Jun 2009
Recall Posse.org
June/30/2009 18:22
A blog reader sent in a link to very interesting web site that I recommend for your perusal: Recall Posse.org. The organization touts itself as ‘A quickly moving force of “tireless” individuals to unseat those who feel accountable to no one’.
I wonder if the Recall Posse is going to be riding into Grosse Pointe Shores? I am sure they would find a few people that meet that description to round up! I certainly concur with the banner on the Recall Posse site that says “ Allowing more of the same is not an option”
I am glad to see that recall movements are gathering steam in other areas, including in the adjacent city of Grosse Pointe Woods. Nancy Hames is spearheading the recall of two council members who voted to increase property taxes there. Last week Wayne County officials approved the Woods recall language, a step required before petitions can be circulated. The approved reason for recall in the Woods was merely that the council member voted to increase taxes for the next fiscal year.
Having such petition language already approved in the Woods should make it easier for us to get through the same hurdle. I would like to thank Nancy for being so willing to share what she has learned in the recall process with her neighbors in the Shores. Her help will certainly facilitate our effort.
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John Booth offered the following clarification on the harbor funding issue he brought forth yesterday:
Bob,
I have now reviewed the actual borrowing and repayment schedule for the harbor renovations.
The monies for this project came from a newly issued general revenue Village bond with a face value of 3.8 million dollars.
When the principal payments start in two years, the Village debt service on the bond goes up an additional $50,000.
You should place this information on the blog.
John Booth
I wonder if the Recall Posse is going to be riding into Grosse Pointe Shores? I am sure they would find a few people that meet that description to round up! I certainly concur with the banner on the Recall Posse site that says “ Allowing more of the same is not an option”
I am glad to see that recall movements are gathering steam in other areas, including in the adjacent city of Grosse Pointe Woods. Nancy Hames is spearheading the recall of two council members who voted to increase property taxes there. Last week Wayne County officials approved the Woods recall language, a step required before petitions can be circulated. The approved reason for recall in the Woods was merely that the council member voted to increase taxes for the next fiscal year.
Having such petition language already approved in the Woods should make it easier for us to get through the same hurdle. I would like to thank Nancy for being so willing to share what she has learned in the recall process with her neighbors in the Shores. Her help will certainly facilitate our effort.
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John Booth offered the following clarification on the harbor funding issue he brought forth yesterday:
Bob,
I have now reviewed the actual borrowing and repayment schedule for the harbor renovations.
The monies for this project came from a newly issued general revenue Village bond with a face value of 3.8 million dollars.
When the principal payments start in two years, the Village debt service on the bond goes up an additional $50,000.
You should place this information on the blog.
John Booth
Additional Observations on Shores Issues
June/29/2009 12:59
As a novice webmaster and blogger, I am surprised at the power of this modern and unique means of communication. The initial response to the Shores Recall Web site in terms of the volume of web site hits as well as the number of residents expressing interest in supporting the recall campaign is most gratifying. Please spread the word to your Shores friends and neighbors!
Shores resident John L. Booth, II has had a long interest in civic affairs, and is a frequent attendee at our Shores council meetings. John replied over the web with the following astute observations in response to my last blog posting. John was kind enough to grant me permission to post them on the site for everyone to contemplate. When you look at the overall picture, the present and future financial situation of the Shores does not look all that rosy. I find John’s second remark particularly alarming. Here are his points listed below, highlighted in italics:
From: John Booth
Subject: Other Grosse Pointe Facts
Message:
#1 The GPS Pension, fund marked to market as of December 31, 2008, was approximately seven million dollars underfunded to meet its long term pension liabilities.
#2 The current amount required to be paid this fiscal year out of the general fund to address this pension shortfall is approximately $570,000 which is an increase of over 28% from the previous year and almost 10% of the GPS gross revenues. Because of an accounting practice known as "smoothing", major increases in annual contributions are delayed into the future. As recently as 2003, the GPS pension plan was over funded, requiring zero annual contributions.
#3 The GPS harbor renovations were funded by a loan secured by a pledge against general revenues. The loan only requires interest payments for the first three years. In just two years the Village will have to come up with money out of the general fund to meet required principal payments on a loan of 3.25 Million dollars.
