Failure to Respond: City's Finance Manager Joyce Giuffre

While Joyce Giuffre, the City’s Finance Manager, was out of her office in City Hall September 13-20, another week elapsed without acknowledgement of e-mails or, needless to say, answers to fiscal questions posed to her as the Finance Manager.

Content & Questions sent to Finance Manager Joyce Guiffre and their implicit answers:

Recent reading of Research Briefs and articles by the National League of Cities and the Government Finance Officers Association (ex. Appropriate Level of Unreserved Fund Balance in the General Fund (2002) http://www.gfoa.org/services/rp/budget/budget-appropriate.pdf) has stated that nationally, reserve levels among all cities, except New York, have been 18% - 19.6% over the past six years. And the GFOA has recommended General Fund reserve levels of no less than 5% - 15%. And that reserve policies “are just important as the reserve levels.”

Questions:

1. “Accountants also sometimes report a designated portion of unreserved fund balance to indicate that the governing body or management have tentative plans concerning the use of all or a portion of unreserved fund balance.” (Source: GFOA, as above.)
Since the city’s Balance Sheet, Governmental Funds, June 30, 2005, page 4, enumerates amounts for 12 “Unreserved Designated” Fund Balances, what are the city’s tentative plans concerning these reserve funds?

Implicit City Answer: The City has no tentative plans concerning the “Unreserved Designated” Fund Balances. And if the City had plans, the “City” would say “I don’t think I have to tell you.”

2. Since reserve policies “are just as important as the reserves levels,” what is the city’s reserve policy?

Implicit City Answer: The City does not have a reserve policy. And if the City had a reserve policy, the “City” would say “I don’t think I have to tell you.”

3. With the excessive deferred maintenance requirements of the city, what rationale is the city using to justify 70% - 80% of the annual budget in reserve funds? Note: “As of June 30, 2005, the City’s governmental funds had a combined fund balance of $8,898,422, an increase of $266,264 from the previous year.” Pg. –a- Management’s Discussion and Analysis.
Also, as is the convention, while discussions of fund balances focus on the General Fund, balances in other funds “should also be considered in assessing the adequacy of unreserved fund balance in the general fund.”

Implicit City Answer: The City of Carmel-by-the-Sea does not have a rationale for 70% - 80% of the annual budget in reserve funds. And if the City had a rationale, the “City” would say “I don’t think I have to tell you.”

COMMENTS:
Sadly, Finance Manager Joyce Giuffre’s failure to respond to a resident’s request for information on city fiscal policy is just one example in a pattern of conduct by city staff and city council members; specifically, a pattern of ignoring residents’ concerns and specific questions regarding city government. One Carmelite stated her letters were met with SILENCE...SILENCE...SILENCE! Needless to say, unresponsive local government is symptomatic of a failure to understand that all public servants should treat their positions as a public service and a public trust. Moreover, when a city government is seen as acting to protect staff from public accountability, rather than protect citizens from unaccountable public servants, then there is citizen disrespect and distrust of government.