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February 2017 Commission Report

Agenda Committee
Spending increase rejected
The commission actually rejected a spending increase request from the schools for tennis court renovations.  This is the first spending request that this commission has rejected.

Commission meetings
State inmate revenue reported incorrectly

After the Tennessee Department of Corrections announced that it would transfer some of its state felons to state facilities, the Blount County Sheriff’s Office started providing the commission a monthly report showing the revenue that the county is receiving from the state for housing state felons.  The county receives $37 a day from the state of Tennessee but the reports have been incorrectly stating that the daily per diem rate is $37.50.  $37 a day is substantially less than the cost to the county for housing state sentenced felons.  Blount County Sheriff James Berrong told the commission last April that the state inmates are only a good deal for the state and that he doesn’t want to keep them.

Highway Department
The commission was asked to approve spending $800,000 of fund balance for the Blount County Highway Department (HD) in a special called meeting.  This request was deemed an emergency by Highway Superintendent (HS) Jeff Headrick, due to trucks being damaged by salt.

The request included 8 new single-axial diesel salt trucks and 4 trailers.  I asked how many salt trucks the HD has.  Headrick didn’t know.  Assistant Superintendent Chico Messer told the commission that the HD has 15.

A common sense fleet management policy would be to replace these trucks at the rate of 1 or 2 a year.  It doesn’t make sense to replace the majority of your fleet (8 of 15) in one budget year.  While this seems to be poor management on the part of the former Highway Superintendent Bill Dunlap, it is also poor planning on the part of the new HS.  A slower, more consistent, replacement of the fleet allows for better budget planning and as well as use of the vehicles.

The HD had just purchased 2 new triple-axial trucks in December at a cost of $145,746.80 each.  There was a transfer for $35,000 in January for parts.

At the regular commission meeting, the commission was asked to approve $281,000 to purchase a pug mill and asphalt patching trailer as well as $120,000 for asphalt.  Commissioner Mike Akard asked if the $120,000 for asphalt was an emergency.  Headrick said that it was but no explanation was given as to why it wasn’t included in the special called meeting with the equipment purchase.

Additionally, there was a $13,579.46 request to increase salaries in the Highway Department.  Commissioner Dave Bennett asked for this item to be removed without providing an explanation for its removal.

The requests and purchases for equipment and parts total over $1.4M in less than 3 months.  This was too much too fast.

It makes sense to approve more money for asphalt because the county hasn’t been keeping up with its paving needs.  Headrick said that the $120K will pave an additional 2.25 miles of the 830 miles of local roads.  Additionally, I asked him for a list of roads that will be paved in the next year.  You can read that list here.

Taxpayers footed the lunch bill for the commission, the mayor and his staff and some highway employees for the special called meeting.  Meals paid for by the taxpaying citizens of Blount County have become all too common of a practice.

Ethra funding
The commission was asked to approve the use of local tax money to bail out a federally funded program.  This isn’t the first time that the federal government has failed to fund one of its programs.  Funding was cut and service was to be temporarily halted.  This is a good example of why the federal government shouldn’t be running programs.  There is no constitutional authority for the federal government to fund this program.

There were unanswered questions.  A commissioner who is a part of the courthouse clique said after the meeting that this matter wasn’t explained well to the commission.

As a county commissioner, it isn’t my job to vote to bail out unconstitutional, federal government programs.  Furthermore, not one person from my district called me and asked me to vote for this.  I was the only commissioner to vote no.

Workers compensation (comp) settlement
The commission was asked to approve a workers comp settlement because the settlement was more than $50,000.  The case had been ongoing for over 2 years.  I had asked for records related to the case back in December, primarily because I wanted to know the cost of the legal fees for the case, and was provided with nothing.  Since I didn’t receive anything, I called  Director of General Services Don Stallions and he told me that the legal fees for the case is about $75,000.

I told Mr. Stallions that the commission should, at a minimum, be provided with an annual report on the status of lawsuits and claims against the county, but ideally it should be provided quarterly.  He agreed and said that the information used to be provided in the past when the county had a committee dealing with these matters.  When I mentioned this at the commission meeting, Commissioner Bennett made a statement cautioning against releasing information.  Apparently the status quo of having nothing is acceptable to him, although I doubt he’d run a private business without having this information.

