Does former Alexander mayor deserve a pension?

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.