Wednesday, May 27, 2009

Council Votes To "Raid" Contingency Fund With Total Disregard Of "Unintended Consequences"

At the May 27 Special Session, which was continued from the May 20 Regular Session, the Council voted 4-3 to "raid" the contingency fund to avoid any layoffs.

In what some observers believe was a "predetermined" vote, on a motion by none other than Mayor Loomis, with the backing of Al Kunisch, Paula Abbott & KC Carter, it was decided that taking $380,000 from the contingency fund was a good idea.

It is worth noting, the Town Manager has recommended layoffs as being responsive to building declines, as well as other shortfalls in revenue.

As a result of this vote, there will be no scheduled layoffs, at least for the time being. However, in six months time, the "axe may fall" on some employees whose jobs are not required. How do we know this? It was an amendment to the motion, but the mayor was quoted as saying; "If people don't have work at that point, we can fire them."

What are some of the potential ramifications as a result of the council's action?

Well, one unintended consequence is the fact that any employees let go after the six month period, will in essence, be fired, with the potential of no severance pay and no unemployment benefits. (How would you like to work with that hanging over your head?)

Also, the city of Tucson took similar action and raided its contingency fund to save jobs. The result was a downgrade of its bond rating, obligating its taxpayers to pay more for any loans the city takes out, plus a major depletion of its fund.

Now Oro Valley is going down that same road. The Town Attorney ruled that the action was legal although town policy is to delve into the contingency fund for only " non-recurring one time expenditures."

To keep people on the payroll for a minimum of six months doesn't seem to meet that criteria.

Additionally, Oro Valley was in dire straights financially, at least as of last week. Now, it looks like money is no issue. What changed? Or better yet, what changed at least a couple of minds?

Why Bill Garner, Salette Latas & Barry Gillaspie saw fit to vote "no" is totally understandable. Salette quite correctly noted, "It is fiscally irresponsible." Bill put it another way, saying, "we are trying to be fiscally responsible." Barry said: "You have no plan."

What the other four were thinking is another story.

I would hope ALL our readers will listen to the audio on the OV web site (no streaming video) of this item, and determine who made sense, and who didn't. From my standpoint, the only sensible things I heard were from Bill, Salette, Barry & David Andrews.

16 comments:

Fear the Turtle said...

This perhaps signals the begining of the end of Oro Valley as a viable entity.

Loomis and his flunkies MUST be defeated in the next election.

Victorian Cowgirl said...

I don't understand the part about how those being fired in 6 months will not quality for unemployment benefits. It is my understanding, from a past experience with this issue, that the only reason an employer can refuse to pay unemployment benefits is if the employee was fired for insubordination or for engaging in illegal activities on the job. Other than that, they are required to pay those benefits.

This happened when I lived back east, but I thought unemployment laws were Federally mandated and not a State issue. If I'm wrong about that, does Arizona have a different set of rules?

Perhaps this was discussed during last night's meeting but I wasn't there to see it.

cyclone1 said...

VC-
They would be eligible for unemployment through the state program, but the question remains if the Town would put together any kind of severance package since the terminations would not be part of a large scale reduction in force.

Oro Valley Mom said...

I would think that allowing them to collect a paycheck for six months when there is not enough work to do would be severance pay enough.

Victorian Cowgirl said...

Yes, I was just about to say that if we're paying them for 6 months to hang around and do nothing, why not just let them go and pay the 6 months of severance pay instead?

The way we're doing it now, we'll pay 6 months of salary for them to sit around and then another 3-6 months of severance and/or unemployment on top of that. So wouldn't it be more cost-effective to terminate the employment now and save the 6 months of salary?

I don't like to see good people lose their jobs, but on the other hand, I don't like to see anyone sitting around while I'm paying their salary.

If this were a regular business, an employee would let the person(s) go rather than continue to pay them to hang around. But when it's taxpayer money paying the salaries, it's treated differently. But it shouldn't be.

Anonymous said...

Ah, but you have to understand the mindset of this mindless action. These people think that they are the seers of Oro Valley, that in 6 months all will be well and economic recovery will provide us with a bountiful buffet; 'what fools these mortals be'! NO ONE in this country can predict how or when we will recover from this 'recession' - NO ONE! But, evidently a few of the great fortunetellers of Oro Valley think THEY can. Whew, what a group - they BLINDSIDED our Town Manager and Staff who, with diligence and with professional acumen, worked fervently to keep our budget in line with our needs. The Town Manager and Staff succeeded; four members of our unprofessional Council failed; NO VOTE FOR THEM HERE!

Richard Furash, MBA said...

It looks like we have more work to do folks. We must simply elect people to office who bring common sense to the table and do the right thing by the people of Oro Valley.

Raiding the contingency fund is not the right thing.

Its not just Hizzoner the Mayah For Life, Paul "Looney Toons" Loomis; It's Al "Who-He" Kunish; and now Paula has turned "ditzy" and KC is, well, simply irascible.

Our job is never done.

Nombe Watanabe said...

I have commented several times over the last 6 or 7 months that a recall of the mayor was in order.

None of the blogging elite on this site saw fit to respond or comment.

If anyone had supported me maybe things would be different. Maybe the political winds would be blowing so hard that this raid would not have taken place.