For almost a year, I have been trying to get records and information from Stallions regarding the status of law suits, claims and settlements.  To date he has provided me with nothing.  This lengthy delay is not out of sort.  A former commissioner shared with me that Mr. Stallions stalled him for 2 years on a request.

Jail RFQ purchasing meeting
After I publically criticized the secrecy created by a new purchasing law, the Purchasing Department held a meeting open to the public so three companies chosen in secret could give presentations as to why their company is the best to look at jail expansion or construction of a new facility.  No decisions were made at the meeting.  The selection of the company was done behind closed doors, to protect the integrity of the process, according to Purchasing Agent (PA) Katie Branham Kerr.  This means that the Tennessee General Assembly and the Purchasing Agent think that the public lacks the integrity to allow her to select a company openly.

The Evaluation Team/Screening Committee consisted of 4 of the 5 people that I named here.  Laurie Bell did not participate at the meeting.  Commissioner Mike Caylor missed two of the three presentations.

Presenters for Michael Brady Incorporated (MBI) said that Blount County has a better jail that most in the state and that Monroe County would love to have what we have today.

When asked what the county needs a presenter for Barber McMurry (BMA) said he didn’t know.  This affirms what I have been saying, that Blount County got the cart before the horse.  The Blount County Corrections Partnership (BCCP) and the commission never identified what the county needed.

A presenter for Cope Architecture said he suggested a jail committee that would meet weekly during planning and construction.  His suggestion for the makeup of the committee is essentially what exists now with the BCCP.

Upon request, PA Branham Kerr informed me that MBI was chosen.  This is the same company that the schools are using that came back with a $66M proposal after originally estimating $40M.  The public wasn’t allowed to express concerns about a company that went way over what was originally estimated.  We’re told that your comments would have corrupted the integrity of the process.

It’s not surprising that MBI was chosen.  They’ve been watching this for years.  Roy Latham, an employee of MBI, has been attending commission meetings for years.  Commissioners receive a chocolate bar for Christmas from MBI.  Allowing them to be chosen in secret makes me wonder if MBI was a shoo-in all along.

Up next: “All the flowers of all the tomorrows are in the seeds of today.”  Indian Proverb

Blount County is facing two big renovation/building project: the 2 high schools and the jail.  These two matters could become very expensive, quickly.  Pay close attention to these matters.

The Purchasing Agent will make her recommendation for MBI to the BCCP on March 28th at 5:30 in room 430 at the courthouse.

Bill would require 2/3’s majority to increase property tax rate

This legislation would make it harder on local government employees, their friends and relatives, sitting on the Blount County Commission to raise your property tax rate.  This could offer some protection to taxpayers who are plagued with numerous conflicts of interest in local government.  The legislature should prohibit county employees and their relatives from holding office.

On Military and Spending, It’s Trump Versus Trump

From the man who should have been President the last 8 years.

By Ron Paul

It can be a challenge to follow the pronouncements of President Trump, as he often seems to change his position on any number of items from week to week, or from day to day, or even from minute to minute. Consider his speech last week at the Conservative Political Action Conference (CPAC). It was reported as “fiery” and “blistering,” but it was also full of contradictions.

In the speech, President Trump correctly pointed out that the last 15 years of US military action in the Middle East has been an almost incomprehensible waste of money – six trillion dollars, he said – and that after all that US war and meddling the region was actually in worse shape than before we started.

It would have been better for US Presidents to have spent the last 15 years at the beach than to have pursued its Middle East war policy, he added, stating that the US infrastructure could have been rebuilt several times over with the money wasted on such militarism.

All good points from the President.

But then minutes later in the same speech he seemed to forget what he just said about wasting money on militarism. He promised he would be “upgrading all of our military, all of our military, offensive, defensive, everything,” in what would be “one of the greatest military buildups in American history.”

This “greatest” military buildup is in addition to the trillions he plans on spending to make sure the US nuclear arsenal is at the “top of the pack” in the world, as he told the press last Thursday. And that is in addition to the trillion dollar nuclear “modernization” program that is carrying over from the Obama Administration.

