Budget Surplus and Big Raises in Johnson

The City of Johnson adopted the 2009 budget this week. It anticipates a surplus this year of $150,000 and projects a $200,000 surplus for next year -- and that is after approving a big raise for all city employees. Mayor Lonnie Barron said the 2009 budget is frugal, but he believes a 6% increase in city worker's pay is needed.

Bentonville city employees are scheduled to get a 5.8% cost-of-living raise next year. Rogers is promising a 5% raise for employees making above $41,600 and a $2,080 raise for city workers making less than that.

Music Makers

Our local artists and musicians seldom get the recognition they deserve, so it is good to see two groups receiving some national publicity. Trout Fishing in America has received its fourth Grammy Nomination, this year for their album, Big Round World, in the Best Musical Album for Children category. There is a nice article on this in today's Fayetteville Free Weekly. Add our congratulations to Keith Grimwood and Ezra Idlet for the honor.



Keith Rutledge and the Siloam Springs High School band learned recently that they had been selected as the only Arkansas band to perform in Barack Obama's Inaugural Parade on January 20th before the ceremony. Why the Marching Panthers were chosen by the Inaugural Committee from among 450 applicants is unclear, but perhaps it was a formula that applied an inverse ratio for percentage of votes for Obama. We'll know if there are several bands from Utah, Idaho, and Alabama. Our hearty congratulations, just the same, for the honor and a chance to escape from Siloam for a week.

Midnight Raid on the Treasury

Dan Coody may be down, but he's not out -- yet. Last night at the City Council agenda session, Coody presented a wish list of 60 public works projects estimated to cost $247,754,170.00 in 2008 dollars before inflation and cost over runs. "We thought we'd shoot for the moon," Coody said. "We don't know what to expect." If any of them eventually get built, we know to expect with certainty that old Dan will claim credit for having pushed them on the next mayor and council; and if they don't get built, he can blame the next mayor and council for failing to carry out his grand plans.

The proposal is instructive about Mayor Coody's real priorities. Not a nickel for parks or trails, but $112 million for the I-540 Fulbright Expressway. Nothing for Jordan's priority of restoring the historic bridges on Maple and Lafayette. Nada for watershed protection or stormwater runoff control; zilch for urban forestry or acquisition of natutal areas and greenways. $644,000 to repaint a water tank, and $83,700 for tasers. The "shoot the moon" wish list looks like something drawn up by a drunk sailor on shore leave.

Now rumors are floating around City Hall that Dan is plotting to loot the treasury to give out 3% raises for everyone before he leaves office. This will bump up his own salary level and help fatten that special retirement benefit if he accummulates future credits. It also protects his closest aides from Mayor-elect Jordan's promise to freeze salaries of those making over $80,000 and use the money for more equitable raises for employees at the shallow end of the public trough. In addition, this last minute spending spree could lock the city into a financial straight jacket if revenues decrease next year.

Perhaps it is just an unfounded rumor and Dan is above such political chicanery and self-serving largess with the people's money. We will know for sure in the next three weeks.

Read Their Lips

The City was so excited about the plan they had proposed to create a big multi-sport complex with softball, baseball, and soccer fields. They cut a deal to buy the land for $27,000 an acre. The mayor suggested that the city could use about $300,000 in reserve funds for the project. Since the city had no comprehensive economic development plan, they told the citizens that the six-field complex could be marketed by the city to bring in regional tournaments to increase sales tax revenue. The voters didn't buy it.

Yesterday, only 220 of Farmington's 4,664 residents voted to raise the city sales tax to pay for the regional sports complex. They voted down two sales tax hikes that would have given the city the highest rate in Washington County to pay for maintenance and operation of the regional park and sports complex and to pay off the bonds to build it. For good measure, they also voted down the proposed bonds.

Maybe the residents were thinking about the costly decision that Springdale made to build a ballpark that isn't paying for itself and continues to drain tax dollars. Maybe they were thinking that the proposed regional sports park at the edge of Fayetteville will cost the city at least $28 million. Maybe they were thinking that the city didn't need an expensive regional park as much as other things. Maybe they didn't want to raise the regressive sales tax in uncertain economic times. Whatever, Farmington Mayor Ernie Penn said he "was kind of surprised."