#4 The Council raised the millage to replenish depleted capital fund reserves which had been set aside for street maintenance and other large future projects. In other words, over the past three years as the Village ran operating net losses, the budget was balanced by transferring funds from these necessary reserve and set asides, thereby postponing and avoiding the need to reduce any operating expenses for three years. These reserve funds which represented an earned surplus from many years are now exhausted.
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Thanks for sharing these important thoughts with your fellow Shores residents, John. I looking forward to hearing from others with their opinions on these important civic issues.
Shores resident John L. Booth, II has had a long interest in civic affairs, and is a frequent attendee at our Shores council meetings. John replied over the web with the following astute observations in response to my last blog posting. John was kind enough to grant me permission to post them on the site for everyone to contemplate. When you look at the overall picture, the present and future financial situation of the Shores does not look all that rosy. I find John’s second remark particularly alarming. Here are his points listed below, highlighted in italics:
From: John Booth
Subject: Other Grosse Pointe Facts
Message:
#1 The GPS Pension, fund marked to market as of December 31, 2008, was approximately seven million dollars underfunded to meet its long term pension liabilities.
#2 The current amount required to be paid this fiscal year out of the general fund to address this pension shortfall is approximately $570,000 which is an increase of over 28% from the previous year and almost 10% of the GPS gross revenues. Because of an accounting practice known as "smoothing", major increases in annual contributions are delayed into the future. As recently as 2003, the GPS pension plan was over funded, requiring zero annual contributions.
#3 The GPS harbor renovations were funded by a loan secured by a pledge against general revenues. The loan only requires interest payments for the first three years. In just two years the Village will have to come up with money out of the general fund to meet required principal payments on a loan of 3.25 Million dollars.
#4 The Council raised the millage to replenish depleted capital fund reserves which had been set aside for street maintenance and other large future projects. In other words, over the past three years as the Village ran operating net losses, the budget was balanced by transferring funds from these necessary reserve and set asides, thereby postponing and avoiding the need to reduce any operating expenses for three years. These reserve funds which represented an earned surplus from many years are now exhausted.
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Thanks for sharing these important thoughts with your fellow Shores residents, John. I looking forward to hearing from others with their opinions on these important civic issues.
Thoughts on freep.com Shores harbor article
June/28/2009 16:33
Did you see the article on the Free Press web site on June 22 about the Shores harbor situation? This hyperlink takes you to the news item that notes that currently only about 70% of the Shores boat wells are occupied. I distinctly recall the discussions between our elected officials and residents leading up to the harbor renovations. Concerned taxpayers were advised not to worry, that the boater’s revenue going into the harbor fund should cover the renovation expenses. Non-boating residents were not supposed to bear the burden for other’s recreational pursuits.
Now it has come to light that this promise was based on a number of presumptions, including “full harbor occupancy every year”. Having lived in the Shores for 16 years, and often enjoying the opportunity to take a stroll down the park pier, I can’t recall any time when we had an occupancy rate close to 80%. Did you know the village was actually warned in writing by its auditors that 100% occupancy was one of the assumptions that had to be met if cash flow from marina operations was to be positive!
So, Shores officials based the revenue projection for the harbor on an erroneous initial assumption, one that is now even more off target in these hard economic times. Also I bet not many citizens know that the Shores elected to finance the harbor with a bond structure that only pays interest for the first few years. As consumers, we all know the consequences of not promptly paying down both the interest and the principal on our personal debts. How many of us would take out a credit card for which we would pay interest only initially, but then pay through the nose in later years? 3.8 million dollars borrowed now turns into a long-term obligation to Shores taxpayers of over 7 million dollars.
As a result of the bond financing decision made by the Shores, annual payments on the harbor bonds start at about $160,000 this year, but skyrocket to as high as $304,000 in the year 2032. Consider this, as you get ready to pay the inflated summer tax bill you received yesterday.Couple the declining harbor revenues with the progressively escalating bond payments, and it is clear Shores taxpayers will be bearing the consequences of faulty fiscal decision making for many years to come.