Of course when it comes to nuclear weapons, the United States already is at the “top of the pack,” having nearly 7,000 nuclear warheads. How many times do we need to be able to blow up the world?

At CPAC, President Trump is worried about needlessly spending money on military misadventures, but then in the same speech he promised even more military misadventures in the Middle East.

Where is the money going to come from for all this? Is the President going to raise taxes to pay for it? Is he going to make massive cuts in domestic spending?

In the same CPAC speech, President Trump reiterated his vow to “massively lower taxes on the middle class, reduce taxes on American business, and make our tax code more simple and much more fair for everyone.” And that’s all good. So it’s not coming from there.

Will he cut domestic spending? The President has indicated that he also wants a massive infrastructure modernization program launched in the near future. The plan will likely cost far in excess of the trillion dollars the President has suggested.

That leaves only one solution: printing money out of thin air. It has been the favorite trick of his predecessors. While he correctly condemns the $20 trillion national debt passed down from previous Administrations, his policies promise to add to that number in a massive way. Printing money out of thin air destroys the currency, hastening a US economic collapse and placing a very cruel tax on the working and middle classes as well.

Following the President’s constantly changing policies can make you dizzy. That’s a shame because the solution is very simple: end the US military empire overseas, cut taxes and regulations at home, end the welfare magnet for illegal immigration, and end the drug war. And then get out of the way.

Source: http://ronpaulinstitute.org/archives/featured-articles/2017/february/27/on-military-and-spending-it-s-trump-versus-trump/

Jail RFQ Evaluation Team/Screening Committee meeting Thursday at 8:30 AM

The jail evaluations will meet in the commission room on February 23rd at 8:30 AM to interview the 3 architectural firms that were chosen based on scoring of written qualifications.  These written qualifications and scores are currently secret due to a change in Tennessee purchasing law last year.  The public will still not be able to comment on the firms.  Purchasing Agent Katie Branham wrote of the interviews, “They are open to the public for observation only.”

Jail RFQ Evaluation Team members revealed?

The local government purchasing procedures evaluating specialty/professional services was a reasonably open process until a change to state law last year which allows all local governments to close evaluation processes.  The law was a huge mistake and it should be immediately repealed.

Some of the comments that I have received related to the members of the jail Request for Qualifications (RFQ) Evaluation Team/Screening Committee members being secret include:

  • I feel like I am living in a communist country.
  • I can’t believe that they think the electorate shouldn’t be able to talk to the team members.
  • I can’t see any good in this law.

The week before last an article in the paper confirmed that a “citizen” is indeed serving as an evaluator.  I wrote about the delay due to a search for a citizen here.  This appears to deviate from the RFQ that was issued.  Page 16 says that the Screening Committee will consist of members of the county legislative body and Sheriff’s Office.

“The proposals will then be given to a Screening Committee consisting of members of the county legislative body and Sheriff’s Office. This committee will evaluate the proposals and determine the top proposals.”

The theory behind the new secret government law is that keeping the evaluators insulated through secrecy protects the integrity of the process by preventing undue influence.  However, this process surrounding the jail never had any integrity to begin with.  Furthermore, if the evaluators are so weak as to be influenced by some comments from the public and architectural firms then better, stronger people need to be selected.  Weak choices don’t justify secret government.  Purchasing Departments aren’t the CIA.

The Tennessee Senate sponsor of this new law, Senator Ken Yager, has chosen to block me on Twitter rather than return my phone calls and listen to the reasons why the law should be repealed.  Yager refuses to even have a discussion on the matter.  Thus, in protest of the law and to provide transparency to a secret process, I am releasing what I believe to be the names of the Evaluation Team.

It is possible that these aren’t the evaluators and that I was given bad information.  If not, some much needed sunshine is now being added to a issue that has been far too secretive.

Without further ado, the names provided to me are:

Blount County Commission Mike Caylor
Blount County Deputy Chief Chris Cantrell
Blount County Director of General Services Don Stallions
Blount County Purchasing Technician Lori Bell
Blount County Citizen C. Sterling

For those that are fairly new to the issue, please take the time to become informed.  Read the articles provided below.

