COMMENTARY
Ever since the 20-year reign of former Alexander Mayor Shirley Johnson
ended December 31, 2010, due to losing re-election to Paul Mitchell, the
question of her receiving a pension has been an issue. Her claim has always
been based on the city's employee handbook, which gives elected officials
access to the same retirement plan as city employees.
A little history
The Alexander Employee Handbook was approved by the city council in
October, 2005 to go into effect January 1, 2006. Page-29 of the handbook establishes
a pension plan for anyone, including elected officials, who have worked for the
city 12 years or more. By then Mayor Johnson had been mayor for 16 years.
By February of 2011 Johnson was asking for her monthly $840 pension,
which is half of her monthly salary as Mayor and the amount required under the
employee handbook. The city council of 2011 was told by an attorney for the
Arkansas Municipal League elected officials are not city employees.
Also, no money had been taken from the mayor's salary or the general
fund and put into a city retirement fund. And, the city was not, and still
isn't, a member of the Arkansas Public Employees Retirement System (APERS).
Either of those two scenarios would require the city, or APERS, to provide
Johnson with a monthly pension. Without a pre-established method of paying for
a pension, no state law requiring a pension be provided, and since elected
officials can't be city employees the council voted to not pay Johnson a
pension.
By 2012 some resignations had changed membership in the council. With
enough pro-Shirley aldermen plus aldermen who are afraid to tell her
"No" Johnson was able to get a second request passed. They voted to
pay her $800 per month without a resolution or ordinance. To put the $800 in
perspective, the monthly payments for the now repossessed fire truck was just
over $800.
In the November, 2012 election one alderman didn't seek re-election and
five of the remaining seven were voted out. Mayor Mitchell lost a recall
election on unrelated issues. In December, 2012, as their last act of defiance
and stupidity, in a seven to one vote the council appointed Recorder Michelle
Hobbs as mayor to fill the vacancy left by the recall of Mayor Mitchell.
When the new council took office in January, 2013 one of the goals for
some was to end the pension payments. Despite the immediate death of one
alderman, the resignation of others and Hobbs issuing vetoes like candy on
Halloween; ending Johnson's pension is still a hot topic and one of several
priorities.
During the August, 2014 council meeting an ordinance that would
temporarily change the benefits section of the handbook failed in a four to
four vote. One of those "No" votes was due to the resignation of
Alderman Brad Scott. When that position is filled it is expected the ordinance
will be brought up again for a vote.
If the ordinance is eventually passed in its current form it will rescind and remove any reference to an
"elected official" as a city employee, and rescind and remove from
page 29 the sub-headings "Eligibility" and "Retirement." These
changes are temporary until a new employee handbook can be written and approved
by the council.
The ordinance also provides a
new piece of information saying state law has made city-run retirement plans
illegal since July 3, 1989. That could mean most, if not all, of the benefits
section of the Alexander Employee Handbook is illegal. No surprise here as you
will soon see.
Passing these temporary changes
is the first step in ending the monthly payments to Johnson. If the ordinance
is approved a resolution will be introduced to "suspend" Johnson's
monthly pension.
If it's true there is no requirement to pay former Mayor Shirley
Johnson a pension it would appear the only way she could receive a pension is
through the kindness of the city council. But, does she deserve it?
Does former Mayor Shirley
Johnson deserve a pension?
If the Alexander City Council is going to reward former Mayor Shirley Johnson
a pension for the rest of her life then one must ask the question, what did she
do as mayor to deserve such an honor? Did she run the city based on Arkansas
law and policies established by the city council? Did she adhere to the budget approved
by the council and not interfere with other officials who are responsible for
city expenditures?
The Arkansas Division of Legislative Audit (ADLA) conducts an annual
audit of municipalities and other government entities. The audit consists of a
review of accounting practices and whether or not they meet state requirements.
The reports, starting with the calendar year 1998, are available as .pdf files
on the ADLA website.
The audits are conducted and issued during the following calendar year;
1998 was done in 1999. So, how did Shirley Johnson do following state law when
running the City of Alexander?
1998 - Mayor; audit states, "The
Mayor did not provide a budget for the Police and Water Development Funds.
Total expenditures for these funds were $35,179.32. Budgets are necessary for
control of expenditures."
Recorder/Treasurer; audit states, "The Recorder/Treasurer did not
transfer $13,150.08 of highway turnback funds deposited into the General Fund
to the Street Fund. This amount, combined with previous years [sic] improper
transactions, resulted in the General Fund owing the Street Fund
$48,070.11."
