Time to Shake Things UP
Why not an elected city auditor?
I have never understood why the City of Port Angeles lacks an elected (or appointed) city auditor. The city council needs an advisor to look over the city numbers. We must learn how to SAY NO to be fiscally conservative. We need to get a handle on the spending.
The next tax increase may be the straw that breaks the citizen’s back.
With a budget as large as ours $161.9 million (compared to Clallam County’s $57.3million) it is an impossible concept for most council members to have enough financial understanding to fully evaluate that many zeros, much less make serious decisions about it.
$161.9Million is a HUGE BUDGET
Honestly, I am confused as to HOW decisions are made, or who can put a brake on spending. The way OUR city makes financial decisions is outlined in the “about” of our Open Books site.
It says: those responsible for approving purchase orders:
Purchases of $5,000 or less: Approval by the Department’s Director
Purchases in excess of $5,000: Approval by the Finance Director
Purchases in excess of $15,000: Approval by the City Manager
Purchases exceeding $25,000: Approval by the City Council
(Payroll is covered in the Open Payroll section of the website. The payroll shown for 2025 will ONLY be from January 1, 2025, to get a full idea of yearly salaries look at previous year). Open Budget/Payroll is a nice website, really. The information does not include HOW OFTEN the department directors can purchase $5k, or less.
There are twelve (12) main departments including: city clerk, city manager, community & economic development, finance, human resources, legal, parks & recreation, Peninsula communications, fire, police, public works & utilities and city utilities (not sure of the distinction). At $5k each, for each department head, that’s a nice chunk of change, isn’t it?
For as long as I’ve been watching, the council just rubber-stamps what the city staff spends money on. I hear very few comments or debate when it comes to approving the budget. And, if questions are asked, I don’t see the staff inclined to reply. And, they don’t have to, if they stay within their spending limits.
Our town has a huge budget. Much larger than towns of the same size. It’s because we are a utility company with a little city hanging off it. (Ridgefield, WA, a town of about 17k, has a budget of about $88m.)
I’d like to see a newly elected position: city auditor. Someone whose only duty is to have access to the city files, go through the numbers, and report to the city council with recommendations.
A city auditor exists in many communities, even Seattle. It is a public official, usually chosen by the voters (or appointed by the council). The only job is to independently reviews and assesses city government operations and finances. They are responsible for ensuring compliance with laws, evaluating program effectiveness, to make recommendations (to the city council) for improvement. The position is separate from all city departments and operates with a high degree of independence. It is a way to promote transparency and accountability within the city government.
To put it in perspective, a town with a similar budget (Alameda California) has a budget of $154.9 million, with a population of 75,000 (median household income $126,240). A key difference in their government is that they elect a mayor, and four council members, the other two positions on the council are for an elected Auditor and a Treasurer. (The set-up is one variation on city representation found around the country.) The citizens have voted several times to change the makeup of the city council. It’s always a conversation.
For some reason, Port Angeles has always been reluctant to look at our governance profile. It is, as it has always been. I don’t know, is the stubborn stuff working for us?
In the case (of Alameda) the auditor is required to be a CPA, and the treasurer is required to be a CFA or CFP (chartered financial analyst or certified financial planner) and oversees tax collection, maintain city accounts and pay the bills.
The city charter requires the City contract with an independent CPA, at least annually, investigate the transactions and audit the accounts of all officers having the collection, or disbursement of public money, or having the power to approve, allow or audit demands on the treasury, and make a report to the council. In other words: an elected auditor and treasurer are, themselves, audited yearly.
Port Angeles is audited, regularly, by the State Auditors, as all government entities are. It’s always an interesting read.
I really have a problem with our council packets. Every time I look at one, it makes me squirm. I have questions. Take the last one, for instance:
I’d like to ask what “the hubbub” is. I can’t find it through any web search.
Lulish Design does a website and is marketed as “a full-service agency for Destination Marketing and Management industries” on Linked In.
This is paid out of city lodging excise taxes, as a professional/contract service. In all of 2024 there were multiple individual checks/payments: $9,015.28, $26,002.01, $38,684.61, $35,974.00, $47,363.01, $22,966.32, and $7,020.51.
For a total of $187,025.74 for 2024!
The result is the tourism website: Visit Port Angeles. (The “about page” for media relations.) I cannot say I am overly impressed by this website. Its pretty pricy for what I see. And, I would imagine that the fees include placing “go see Port Angeles” media articles. But, I don’t know, for certain.
The first entry (on Open Books) was in 2022 for a nominal $20,220.21 and 17,767.94 for a total of $37,988.15.
If I go to the waybackmachine and look the 2022 website up, not much different, than today’s. It’s certainly not fathomable how anyone can justify the difference between $37,988.15 and $187,025.74 as payment. THAT is a 392% increase in fees. (When inflation was only around 15%.) Nice work if you can get it, I guess. But, how can this be justified? Seriously?
I don’t think City Council cares about financial results. No one asks why we have relatively underperformed similar cities for the last two decades. I love your auditor idea - especially because I suspect there are many businesses we should not be in. I know Clallam PUD is much better positioned to buy BPA power at scale, as well as service COPA, so why don’t we sell it? Is it some kind of fiefdom building? The last I heard was that City Council was incapable of asking a thoughtful question about the potential of selling some of the utility business to PUD. And don’t even get me started about the transfer station! We bought that because we thought we could run it better. Instead we have MASSIVELY raised rates and DECREASED services like composting of yard waste. The worst part is that the mismanagement has likely led to more illegal dumping in the National Forest roads. What a mess (literally and figuratively)! Regarding LTAC, there is so much more to dig into. Sarina admitted that it was at one point overfunded by $800,000. The projection for 2024 budget was wrong by nearly 65%. Can you imagine if that large of an error happened with the General Fund? By the way, LULISH must be feeling pressure as a new RFP for destination marketing will soon be released. They will present on Tuesday’s LTAC meeting. Open books shows more than $520,000 in payments over the last three years (the largest outlay of any awardee). I know they did a lot of work a few years ago, but I am unclear why they consistently are awarded more than any other. Basic corporate management suggests that you should changed marketing strategies every few years to get fresh ideas. Is now the time?
Marolee - thank you for putting this so clearly into words. You nailed what a lot of us have been feeling… especially the disconnect between how much we’re spending and how little local involvement there seems to be in those decisions.
As someone who runs a creative coworking space here in town, I’ve had this exact thought. Why aren’t we doing more to tap local talent for things like tourism marketing? There are designers, writers, videographers, and community connectors right here who deeply understand Port Angeles, and who would reinvest that work back into the community.
Appreciate you opening the door for this conversation. I’d love to be part of what’s next.