On the manufactured overcrowding crisis and keeping state felons
Are counties required to keep felons sentenced to more than a year?
Commissioner Tona Monroe calls for immediate meeting of Blount County Corrections Partnership to discuss removing discretionary inmates after AG’s opinion on state sentenced felons.
Tennessee AG opinion 16-21

Sheriff signed a contract to house federal inmates without commission approval
Tennessee Comptroller’s Office says it can find no specific statutory authority for a sheriff to sign a contract to house federal inmates without commission approval

$2 million jail/public safety assignment never approved by the commission
Comptroller’s Office says it doesn’t recognize assignments totaling $2 million in funds for jail
Audit report says Blount County Commission has the authority to assign General Fund

Tennessee Corrections Institute can’t shut the jail down
http://www.bcpublicrecord.com/wp-content/uploads/2016/06/TCIAuthorityLetter.pdf

TCI employee bullies public and pushes counties into building
Bob Bass of TCI tells press and citizens to turn cameras off: Shows them video already on YouTube
March 2016 Commission Report

A 30 year emergency that the legislature fails to address?
Tennessee General Assembly often nonresponsive to needed and responsible reforms

Fire Marshall on inmate classification
Types of inmates don’t influence State Fire Marshal’s decision to shut jail down

Cost to house federal inmates
Purchasing Agent & Director of General Services chose $65K consultant over $18.5K option
Sheriff’s Office doesn’t have form used to determine inmate costs

Can we believe anything that is said?
Sheriff Berrong said he doesn’t want to keep state prisoners and they’re only a good deal for the state
Is someone not telling the truth?

Does lawful authority mean anything?
Purchasing Agent explains her duties when it suits the machine
Comptroller’s Office says it doesn’t recognize assignments totaling $2 million in funds for jail
Tennessee Comptroller’s Office says it can find no specific statutory authority for a sheriff to sign a contract to house federal inmates without commission approval

No answers?
Why were federal inmates removed from the Blount County jail?

Observations and suggestions ignored?
Former Sheriff’s Chief Clerk wrote letter to the Mayor on jail overcrowding

Media bias?
The series of articles has begun

Conflicts of interest on the Blount County Corrections Partnership
March 2016 Commission Report

Making money keeping inmates?
Sheriff Berrong said he doesn’t want to keep state prisoners and they’re only a good deal for the state
Sheriff’s Office doesn’t have form used to determine inmate costs

Blount County debt and liabilities
$228,646,423 in total liabilities according to the 2016 Comprehensive Annual Financial Report (page 24)

Secret purchasing procedures
Interview on new RFQ/RFP exemption to Tennessee Open Records Act
Two wrongs don’t make a right: State RFP purchasing process shouldn’t be secret either
New secret purchasing law

Urge the Tennessee General Assembly to repeal the secret purchasing laws governing state and local purchasing procedures.

“Ken Yager” <sen.ken.yager@capitol.tn.gov>, sen.paul.bailey@capitol.tn.gov, “Mae Beavers” <sen.mae.beavers@capitol.tn.gov>, sen.mike.bell@capitol.tn.gov, “Janice Bowling” <sen.janice.bowling@capitol.tn.gov>, “Richard Briggs” <sen.richard.briggs@capitol.tn.gov>, sen.rusty.crowe@capitol.tn.gov, “Steven Dickerson” <sen.steven.dickerson@capitol.tn.gov>, sen.todd.gardenshire@capitol.tn.gov, “Mark Green” <sen.mark.green@capitol.tn.gov>, sen.dolores.gresham@capitol.tn.gov, sen.ferrell.haile@capitol.tn.gov, sen.thelma.harper@capitol.tn.gov, sen.lee.harris@capitol.tn.gov, sen.joey.hensley@capitol.tn.gov, “Ed Jackson” <sen.ed.jackson@capitol.tn.gov>,  “Jack Johnson” <sen.jack.johnson@capitol.tn.gov>, “Brian Kelsey” <sen.brian.kelsey@capitol.tn.gov>, “Bill Ketron” <sen.bill.ketron@capitol.tn.gov>, sen.sara.kyle@capitol.tn.gov, sen.jon.lundberg@capitol.tn.gov, “Becky Massey” <sen.becky.massey@capitol.tn.gov>,
lt.gov.randy.mcnally@capitol.tn.gov, sen.frank.niceley@capitol.tn.gov, “Mark Norris” <sen.mark.norris@capitol.tn.gov>, “Doug Overbey” <sen.doug.overbey@capitol.tn.gov>, sen.kerry.roberts@capitol.tn.gov, “Steve Southerland” <sen.steve.southerland@capitol.tn.gov>, sen.john.stevens@capitol.tn.gov, sen.reginald.tate@capitol.tn.gov, sen.jim.tracy@capitol.tn.gov, sen.bo.watson@capitol.tn.gov, sen.jeff.yarbro@capitol.tn.gov

