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untanglingwebs
El Supremo
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Posted on Aug. 29, 2011 by Crusader News Service
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Mayor Walling
State Takeover in Flint?
Multiple Sources Confirm Consent Agreement
Has 6-3 Vote of Support by Flint City Council
BY MIKE KILLBREATH
Crusader News Service Publisher & Executive Editor
Crusader News Service has confirmed from multiple sources that a deal has been cut between Mayor Dayne Walling and enough Flint City Council members to help Walling get expanded powers under the state's new emergency manager law. A 6-3 vote of support from the Flint City Council on Sept. 12 is expected by Mayor Walling when he plans to make the so-called "consent agreement" public, according to sources.
Expanded powers under a new state law may allow Mayor Walling to end collective bargaining rights of four city unions that have not been able to get new contracts with Walling's administration.
The three city councilmen expected to vote against the idea are Sheldon Neeley, Mike Sarginson and Dale Weighill. None have responded yet to requests for comment.
City Councilman Josh Freeman, chairman of the council's finance committee, posted on his Facebook page less than an hour ago that he had met the state auditor this morning and had a "lovely conversation" but didn't reveal any details about what's ahead for Flint's city government. "You'll have to ask the state what their plans are," Councilman Freeman said. "They are in the drivers seat now."
The city's four public safety unions have been without a contract for more than two years, and Public Act 4 of 2011 would allow Mayor Walling to end their collective bargaining rights if his powers are expanded under the so-called emergency manager law pushed by new Governor Rick Snyder.
Michigan Democratic Chairman Mark Brewer blasted the state visit to Flint for a preliminary financial review, which is the first step in setting Public Act 4 into motion. Brewer called it an "attack" on Flint's elected leaders, saying, "This financial review is a direct result of the Snyder administration's attack on our urban areas as well as his failed jobs policies." Brewer praised Mayor Walling's efforts to get concessions from most city unions, saying, "It's unfortunate that the Governor and State Treasurer have chosen to ignore this remarkable example of progress and cooperation only to insert themselves in an effort to attack Flint's elected leadership, hard-working public employees and middle class families and usurp local control."
City of Flint officials had said nothing about it, but Crusader News Service reported last week that officials from the State of Michigan had been at Flint City Hall to audit the books. Some suggested it was a sign of an impending state takeover or part of further investigation into possible criminal activity. Following the report on AM ADVANTAGE, Mayor Walling held a press conference Friday afternoon to confirm that a letter had been received from the office of State Treasurer Andy Dillon about a visit today at 11 am. Mayor Walling said during his press conference that state officials are "concerned about Flint's cash flow, multi-million dollar deficit and that the city is not in compliance with its former deficit elimination plan from the summer of 2009." The city entered into a new deficit elimination plan last spring when borrowing $8 million from the state, and sources say state officials are more concerned about the city's failures to honor promises associated with that deal.
Last week's story about the audit on AM ADVANTAGE was the first media report about what sources say was a surprise visit by state officials. So, too, was another story about last Monday night's "add-on" to the Flint City Council's agenda for a $9.9 million check for the Smith Village project. The same source who told Crusader News Service about the visit by state officials for an audit of the city's books had also told Crusader News Service that the $9.9 million check for Smith Village would be an "add-on" to the last Flint City Council agenda and approved without discussion. "The gig is up for Mayor Dayne Walling's administration and they're passing out as much money as they can, as fast as they can, because they know a federal grand jury would not be here unless people are going to jail," said the source who would not reveal how he obtained his information.
One reliable source told Crusader News Service that the city's finance director, Michael Towsend, stormed out of Flint City Hall Friday when a key leader of Walling's administrative staff demanded that checks be written to vendors. The source said Townsend later returned and signed the checks.
