A Friday afternoon surprise from Admiral Randy
Here's a story the Portland City Council really, really doesn't want you to see. Not only do they break it on a Friday, but on an election weekend Friday. That buries it about as deep as a story can be buried, short of Christmas.
The council is essentially admitting that the city's water bureau is guilty of illegally spending water revenues on things that have nothing to do with water. They're undoing the water bureau's purchase of the old McCall's Restaurant for a new Rose Festival headquarters. There's much that needs to be said about this development -- it's major -- but we'll refrain from taking the city's bait. We'll write about it again on Monday, when more readers are here. For now suffice it to say that we pointed out the problem as it was happening, in February 2009.
Comments (12)
Me, I'm surprised that they have to borrow the $3.5 million and will take 10 years. Really? Do they have to run up the credit card more? According to this blog, the city debt per person is already $11,148.20.
The 'buy now, pay later' attitude ends up costing far more in the long run. Wonder what the interest will add.
Posted by Sarah Carlin Ames | November 3, 2012 11:00 AM
Borrow from whom?
Pay to whom?
There is no actual money involved.
These are accounting entries.
Its gonna' take ten years only because the accounts being debited are used to provide actual services funded through the general fund.
If the full $ 3.5 million were credited to the water bureau ratepayers account, the general fund dollars appropriated would be drained completely and no services provided.
Which would cause a lot of political rucus for the new Mayor and City Council.
Bu make no mistake - $ 3.5 million in taxpayer money has been turned over o he private Rose Festival Association.
Just like Sam and Randy want to do with half the receipts from the Arts Head Tax.
Posted by Nonny Mouse | November 3, 2012 12:06 PM
I know a very good source of funds to repay the city for this instance of fraud, waste and abuse.
The future pensions of those on the city council who approved the actions.
If some of these politicians felt the pain for their actions it might promote some responsibility...
Posted by tankfixer | November 3, 2012 12:26 PM
The best (or worst) quote from the article, courtesy of Randy: "To satisfy the City Attorney's office, they've suggested an alternative way to fund a project I wanted to get done. And I'm fine with that, because the project's done."
In other words, "I got what I wanted, so screw you."
And all this convoluted bookkeeping means that we don't really get our money back, do we?
Posted by Michelle | November 3, 2012 1:10 PM
"To satisfy the City Attorney's office" = to facilitate settlement of the pending litigation.
Commissioner Leonard just had his head handed to him on a platter. We should expect him to focus on the lovely sterling platter while they carry it away.
Posted by Mister Tee | November 3, 2012 3:48 PM
Yes Tankfixer: It would be great if this misappropriated money was paid out of the pockets of those that made the decision to spend it in the first place. Can you imagine the howls coming out of Blue Oregon and the Public Employee Unions over hefty fines to pay from their own pockets?
Perhaps a new "financial responsibility" law needs to be passed, that holds the pols financially responsible for misuse of public funds. As it is now, you have people like Lehan in Clackamas County and Admiral Randy spending public funds with no consequences for their actions. In the private sector, people like this would be quickly unemployed and/or sued for misuse of funds.
Posted by Dave A. | November 3, 2012 3:57 PM
Commissioner Leonard just had his head handed to him on a platter.
Well he still has 58 days left to retaliate.
Watch him and whatever comes out of the PWB very carefully.
The New York positive efforts and response from EPA regarding the LT2leaves no doubt that the pitiful Portland elected officials have not been acting in the best interests of the public.
Trust has been lost on many levels.
Posted by clinamen | November 3, 2012 6:17 PM
Dave A and Tankfixer -
The idea of dinging voting members of governments to recoup illegal spending is a good one.
Sometimes the devil is in the details, though.
Does every member of a governing body get dinged? Do we ding only those who voted for he illegal spending? Do those who voted "NO" on an illegal expenditure skate?
If a voting person on a government body is on the hook for illegal spending, seldom if ever will here be a settlement. Folks on government bodies are not going to very willing to reach into their own pockets.Governing body folks in that position are going to insist upon trials and appeals before hey pay up. Is the threat of having to do so enough to deter future illegal spending? I don't know.
Any legislation to enable personal recoupment lawsuits would also have to change the various statutes on execution of judgments. Right now, a whole lot of retirement income and retirement accounts are exempt from execution to satisfy judgments. PERS accounts and payment streams are not a "Magic Piggy Bank". They are prey much exempt from execution.
I'm not sure at all that I like the idea of making Social Security or ogher retirement accounts and payment streams available to creditors.
That kind of change would probably have to affect everybody's retirement accounts, not just the accounts of folks who are / were voting members of governing bodies. Equal protection and similar such things.
Wanna' put your retirement accounts up for grabs?
Posted by Nonny Mouse | November 3, 2012 6:18 PM
A gaggle of unindicted co-consoirators.
The Admiral and the Liar will go off into the sunset collecting their pensions. In the Admiral's case - that will be FPDR, FPDR disability, PERS for State Legislators and PERS for public officials.
Meanwhile, you poor Portlanders will pay and pay and pay.
Posted by x-portlander | November 3, 2012 6:34 PM
Now every time when I go pass the Rose Festival Headquarters that we paid for, that's in our park, I'll think of the building as the Benghazi Rose. What a coverup by Leonard and Sam.
Posted by lw | November 3, 2012 8:49 PM
Nice sentiments, but that Rose HQ pales in comparison to all the money METRO has/will flush on the convention center.
Posted by Steve | November 4, 2012 1:01 AM
How about the $135 million Leonard got using an emergency ordinance for the Powell Butte Project? One would think the fast tracking could have waited as the LT2 rule is now being reviewed, spend and debt is not only what Leonard and PWB were about, but council was in on this too.
Posted by clinamen | November 4, 2012 1:22 AM