IBEW Local 53 (Kansas City MO) Spends $50,000 to audit Independence City Finances

http://www.kansascity.com/mld/kansascity/news/local/9767882.htm


Posted on Mon, Sep. 27, 2004

Release of audit brings drama

Priorities examined in Independence

By BRIAN BURNES The Kansas City Star

"We know that the city cannot be successful in providing quality service without good employees."
Robert Heacock, Independence city manager

State audits of medium-sized municipalities usually are not released to nearly breathless audiences.

But that's what happened one recent night in Independence, when staffers from the Missouri auditor's office announced the long-awaited findings of its review of Independence finances.

In the City Council chambers, there were more citizens than seats.

Outside, a TV news van stood by with its uplink equipment in place.

Inside, the crowd got what it came for: details about revolving public improvement funds, undesignated fund balances and unrestricted tax-increment financing distribution money for capital projects.

At first glance, it was stuff only an accountant could love.

But for anyone following the occasional rhetorical fisticuffs that have marked Independence City Council meetings for more than a year, the audit release was the main event.

The audit had been championed by a resurgent labor coalition in Independence. About 850 of the approximately 1,150 Independence employees belong to unions, which had been restless ever since a 2003 salary freeze.

One union, Local 53 of the International Brotherhood of Electrical Workers, pledged up to $100,000 to finance an audit that would allow a neutral examination of city spending priorities.

But that wasn't all. This past spring, the same IBEW local contributed $48,000 to the campaigns of four candidates in City Council elections.

Three of the candidates won. Maybe, some wondered, the audit would prompt yet another victory party for labor in Independence.

After the audit's release, however, members of two often-opposing City Council factions found victories to declare.

"The audit clearly vindicated the city's budget process," said council member Jason White.

"The city put too much money into capital improvements rather than into employee wages," said Renee Paluka-White, who was backed by union contributions in April.

"I have said all along that they wanted to build bridges and roads instead of taking care of the needs of our employees and citizens," added Paluka-White, no relation to Jason White.

Mixed results

After the audit summary was outlined earlier this month, citizens came to a lectern to ask questions.

Question: Was the city budget "fiction," as suggested by several billboards seen across Independence over the past year?

Answer: No. "We didn't find anything about the financial statements that were misleading," said Thomas Kremer, state director of local government audits.

Question: Did the city have access to as much as $27 million in unrestricted funds, as claimed by an Oregon economist brought to Independence last year by a coalition of labor bargaining agents?

Answer: No. "We were accused of hiding great sums of money and the answer was,˜ 'No, there were not,' " White said later.

Question: But was there any money available?

Answer: Yes. During the year ending in June 2003, the city earmarked $1.8 million for capital improvements that could have been available for other purposes, the audit reported.

Keith Querry, IBEW Local No. 53 business manager, conceded that $1.8 million was not the $27 million that the Oregon economist suggested was on hand.

"There is a wide range there," Querry said. "But the bottom line is that money was available."

The audit now promises to affect ongoing labor negotiations with several employee unions, Querry added.

Last week, Kirk Stobart, president of the firefighters' local, asked City Council members to allow employees to cash out some personal days, a perk the city had eliminated.

"The audit reaffirmed our point that it's a matter of priorities," said Stobart, who represents about 150 Independence firefighters. "The City Council has the right to spend its money any way it wants. They are just not spending it on us."

What's next?

Perhaps the audit will provide the fresh start needed to bring about a new spirit of cooperation among council members.

With only one dissenting vote, Independence Mayor Ron Stewart and the council recently hired Robert Heacock as city manager. The vote came after Heacock submitted a budget that included money for 3 percent employee raises.

"We know that the city cannot be successful in providing quality service without good employees," Heacock said.

Meanwhile, union representatives in Independence still sense the wind at their backs. Two at-large council members and the mayor will be elected in the spring of 2006.

"We are going to be involved, absolutely," Querry said.

Question: The audit ended up costing the union local about $50,000. Was it worth it?

Answer: "I committed to $100,000," Querry said. "So I think I got a bargain."

To reach Brian Burnes, call (816)234-7804 or send e-mail to

bburnes@kcstar.com.



First glance

The recent release of a state audit of city finances brought a standing-room crowd to Independence City Hall.

The union that financed the audit promises to be back during the 2006 city election campaigns.