rep.raumesh.akbari@capitol.tn.gov, rep.david.alexander@capitol.tn.gov, rep.bill.beck@capitol.tn.gov, rep.harry.brooks@capitol.tn.gov, rep.kevin.brooks@capitol.tn.gov, rep.sheila.butt@capitol.tn.gov, rep.david.byrd@capitol.tn.gov, rep.kent.calfee@capitol.tn.gov, rep.karen.camper@capitol.tn.gov, rep.dale.carr@capitol.tn.gov, rep.mike.carter@capitol.tn.gov, rep.glen.casada@capitol.tn.gov, rep.john.ray.clemmons@capitol.tn.gov, rep.jim.coley@capitol.tn.gov, rep.barbara.cooper@capitol.tn.gov, rep.john.crawford@capitol.tn.gov,
rep.michael.curcio@capitol.tn.gov, rep.martin.daniel@capitol.tn.gov, rep.john.deberry@capitol.tn.gov, rep.barry.doss@capitol.tn.gov, rep.bill.dunn@capitol.tn.gov, rep.jimmy.eldridge@capitol.tn.gov, rep.jeremy.faison@capitol.tn.gov, rep.andrew.farmer@capitol.tn.gov, rep.joanne.favors@capitol.tn.gov, rep.craig.fitzhugh@capitol.tn.gov, rep.john.forgety@capitol.tn.gov, rep.ron.gant@capitol.tn.gov, rep.brenda.gilmore@capitol.tn.gov, rep.tilman.goins@capitol.tn.gov, rep.marc.gravitt@capitol.tn.gov, rep.curtis.halford@capitol.tn.gov, rep.ga.hardaway@capitol.tn.gov, speaker.beth.harwell@capitol.tn.gov, rep.david.hawk@capitol.tn.gov, rep.patsy.hazlewood@capitol.tn.gov, rep.gary.hicks@capitol.tn.gov, rep.timothy.hill@capitol.tn.gov, rep.matthew.hill@capitol.tn.gov, rep.john.holsclaw@capitol.tn.gov, rep.andy.holt@capitol.tn.gov, rep.dan.howell@capitol.tn.gov, rep.bud.hulsey@capitol.tn.gov, rep.darren.jernigan@capitol.tn.gov, rep.curtis.johnson@capitol.tn.gov, rep.sherry.jones@capitol.tn.gov, rep.roger.kane@capitol.tn.gov, rep.kelly.keisling@capitol.tn.gov, rep.sabi.kumar@capitol.tn.gov, rep.william.lamberth@capitol.tn.gov, rep.mary.littleton@capitol.tn.gov, rep.ron.lollar@capitol.tn.gov, rep.harold.love@capitol.tn.gov, rep.jon.lundberg@capitol.tn.gov, rep.susan.lynn@capitol.tn.gov, rep.pat.marsh@capitol.tn.gov, rep.judd.matheny@capitol.tn.gov, rep.jimmy.matlock@capitol.tn.gov, rep.gerald.mccormick@capitol.tn.gov, rep.steve.mcdaniel@capitol.tn.gov, rep.larry.miller@capitol.tn.gov, rep.bo.mitchell@capitol.tn.gov, rep.debra.moody@capitol.tn.gov, rep.antonio.parkinson@capitol.tn.gov, rep.joe.pitts@capitol.tn.gov, rep.mark.pody@capitol.tn.gov, rep.jason.powell@capitol.tn.gov, rep.dennis.powers@capitol.tn.gov, rep.john.ragan@capitol.tn.gov, rep.bob.ramsey@capitol.tn.gov, rep.jay.reedy@capitol.tn.gov, rep.courtney.rogers@capitol.tn.gov, rep.bill.sanderson@capitol.tn.gov, rep.charles.sargent@capitol.tn.gov, rep.cameron.sexton@capitol.tn.gov, rep.jerry.sexton@capitol.tn.gov, rep.johnny.shaw@capitol.tn.gov, rep.eddie.smith@capitol.tn.gov, rep.mike.sparks@capitol.tn.gov, rep.rick.staples@capitol.tn.gov, rep.mike.stewart@capitol.tn.gov, rep.art.swann@capitol.tn.gov, rep.bryan.terry@capitol.tn.gov, rep.joe.towns@capitol.tn.gov, rep.ron.travis@capitol.tn.gov, rep.johnnie.turner@capitol.tn.gov, rep.micah.vanhuss@capitol.tn.gov, rep.terri.lynn.weaver@capitol.tn.gov, rep.dawn.white@capitol.tn.gov, rep.mark.white@capitol.tn.gov, rep.sam.whitson@capitol.tn.gov, rep.ryan.williams@capitol.tn.gov, rep.john.windle@capitol.tn.gov, rep.tim.wirgau@capitol.tn.gov, rep.jason.zachary@capitol.tn.gov, tracey.vance@capitol.tn.gov,