The state shares two sources of revenue with cities and counties; one
for the General Fund (provided by the state sales tax) and the other for the Street
Fund (generated by the state fuel tax). By state law Street Fund revenue cannot
be used in the General Fund.
The Recorder/Treasurer in 1998 was Sharon Bankhead. Yes, that would be
the same Sharon Bankhead who is currently our over-paid, inept Recorder. Granted,
Mayors aren't suppose to have control over the elected position of Recorder/Treasurer
and whoever is in that position is responsible for the handling and tracking of
all city revenue except court fines. How this involves Mayor Johnson should
become apparent later.
1999 - Mayor; not cited for any noncompliance violations but the audit
does state, "Street Fund turnback
in the amount of $3,979.29 was deposited to the General Fund." Oddly, this
is not cited as a noncompliance of the Recorder/Treasurer. The General
Fund now owes the Street Fund $52,049.40.
However, what makes 1999 interesting is a shakeup in the Recorder/Treasurer's
office. According to the audit report Sharon Bankhead resigned effective March
1, 1999. Julia Early was Recorder/Treasurer from March 1 to September 20, 1999.
Anthony Smith was appointed September 20, 1999. Why did we need three Recorder/Treasurers
in 1999?
2000 - Mayor; not cited for
any noncompliance violations but the audit does state, "Street Fund turnback in the amount of
$5,646.03 was deposited to the General Fund." Once again, this is not
cited as a noncompliance for the Recorder/Treasurer. The General Fund
now owes the Street Fund $57,695.43.
2001 - Mayor; not cited for
any noncompliance violations but the audit does state, "Street Fund turnback in the amount of
$14,849 was deposited in the General Fund." Once more, this is not cited
as a noncompliance for the Recorder/Treasurer. The General Fund now owes
the Street Fund $72,544.43.
2002 - Mayor; not cited for
any noncompliance violations but the audit does state, "Street Fund turnback in the amount of
$11,977 was deposited in the General Fund." Again, this is not cited as a
noncompliance for the Recorder/Treasurer. The General Fund now owes the
Street Fund $84,521.43. Michelle Kidd (now Mayor Michelle Hobbs) became Recorder/Treasurer
in 2002.
2003 - Mayor; not cited for
any noncompliance violations but the audit does state, "Street Fund turnback in the amount of $7,638
was deposited in the General Fund." Again, this is not cited as a
noncompliance for the Recorder/Treasurer. The General Fund now owes the
Street Fund $92,159.43.
2004 - Everyone performed well this year. The audit states there
are, "no material instances of
noncompliance" ... "in the Offices of Mayor, Recorder/Treasurer, Police
Chief, and City Court
Clerk." This must have
been the year the streets were paved and they needed all the Street Fund
revenue available.
2005 - Mayor; not cited for any noncompliance violations.
Recorder/Treasurer;
audit states, "State aid for
highway funds in the amount of $10,184.31 was not transferred to the Street
Fund from the General Fund ... . State aid from previous years has also not
been transferred with a total of $106,072.99 due to the Street Fund from the
General Fund at December 31, 2005." apparently when it reaches six
figures they start blaming someone.
2006 - Mayor; audit states, "The General Fund disbursements exceeded
appropriations by $306,843 (116%)." This means Mayor Johnson spent
more money than the council had budgeted
and neither Johnson nor Kidd alerted the city council to the over-spending and
didn't present aldermen with an adjusted budget for passage.
And, the misuse of street funds continued. "State aid for highway
funds in the amount of $29,297 was not transferred to the Street Fund from the
General Fund," the report states. "State aid from previous years has
also not been transferred with a total of $135,370 due to the Street Fund from
the General Fund at December 31, 2006."
As a historical reference, it was in August of 2006 that Woodland Hills
was annexed, by request of property owners, to the City of Alexander. In
November an expanded city council was seated increasing the number of aldermen
from six to eight and increasing the number of wards from three to four.
2007 - Mayor; not cited for any noncompliance violations.
The audit report cites
"Recorder/Treasurer Jeri Rainey" for six infractions including, "State
aid for highway funds in the amount of $24,543 was not transferred to the
Street Fund from the General Fund. State aid from previous years has also not
been transferred with a total of $159, 913 due to the Street Fund from the
General Fund at December 31, 2007."
Unbeknownst to state
auditors in early 2006, before the annexation of Woodland Hills, the city
council passed an ordinance eliminating the treasurer's position in violation
of state law. The treasurer was replaced with a bookkeeper, Jeri Rainey. This
also made Michelle Kidd the recorder.
2008 & 2009 - This was a combined audit conducted in 2010
because no audits were done in 2009.
