Tuesday, April 30, 2013

Challenging The Budget-- What Is The Role Of Town Council?

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"Our job is to set policy. Stay at that $50,000 foot level.  Feel free to ask whatever question you would like.  I do not want this to turn into a 'tit for tat'. " That is how Mayor Satish Hiremath opened the Town Of Oro Valley Town Council 2013-2014 budget session last week.

Later, the Mayor stated his view of the council's role in the budget process.  His view is that the council provides overall guidance to the budget, insuring that it is directionally within their policy and philosophical goals.  For example, in  the Mayor's view, it is not the role of council to instruct Mr. Caton to move funds among departments.  If the council would want to make a change like this, the Mayor stated that they would go to Mr. Caton, tell him what they want to accomplish and then let him, working with the directors, determine how to make it so. (Source: 4-24 Oro Valley Town Council Special Session, 50 minute mark [approx]).

Mr. Caton agrees. "I believe that is correct.  The budget preparation is a 5-6 month process.  It involves many stakeholders including community, employees, council.  We use two primary documents as our guiding light.  One...is the general plan...and also the recently approved council strategic plan.  So we use those to make our recommendations for the allocation of resources to deliver the programs and services for the community.  It is ultimately the council's responsibility to adopt that budget but we provide a recommendation on the best way of allocation."

It appears that not all council members agree that with the Mayor's view.

Last week, Council Member Zinkin questioned Oro Valley Police Chief Dan Sharp on the police budget. He asked questions regarding the extensive overtime budgeted.  He queried about a substantial budget request to build an evidence facility, a facility that Chief Sharp started was justified by a 2007 summary of overall town facility needs.  He asked about the Chief Sharp's use of a ratio of 2.4 police per resident, noting that other "safe" towns had far lower ratios.  He asked why the police department needed its own information technology department.  He asked about the substantial increase in spending on police (video).   Chief Sharp responded directly to each question.  The dialogue brought forth the reasoning behind the police department proposed budget.

Apparently, Council Member Zinkin sees the role of the town council differently than the Mayor regarding inspection of and approval of the budget.  It appears that he believes that it is not the job of a council member to merely review the town's recommended budget. Nor is it any council member's job to assume that someone has done this for them.  It is council member's job to challenge these budgets on behalf of the residents of the town. So, when a council member does challenge a budget, they are doing the job they were elected to do.

What do you think?  Which position do you believe best produces a fiscally responsible budget?  Is the role of the council to do a budget oversight or is it their role to dig into the budget to determine that the town is spending your money wisely?  Or, perhaps, you think it is something in between?

What's your opinion?
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7 comments:

Faveaunts said...

So glad that Mike & a few others on Town Council take the time to ask the hard questions & watch out for the citizens. I hope Mike uses his forensic abilities with the 2012 International Codes that are proposed in tomorrow night's Council agenda. In Dec, he motioned that an Energy Element including these International Codes should be left for the voters of Oro Valley to decide when the 2015 general plan is considered. Now Town Staff is trying to sneak them in anyway & if successful, we are stripped of our property rights. Unless it's a safety issue, why should the Town mandate our toilets, light bulbs, windows, pools, & other items that should be left up to homeowners to decide?

Anonymous said...

As a stakeholder in the OV Budget, I feel strongly that my elected officials have an obligation to ask questions. Questions must be asked for each item in the recommended budget.

OV Objective Thinker said...

I guess the majority of the voters agree with the mayor's approach.

The greatest value to asking questions is to learn. One would think that after asking the same questions over and over and getting the same answer over and over the one asking the questions would learn. Evidently that concept is wasted on some of the Twon Council.

chuck davis said...

I would expect council members to have intellectual involvement in the budget approval process. Essentially budgeting is a resource allocation exercise and since we have limited resources, the council members need to understand the budget.

OV Objective Thinker said...

Chuck.....

Might I ask that you describe "intellectual involvement in the budget approval process."

Without knowing what that means it's difficult to discuss.

Cares.... I am confident that "asking a question on each item in the budget" is really your way of saying that there should be some scrutiny. Right?????

Anonymous said...

OVOT...

Yes, there should definitely be scrutiny. Asking questions is an important step in understanding the budget.

After watching last evening's Council Meeting, it seems clear to me the Mayor doesn't appreciate questions from certain council members. Does he not realize that these questions come from the citizens of Oro Valley?

arizonamoose said...

The Mayor stated his view of the council's role in the budget process. His view is that the council provides overall guidance to the budget, insuring that it is directionally within their policy and philosophical goals.
The Town Manager, Mr. Caton, agrees. "I believe that is correct.

Obviously, the mayor and the town manager are not aware of “fiduciary duties or responsibilities”.

What Is a Fiduciary Responsibility?
Certainly when the public chooses an elected official, the public is putting its trust and confidence in him or her to act in the public’s best interests. Indeed, always putting the public’s interests first is the essence of public service ethics.
In a representative democracy, the public elects officials to act in their interests. Elected officials make important decisions on behalf of the public, including how to spend taxpayer and other public monies on infrastructure and services.

Duties of a Fiduciary
Because a fiduciary has the power and obligation to act for another, the law imposes on fiduciaries strict standards of diligence, responsibility and honesty.

Diligence: The Duty to Do a Good Job
The law speaks in terms of a fiduciary using his or her "best efforts" on behalf of those served. This typically means using all possible skill, care and diligence when acting on behalf of those served. In the case of public servants, the task is for public officials to use their best skills, care and diligence in serving the public.
That means educating oneself about the issues facing the community -- talking to the community, staff and other experts, as well as reading relevant reports and studies. It also means being diligent in preparing for and attending meetings. Ultimately, it means making decisions that reflect one’s best judgment on what course of action will produce positive results for the community.

Honesty: Being Open and Transparent
A person acting in a fiduciary capacity is held to a high standard of honesty and full disclosure.
When the public places power in the hands of its public officials, the public relies on officials to exercise that power prudently. Indeed, the definition of "trust" is to rely on the integrity, strength and ability of a person or thing.

Public Input to the Budget Process

In January, the Town conducted an employee and community budget forum to help educate the public on the budget process and seek input from employees and residents. The community forum was held Thursday, January 17, 2013. This meeting was not recorded so there is no record of any significant public input.

The public is not really involved in the following budget process. The Town Manager then presented a Town Manager Recommended Budget (TMRB) to the Town Council on April 3, 2013.
The TMRB budget was reviewed by Town Council in two study sessions: April 10, 2013 and April 24, 2013. There was no public input or questions allowed at these two meetings.

On May 1, 2013, Three Council members did exercise their fiduciary duty and questioned many of the expenditures in detail.
However, the Town Council voted to approve the tentative TMRB budget with one change increasing an expenditure to the Oro Valley Chamber of Commerce to $30,000 at the Mayor’s request.

Conclusion
In my opinion, with the exception of three council members, the mayor and remaining council members did not exercise their fiduciary responsibility. These elected officials failed in their fiduciary duty on behalf of the public, on how to spend taxpayer and other public monies on infrastructure and services.

The Oro Valley budget process is a sham!

John Musolf