12-19-11 CRC RPT 02 - Laserfiche WebLink

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Date: 12 -19 -2011 Item No.: 2 RECEIVED DEC - -9 2011 December 7, 2011 City of Riverside Charter Review Committee 3900 Main Street, 7th Floor Riverside, CA 92522 Chairman Thomas Evans and Members of the Committee: City of Riverside City Clerk's Office During the November 28, 2011 Charter Review Committee meeting and during discussion about the Citizens Audit Committee and the internal audit position, Committec Vice Chair Maureen Kane questioned whether an audit procedure, either internal or external, would accomplish what was being requested, presumably a mechanism to assist the elected officials in making correct decisions, especially with respect to taxpayer and ratepayer funded spending. In the last 10 years, the City has increased public wages and salaries more rapidly than the private sector, has increased pension benefits more than the apparent 35% (2.0% to 2.7 %) for general employees and 50% (2.0% to 3.0 %) for safety employees since they are retroactive, and has increased the enterprise fund contribution (electric and water) 28 % or more. The latter two being additive to costs that are routinely increased themselves. The City and the Utility have had audits performed by outside auditors and I am sure that they have concluded, after the fact, that the City's and UtiIity's revenue and expense reporting was proper. Additional audits by internal auditors will not accomplish anything further. To provide the elected officials with guidance from their constituency, the Committee should consider recommending the establishment of an independent wages, salaries, and benefits committee as I suggested at the Charter Review Committee meeting of October 17, 2011. My statement as of that date is attached. As an alternative, with broader scope, the Committee should consider recommending the establishment of an independent office akin to the California Legislative Analysts Office (the State's fiscal and policy adviser) to review the budget, including specific budget items such as increases in wage, salary, and benefits, implementation of new programs, and capital expenditures before any actions are taken and before any expenditures are made, not after, as would occur with an audit. Sincerely, Robert A. Krieger 2644 Vista de Victoria Riverside, CA 92506 5110 -39- CRC -LI Attachment 2 -1