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Council splits with mayor on plans for budget analyst

by Kathleen Haley, published on September 8, 2009 at 10:53 PM

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The Sacramento City Council split with Mayor Kevin Johnson Tuesday on plans to create an independent budget analyst’s office, with eight members of the council in favor of hiring one person who could hold the positions of both city auditor and independent budget analyst. Johnson, meanwhile, backed the idea of forming two distinct offices, with one office for the city auditor and another office for the independent budget analyst.

At issue is a proposal from the Sacramentans for Accountable Government group to create an independent budget analyst’s office. Johnson supports the group’s efforts, which also include a “strong mayor” campaign to allow the mayor of Sacramento to gain more authority. The City Council voted 8-1 to ask city staff to bring back a job description for a city official that would simultaneously be a city auditor and budget analyst.
The city could yield savings and gain efficiency if it can find a candidate who could hold both the city auditor and independent budget analyst positions, Councilmember Steve Cohn said.

Johnson strongly disagreed. By creating two offices, the city would spend a little more money on the front end but potentially save more on the back end, he said. “I think we’ve actually taken a step backwards if you don’t keep the two departments separate,” he said.

The city auditor would analyze the finances of city departments, while the independent budget analyst’s job would be to examine policy decisions in the context of city finances, City Treasurer Russ Fehr said.

The city’s internal auditor position has been vacant since May, when former auditor Marty Kolkin left the post for a new job in Santa Monica. Patti Bisharat, the city’s director of governmental affairs, told the City Council last month that the internal auditor position may not be filled until January 2010 or later.

Photo by Anthony Bento.

Kathleen Haley is a staff reporter for The Sacramento Press.

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September 9, 2009 | 8:18 AM
And the drama continues in the midst of our fiscal crisis when people in our city are finding it difficult to feed their families.
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September 9, 2009 | 9:42 AM
At last, the council finally grew a pair...
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September 9, 2009 | 12:59 PM
bbbbmer - we all know your feelings on Johnson, this issue is not about Johnson it is about auditing our wasteful City, which Johnson has little or no power to control because he is a weak Mayor.

We need independent audits of every department from top to bottom to find out where money is being wasted or which could be better utilized elsewhere.

I cannot fathom why anyone would be against having regular independent audits of their local government.
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September 9, 2009 | 1:30 PM
Jim: The Council can instruct the City Manager to conduct an audit of the un-audited departments like Community Development at any time. If he fails to do so, they can fire him with six votes. So far, they have not done so, and while City Manager Kerridge seems estranged from the Council members, he is buddy-buddy with Johnson. I am also curious as to why the Strong Mayor proponents, who certainly don't mind putting the spotlight on individuals, whether it is former Mayor Fargo or City Attorney Teichert, seem to forget Kerridge's name, and even though they repeatedly mention that they want to take away the power of the City Manager, they never even mention any reasons why the current City Manager is doing an unsatisfactory job.
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September 9, 2009 | 7:50 PM
William you have no idea of what you are talking about...Kerridge is not estanged from the council by any means.

The council had an opportunity for a free audit, they turned it down.

The City needs an independent auditor, the City Manager is not Independent.
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September 9, 2009 | 9:58 PM
This auditor will report to the council, not the city manager. Kerridge isn't estranged from the council, but he has cut off communication between city staff and council staff, and reportedly plays all sorts of weird accounting tricks within Development Services, like not removing the salaries of laid-off people from the department accounts and using the money for special projects without allocating it, "forgiving" developer fees for buddies, etcetera. The point is, he hasn't allowed an audit of that department, even though a preliminary audit by the previous auditor found sings of serious gaps in their budget. This independent auditor won't be beholden to the city manager.

And, again, the "strong mayor" proponents seem to have serious problems with the idea of a city manager, but they seem to be absolutely overjoyed with the current city manager, even though they claim that the city manager system is the cause of all of Sacramento's problems. Why is that?

The "free audit" was the kind of "free" with strings attached, designed to reach a foregone conclusion--that's why the Council said no. It's kind of like the "free credit report" in the commercial that actually ends up charging you money.
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September 10, 2009 | 12:43 AM
I could write a book on how staff and the council lack communication - intentionally I fear. Many staff have their own agendas and wield quite a bit of power.


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September 9, 2009 | 10:28 PM
It's quite amazing to see the business-as-usual crowd try to defend a free audit from the nation's leading municipal financing company. Too bad, Mr. Burg, you don't have your facts straight. Had the firm found nothing, it wouldn't get paid. It only would get paid based on the savings the city council would vote to approve. And the payment would come from the savings.



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September 10, 2009 | 10:17 AM
Well, of course that's how it works...they would never have "found nothing" because their objective was to reach a predetermined conclusion--a common strategy for "cut & gut" firms. The "cost" would be the evisceration of city hall!
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September 10, 2009 | 1:50 PM
I am not against INDEPENDENT audits at all. My firm is subject to annual audits and has been for the past 20+ years. But, first, KJ's initial 'offering' of the Alvarez firm in New York was HARDLY 'independent' -- the firm is known by Johnson and his bff Michelle Rhee (who is soon to be unemployed again for a variety of reasons) of Washington DC schools in 'auditing' to suit certain outcomes dictated to them by organization principals. This is not an audit -- it's just propaganda and rationalization for specific purposes that are covertly intended -- such as KJ's intended takeover of the schools..... no matter that his own St. Hope organization could NEVER sustain findings of such a comprehensive audit by INDEPENDENT auditors whose interest was not dictated by a pathological control freak... Audits should be INDEPENDENT -- not intended to mask an already formed agenda....
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September 11, 2009 | 4:21 PM
It makes sense to have the internal auditor report to City Council. This is a good check and balance. But why an independant budget analyst. You already have staff that advises on budget details adnauseum. If there is a distruct of staff numbers, fire the staff and get someone you trust. If the City had a competent City Manager, there should be no distrust of budget numbers. And something would have been done about the budget imbalance 18 months ago. With a real leader as City Manager, you wouldn't be debating a need for a strong mayor initiative, either. It is an excellent form of government and simply requires someone of CEO caliber as City Manager, someone with some backbone. And so far that leader is no where in sight in Sacramento.
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edited on  September 12, 2009 | 12:29 AM
Excellent point: a council/manager system is modeled after corporate organizational structure, with the Council playing the role of the board of directors, Mayor as president of the board, and the City Manager as CEO. I'm not sure if Kerridge is up to the qualifications needed to be a city manager of the sort you are describing. For most of his career, Kerridge was a building inspector; the ICMA, a national association of city managers, states that most municipalities require a city manager to have a master's degree in public policy and experience in executive positions. Does Kerridge make the cut?

The other alternative you suggest, that the city is deliberately being mismanaged to encourage support for "strong mayor," implies that Kerridge is in on it, since it would need his support--do you have any proof to back up that rather serious allegation?
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