We have no idea whether Farmington needs a big multi-field sports park for regional tournaments. We are glad, though, that the residents had a chance to vote on it before the mayor signed a contract that committed them to untold expenses and long-term debt to pay for it.

That SouthPass Contract

The editorial in today's Arkansas Democrat-Gazette calls it "The SouthPass Problem." As they see it, "Dan Coody might be a lameduck mayor now that he’s lost his bid for re-election, but he’s certainly not going out with a whimper. The other day he cast the deciding vote to extend sewer lines to the much-debated SouthPass development. When the city council split 4-4 on the issue, Mayor Coody jumped in to move the development another step forward. In casting his vote, the mayor mentioned that he was doing it to keep Fayetteville out of a lawsuit with the developers. It wasn’t so long ago that the city attorney, Kit Williams, raised that possibility, saying the city already had obligated itself to SouthPass when it signed a contract to support it. Back out now, the city council was told, and Fayetteville would be liable for damages."

"Fayetteville is indeed in a tough spot when it comes to SouthPass," said the editorial. "But what Mr. Williams has yet to explain is why he let the city get into that spot—without sounding the alarm about what the city was rushing into. Why didn’t he cut ’em off at the (South ) pass?" All of this raises the question of how we got tricked into this contract that Coody signed and now says he has to vote for because he signed it and his developer buddies might sue the city.

Here's the answer. On September 7, 2004, under New Business, the City Council passed "a resolution authorizing the Mayor to execute an agreement with SouthPass Development Company to accept 200 acres of park land, a 10 acre water tank site, one million dollars for park land development and other consideration for the City's acceptance of ownership of a 33 acre landfill."

According to the official minutes of the September 7, 2004 meeting, Mayor Coody "explained that this is only a resolution. There are some contingencies and the contract is not being signed tonight." That was the contract at issue, and that was a lie. John Nock had already signed the contract on August 31, 2004. There was no further negotiation to protect the city, and Dan Coody signed it on September 7, 2004, after telling the Council it was just passing a mere resolution and that the contract would not be signed that night. That's how we got screwed. That's why Dan Coody and Kit Williams said the City could be sued.

Well, we think it is the City that should be suing the developers for specific performance. Under duress, the City has met every obligation under that shady contract. Section 2(C) of the contract specifies that SouthPass LLC shall convey by warranty deed a 200-acre parcel for the Community Park. It has not done so. Section 8 requires SouthPass LLC to contribute $1 million for development of the park. It has not done so.

Let's sue their asses and make them live up to their obligations of the contract. Call up John Nock and tell him to deliver that deed for 200 acres and bring a cashier's check for S1 million. Tomorrow. If not, let's consider them in breach of the contract for not honoring the agreement and call off the whole sorry deal that Dan Coody, Kit Williams, and Connie Edmonston got us into four years ago.

Extremists and Rabble Set to Occupy City Hall

Dan Coody and his supporters warned us about the unwashed bumpkins, dangerous radicals, carping extremists, and union thugs who were backing Lioneld Jordan for Mayor, and now we see them getting ready to help Jordan take over our city. It is a sad day, and we should have seen it coming. We have only ourselves to blame for this drastic change in city government.

The Fayetteville Flyer reports today that Mayor-elect Jordan has named his Transition Team and announced that it will be led by Don Marr, a former Alderman and owner of HR Factor/ BOSS Association Management Services. Other known extremists in the radical cell include Mary Beth Brooks, president and CEO of the Bank of Fayetteville; former mayoral candidate Walt Eilers of Terrapin Consulting; Suzanne Clark, Kutak Rock; Steve Davis, Davis Business Planning; Cathy Foraker, AT&T; Ernestine Gibson, UA Student Support Services; Michele Halsell, UA Applied Sustainability Center; Rob Leflar, UA School of Law; Eva Madison, Littlier Mendelson; Louise Mann, environmental consultant; Adam Motherwell, UA Fulbright College; and Dede Peters, DDP Gallery.