Paper reported that Blount County Animal Shelter has about 250 active volunteers

According to the paper, there are about 250 active volunteers who donate their time at the Blount County Animal Shelter (BCAS).  When you add these 250 volunteers to the approximately 1,800 people on local probation, 700 on state probation and 300 inmates in the local jail (excluding federal inmates), that brings the total to about 3,000 people that the BCAS can look to obtain workers from.  It becomes nearly impossible for anyone to believe that the BCAS can’t find 2 people amongst 3,000 to clean the kennels.

Haslam (R) Pushes to Raise Taxes Despite Billion Dollar Surplus

From Rocky Top Politics:

“After over-collecting $2 billion dollars from Tennessee taxpayers, Gov. Bill Haslam today said he thinks Tennesseans are not taxed enough and wants to raise the taxes on that most basic of middle class commodities:  gasoline.

Reports indicate Haslam is trying to sugarcoat the tax increase by promising to “index” the taxes (meaning they can go up without additional legislative approval) and to cut a little from the food and/or sales tax rate.

Sure.

What is astonishing is that this proposal comes on the eve of the inauguration of Donald Trump as the next President…Trump was elected by middle class outrage over politicians who do dumb things like, well, raise taxes when you are sitting on a $2 billion surplus.”

Comptroller’s Office says it doesn’t recognize assignments totaling $2 million in funds for jail

Regarding the jail we’ve learned of a secret $2 million plan, a contract signed without commission approval, inmates filling our jail that we don’t have to keep, a company being paid 3.5 times more than the lowest offer, a purchasing agent writing a resolution about the jail that failed to mention the word jail in the resolutionthe inspecting authority (TCI) having no authority to shut the jail down but pushing the county to build and its Corrections Partnership Coordinator bullying people attending public meetings.  Now we learn that the $2 million in assignments for the jail are not recognized by the Comptroller’s Office (see below).

Is there anything regarding the jail that can be trusted?  The public trust has been broken.  The public has good reason to be very skeptical and cautious of anything presented to it regarding the jail, regardless of what the courthouse clique calls it (i.e. Transitional Facility).

What we see now is that there are essentially two sets of books: the lawful set of books recognized by the state and a second set of books by the courthouse clique.  How many other slush funds are there in the courthouse clique’s 2nd set of books?

This all makes the case of why one more layer of secret bureaucracy through the Purchasing Department should not be tolerated.  The evaluation process of qualifications should not be done in secret and the Yager/Calfee exemption law should be repealed.

