Yesterday we highlighted the WLOX coverage of the Fillingame Administration misappropriating and then spending the DoJ Equitable Sharing Grant on expenses other than for law enforcement. Today we have a two pack from the Sea Coast Echo and the Sun Herald as Hizzoner continues to wax nonsensical. First up is Cassandra Favre’s report for the Echo:
Favre said when city officials met with DOJ representatives in Jackson, everyone in that meeting “felt like that we had to repay this money and we wouldn’t get to spend it in Bay St. Louis, that they would take the money back.”
Favre said Falgout made a presentation to DOJ representatives about the “deplorable” condition of the Bay St. Louis Police Department building.
“They seemed to buy into it,” Favre said. “They went back to Washington with that information, that we would spend the money on the building and other things for the police department if we put the money back and they allowed us to keep it. Evidently, they came back in January, when we had that meeting a week or so ago and said we would be able to keep the money here and spend it on the police department.”
Missing in Cassandra’s story are any quotes from Mayor Fillingame, who left the Council meeting shortly after the DoJ report was read into the record and approved by the Council.
Meantime Wes Muller hit the ball out of the park with his story on the same topic, which built upon some dynamite journalism he did back when this story first broke:
In its investigation, the Sun Herald obtained records from the DOJ, including an affidavit signed by Mayor Les Fillingame, certifying the city had accumulated $298,108 in forfeitures as of Sept. 30, 2014. As the council had not approved any purchases with the DOJ money since 2011, the balance of the general operating account should never have dipped below that amount.
But during an August 2015 meeting, council members noticed the general operating account had a cash balance of only $80,000. The council called for an inquiry by state and federal authorities.
Last night’s WLOX newscasts at 6 and 10 both featured the Bay St Louis DoJ Equitable Sharing fund disaster, first with the 6PM newscast showing an interview with Councilman Boudin where he disclosed the Council was filing claims on the bonds of the Mayor, the late Chief Denardo and the two City Clerks (Kolf and Smith) that had a hand in misspending the Federal grant, which was intended for use in law enforcement. Mayor Fillingame sent in a statement after the 6PM newscast that said:
“I think if it is their personal desire to pursue a claim against any employee or official against all of the professional advice that they have received, there will be great personal liability. The only losses that have been suffered by the taxpayers of Bay St. Louis has been the loss of money spent by the council pursuing claims that don’t exist. We have spent exuberant amounts of money on having this reviewed, audited and looked at legally. The council has gotten no advice from any of the auditors or agencies that have reviewed this, nor have they had any of the city’s legal counsel advise them that there is any claims against any person that has participated in the DOJ program. That money was put in the general fund account and spent by the counsel. None of the money was lost, it was spent in the process of serving the community. Before you have a claim you have to have a loss, and there has been no loss.”
Today Slabbed received an excerpt of a draft of the OSA performance review which debunks the Council going “against all the professional advice that they have received”:
In fairness to the Mayor the final report linked above omitted the repayment language but to say the Council is going against all the professional advice they have received is inaccurate as the above clearly indicates the topic of how to handle a repayment was covered in the OSA performance review. Whether a loss has occurred, a topic Slabbed covered, is a legal question that will have to be sorted out.
Meantime I wonder if anyone else giggled hearing WLOX anchor Christina Garcia use the term “mingle” instead of the proper financial term “commingle” to describe what happened with the DoJ funds in the Bay?
I almost spit my coffee when Hizzoner explained the Equitable Sharing Funds fiasco:
For the record Dave, I think the folks in Diamondhead are very happy being a “fake” city as the citizens there can sleep at night knowing dedicated public safety funds are spent on public safety instead of decorative street lamps, salaries for the Mayor’s daughter or a Trolley that no one used. As an added bonus the Fake City of Diamondhead’s public works department has a smart pig for its workers to use while the “real” city in the Bay neither has much in the way of a staffed public works department or a smart pig. Just saying…..
In one instance which councilmen say bolster their allegations, records obtained by the Seacoast Echo show a supporting clerical administrative position within the city of Bay St. Louis has recently been eliminated from the city’s current annual budget.
According to city records, the administrative position was once within the city’s fire station but was removed from the fire department’s payroll at budget time and added to the police department. It has since been eliminated in its entirety by city council members, in a 5-0 vote, from both department’s budgets, but the unnamed employee still apparently works for the city.
“It’s one story after another,” Ward 5 Councilman Joey Boudin said. “It just keeps changing. We just can’t keep dealing with it!”
Going back over 140 plus posts Slabbed has done on the financial operations of the City of Mayberry Bay St Louis serves as a reminder that we’ve been on that particular beat since the Spring of 2014 and had been paying attention for about a year before that. In hindsight 2013 was the watershed year and that year also happened to be the last election year for City officials. To understand what is happening now is to understand what was going on back then. Also key to understanding today’s events is to understand that “A Place Apart” truly is Apart from a Home Rule Charter standpoint and therein lies the root cause of the problem. First up is the City’s Charter which is colloquially known as “Strong Mayor-Weak Council”.
The mayor-council form of government is essentially a “strong mayor” form of government made available by the legislature in 1973 and approved by the Department of Justice in August 1976. It is used in 10 municipalities in Mississippi: Bay St. Louis, Biloxi, Columbus, Greenwood, Gulfport, Hattiesburg, Jackson, Laurel, Meridian and Tupelo.
The Bay is the runt municipality in the strong mayor world. The proverbial strong mayor has vast power including almost complete control over the City’s workforce. Larger Cities benefit from this kind of organization because keeping the bureaucracy on point is easier when there is a clear Chief Executive. In smaller Cities with smaller work forces like “A Place Apart” it has the drawback in allowing day to day municipal operations to be dominated by a single person, in this case Hizzoner.
