10. Confusion at the Council

Mayor Paul Waters asks his key supporters on the City Council to come to the Thursday, July 25 meeting before the regular start time. He wants to be as authoritative as he can for this meeting. He wears his navy blue Gucci suit with a red tie. When they arrive he says, “I’ve thought about the treasurer’s proposed budget. The expense numbers seem high to me. When I look at last year’s summary those expense numbers seem unusually high as well. We need to push on the treasurer tonight to explain these expenses. I want you to support me in this.”

Councilman Gauthier and Councilwoman Wells, the mayor's faithful supporters nod their agreement. Five minutes later the rest of the City Council members are present and the mayor opens the meeting. After approving the minutes of the previous meeting the Council turns to the first item on the agenda, the budget. Looking directly at Ralph Hess, the treasurer, the mayor says in the sternest voice he can muster, “Ralph, the expense numbers in your proposed budget seem too high to me.” The mayor pauses as his supporters nod dutifully, and then he continues, “The expenses in the financial report from last year seem high as well. I’d like you to explain to the Council why these numbers are so high.”

Jack Gauthier adds, “I agree with the mayor. Please explain why electricity expenses are growing faster than inflation now.”

“I want to hear your explanation too, Ralph, all you presented is a summary. Tell us how you came up with these numbers,” says Nancy Wells.

Ralph Hess is visibly surprised by the confrontation. He reddens and replies, “Give me a few minutes and I’ll bring in the monthly data that goes into the summary.”

Hess gets up and leaves the room without waiting for a response. Ten minutes later he returns with a stack of papers. He begins handing each council member a portion of the stack. Finishing handing out the papers he says, “These are the 12 monthly financial reports from last year. The council approved, without questioning, each report when presented. You can see the expenses are listed in each monthly report and summarized in the financial report for the year.” After pausing he adds sarcastically, “If you want to add the monthly data to check against the summary go ahead.”

The mayor says, “Maybe we approved these monthly reports too hastily, Ralph.”

Ralph gets red in the face again and says angrily, “If you want to be here all night I’ll get the bills for each month and you can add them up to produce the financial reports. My job is to do accurate bookkeeping and present you the financial data. If you don’t like what the numbers say that’s your problem. You’re the ones who have to decide what to do with the data.”

Hess glares at the council, gets up and storms out of the conference room.

The mayor and council members sit in stunned silence for a few moments. Councilwoman Wells breaks the silence by asking, “What are we going to do now, Mayor?”

Mayor Waters sighs loudly and says, “We have only two choices, raise taxes or cut spending. If we raise taxes we’ll all be out of jobs after the next election. I’ve asked each department manager to make contingency plans for a ten percent cut in their budgets. That’s going to be painful, people will have to be laid off, but it’s necessary to meet these forecast expenses with expected revenue.”

Councilman Gauthier asks, “Should we get someone else to dig into the budget details?”

“No, we’ve had Ralph reanalyze the data twice and Glen Lund helped until he was murdered. We’re now five weeks into our current fiscal year. We can’t delay making the decisions necessary to live within our means. If we do, the pain will be even greater,” the mayor answers with resignation in his voice.

“How about getting a new Treasurer? I still don’t buy Hess’s numbers,” says Nancy Wells.

“I’ve tried to think of someone who could replace Ralph. He’s so well thought of I couldn’t think of anyone who could come close to defeating him. We’re stuck with him. At least we know he’s honest, even if he isn’t cooperative,” answers the mayor.

“How can you be sure he’s honest, Mayor. Have you read the auditor’s reports?” asks Nancy Wells.

“We don’t have auditor reports, Nancy. Audits are expensive and we have more important things to spend our limited money on,” answers the mayor.

“Don’t you have to report audit results to the Secretary of State’s office?” Nancy asks further.

“We do. Ralph makes up a letter on an accounting firm's letterhead, writes a favorable report and we send that to the Secretary of State as required. Ralph’s been treasurer for years. The audit reports have always been good. We got tired of wasting our money so we quit having audits.” the mayor replies.

Nancy Wells stops asking questions but has a puzzled look on her face. 

“People are not going to be happy when city workers get laid off, Mayor,” says Gauthier.

“I know, Jack, but we don’t have any choice. I want each of you to talk to your friends and neighbors. Get the word out that this City Council has done the best we can. Make sure our citizens know we don’t have any other choice. Let’s hope they understand,” replies the mayor.

The mayor looks at each of the council members. Seeing sadness but understanding in their faces he says, “Let’s adjourn for tonight. There’s nothing else on the agenda that can’t wait until next week.”

They go through the formality of a motion for adjournment, get up and silently leave the conference room.