Letter to Mayor Kristin Jacobs

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Explaining what's happening in Lauderdale Lakes.

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Thursday, December 13, 2012 Kristin Jacobs, Broward County Mayor Broward County Governmental Center 115 South Andrews Avenue Room 437C Fort Lauderdale, FL 33301 Chaz Stevens MAOS / The Broward Post 1600 S. Dixie Highway #300 Boca Raton, FL 33432 RE: 12/5/2012 Email from Lauderdale Lakes Mayor Barrington Russell Madam Mayor: Recently, the lunatics/liars in charge of Lauderdale Lakes floated a turd your way, hoping to assuage the growing concern that things over yonder are going all Hello Kitty Retarded. Suggestion: tell them to take a hike -- for the following reasons: 1. In response to the Broward Office of Inspector’s scathing review (and criminal indictment) of City Manager Jonathan Allen, Russell responded with a similar tone, “Hey, nothing to see here. Move on.” 2. Urgent calls to look away, emanating from the very same people (elected, admin, and legal) who have intentionally put the County taxpayer at dire risk. 3. Peeling apart the thin outer veneer of Russell’s communications, all you’re really left with are “bromides and platitudes.” You’re a bright gal … so ask yourself this, do you trust them? Do they instill confidence? Have they, after nearly a year floundering about in accounting purgatory, finally managed to produce accurate financial projections? Three questions, three answers. No, NFW, and nyet. With this in mind, my team (individuals with decades of real-world accounting experience) and I offer the following for your consideration.

Russell: Has the City Commission restored any portion of the 10% reduction it voluntarily took

last year? No. MAOS: Categorically not true. 1. In the 2013 budget, the Commission restored 4%, of the 10% reduction taken last year, to employees. 2. Keep in mind Russell has publicly indicated he “will sign, without reading, whatever is put before him.” So this letter, written by Allen, intentionally obfuscates the very fact Allen himself was included in the pay raise.

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3. Allen, along with a select few of his cronies, did not get hit with the 10% deduction. 4. To repeat, Allen got a raise for a pay cut he never took.
Russell: Did the City Commission have a discussion on restoring any portion of the voluntary

10% reduction? Yes. One of my colleagues sponsored a discussion item on a draft ordinance to restore 4% of the 10% reduction that the Commission voluntarily took. The item was initially discussed at the Monday, November 26th Commission Workshop Meeting. Based on the discussion during the workshop meeting, 1 don't anticipate that the ordinance will be passed by the City Commission at our December 11th Regular Commission Meeting. MAOS: Allen and his cohorts attempted to pull a fast one on the City Commission. While Russell correctly mentions a discussion, he fails to disclose this talk was “incorrectly” placed on the November 26 Workshop agenda – a failed attempt, we opine, to hinder any the following debate: 1. Possible restoration a portion of the 10% reduction for the Commission. 2. The matter of the City Manager and several department heads receiving the 4% restoration of salaries, when they did not participate in the previous 10% reduction. 3. Other department heads receiving bonuses prior to the 10% reduction -- to offset the then-upcoming payroll hit. Even though the Commission failed to arrive at a consensus for bringing the ordinance forward, this item re-appeared on the December 11 Commission meeting. This is in direct violation of City policy. Both City Manager and City Attorney were reprimanded for their actions. An ethics complaint with the International City Managers Association is in the process of being filed.
Russell: Has the CRA failed to spend the funds previously appropriated for the last Fiscal Year? No. Per Florida Statutes Chapter 163, each year the CRA adopts an annual budget which allocates all funds for specific activities, including the reallocation of prior year fund balances.

MAOS: Categorically not true. 1. As per Florida Statute 163, the CRA failed to properly budget prior year fund balances. 2. For FY 2012, the CRA had a $3.4 million fund balance and only budgeted $150,000. 3. For FY 2013, the CRA had a $3.4 million fund balance and only budgeted $268,000. Therefore, the CRA did not reallocate prior year fund balances as required by Florida Law. For this reason alone, the County should seek an audit by the Auditor General’s Office.
Russell: The City has made timely payments to BSO for monthly considerations and over $1,000,000 plus interest for the outstanding debt, ahead of time.

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MAOS: The City is making payments on time, but not ahead of time. And remember, these are payments for services in arrears.
Russell: The Lauderdale Lakes CRA and the City executed a forbearance agreement which will provide for the full repayment of the outstanding debt.

MAOS: We firmly believe the forbearance agreement is not legal. Neither the City Attorney, nor the CRA Attorney, has issued a written opinion on this matter. For this reason alone, the County should seek an Attorney General’s Opinion. All things considered, this agreement only benefits the City, at considerable expense to all Broward County taxpayers. The CRA repayment plan (as mentioned in the Long Range Financial Plan) will be extended up to 20 years, thereby further depriving the CRA the use of these funds.
Russell: The City adopted a Five Year Financial Recovery Plan and presented it to the Broward County Auditor for review.

MAOS: Someone should actually read the plan. It is a farce. I’d call it a joke, but it ain’t funny. The City’s Five Year Financial Recovery Plan calls for extending the BSO debt up to 20 years, the CRA debt up to 20 years, refinancing all other debt, and also includes a lease/buyback plan to sell all City assets.
Russell: The City renegotiated the $2.5 Million SunTrust Bank Loan and avoided a balloon payment, which would have been due according to the original loan payment schedule.

MAOS: Allen intentionally fails to disclose this refinancing will cost the taxpayer considerable additional interest. In conclusion, City Manager Jonathan Allen’s handmaiden, Mayor Barrington Russell, has also failed to disclose to the Broward County Commission: 1. The Lauderdale Lakes FY 2013 budget shifts almost $400k, of the $1.2 million BSO debt payment, to their beleaguered Fire Fund. 2. The very same Fire Fund with an existing a $1.7 million fund balance deficit. 3. The very same Fire Fund whose fees have jumped 33% in the past two years. 4. Fees now well over the legal limit. 5. Fees now illegally paying EMS costs.
Therefore, I once again reiterate my request for the Broward County Commission to call upon the Florida Auditor General and Attorney General’s Offices, seeking a comprehensive investigation into the illegal, criminal, immoral, and unethical practices of those in charge of Lauderdale Lakes.

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If it will help smooth over matters, I’ve got some extra Pabst Blue Ribbon lying around the house. Happy hunting;

Timothy “Chaz” Stevens 818-468-5433

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