It gives me no pleasure to state:

I told you so.

azcowboy said...

well well well. nothing ever changes. loomis runs the town with the police chief and their stooges on the council. hang the costs. it is like the federal govt now and here it is being repeated. the idea of 101 squad cars for 103 officers boggles my mind. i am wondering what our polcy is for all of the employees regarding all of the town owned vehicles and reimbursement for all personal use. everyone driving our vehicles for personal use, should be 1099'd or have it added to their w-2. all in all, oro valley has become a lousy place to live and if the real estate market changed i would not be th eonly one who cant wait to leave this burg. the only thing that would help would be a recall on the magic 4 member of the council, starting with loomis. then we could begin to clean up all the creep up in our budget the last few years.
azcowboy

artmarth said...

Re: A recall. Although there are probably many folks that endorse a recall of the mayor and at least one council member, it is easier said than done.

One issue is getting enough signatures, although with so many of us "fed up" with many of the actions of "some on the council," that would not be the major hurdle to overcome.

The BIG issue is having QUALIFIED people that are worthy of consideration, and willing to step forward.

In the last election, we endorsed Bill & Salette, and to date,we are proud of the way they have represented the people of OV.

As I noted in a previous posting, I expect that we will have one new candidate that we will endorse 100%, (in spite of boobie-baby's) warning.)

If there are other individuals that feel they might be interested in running in the 2010 election, we don't know who they are.

Getting "GOOD" candidates is hard enough. A recall is even more difficult----although, who could argue with the merits of the proposal?

Victorian Cowgirl said...

Nombe,

You are correct that everyone likes to complain but hardly anyone wants to do the work to make the necessary changes.

I recently asked bloggers who were complaining about the possibility of a property tax if they would be interested in forming a citizens group to fight it should the need arise. Only one person responded.

I think the problem with recalling Loomis, though, may have been that it would be a lot of work to remove someone who didn't have that much time left in his term. But clearly, a lot of damage can be done in even a short time.

Other bloggers may not want to join a citizens group that's initiated from this blog because they would have to give up their "cover" and reveal their real names.

So if a "Loomis recall" or a "property tax opposition" group wants to form, I think they will have to use another avenue to recruit people.

Richard Furash, MBA said...

And who will replace Loomis? Kunisch? Carter? Abbott?

Are some of you who so vehemently recognize their folly ready to stand up and be counted? Are you ready to run?

Anonymous said...

Some time ago (more than a year) I had conveyed my feelings about the potential of a recall, in part as voiced in this stream; at that juncture however, as the election time was nearing and the potential for new candidates winning was on the horizon and that such a new Council might have a new 'power' lineup, I thought that such an effort might be redundant in that, if a new Council was, in fact, voted in, the Mayor would then not have the votes needed to 'rule'.

Unfortunately I was naive about some of the 'powers' that the Mayor seemingly still has AND I rationalized to myself that, if a new Council was seated, I chanced that a more responsible governance most certainly would prevail.

Unfortunately, as of late, I am seeing what I perceive to be some totally irrational behavior and judgment relative to certain matters by even those who I would have expected otherwise,especially within the realm of fiscal responsibility and Governmental processes.

That a diligent Town Manager and Staff were not only 'overruled' but blindsided in the process in certain matters of budget, was, in itself, a dastardly act of power politics.

Yes, I have disagreed at times with those I 'favor' on Council and I have agreed at times with those that I have generally not.
But this, a blindside and dismissal, perpetrated on a very honorable person, was not simply a matter of whom I might 'favor' on council or who I might not; this was an irresponsible act perpetrated in an irresponsible manner and done so by certain members of Council acting irresponsibly!

This act accentuates that Oro Valley needs to adopt and follow accepted and proper budget procedures as is utilized by most responsible municipalities throughout the country and not hold on to the 'wild west' mentality that some wish to perpetuate.

THIS CAN BE ACCOMPLISHED BY 'MEMBER' REPLACEMENT!

Unknown said...

Their terms are expiring - save the money and effort needed for a recall and put it towards bringing in new blood.

Anonymous said...

VC, you just stated that you [asked who would would join a citizens group to fight a property tax]; I'm sorry but I must have missed that one. If it does become an issue, I would be most happy to assist!

Zee Man, you challenge that some should step forth and be ready to run; I'm afraid that, without being presumptuous, I personally, though I vehemently recognize their folly, am not in a position to even attempt to do so. I will, however, volunteer my services to any others that might and who have the mindset of serving the Town with a standard of due diligence and faithful process.

Nombe Watanabe said...

VC I do recall your posting in the property tax thread regarding a citizens group.

At the time I said to myself, count me in. I guess I should have done more than just talk to myself. (as I often do) I will now state that if it become necessary to form an anti property tax group I would be happy to help.

As for the election, Artmarth and Zev have made most excellent comments. Good candidates will be hard to find. We could end up voting for the devil we do not know and missing the devil we knew.

The recall: (6 months ago) Just the fact of an organized recall/signature drive, with press coverage and the attendnt hype COULD HAVE put some pressure on the tax and spend party (CALK) to stifle themselves. I agree with ORO that the time has past for any recall activity at present.

If qualified individuals surface I would be happy to help get them elected and, VC, as stated above you can count on me if the property tax issue's ugly head pops out of the gopher hole.

I will even use one of my other names.