Mayor; audit states, "General Fund total disbursements for 2008
exceeded appropriations by $178,707 (27%)." Once again aldermen
were not given an opportunity to approve an amended budget.
The bookkeeper was cited
for, "State aid for highway
turnback funds from previous years has not been transferred from the General
Fund to the Street Fund. The
total amount due to the Street Fund at December 31, 2009 and 2008 was $112,806
and $132,792, respectively."
It was about this time
the aldermen discovered the illegal use of Street Fund revenue and passed a
motion requiring that money go directly into the Street Fund. The council also
began budgeting repayments from the General Fund to the Street Fund. If you'll
notice the amount owed from the General Fund to the Street Fund between 2008
and 2009 has been reduced.
2010 - Mayor; audit states, "The governing body did not review the prior agreed-upon procedures
report and accompanying comments at the first regularly scheduled meeting
following receipt of the report as required by Ark. Code Ann. § 10-4-418." For several years Mayor
Johnson had failed to present to the city council the "agreed-upon procedures
report" for review and approval. The report is a preview of the audit
report that will be presented to the Arkansas Division of Legislative
Audit (ADLA) for final approval. According to state law council members are
suppose to review the report and take the necessary actions to correct any
errors before the report is sent to the ADLA.
In the bookkeeper section of the report it makes no mention of misuse of
Street Fund revenue and shows a decline in the amount owed by the General Fund
to the Street Fund. The report states, "State aid for highway turnback
funds from previous years was not transferred from the General Fund to the
Street Fund. The total amount due to the Street Fund at December 31, 2O1O was
$97,933." According to the audit report for 2012 the General Fund
owed the Street Fund $87,798 as of December 31, 2012.
Racial profiling
Then there's the opinion
of U.S. District Judge G.
Thomas Eisele issued in March of 2010 when he ruled against Alexander in a
racial profiling lawsuit. In 2009 several male Hispanics filed a lawsuit charging
former Police Officer Tommy Leath with targeting Hispanics for traffic stops. A
review of citations he issued showed he had a higher percentage for Hispanics
than other Alexander officers. Included in the lawsuit were Johnson and former
Police Chief Allen Spears.
"In late April (2009), Mayor Johnson was specifically
notified by a citizen, Jamie Guardado, of the allegation that Leath was
racially profiling Hispanics," Judge Eisele said in his ruling. "Once
advised of such a serious allegation, Johnson, at a minimum, should have
reported the allegation to Spears and ensured that they (the allegations) were
properly investigated. She was deliberately indifferent not to so act."
He also said, "The record indicates and the Court finds
that City policy-makers Mayor Johnson and Chief Spears knew that Leath was
targeting Hispanics but took no action to stop him. By their silence, they both
condoned his conduct and allowed it to continue."
Back taxes owed
the IRS
After Paul Mitchell became Mayor in January, 2011 he and the
council learned of another secret Johnson kept hidden from aldermen. The City
of Alexander owed several thousand dollars in back payments and penalties to
the Internal Revenue Service (IRS).
Rather than working out a payment plan with the IRS she
hired a Texas company to make the IRS go away. Thanks to now former Mayor
Johnson Alexander starts off 2011 not only owing the IRS but a couple more
thousand to this company, which of course was not able to make the IRS vanish.
In conclusion
There is no evidence Mayor Johnson financially benefited
from her tenure as Mayor aside from her monthly salary. But, the question everyone should ask is,
"Why?"
Why did Alexander have four individuals as
recorder/treasurer in eight years? Why?
Why did she continue to "allow" the spending of
Street Fund revenue in the General Fund after being told for at least ten years
it was illegal? Why?
Why did she overspend the budgets for 2006 and 2008 and then
not submit amended budgets to the council before the calendar years ended? Why?
Why didn't she work with the IRS to pay the back taxes? Why?
Why did she not stop the racial profiling of Hispanics, or
at least order an investigation? She, of all people, should be sensitive to
racial profiling. Why?
Why did she purposely keep aldermen in the dark about city
business? Why?
If not for financial gain, why?
A common answer from a teen when asked why they did
something they shouldn't have is, "Because I can." Is that what this
boils down to, "I can do what I want because I'm the mayor?" Was her
entire 20 years as mayor nothing more than one continuous power-trip; hide the
truth, trick the aldermen, bookkeepers aren't elected so get rid of the
treasurer to control the money, it's not racial profiling unless the victim is
black, and screw the IRS?
Why does someone with this kind of a record deserve a
pension when it's not mandatory? Why?
Why does someone who was voted out of office because of
their record IN office deserve a pension? Why?
According to the Shirley Johnson worshippers she never did
anything wrong. It's either pay her the pension or you're a racist.