Another source speculated that an audit by state officials could be after a referral by the FBI about possible criminal activity that would be under the jurisdiciton of the State Attorney General's Office. Mayor Walling held a press conference in late May to say he was not a target of a criminal investigation after a Raid at Flint City Hall. The FBI and other federal investigators took away computers and files during the raid. Special Agent Robert McDonald of the FBI did not respond to a request for comment about the case from Crusader News Service. Mayor Walling made an attempt to get a $20 million bailout earlier this year from the state, saying the city would not be able to make payroll without it by March. Walling didn't get the $20 million bond request, but mysteriously made payroll despite earlier claims by his administration that it could not happen without state help. The city later got $8 million from the state. Flint's finances showed a $17 million deficit after an audit by the accounting firm of Plante Moran earlier this year. Mayor Walling's budget that took effect for the current fiscal year that began on July 1 was adopted after amendments by the Flint City Council to prevent the mayor's proposed elimination of funding for the city's ombudsman office and the city's human services commission. Both departments are mandated by the Flint City Charter. Critics pointed out, however, that achieveing a balanced budget depends on getting more funding from state revenue sharing and getting the city's public safety unions to accept concessions.
A contingent of six speakers from the Flint Area Chamber of Commerce opposed the $20 million bailout during hearings by the finance committee of the State Administrative Board. The proposal was passed on to the full State Administrative Board by an unanimous vote, but was then pulled off the agenda by Governor Rick Snyder after a visit to Genesee County a few days earlier by his Lieutenanat Governor, Brian Calley. He met unanimous opposition at a Grand Blanc meeting of prominent business leaders from Genesee County.
Pat Clawson, a former investigative reporter for CCN and NBC News, represented the Chamber's position at the final meeting before the State Administrative Board. He argued that the bond proposal by Mayor Walling's staff was a "dump of toxic waste on the public" and argued that serious concerns should be investigated about the city's ability to pay back the loan. Clawson called Walling the "bag man" in a Minneapolis public corruption scandal that included a long-time city councilman getting a 30-year prison sentence. Clawson said he had experience with "bond worthiness" as a private investigator and demanded that Walling's lack of business experience and past record were "critical items" to consider when putting the state's taxpayers at risk for the bonds.
Mayor Walling never responded to Clawson's claims, but he routinely does not return telephone calls or respond to visits to his office for comments from FAME NEWSPAPERS, AM ADVANTAGE or Crusader News Service. This practice began after a story were published in May 2010 that revealed an investigation by FAME NEWSPAPERS into alleged widespread public corruption within Flint's city government. A break-in at the offices of FAME NEWSPAPERS occurred on the weekend after the story was published. Nothing was taken in the break-in except a drawer filled with documents related to investigations into public corruption.
Mayor Walling did defend himself in regard to the Minneapolis scandal, telling members of the East Side Business Association last month that he cooperated with the FBI and "will always do the right thing." Walling talked briefly about the incident for the first time after the question was raised by Dan Parks, who was chairman of the Committee to Recall Dayne Walling. Parks led a group that merged with four others to gather 22,000 signatures from voters who wanted Walling ousted. The city's clerk (Inez Brown) and the county's clerk (Michael Carr) combined to disqualify just enough signatures to keep the recall question off the November 2010 ballot. A lawsuit to get a temporary injunction then failed in federal court after Parks and his group provided evidence to show they had enough valid signatures. Parks said the lawsuit was dropped because it made no sense to wait until February 2011 for a recall election when the August primary was so close to that date.
About 4,800 signatures were also stolen with a police officer's laptop computer during a break-in at the recall group's headquarters, which was at an office building in Downtown Flint operated by Tri-County Publishing, a division of eToday Inc. that also owns AM ADVANTAGE, FAME NEWSPAPERS and Crusader News Service. An arson last month destroyed the office building. |
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Mon Aug 29, 2011 5:33 pm |
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Steve Myers
Site Admin
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I would rather not have anything re-posted form that guys website because it will lead to comments about that guy.
The comment about that guy will lead to that guy emailing or calling me threatening me with a lawsuit by that guy's attorney.
That guy has done to 3 times in the past once by email and twice by phone.
As a matter of fact I deleted my earlier post about that guy's company.
At least take that guy's name out of this post and any future post.
Thanks!! |
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Steve Myers |
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Mon Aug 29, 2011 6:30 pm |
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00SL2
F L I N T O I D
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quote:
Steve Myers schreef:
At least take that guy's name out of this post and any future post.
Thanks!!
Fully understand your post, but the article should't be posted without giving credit to author. |
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Mon Aug 29, 2011 9:46 pm |
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