The City Council (as opposed to Board of Aldermen in “Weak Mayor”) only controls two things directly and those would be the budget and the annual audit. City Councils also have investigative authority under the law.
Christmas falling on a Sunday has been good for the 24×7 news cycle, especially locally. The Rabble-Rousers are out in full force in the Bay ahead of next Tuesday’s workshop on the future direction of the Bay PD. A packed public workshop would be a good thing, especially if those that came out for the workshop at 4:30 stayed for the ensuing City Council meeting which starts at 5:30. Per the last workshop Councilmen Seal and Compretta are on record against consolidating services with the Hancock Sheriff while Councilmen Reed, Falgout, Favre and Boudin have yet to take a public stand on the issue.
Back on the 9th I wrote the following about the meeting with the United States Department of Justice in Jackson between certain City officials and the DoJ folks that are locally responsible for the Equitable Sharing Grant, which the Fillingame Administration co-mingled and misspent:
Speaking of rumors, one is swirling that Mayor Fillingame yesterday blamed the entire fiasco on deceased former Chief of Police Mike Denardo going so far as to claim that Denardo had forged his signature on the annual financial affidavits submitted to DOJ which showed the restricted funds were still in the bank despite the fact they had been comingled and misspent by the Fillingame Administration.
Let’s back up over a week and visit with Cassandra Favre’s comprehensive article on the last City Council meeting ’cause it is all coming out:
Blame the dead man? A Classic and (classless) move as the Fillingame Administration passes straight through the twilight zone into the stuff of a cheap soap opera. Better yet was Cassandra capturing the nuance in the counsel provided to the City Council by City Attorney Trent Favre. To understand why we appreciated it is to understand that Slabbed earned its media card covering the post Katrina insurance litigation including the concept of double dipping coverages. In its most simple form in order for insurance coverage to kick in there had to be a loss and that loss could not necessarily be insured multiple times. Should the DoJ take pity on the City and not demand immediate repayment of the accumulated grant payments in favor of letting the City spend the money the way it should have been spent to begin with, then City Attorney Favre’s point about there being no insurable loss is valid.
As we unraveled this mystery the scene that pops into my mind is Homer Simpson doing his famous DOH after doing something boneheaded.
First up is why is the 2015 audit not online at OSA? The answer is the 2015 audit is in review and that it will not show up until the City gives OSA technical Assistance a copy of its 2014 audit. Further a letter was mailed on February 11, 2016 from the OSA’s Greg Higginbotham which stated:
As of February 5, 2016, this office has not received the Municipality’s Annual Financial Report for the Fiscal Year End 2014. Mississippi Code Section 21-35-31 requires this report to be filed with the State Auditor by September 30 of each year for the preceding calendar year. This statute also provides penalties for Municipalities who fail to file their reports. We ask that you file your report immediately.
We understand that there may be special circumstances causing your filing to be delayed. If this is the case, it is important that you make us aware of these circumstances. Please contact me at 800-321-1275 if the Municipality’s Annual Financial Report will not be forthcoming in the next few days.
When it comes to Bay St Louis, WLOX seems to get played more than the rest folks. A compare and contrast is in order, first the WLOX story which relies on one source and that source happens to be the person responsible for the Bay St Louis – Department of Justice disaster:
Mayor Les Fillingame tells us the audit could be complete by the end of the year. Fillingame said DOJ officials indicated they want the city to remain in the drug forfeiture program, despite any potential problems.
Those problems could include not spending the drug forfeiture money the correct way or not documenting the expenditures properly.
If that is found to be the case, the city could be asked to pay back up to $300,000. That money would come from the city’s general fund. Fillingame said he hopes that is not the case.
“It was pretty simple,” Mike Favre said of the meeting. “We’ve got to put the money back. They’re going back and they’ll discuss whether we get to keep the money once we put it back or if they’re going to take it.”
He said there’s a chance the DOJ could take the $320,000 as “some sort of punishment.”
“We’re still being looked at by other agencies,” he said. “I think one of them is the DOJ’s inspector general, and from what I understand, it won’t be good if they come in. You don’t want them there.”
Does anyone reckon that Seal, Compretta, McDonald or Hizzoner came clean with Hosemann about the council granting Triple Tails permission to cantilever their building over the green space in direct violation of the lease between the City and the Secretary of State?
I also disclosed that I had contacted the Secretary of State’s Office with some questions on this matter and here one day in advance of another meeting between City Officials and Secretary Hosemann I received an answer to the inquiry, which was:
Did the City ever contact SOS and advise SOS in early 2015 that they were allowing Triple Tails to construct their building over the state owned green space? If so what was the nature of the contact and how was the questions-City requests handled by SOS?
Here at Slabbed we always have fun examining the “journalistic facts” conveyed by the local main stream media against what those facts strongly suggest along which how those facts are being reported by the various local media outlets. The technical expression is take-away which google defines as “a key fact, point, or idea to be remembered, typically one emerging from a discussion or meeting.”
Deputy Police Chief Derek Hoppner surprised aldermen Tuesday night by asking them to cancel the city’s popular Mardi Gras night parade, saying the move was needed to protect police officers.
Deputy Police Chief blindsiding the Board of Aldermen? My reaction was wow!
Hoppner gave the aldermen a memo outlining his complaints before Tuesday’s meeting and said Police Chief Mark Dunston agrees with him. Dunston, however, was out of town, he said, and did not sign the memo. Dunston called a press conference for 10 a.m. Thursday and is expected to announce the city will have the parade.