I've also been going through the packet of paperwork I have received, and sorted through other things that have been coming my way.
First, in fairness to all I have a copy of the Mayflower invoice in my possession, and it is from Colorado to Gonzales. It's for 14,000 lbs of household goods.
The payment to Borrer Electric Services stems from a failed inspection (I have the copy of that too) and that DH (David Huseman) authorized for payment. After speaking with other city managers (2 of them) both of them stated that they would of turned it into insurance company for indication as to where or not they felt there was any liability, if not they wouldn't pay, if it didn't exceed the deductible they would of paid. While I'm certain this didn't exceed our deductible I'm also certain DH determined that it was easier for you and I to pay than to pack up our Code Enforcement.
The rest of the package I'm going to have to defer on for right now. I'm having to get some guidance from those more those who understand the laws better than I do. I will update you later on those.
As for the budget. Let me start out by saying that JB Wells lost $16,069.46 if you don't take into account trailer rentals in the month of January. On top of that we want to expand JB Wells by 91 slots at a cost of $225,000 (plus city labor). So at this rate JB Wells will cost the city of Gonzales $425,000+ this year. That's COST us dang near a half a million dollars. (Entire JB Wells breakdown for January will be at the bottom of this blog)
Look I'll say it again, we have JB Wells, it's not going away. But to continue to throw good money after bad is just plain stupid! Why haven't we as a city taken the appropriate action to fix these problems? Why don't we have a committee that is looking into processes and procedures to rectify this issue. So now yo and I will all be paying $75 each for every man, woman and child for the privilege of....of.....heck I'm not sure what privilege I can exaggerate and say here. But I know that means my house hold is responsible for $450 this year and I haven't even been out to the arena in years. So yeah, I'm not happy.
I also want to know why are we paying Friends of Gonzales Animal Shelter over $4000 a month? It was my understanding they were given a building and the city would pay utilities, but that the shelter was to be at no cost to our paying citizens. Instead our cats are being treated for diabetes, fed the best food out there, and treated like royalty while our city is trying to maintain the most basic of services to our citizens.
Included in this years budget is $300,000 in transferring funds and $100,000 in reduction of the General Fund. That's $400,000 down, and yet we're throwing $425,000+ to the arena and $50,000 to the cats. Let me see, $400,000 in the hole, and almost $500,000 wasted. $400,000 in the hole, $500,000 wasted. Nope I don't see any way to make a difference at all.
Look, I don't expect JB Wells to make us millions. I do expect it to carry it's own. If that loss was $1,500 a month I wouldn't blink an eye. But we can't keep $20k a month in losses out there, we MUST plug the leaks!
There are other areas of the budget I don't get. I don't understand how we can see an actual amount of revenue this year, and expect a 40% increase (or more) next year in any one area with the one exception of Trailer Space Rentals, which I expect to go up $400,000 or better this year.
Again, not against JB Wells, just want it managed like we have a $400,000+ deficit in our budget and we have to watch every penny that is issued. Look over the entire breakdown of January 2011 JB Wells report at the bottom.
God Bless,
Dennis Nesser
J.B. Wells Park Financial Report
January, 2011
INCOME:
Arena Fees 5,502.00
Horse Stall Rental 6,960.00
Woodshavings Sales 4,190.00
Concessions 7,405.58
Table Rental 20.00
________
Gross Income 24,077.58
EXPENSES:
Payroll 18,744.48
Uniforms, etc. 87.18
Office Supplies 114.58
Fuel 837.11
Maintenance
Buildings 170.62
Grounds 1,619.16
Vehicles 166.15
Equipment 3,203.72
Telephone:
Landline 96.39
Cell 129.07
Misc. 16.50
Concessions:
Supplies 4,649.81
Woodshavings 4,860.00
Utilities: Field Services 2,623.23
Arena 2,282.56
Practice Arena 541.48
Break (Hot Choc.) 5.00
________
Total Expenses 40,147.04
Net Loss ( 16,069.46 )
R.V. RENTAL SITES:
Income 34,207.00
Expenses:
Utilities 4,454.48
Misc. 131.78
_______
Total Expenses 4,586.26
___________
Net Profit (RV Sites) 29.620.74
Net Profit or (Loss) 13,551.28
Note: 1) Labor was compiled in report but not broken down and some of labor may need to be applied to other parks.
2) A percentage of vehicle and equipment repair may need to be allocated to other parks
2) No explanation on field services for electrical payment under utilities
Why wouldn't you take into account the RV rental sites? Isn't that a part of JB Wells too? That would mean a profit of $13,551.28 was made in January not a $16,069.46 loss. Doesn't the funds come from the same account?
ReplyDeleteThe $34,000 is part of the revenue that is over all accounted for (and in fairness I showed it on this report). But it is not part of running the arena, and while I pray it stays here for a couple of years, it's not something we can count on at this point an time.
ReplyDeleteBut even if you do account for the trailer space activity it's like putting a band-aid on a broken arm. When the band-aid comes off the arm is still broken. So is our system out at JB Wells.
