June 22, 2016

Data, Not Deadlines, Should Drive Decisions



Hello everyone.  I hope you're having a great week!

In the past few days, the Neosho TDD has once again tried to grab the headlines.  That means they are likely once again trying to cast blame toward the Neosho City council.  The latest issue revolves around delays by the TDD to provide basic financial data followed by an artificial deadline for action.

For those that haven't followed the news, the issue at hand was very simple.  The Neosho TDD board had proposed a new project - one that had never before been discussed or presented to the public for review as part of the original TDD plan.  That project involved road work on Kodiak Dr. north of Waldo Hatler Dr.  The proposed work would widen the road between Waldo Hatler and Maple Dr. to help traffic flow in and out of the future Neosho Jr. High.

On the surface, it seems like a reasonable project.  In fact, the City has publicly supported the general idea of the project.  So what's the problem?  Well, your City's elected leaders had one simple question for the TDD:  Can you afford it?  I never dreamed finding the answer to that question would be so hard.  After all, the Neosho TDD board had already stated in court filings that the project would not impact its ability to repay its debt.  That told me they had already done the leg work.  A quick review of their financial analysis on the project should give the answer.  But not so fast!

As the city dug deeper, the information was somewhat surprising.  When asked how much the project was going to cost, the reply from the Neosho TDD was "we don't know."  When asked to provide financial data, we were first told by the TDD that our request was "unreasonable."  At that point, I knew that what should have been a somewhat simple process was once again going to be turned into a circus.

The good news is Mr. Royer ultimately received most of the data he needed to do his analysis.  (I say 'most' because the actual project cost is still only an estimate.)  Building on his expertise and experience working as a state auditor, he spent countless hours over a couple of weeks reviewing and analyzing the data.  He had planned to brief the city council last night on his finding so we could make our decision for support.  But that turned out to be unnecessary.  Why?  Because last Friday, the Neosho TDD, after blaming the city for not meeting a short and arbitrary deadline, decided the project is no longer going to be pursued.  Well, that's their decision - not ours.

For the record, I support the City's insistence to let the data, not deadlines, determine our decision for commitment and official support for this project.  We've learned the hard way when people simply say "trust us" when it comes to spending taxpayer funds.  Our view was much more objective - similar to how a bank would look at a project: let the financial data drive the decision.

In the end, only the Neosho TDD can decide whether or not to reopen the discussions on whether or not to pursue the project.  But regardless of what they do or don't do, the City's desire to review the public financials of the TDD was not only reasonable, it was responsible.  Taxpayer funds deserve a little more protection and oversight than a simple "we don't know" and "trust us".




June 2, 2016

TDD Views Failure to Provide Financials as Small "Technicality"



Hello everyone.  I hope you're having a great (dry) day.

This morning, you'll likely read or hear about the latest discussions between the Neosho TDD and the City of Neosho.  In what should have been a 10 minute meeting this past Tuesday turned into a 2-hour ambush to once again belittle the City Manager and the city council for our decision to NOT support new projects inside the Neosho TDD.

For the record, the issue at hand was one of oversight, not opposition.  For months, the city Manager and others inside the city had requested basic financial data from the NTDD to show the district could afford the new proposed project.  Unlike projects completed to date, the proposed extension of Kodiak Road north to Maple Dr. was never part of the original plan presented to the public during MoDOT's May 28, 2014 meeting at the Neosho Lampo building.

Wanting to ensure the NTDD could afford the new project, the city council unanimously voted back in March (and again in May) to request some basic financial information from the NTDD.  It should be noted that the NTDD had already stated in their court filing that "...[n]either the funding nor development of the proposed Second Additional Transportation Projects will impair the District’s ability to repay any liabilities...."  Our position was simple:  let us see the data that was compiled to make that assertion.

What was the response from the NTDD?  Nothing.  Silence.  No response.  No reply.  When asked this week why they didn't take five minutes out of their day to reply and give us the financial information, they told use they weren't required to and that our request was "unreasonable".  What?  When pressed more, one NTDD board member, Gene Schwartz, said not giving the financial data was a "little technicality."  That's not an honest answer.

When ANY taxing entity describes their own failure and refusal to provide basic financial data as "a little technicality", it should raise a number of flags.  The city's desire to review financial records before endorsing a plan to spend more taxpayer money was not only reasonable, it was a responsible act I'd expect of any elected official.

I'm disappointed the project wasn't approved, but that outcome rests solely on the shoulders of the NTDD.  A simple reply to a basic request was all that was required.  I hope the TDD will reconsider their position.  There is still time to make this happen.  But it all starts by answering the most basic of questions:  can you afford it?

MODOT