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HomeMy WebLinkAboutReg 2005-10-17 Item 6D - Resolution - Oppose Initiative 900 Regarding Performance Audits on State / Local Governments COUNCIL AGENDA SYNOPSIS sp 'k'S' Initials ITEMNO. Z /ti �11 k y�t 1 Meeting Date Prepared by 1 Mayor's review 1 Cou rviesi .u� o 1 10/17/05 1 t,L/ 1 1 1 ITEM INFORMATION I CAS NUMBER. 05-135 I ORIGINAL AGENDA DATE. 10/17/05 AGENDA ITEM TITLE A Resolution Expressing Opposition to Initiative 900 Which Requires Performance Audits of Every State and Local Government Agency. CA IEGORY Dzscusszon Motion Resolution Ordinance Bid Award Public Hearing Other 1 ftg Date tlItg Date Dltg Date 10/17/05 Mtg Date llltg Date Alts Date Mtg Date SPONSOR Council May'or Adm Svcs DCD Finance Fire Legal P&R Police PTV SPONSOR'S This initiative would give the state auditor wide powers to do performance audits on state SUMMARY and local governments and any agencies, programs or grants given by those governments. The initiative gives nine criteria to be used in audits, and allows state retail tax funds to pay the auditor for this work. REIVIE \VED BY COW Mtg CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DAZE. 10/17/05 RECOMMENDATIONS: SPONSOR /ADMIN. Adopt the resolution CoMMIrrl'EE Finance and Safety will consider the resolution 10/17/05 COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $unknown; possibly $50,000 Fund Source Comments It's unclear whether the auditor will audit cities in 2006 if this initiative passes. MTG. DATE RECORD OF COUNCIL ACTION 10/17/05 I 1 MTG. DATE ATTACHMENTS 10/17/05 Memo from L. Lauterbach dated 10/12/05 Resolution Opposing I -900 To. City Council From: Lucy Lauterbach Date: October 12, 2005 Subject: Resolution Rel!ardinl! Initiative 900 InitIatIve 900 would require performance audIts of government. It would do trus regardless of the fact it duplicates action already mandated by the state, and m a manner that IS overly broad and capncIOus. 1-900 would require performance audIts on every state, CIty, umversIty and any programs funded by those governments. A portion of the state sales tax is set aSIde m the lllltiative to partIally offset the state costs, though the current State audItor estImates the cost would be at least four tlllles the $17 mIllIon set-aside for the 2005-2007 penod. With regard to audIts oflocal government, the lllltiative reads". .. local governments and each of therr agencies, accounts, and programs.. local transportation programs, and other governmental entItIes, agencIes, accounts, and programs. That could mean not only TukwIla but also all our contracts and grant programs as well. The current fmancial audIts the state does m TukwIla each year cover around 675 hours of work by TukwIla Finance staff to cover. The cost IS approximately $56,000. A performance audIt would require teaching the state worker (or more likely a contractor for the state) about local government and TukwIla specIfically before he/she could analyze how we're domg. It could take 1,000 hours, dependmg on how thorough the analysis was. Audits are to be done annually. Another effect of the lllltIatIve could be to have audIts used for polItIcal gam. For example, If there were a Democrat audItor and a RepublIcan House of RepresentatIves, the audItor could do audits that would embarrass the House agencies m an attempt to make the RepublIcans (or If the situatIOn were reversed, the Democrats) look bad. Because what will be looked at in each agency IS set m the mitiatIve, there IS not flexibilIty to see that Tukwila, with a populatIOn of 17,000, has enough polIce for a city of 50,000 because of our particular situatIOn and because it IS a priority to control cnme in the city. The audIt could fmd we have too many polIce and fire for a city our size, and reqmre us to reduce those numbers. That is the effect ofpassmg 1-900. Heanng that It allows performance audIts sounds reasonable untIl one looks at the language m the imtIatIVe. It IS not well thought out, and could wreak havoc on whoever is audited. Trus resolutIOn IS commg to both Committee and CouncIl m one evenmg to allow ItS passage and to educate the publIc about the effect oftrus mitiatIVe before November 6th. DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, EXPRESSING OPPOSITION TO INITIATIVE 900, WHICH REQUIRES PERFORMANCE AUDITS OF EVERY STATE AND LOCAL GOVERNMENT AGENCY. WHEREAS, Tukwila has been thoroughly audited by Washington State Financial Auditors annually for many years, and has continually received excellent audit reports; and WHEREAS, Initiative 900 would require performance audits of every branch of government, including cities and each of their agencies, accounts and programs, and WHEREAS, Tukwila currently spends approximately 675 staff hours annually responding to State financial audits, and must pay over $50,000 each year for these audits, and WHEREAS, funding the initiative would use a portion of current retail sales tax revenues, which will put more pressure on State's limited funding; and WHEREAS, because of their close relationship with citizens, cities know best what their citizenry wants and the most effective ways to provide those services, while the initiative sets standards which each audited government agency must meet, regardless of their size or particular circumstances; and WHEREAS, the costs involved in extra time and additional funding for another audit each year would erode the City's ability to serve its citizens, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: The Tukwila City Council declares its opposition to the passage of Initiative 900, and urges all citizens to vote "no" on the initiative. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of ,2005. ATIEST/ AUTHENTICATED: Pamela Linder, Council President Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY Office of the City Attorney Filed with the City Oerk: Passed by the City Council. Resolution Number' C. \Documents and Settings\AIl Users\Desktap\Kelly\MSDATA \Resolutions\Oppose I.900.DOC LL:krz 10/14/2005 Page 1 ofl