“These are respected leaders from both the public and private sectors who have my complete confidence and whom I consider to be experts in several key areas, including city management, budget, personnel, grants, environmental concerns, and community service,” Jordan said. Oh, sure, Mr. Jordan. You think we're going to believe that propaganda trying to make these ne'er-do-wells look respectable? We are too smart to be hoodwinked by the likes of you and your fellow travelers.

We also checked the Aubunique blog to find your secret press release. It is really sly to say of this band of blackguards and brigands that you "will welcome their counsel and advice on all aspects of city administration, especially our efforts to control the budget and make city government better and more efficient, to more effectively serve the public, and to develop a comprehensive economic development plan that focuses on helping create good jobs for all our citizens." Dan told us that you would change the direction of city government if elected, and now we see how. You have no intention to Stay_the_Course of No Bid contracts, out of state consultants, tax subsidies for certain developers, budget deficits, or multimillion dollar cost overruns.

“We will keep this transition process transparent, so that you will know the details of our plans in this administration to lead the city for the next four years,” Jordan added. “While meetings of the Transition Team are not official government meetings, we will conduct our business in public and comply fully with the spirit of the Arkansas Freedom of Information Act.” You shouldn't make it so easy for the Northwest Arkansas Times to expose your nefarious schemes to abolish all of Dan's wonderful parks and trails and replace them with trailer parks and dirt bike trails.

Oh, woe is us.

Relativity of No Bid and Low Bid Contracts

Greg Harton uses his column in the Northwest Arkansas Times today to pontificate against No-Bid Contracts. No, not like the ones Mayor Coody signs at every opportunity with his approbation, but the ones that the University of Arkansas almost always gives to trusted friends at Nabholz Construction instead of to the lower bidders. The state's 1874 Constitution prohibits county governments from doing deals with No-Bid contracts; it is silent on whether such potentially shady deals can be made by city or state governments.

"The no-bid contracts may be legal. We’ll see," says Harton. "But our lawmakers are doing the public a disservice if they allow these types of contracts to exist without full, all-out transparency about where tax dollars are being spent and whose getting the money." He is right, of course, just as when he says, "Transparency is the best defense against unethical or even illegal behavior in government. People want to be able to see how decisions about public matters are made and how their tax money is being spent." That's well and good, but it is hardly enough to save the taxpayers' money from being wasted.

Harton doesn't say that government should take the low bid for goods or services. In fact, when The Morning News submitted the low bid for running the City of Fayetteville's legal and display ads, the editors of the Northwest Arkansas Times squealed like a pig. They wanted that advertising revenue for themselves, even if it would cost the taxpayers thousands of dollars more each year. "To put it simply," they complained, "the fundamental question is this: When it comes to public notices, does the city of Fayetteville want the best chance for the public to see its ads, or does it want to opt for a cheap option without regard for whether any significant numbers will ever see important notices?"

Then the editors got some home cooking from Kit Williams, the legal genius who now says the Council can't consider the forking they got from developers in the past and that Citizen Forums are unconstitutional. "We are Fayetteville’s newspaper. As we work daily at our headquarters at 212 N. East Ave., not a stone’s throw from the City Administration Building, we’re proud to publish this community’s newspaper every day. And we appreciate recognition of that by City Attorney Kit Williams, who ... issued a memo stating that only the Northwest Arkansas Times 'meets the statutory requirement of being published in the municipality,' language found in the state law that dictates how cities must place their legal ads."

Excuse us while we call bullshit on that. Both papers are owned by rich folks in Little Rock, and neither is printed in Fayetteville. Both papers have offices within two blocks of each other where reporters and editors do their best. To claim that the Times has greater circulation is to ignore that you cannot unsubscribe from the Times and still get the Arkansas Democrat-Gazette. It is almost like a "shopper" in that regard, a freebee thrown in whether you read it or not.

Greg Harton's high principles on No Bid contracts ring hollow. When they say it's not about the money, it's always about the money. The Northwest Arkansas Times editorial against awarding contracts to the low bidder proves that in black and white, even if not read.

The city could save a bundle if they printed their notices in The Morning News. They could save even more by just posting the notices on their own website or sending blast email alerts. But, it is about the money -- and about which Little Rock publishing corporation gets to fatten on our tax dollars. Neither has offered to inform the public as a public service or give news coverage to this information allegedly so important that it must be published.