Some members of the community may be hearing from Neosho Mayor Jeff Werneke or members of the city council in the very near future.
At Tuesday’s city council meeting, the council agreed to form an 11-person ad hoc committee to look into the city’s financial condition.
The city may also contract with an as-yet-unnamed accounting firm with experience in municipal finances to review a city financial plan prepared by Jan Blase, the city manager who was tentatively relieved of his duties on Jan. 25.
In proposing the committee to the council, Werneke suggested each council member select three names — a first, a second and a third choice — of people they would like to see on the panel. Each council member would have one choice on the panel, with the mayor having seven.
Werneke said he has approached several people about serving on the board. Some flatly refused because of the amount of scrutiny and publicity that would likely be involved, he said. Others said they would consider it.
Werneke first suggested finding bankers and accountants to serve on the board, but as discussion went on, he admitted finding accountants with time to donate to such a project would probably not be likely during tax time.
During discussion, Mayor Pro Tem Richard Davidson said the committee could serve as a system of checks and balances in, for instance, budget compliance.
Councilmember Heather Bowers also wanted to involve attorneys on the committee to make sure the council is in compliance with local, state and federal laws, as well as human resources representatives.
But councilmember Warren Langland said there wasn’t enough time to have the committee conduct such an extensive financial evaluation, as there were some city payments that were coming due in the very near future.
“My focus would be starting on a six-month plan, or maybe even a three-month plan, to get us over this hump, similar to what Mr. Blase has initiated,” Langland said. “I’m not saying that this is the right plan, but it is a starting point. If you start getting into other avenues, then it’s going to bog down. There has to be a specific goal, with a specific amount of people.”
Langland said he felt a committee of five people would be too small, but 12 may make a better number. He cautioned if the committee got beyond that, it would have to break into subcommittees.
Werneke said he had spoken with an accounting firm with experience in municipal finances about the possibility of looking over Blase’s plan. This firm would verify information in the document.
“They will give their view on where we sit, what’s done, what’s not done. Regardless of who is doing what in the finance department, we’re down a person right now,” the mayor said, referring to last Tuesday’s firing of City Finance Director Bob Blackwood. “If nothing else, we have somebody come in who is familiar with municipal financing who can shed light on what we’re doing, and what we need to be doing differently.”
Werneke said this accounting firm would not give a complete financial plan, but would offer guidance as to what direction the council should take.
Meanwhile, in response to a question from Bowers, Acting City Manager Dave McCracken said he had sat in on the conversation with the accounting firm, and while they offered no figures on how much their services would cost, he expected to hear more from them this week.
“My feeling is that we need to walk away from here tonight with some type of plan,” Langland said.
Werneke said while his office allows him to select an ad hoc committee, he wanted to get council input on the selection. Meanwhile, Davidson said while he envisioned a financial oversight committee, an accounting firm could accomplish a double check of Blase’s financial numbers quickly.
Werneke said in a town the size of Neosho, it may be difficult to find people who could conduct a monthly checks and balances. He added that as a sales tax based community, Neosho must promote retail, growth and business and industry.
“We either have to expand and grow, or we have to go to a property tax,” he said.
Bowers proposed council members, along with two or three residents, provide oversight to city departments, with each member taking a department to oversee. However, Langland wondered if such a move would overstep the duties of a city manager, whom he said serves as a buffer between the council and city departments.
“When we start getting close to the department heads, we’re overstepping that buffer and that is the city manager. There has to be some ramifications,” he said.
In comments about Blase’s financial plan, Davidson said he supported borrowing money, at least in the short term, to help ease the city’s financial woes. This, he said, would give the city more time to shore up its finances and to manage through the financial crisis.
“But borrowing is only a short-term fix,” he warned. “No community can borrow their way to prosperity. The borrowing we need is simply to help pay back funds that were spent elsewhere on other projects. More must be done to understand how those projects consumed so much cash and what must be done to prevent such happenings in the future. We cannot afford more of that.”
After borrowing, the next step would be to strengthen revenue sources, Davidson said, as sales taxes are difficult to project and long-range solutions for stability suffers any time there is an economic slowdown.
“While my political beliefs do not support larger and more intrusive government, I do support the city’s evaluation of a property tax to better understand what benefits may be achieved by blending our revenue pool with a more stable and less volatile tax,” he said. “Such a tax will pass a disproportionate amount of liability to businesses in our city — my business included. But I feel its consideration is critical for the long-term prosperity of our city.”
Davidson said in order to achieve financial stability, city leaders must make the right decisions and stop the “game of point and blame.”
“Thousands of people in our city are looking for leadership from our city government. Leadership will move us forward. Forward is the direction we must go. That move forward will not be easy, but it must be done to save what remains of Neosho and to restore our city to what it can and should be.
“Now is when we can begin to correct the past actions that put us here. We all want what is ‘right’ for Neosho. My commitment for success has never been stronger. Working together with an understanding of what must happen is the key. It will take all of us coming together to move forward. Failure is not an option.”