At least citizens who attended the June council meeting know we now have two responsible Council members in Ted Kedzierski and Dan Schulte, officials who showed they are not going to sit back without questioning the consequences of the issues at hand. Thanks to Dan and Ted, I am glad to see that the days of unanimous, rubber-stamped Shores council votes, as well as votes taken without any meaningful public discussion or debate on major issues, appear to be over.
Feel free to let me know your thoughts on Shores issues using the contact form on the last page of The Shores Recall Web site. The same form can also be used if you want to be added to the growing e-mail list of residents who plan to take part in the recall efforts.
Now it has come to light that this promise was based on a number of presumptions, including “full harbor occupancy every year”. Having lived in the Shores for 16 years, and often enjoying the opportunity to take a stroll down the park pier, I can’t recall any time when we had an occupancy rate close to 80%. Did you know the village was actually warned in writing by its auditors that 100% occupancy was one of the assumptions that had to be met if cash flow from marina operations was to be positive!
So, Shores officials based the revenue projection for the harbor on an erroneous initial assumption, one that is now even more off target in these hard economic times. Also I bet not many citizens know that the Shores elected to finance the harbor with a bond structure that only pays interest for the first few years. As consumers, we all know the consequences of not promptly paying down both the interest and the principal on our personal debts. How many of us would take out a credit card for which we would pay interest only initially, but then pay through the nose in later years? 3.8 million dollars borrowed now turns into a long-term obligation to Shores taxpayers of over 7 million dollars.
As a result of the bond financing decision made by the Shores, annual payments on the harbor bonds start at about $160,000 this year, but skyrocket to as high as $304,000 in the year 2032. Consider this, as you get ready to pay the inflated summer tax bill you received yesterday.Couple the declining harbor revenues with the progressively escalating bond payments, and it is clear Shores taxpayers will be bearing the consequences of faulty fiscal decision making for many years to come.
At least citizens who attended the June council meeting know we now have two responsible Council members in Ted Kedzierski and Dan Schulte, officials who showed they are not going to sit back without questioning the consequences of the issues at hand. Thanks to Dan and Ted, I am glad to see that the days of unanimous, rubber-stamped Shores council votes, as well as votes taken without any meaningful public discussion or debate on major issues, appear to be over.
Feel free to let me know your thoughts on Shores issues using the contact form on the last page of The Shores Recall Web site. The same form can also be used if you want to be added to the growing e-mail list of residents who plan to take part in the recall efforts.
Why we need a recall
June/27/2009 18:00
At the June Grosse Pointe Shores city council meeting, Mayor Cooper and Council members Hunt, Minturn, Boyce and Graziani all voted to increase Shores property taxes another mil. This action ran contrary to the strong sentiments voiced by residents in attendance, despite the promise that there was no intent to raise property taxes as permitted by the controversial clause in the recently adopted city charter.
Even more disturbing than the vote on the tax increase was seeing the manner in which Mayor Cooper and his cronies are trying to hinder and obstruct the efforts of Councilmen Schulte and Kedzierski to do the jobs that voters elected them to do - serve the best interests of the residents of Grosse Pointe Shores.
At the meeting it came out that our new city manager Brian Vick told Councilman Dan Schulte that any requests he has for public records will need to be approved by the entire council. If the council denies his request, then Dan will have to pursue the information he desires via the Freedom of Information Act. Since when should an employee on the city payroll have the authority to deny one of our elected officials the information he needs to do his job?
It is outrageous that Mayor Cooper publicly demanded that Councilman Schulte provide him with a list of Shores residents that he has corresponded with by email. This was but one of the multiple personal attacks Mayor Cooper made on Mr. Schulte during the meeting. Is freedom of speech not held to be a sacrosanct right by our mayor?
Citizens elected Ted Kedzierski for his financial expertise as a CPA and a Certified Forensic Accountant. Three months into Ted’s term, the Cooper administration has denied Ted access to the Shores general ledger. In these hard economic times, how could any of our city officials have voted in good conscience to burden us with more taxes without an intensive investigation of every nickel that has been spent recently? Just what are city officials trying to hide, beyond the over inflated salaries that have recently come to public light?
