Joe has spent a good deal of time researching the most important issues facing the residents and leadership of Broadview Heights. For you, he has used a data-driven approach to making these conclusions. Joe invites you to read through this information and learn more about where he stands specifically on these matters.

Fiscal Responsibility with the Taxpayers’ Dollars

April 21, 2009

Elected officials boasted about a 1.8 million dollar unencumbered balance in city finances at the end of 2007. Just 6 months later the unencumbered balance dropped below 1 million dollars and the long time employment of 4 city hall employees ended in an attempt to offset budget shortfalls. At the same time it was reported that city income was up. Why the shortfall? Was spending exceeding income? The answer has to be yes. Gasoline and fuel costs had more than doubled but this amounted to an estimated eighty thousand dollar increase year to date, so where did the other seven hundred thousand dollars go? Fiscal responsibility is now in question, especially in regards to our city needs verses the administrations wants. Since June of 2008 the city has found it necessary to eliminate at least six full time employees, two more have quit without being replaced and at least one employee has retired. In addition to this the city has laid off 3 employees form the service department (January 2009) and has announced that no temporary summer help would be employed this year in service. I believe that at one point in the last 8 months the unencumbered balance may have dropped below seven hundred thousand dollars and as recently as April 6, 2009, it was reported at city council that the unencumbered balance has once again dropped below one million dollars. The number was actually $880,000.00 dollars.

Fiscal responsibility is not an option and most certainly not a luxury with the current state of the American and worldwide economy. Money that has been spent and money currently being spent for special administrative projects come into question. All surrounding cities have put most “special projects” on hold or they have committed only to finishing projects all ready started. This is a time when all spending needs to be scrutinized. Thirty-two years of business leadership experience has guided me through many periods of financial struggle. My extensive business experience and knowledge will be an asset in the development of the long-term fiscal financial stability of Broadview Heights. The same experience will be instrumental with the implementation of our economic development strategies that again will be key in strengthening our city financial stability by providing the income that ultimately will care for your needs. As a responsible business owner I will be an advocate for you and for our diverse business community, especially the small business owners that this economy has impacted the most.

To address the financial struggles all aspects of city government expense needs to be reevaluated starting at the top. Currently a city executive and the team of labor negotiators are asking collective bargaining to accept a 1% increase with a 1-year contract. Where is the savings in that? Will the city not have to negotiate again in 1-year? Will the city not have to pay for the expensive cost or labor negotiating services for a second time within 12-months? Would not the city be better served to negotiate a longer contract with incentives that will benefit our employees more than the negotiator we’ll be paying for over and over again? Concessions will only come with reason. For reason to become effective everyone needs to be willing to accept concessions including our elected officials.

I propose that concessions begin with our elected officials. In 2006 the then Broadview Heights city council of 9 approved an annual 2% salary increase for the mayor. In doing so they effectively increased their own annual income by an equal percentage. Six of the 2006 council members then still serve today as elected officials and still receive the increases they themselves approved for 2007, 2008 and 2009. Recently some council members have publicly and profoundly given back the two hundred sixty-six dollars the received in 2009 salary increases… this election year. Is it enough? I believe that for some the word servant has been forever lost. I believe for politicians to restore voter confidence and trust in elected officials they (the politicians) need to revisit the meaning of the word ‘servant’. A political servant is one who is paid to represent their constituents. Is it then appropriate to ask them to give back more?

For comparison consider this; using surrounding cities only, here are the amounts being paid local mayors and council members in 2009.

	Brecksville	Broadview Hts	Independence	North Royalton	Seven Hills
Mayor	$97,400.00	$90,500.00	$60,000.00	$78,700.00	$14,000.00
Council President	$17,500.00	$15,500.00	$11,500.00	$13,100.00	$5,000.00
Councilman	$15,500.00	$13,600.00	$10,000.00	$10,500.00	$4,000.00

Public records available from the Cuyahoga County Board of Elections;
Brecksville
Broadview Heights
(note: Broadview Heights pay rates have yet to be updated for 2009)
Independence
North Royalton
Seven Hills
(note: Seven Hills Mayor is a part-time position)

Excluding Seven Hills, salaries for Mayors range from Independence at $60,000.00 per year to Brecksville at $97,400.00 per year. Comparable council salaries range from Independence at $10,000.00 per year to Brecksville at $15,500.00 per year. Backing out the high and the low and using North Royalton as a medium range let’s consider a few simple comparisons. North Royalton mayor earns $12,000.00 less and oversees a larger community of 28648 residents (Population based on 2000 Census) vs. Broadview Heights with 15967 (Broadview Heights population based on 2000 Census). Both cities have seen population growth since 2000 with North Royalton’s estimated number remaining considerably greater that Broadview Heights. North Royalton city council has an exact equal number of council representatives (7) plus the City Council President and each earn $3100.00 per member less than a councilman in neighboring Broadview Heights. Broadview Heights council represents 45% fewer residents than a councilman in North Royalton but is paid more. Why?

Fiscal responsibility has to begin with those who create policy and set the standard. With that I propose legislation that adjusts the salaries of all elected officials, bringing them in alignment with a medium standard. Based on the above comparisons combined with representation based on population I will seek a 20% reduction in earned income for all elected officials in Broadview Heights. Even with a 20% reduction, our Broadview Heights council will remain the second highest paid council in our region. After all, it’s not about the money, or is it?

Seeking a 20% reduction will not be well received by the majority of the status quo seeking reelection. To the credit of one current member of council, a compensation reduction was first suggested during a finance meeting in June 2008. Councilwoman Jennifer Mahnic asked if council would consider a pay reduction in an attempt to save the employment of employees being terminated. Unfortunately the remaining members of council had no interest in considering any reduction in compensation. With the publication of this article combined with the attention of an election year, is it time again for a good scrubbing using the word 'why' or ‘why not’? If nothing else it will be interesting to see how many take claim to reconsidering this… even taking claim to the suggestion. By law and in accordance with City Charter this could not take effect until the elected terms beginning in December 2011. Until that time each elected official could voluntarily return the difference ($2720.00) annually.

This article is in no way written to be confrontational; it is intended to again raise the bar on the accountability and transparency of all elected officials in Broadview Heights. I believe our elected officials deserve fair and reasonable compensation; I also believe that during difficult times our elected officials need to seek out all avenues of conservation, beginning with the reason I seek elected office… community service.