by Jack Lee
When the Chico City Council seemingly couldn’t get a straight answer from their finance director, Jennifer Hennesey, three of the seven councilors, Mark Sorensen, Bob Evan and Scott Gruendl had suspicions something was amiss with our city revenues. The other four had their blinders on and refused to see what caused concerns for Gruendl, Evans and Sorensen.
That was over 20 months ago and since then, Hennessy has abruptly left for another finance position far away from Chico, and the city manager, Dave Burkland has retired. Two of the four counselors did not seek re-election and two remain… Mary Goloff and Ann Schwab.
What should be noted is, Mark Sorensen (shown left) was the only counselor to take the bold and unprecedented action of going straight to the Grand Jury with his suspicions about the city’s solvency.
When the facts started to come out we learned the city was coming up short over $20 million. As it stands, this is the single worst financial scandal in Chico’s history.
Today we have new city administrator, a new assistant city administrator and a new finance officer to deal with the mess that Hennesey and Burkland left behind. Mayor Ann Schwab, one of those who steadfastly refused to see the problem and had the temerity to assure the public that all was well, completed her term as mayor and now continues on the city council and so does Mary Goloff who has been elected Mayor to replace the outgoing Schwab, an odd turn of events to say the least.
I think it would be an injustice if Councilman Sorensen were not officially recognized by the City for his courage and integrity. He took a considerable political risk by going to the Grand Jury and the citizens of Chico owe him a huge debt of thanks. I imagine Mayor Goloff would sooner this all just be forgotten, but if she has an ounce of honor left, she should set aside her bruised ego and immediately initiate an official recognition for Counselor Sorensen. He deserves it and besides it’s not often we have a reason to say something nice about an elected official!
REPLY FROM MARK:
Thanks Jack, but really no courage was involved on my part. Just trying to do my job. Given the circumstances, the Grand Jury was a good step.
Even aside from the deficit spending, I wont go into all of the details here and now, but a great many things simply did not add up. Financially and otherwise.
The timing of my first letter to the GJ was 11 months into my term, after we had a quarterly “financial update” on Nov 1st 2011. I was so profoundly bothered by many aspects of that Council meeting and events leading up to it, that Friday I started writing. By Sunday I had 22 pages covering several very detailed examples, with hundreds of pages of referenced documents detailing serious concerns. Yes, it was another relaxing weekend as a Council member
On Tuesday Nov 8, I hand delivered copies of the letter and attachments.
I can’t go into details of the many communications with the Grand Jury since that time. But I sincerely hope that their work on this topic continues. I suspect that it will.
Unfortunately the original letter is so intertwined with “personnel issues” that I would have to redact it. I’ve thought about releasing it to the public because it absolutely nails what was going on at the time. I might even post some segments here on Post Scripts.
There were other efforts to bring in outside help. For one, I was so worried about the financial condition of the city that I was also in the process of putting together a request for intervention to the State Controllers office in June 2012, but held off as it appeared that we were on track to hire a new “outside” City Manager.
Meanwhile, in June 2012 the city passed another deficit spending budget. It is interesting to watch last year’s budget approval….Requires Internet Explorer..Fast Forward to time index 6:19 ….
http://chico-ca.granicus.com/MediaPlayer.php?view_id=2&clip_id=311&meta_id=27187
Unfortunately, I learned how slowly things happen in the public sector, not because of the people, but because of the situations… I could detail, but don’t want to do so without expansive detail to avoid being misconstrued.
Brian Nakamura walked into quite a mess. A mess financially and otherwise. Certain dysfunctional components within the city worked very hard to discourage and undermine Brian. But he stayed calm and resolute, and systematically worked through the challenges. The financial challenges alone were massive. Brian Nakamura is the courageous one.
I also looking very forward to things yet to come. I believe that in the coming months more information will come to describe how the city came so close to the brink of insolvency. ….. All, as we try to save the city from insolvency in the near term. It seems that few people appreciate how very delicate our predicament is.
As for Toby’s question “where did the $20 million go?”. My opinion is that rather than truly balance budgets (EG: actual revenues vs expenses) that the focus was on three primary goals.
1) Maintain pay levels
2) Maintain benefits
3) Maintain positions.
Go ahead and try that in your personal finances, or in your business. It does not work.
It seems that one facet of the Modus Operandi was to spread payroll and benefits and other cost allocations around to places that still contained dough.
Unfortunately, in this city that seems so very enamored with the concept of “sustainability”, the financial actions were not sustainable. Not even freekin’ close.
As for Toby’s other points…. ahhhhh…… re-read the above…. it aint over, yet.
But the best news of all, is that I fully expect to leave my City Government, of my little home town, in far better shape than when I got here. That is what true conservatives do. We absolutely will work through the current challenges and land on the other side much wiser and stronger.
Note from PS: And this is why Councilman Sorensen rates number 1 in my book of favorite politicians…anywhere!!! If we had a few hundred more like him in high places across this country and in the White House think of the possibilities! Well, just be thankful we have him on the city council. He’s doing a fantastic job, despite the resistance he gets from our liberals on the council and elsewhere.