It was alarming to hear that before the recent council election, a yet to be identified official spent tax dollars to have the Shores attorney review the campaign literature of two of the challengers. As well as likely being illegal, this type of questionable pursuit certainly does not pass the sniff test. Why weren’t those candidates on the Cooper slate subject to the same type of scrutiny by the municipal attorney? Should such prejudicial activity have been paid for with our tax dollars?
At the meeting, I closed my three-minute public comment with a relevant quote from President Calvin Coolidge’s Inaugural address: “The collection of any taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare, is only a species of legalized larceny.” A few lines later in his speech, President Coolidge observed: “Whenever taxes become burdensome, a remedy can be applied by the people; but if they do not act for themselves, no one can be very successful in acting for them.”
The actions of Mayor Cooper and the 4 council members who voted for more taxes have made it clear that the time has come for the citizens of Grosse Pointe Shores to act and apply the very remedy suggested by President Coolidge - that of a recall. If you concur, and would like to be part of a group of citizens dedicated to lower taxes and a municipal government that serves the people instead of itself, please use the form on the last page of this web site to pass along both your thoughts and your contact information.
Five of our elected officials failed to heed the message Shores voters sent in the last election. A recall campaign will provide the breath of fresh air we need to transform our stagnant civic atmosphere. If we can mobilize a group of enthused citizens who want to see a return of “government of the people, by the people and for the people” of the Shores, the task at hand will be easy. I hope to hear from you soon.
Yours for a better Grosse Pointe Shores,
Dr. Robert E. Lee, M.D.
Even more disturbing than the vote on the tax increase was seeing the manner in which Mayor Cooper and his cronies are trying to hinder and obstruct the efforts of Councilmen Schulte and Kedzierski to do the jobs that voters elected them to do - serve the best interests of the residents of Grosse Pointe Shores.
At the meeting it came out that our new city manager Brian Vick told Councilman Dan Schulte that any requests he has for public records will need to be approved by the entire council. If the council denies his request, then Dan will have to pursue the information he desires via the Freedom of Information Act. Since when should an employee on the city payroll have the authority to deny one of our elected officials the information he needs to do his job?
It is outrageous that Mayor Cooper publicly demanded that Councilman Schulte provide him with a list of Shores residents that he has corresponded with by email. This was but one of the multiple personal attacks Mayor Cooper made on Mr. Schulte during the meeting. Is freedom of speech not held to be a sacrosanct right by our mayor?
Citizens elected Ted Kedzierski for his financial expertise as a CPA and a Certified Forensic Accountant. Three months into Ted’s term, the Cooper administration has denied Ted access to the Shores general ledger. In these hard economic times, how could any of our city officials have voted in good conscience to burden us with more taxes without an intensive investigation of every nickel that has been spent recently? Just what are city officials trying to hide, beyond the over inflated salaries that have recently come to public light?
It was alarming to hear that before the recent council election, a yet to be identified official spent tax dollars to have the Shores attorney review the campaign literature of two of the challengers. As well as likely being illegal, this type of questionable pursuit certainly does not pass the sniff test. Why weren’t those candidates on the Cooper slate subject to the same type of scrutiny by the municipal attorney? Should such prejudicial activity have been paid for with our tax dollars?
At the meeting, I closed my three-minute public comment with a relevant quote from President Calvin Coolidge’s Inaugural address: “The collection of any taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare, is only a species of legalized larceny.” A few lines later in his speech, President Coolidge observed: “Whenever taxes become burdensome, a remedy can be applied by the people; but if they do not act for themselves, no one can be very successful in acting for them.”
The actions of Mayor Cooper and the 4 council members who voted for more taxes have made it clear that the time has come for the citizens of Grosse Pointe Shores to act and apply the very remedy suggested by President Coolidge - that of a recall. If you concur, and would like to be part of a group of citizens dedicated to lower taxes and a municipal government that serves the people instead of itself, please use the form on the last page of this web site to pass along both your thoughts and your contact information.
Five of our elected officials failed to heed the message Shores voters sent in the last election. A recall campaign will provide the breath of fresh air we need to transform our stagnant civic atmosphere. If we can mobilize a group of enthused citizens who want to see a return of “government of the people, by the people and for the people” of the Shores, the task at hand will be easy. I hope to hear from you soon.
Yours for a better Grosse Pointe Shores,
Dr. Robert E. Lee, M.D.