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The Issues
An Update on City Issues
February 3, 2009
Dear Friends,
The month of January was active and full of developments at City Hall. I am writing to bring you up to date on various matters and to invite your thoughts and ideas about the future of our city.Putting Our Financial House in Order
The challenges of financial reporting that have plagued our city for the last few years have been center stage at City Hall in recent months. As many of you are aware, our city has been unable to produce monthly financial reports since 2005, and it is not surprising that it was unable to close the 2005-06 and the 2006-07 financial books on time.
Early in 2008 the city engaged a team of top accountants from the Municipal Association of South Carolina to straighten up the records and recommend and implement a new financial reporting system. As the city belatedly closed the books for 2006 and 2007, it became painful to read the "Auditor's Letters" about our past accounting practices. I learned that poor accounting procedures resulted in bills being paid redundantly and that dramatically escalating health care costs would be a devastating loss to the City's financial reserves. Since assuming office this past July, I have been an advocate for the best possible monitoring to address these issues and especially the 2008-09 budget, approved shortly before I joined Council. We have hired new staff with appropriate professional credentials and have launched a search for a new Chief Financial Officer. In October we began receiving revenue and expenditure reports, and the previous year's books (FY 2007/08) were placed in the Auditor's hands last month. City staff and the Municipal Association Accounting Team have implemented changes in the reporting system for the current budget year. City Council's Audit Committee now meets regularly and recently addressed our need for an Internal Auditor and a forensic audit to examine past practice. Council learned of additional unanticipated health care costs last year, and will be making changes in our health care benefits package that will go into effect in July.
Economic Challenges to Our City and Our Nation
Our financial issues and steps necessary to resolve them have surfaced in an especially troubling time in the history of our city and our nation as we experience unprecedented economic pressure. It is ironic that at the moment our municipal government is finally putting its financial house back in order, we are confronted with unemployment at record levels, state government lay-offs and furloughs, business closings, and mounting foreclosures. Now, let me be clear: I know our city will weather this storm and emerge stronger, as a vibrant 21st century city.But there is no question that City Council must make tough decisions in the coming weeks about cost saving measures for the remaining months of this fiscal year. Moreover, as we plan for 2009-2010, our city government will need to revise practices dramatically. Like our residents, our municipal government will need to become lean and our staff will be required to do more with less resources. Please know that appropriate funding for public safety will remain my chief concern.
The National Search for A New City Manager
As you no doubt are aware, City Manager Charles Austin recently announced his retirement effective at the end of March. Senior Assistant City Manager Steve Gantt has been appointed Interim City Manager and already is reviewing the City's present financial condition.Council has made it clear that it will take the necessary steps to ensure a balanced budget for the year ending June 30th, and Mr. Gantt is a no-nonsense administrator who can lead city staff in this transition period. It is my hope that we will launch a national search for a new City Manager in the coming weeks. Mr. Gantt will not be a candidate for the permanent City Manager position. I will advocate for an experienced and credentialed public administrator for our city.
Join Me This Thursday at the "State of the City" Address
The annual "State of the City" address will be this Thursday, February 5th at 6:00 pm at the Columbia Convention and Visitor's Center in the Vista. Mayor Bob Coble will be presenting an analysis of where we now stand and announce plans for the coming year. A very modest reception will follow, and we will have an opportunity to talk about our city. I cannot tell you how important it is for you to share your thoughts and ideas with members of City Council. In the event you cannot attend and wish to communicate with me, you can always contact me. Your contacts through the web site come directly to me. Please know again how much I value your thoughts and ideas. As we move to warmer weather in the spring, I'll be walking in the neighborhoods and talking with residents face to face. I look forward to seeing you soon.
Sincerely,
Belinda Gergel
Columbia City Council, District 3 Representative