Social Security gorrila waiting for us down the road--only WORSE.
 
Sorry Vet--after re-reading and re-thinking, I find issue with some parts of the piece. Still--overall it makes good logic.
 
It would help if Council would work together and quit pointing fingers. Actually--I like the 6-member Council since it now takes a clear majority(4-2 VOTE) to get anything through.
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 1:35pm

MORE CITIES LOOKING TO OUTSOURCE SERVICES

Hoping to protect union jobs, Hollywood commissioners last year rejected a proposal to privatize garbage collection.

But when residents discovered it meant steeper fees and no bulk pickup, their outcry forced commissioners to reverse course. This year, officials are considering outsourcing police, fire, code enforcement, building and engineering services as well.

Pembroke Pines, once one of the nation's fastest-growing cities, may farm out its Building and Zoning Department because permit fees have dried up in the sputtering housing market. In response, union leaders have pleaded to save jobs by allowing the city to cut pay, benefits or work hours.

Sunrise for nearly 37 years operated the municipal Springtree Golf Club, which will be closed for renovations on June 1. But when the 18-hole course reopens in early 2010, a private contractor will likely take over its management.

As governments grapple with sinking revenues and ballooning budget deficits, the idea of outsourcing is gaining steam.

"It's the wave of the future. You will start to see more and more cities contract out," said Russell Benford, city manager of West Park, which depends on contractors for most of its services. "Now that we're in a budget crisis, obviously everyone is working hard to control expenses. . . . Outsourcing allows you to provide services for less money."

Leaders in Weston and Southwest Ranches, who also rely heavily on contractors, extol the benefits. They say because contractors perform tasks as needed, they are cheaper to use than full-time workers. And contractors' benefits are often less generous than those of their counterparts in the public sector, allowing governments to hold down costs.

However, there are drawbacks. For example, contractor John Canada lost his job as town manager of Southwest Ranches in October 2006 amid accusations of nepotism for hiring his wife and daughter as town employees. And Weston in 2007 found it would save $220,000 annually by hiring six senior managers instead of having them on contract.

"There is a tremendous amount of experimentation with privatization," said Mildred Warner, a professor at Cornell University who has done extensive research on the subject. "In some services and some places, it can yield savings."

Still, she cautions, most local markets lack stiff competition, so private companies' prices creep up over time and erode any initial savings. Also, the quality of services may deteriorate.

Public employee unions argue that ceding control of vital public services will mean less accountability to residents. They say contractors may not be as willing to respond to emergencies. And they worry that when the economy recovers, their cities will be understaffed because it can take time to collect bids and approve contracts.

Yet they acknowledge cities need to slice costs.

The union's recent offer in Pembroke Pines "is unprecedented," said Jim Sugg, the city's chief electrical inspector. "What is government here for if we're going to privatize everything?"

Some outsourcing advocates say generous benefits make in-house workers too costly.

"Some things are out of your control, like pensions and health care," Benford said. "And unions have contracts that you have to renegotiate, so you don't know what will increase through those contracts each time."

Some municipalities have turned to their neighbors for services. Fourteen municipalities from Cooper City to Weston contract with the Broward Sheriff's Office for law enforcement. And contractors have long collected trash in many areas. Hollywood treats wastewater from the eastern part of Pembroke Pines, portions of Miramar and southern Broward County, Dania Beach, Hallandale Beach and Pembroke Park.

Plantation officials say they will consider shifting more responsibility to outside contractors for park maintenance, road paving and street striping. The city already contracts out legal services and air-conditioning maintenance.

Dania Beach officials may consider contracting out services such as code enforcement and management of the Dania Beach Marina as part of the 2009-10 budget. Lauderhill, which contracts out for trash collection and some engineering and architectural services, might consider privatizing other services as well.

"It could possibly be cost-effective if you only need someone to come in once or twice a week rather than have someone here all the time," said Kennie Hobbs, the city's finance director.

Weston City Manager John Flint said with contractors, the city avoids so-called "bumping," where unionized workers with seniority retain their high salaries by displacing workers who earn less.

"I believe our model works great," Flint said. "Having competition instills a sense of loyalty for the contractor to want to continue to perform."

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 1:58pm
Hmmm this company you can basically outsource the operation of your whole city to.   They cite Sandy Srings GA as an example where they operate the entire City, everything but Police, Fire and Medical response as that is handled by the County.
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 3:02pm
Thank you for the reply Mr. Spider. I will consider your advice and re-read/re-think the various articles. Might come to the same conclusion, but will try to slow down and consider my replies more carefully. Clear enough? 10/4 Still think that you indicate a "waffling" on certain subjects though.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tomahawk35 Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 10:30pm
Originally posted by Bill Bill wrote:

I'm not sure how realistic it is to just say we should "outsource" everything.  Should we be outsourcing legal, planning and financial decisions to a county than doesn't give two hoots about this town or to some company?  Is that even legally possible even if we wanted to?  I think we can do with the Health Dept and maybe others (is there an IT Dept?  maybe them)
I don't think his last point is realitic either -- that we can make any dramatic changes that will significantly entice businesses to move here. 
What would be different?,We already have these issues  being handle by people that don't give a hoot about  this town .
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tomahawk35 Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2010 at 10:37pm
Originally posted by Hermes Hermes wrote:

Did anyone see the article about Ken Dixon ? He is buying a house in West Chester and works in Middeltown but apperently doesn't want to live here nor have his kids go to Middeltown schools according to the article.

Can Middeltown get anymore pathetic ?
Hey, Middletown had one of three requirements that he was looking for- the highway, this is really sad when the city and schools are blowing smoke up everyone's a$$.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dooraghero Quote  Post ReplyReply Direct Link To This Post Posted: May 30 2010 at 9:45am
If the plan is to continue to levy ever-increasing taxes upon the citizens of Middletown, how is that ever going to work?  With 45% of the housing in Middletown labeled as Section 8 and, more than likely, an even larger percentage of citizens receiving some form of government assistance, where is the money going to come from?  Sooner or later, the tax paying public and businesses are going to seek a more friendly environment.  The myriad of funds derived from the federal and state governments that Middletown seems to utilize in order to stay afloat and, ostensibly, create infrastructure, etc. to attract businesses to the area will one day run out.  What then?  Somehow, city council is going to have to rethink the role of government and dispense with the mantra heard at most council meetings that ". . . if we don't accept the money some other municipality will grab it."   With high taxes and an environment that discourages investment in the city, one could have the best roads and fiber optic system in the state but they will go nowhere and serve no one.  What are the city fathers thinking?
Would you be willing to trade all the days from this day to that for one chance,just one chance to come back here and tell our enemies that they may take our lives but they'll never take our FREEDOM
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