Contact Senator Ken Yager sen.ken.yager@capitol.tn.gov and Representative Kent Calfee rep.kent.calfee@capitol.tn.gov to repeal the secret purchasing practices.

 

Here is my correspondence with Jim Arnette, the Director of the Division of Local Government Audit in the Office of the Comptroller of the Treasury.

—–Original Message—–
From: “Jim Arnette” <Jim.Arnette@cot.tn.gov>
Sent: Thursday, January 5, 2017 2:07pm
To: “tona@breezeair.net” <tona@breezeair.net>
Cc: “Justin Wilson” <Justin.Wilson@cot.tn.gov>, “Bryan Burklin” <Bryan.Burklin@cot.tn.gov>, “Mark Treece” <Mark.Treece@cot.tn.gov> Subject: RE: Who authorized assigning this $2 million?

Ms. Monroe,

We found no documentation that the county commission has adopted a resolution or policy clearly giving management the authority to assign fund balance for external reporting purposes. Therefore, we have not recognized these assignments in the financial statements in the annual financial report that we issue with our audit opinion. Although we do not recognize the authority for management to assign fund balance for external reporting purposes, this would not necessarily preclude management from recognizing assignments on their internal records as a management planning tool.

Jim Arnette, CGFM, CISA
Director
Comptroller of the Treasury
Division of Local Government Audit
1500 James K. Polk Building
Nashville, Tennessee  37243-1402
615.401.7841 

From: tona@breezeair.net [mailto:tona@breezeair.net]
Sent: Thursday, December 29, 2016 12:57 PM
To: Jim Arnette <Jim.Arnette@cot.tn.gov>
Cc: Justin Wilson <Justin.Wilson@cot.tn.gov>
Subject: Who authorized assigning this $2 million?

Dear Director Arnette,

Last year, I learned about a secret plan by Blount County Mayor Ed Mitchell and Sheriff James Lee Berrong to set aside $2 million, $1 million last year and another $1 million this year, through contact with and in records of the Tennessee Corrections Institute (TCI).  The September 2, 2015 meeting minutes of the TCI Board of Control are attached for your review.  The part relevant to Blount County is found on page 7.  

“Since that time, the mayor is on board 100 percent and called the sheriff the previous day and told the sheriff that one million dollars had been escrowed and earmarked for a new jail and plan to do the same thing next year.”   

When I inquired about whether $1 million had been set aside by the Mayor without telling the public or the Blount County Commission, Blount County Finance Director Randy Vineyard informed me that yes $1 million had been assigned.  He provided me a paper copy of the March 2009 Governmental Accounting Standards Board Document referencing Statement 54.  That document is found here:  http://www.gasb.org/cs/BlobServer?blobkey=id&blobwhere=1175820452832&blobheader=application/pdf&blobcol=urldata&blobtable=MungoBlobs  

Under the classification Assigned is says,  

“Assigned fund balance comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund.”

The words “or by an official or body” are underlined because they were underlined on the copy provided to me. 

Paragraph 13 of Statement 54 says much the same thing.

“Assigned Fund Balance

  1. Amounts that are constrained by the government‘s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance, except for stabilization arrangements, as discussed in paragraph 21. Intent should be expressed by (a) the governing body itself or (b) a body (a budget or finance committee, for example) or official to which the governing body has delegated the authority to assign amounts to be used for specific purposes.

What I want to know and hope that your office will tell me is when did the governing body delegate the authority to assign these funds to the Mayor and/or Finance Director?  Please let me know if there is a state statute that allows for this.  If there is no state law, when did the Blount County Commission delegate this authority to the Mayor and/or Finance Director.

 

I await your response and wish you a happy new year.

 

Sincerely,
Tona Monroe

Blount County Commissioner

Stop loss policy claim limit

In the montly December Commission Report, I reported on the premiums and the claims of the stop loss policy for the county’s health care plan.  FYI here is the claim limit amount where the stop loss policy kicks in.

From broker Cole Harris:

“It used to be $250,000 until July of 2015 when it was raised to $300,000. I requested for rates higher than $300,000, but the largest the carrier would go was $350,000 due to your size. The rates for $350,000 did not justify the increase in liability.”