I truly believe we can manage JB Wells in a manner that will not cost every citizen of this great town $75 each per year. This is a huge part of our annual budget for the entire city going out to one location, and I also have shown that $225,000 of that is a one time charge, there is still another $4,750,000 plan that is floating around for out there. Figure that as a $750 per person (women and children included) band-aid.
God Bless,
Dennis
Can you elaborate on the payroll?
ReplyDeleteTelephone:
ReplyDeleteLandline 96.39
Cell 129.07
For one month?
If it is listed under the JB Wells Park Financial Report then I would assume it is considered part of it. And why wouldn't it remain there? Why can't we count on it, it's here to use now and in the future. If we could improve recreational and eating facilities in Gonzales (besides Mexican) and create more of a tourism town then those RV sites would be utilized in turn maintaining or creating more income. I hardly think that it is a band-aid. Sayings such as build it and they will come and it takes money to make money holds true. While it may not be an immediate return on your investment, or as soon as you would like, I think it will eventually help this city in more ways that just rodeos and cowboys. You need to look at the vision people see for Gonzales down the road not just in the immediate future. I do agree that the phone bills for one month is excessive and who's payroll is that for or what positions?
ReplyDeleteUnfortunately, I don't have time today to wrap my brain around JB Wells Park, but I do have a question. Does anyone have knowledge of or anyone that attended the city council budget workshops heard any mention of providing funding in the 2011-2012 budget for an executive search to replace Mr. Huseman? In 2007, $23,356 was spent under the category of executive search under the city council's expenses. Zero for 2008, 2009, or 2010 (2010 actual is not posted yet) was shown as actual or budgeted. I missed one budget workshop and I know they do not clearly address the budget outloud line by line, but I'm just wondering if any funding is allocated for an executive search or did that part of the budget leave town with Mr. Huseman?
ReplyDeleteFirst the Payroll entries are as follows:
ReplyDeleteSalaries 1/11 $6201.57
Salaries 1/25 $5531.15
Part-Time Salaries 1/11 $1231.88
Part-Time Salaries 1/11 $1282.26
FICA 1/11 $ 444.69
Medicare 1/11 $ 104.01
FICA 1/25 $ 406.24
Medicare 1/25 $ 94.99
Unemployment 1/12 $ 174.06 (Quarterly)
Retirement TMRS 1/11 $ 732.41
Retirement TMRS 1/25 $ 653.23
Medical Ins 1/25 $1873.68
Life Ins 1/25 $ 14.31
Total ------------------$18744.48----------
Phones
7-203.401 1/6 Landli 0940 - $ 96.39
7-203.404 1/6 Cell Phone - $129.07
As for counting the RVs, you can count them, and you WILL be caught short.
You are not taking into account that at least a half dozen individuals are looking to put in RV parks because of this boom.
You currently have 'free money' coming in. It was unexpected, and DEFINITELY not planned for. It just happened, and it will just leave as fast as it came.
Regardless though you still have a broken process at the arena. Some of the basic business principles are not being applied.
We as a city should be trying to decide what we want to do with a half a million dollars, instead we're having to not only balance (which we're $100,000s short), but we've been told that in the not so distant future we'll have some serious outlay of cash to water works for aging equipment. That $400,000 would have been nice to put that away for those days.
Instead they are murmuring about having to raise electric and water rates to account for those purchases.
Again, in fairness I reported the RVs. They are part of the total picture, but you can't count on them, and if you're being honest they are not part of the arena operations except for those weekends we have rodeos here, and you don't count the oil RVs. That's proper accounting.
On a note on proper accounting, I would love to see a greater breakdown of some of these accounts too. I don't understand why you have cell phones and landlines, but you can't tell which are longer term RV's and which are Arena RV's. It would be nicer if there was a better breakdown on some of the accounts.
Dennis
Pam,
ReplyDeleteNo there is nothing in the 2011 budget that I remember being mentioned for the city manager search.
I know there is going to be some outlay of cash for interviews and such, but I'm personally against the agencies which is what cost us the greatest part of those fees. First we didn't get our moneys worth, and second in todays world if they put out the call for resumes and sort through them ourselves.
Dennis
Considering it cost approximately $35,000 to hire and relocate the ex-city manager and approximately $67,000 to remove him, I would strongly encourage our city council to spend their time and effort united in discussion for a grossly improved outcome this time with special attention to any employment contract.
ReplyDeleteThat's an approximate $102,000 lesson I hope the city council learned and the tax payers funded.
I also encourage tight adherence to the approaching new budget and to continue to find areas of improvement and savings and revenue without debt, because I will not be happy to receive a rate increase for utilities after handing us a $102,000 bill for a man allowed to get a raise, salary, travel expense, and health insurance after being FIRED!
If an employment contract is felt necessary, I hope this time around the city council will seek the professional services of an attorney to aid them in protecting the citizens of Gonzales by guiding them in the content of the contract.
No contract means the position will be at-will employment and is risky for the city.
My best suggestion would be for the council to entertain independent qualified candidates and for an additional fee, perhaps Mr. Windwehen could graciously act as a consultant for the council in the hiring process and participate in the interviews. Who better to ask the questions than a man with his experience and success?