'Operating in the blind': Spring Hill BOMA concerned about extra funds needed for budget

The unplanned approval of a hefty budget amendment by the Spring Hill Board of Mayor and Aldermen, totaling $14 million in additional budget costs for the 2022-23 fiscal year, has raised concerns in government transparency and spending.

During its April 3 work session, the BOMA approved, 8-1, a $14 million amendment to its 2022-2023 fiscal budget, representing an overage in the originally approved budget this fiscal year. The extra funds were used from the city's general fund.

Alderman Hazel Nieves, who was the sole descending vote, was quite vocal regarding the reasons why she voted against the amendment.

One major concern was transparency from staff, particularly the lack of detailed information provided to BOMA about what the amendment entails and why it's needed, she explained. She expressed concerns over issues that have arisen over the last nine months since the previous budget's approval in 2022.

"It is very vague and assuming, a glaring lack of information to substantiate and justify increases in the budget," Nieves said. "Of all the amendments we've had over the last five years, this one has the least due diligence in my opinion."

Nieves also stated that BOMA has not received up-to-date financial reports dating back to September of last year, meaning city staff has more or less been operating blindly during its budget cycle.

The amendment included an additional $3.3 million in "miscellaneous revenue" that was added to the budget without BOMA approval prior to being sent to the state comptroller's office, Nieves claims.

In other words, the budget that was submitted to the state was not the same budget BOMA approved, according to aldermen.

The city's latest audit has also been delayed leading up to next fiscal budget, which will be up for approval in June.

City Administrator Pam Caskie said, while city staff might not have done "everything perfectly," she believes no decision made has been harmful to the city.

"The city is still on sound financial ground," Caskie said. "We are still spending money in accordance with our purchasing policy."

Alderman: 'Embarrassed' putting trust in financial staff

Alderman John Canepari also shared concerns about the increase in overall expenditures reported, especially when it amounts to $14 million from the general fund. He also admitted that he should have made a better effort to uncover the information BOMA had not received throughout the year, such as financial reports and building permit numbers.

"I'm embarrassed, publicly embarrassed in putting my trust in an amendment that I thought made sense ... and putting my trust in the financial staff and our city administrator," Canepari said.

Caskie stressed that much of the increases are due to factors like inflation, increased construction costs, supply shortages, as well as the city hiring several new employees over the last year.

Caskie added the budget "is not operating negatively," and while the additional $14 million is reported, there is an additional $300,000 "floating budget" and that there has been more revenue calculated verses expenses.

"I'm not sitting here telling you that everything in this is perfect and that we didn't wish it were different, but we've gotten through the conversion, are on a better stand and are moving on," Caskie said.

"We can beat on people all you want, but that isn't really going to accomplish anything. If I need to do my flogging in the public square so everyone will recognize I own this, I'd be happy to ... but the reality is we need to move forward."

Nieves responded saying Caskie's comments "substantiates what I've been saying for a while, that we've been operating in the blind."

"That's a lot of time where we are not able to see the details with what's going on in this budget," Nieves said. "We have to have that information to make sound decisions, and here we are now facing [up to] $16 million over the budget that we approved. And in the meantime, we keep rolling down the road with these big spends that come in."

Some of the "big spends" include approving construction on a $36 million Spring Hill Police headquarters, as well as designs for a new Spring Hill Fire station, which would include hiring 12 new firefighters, with needs for equipment, vehicles and other additional expenses.

Nieves later cited a capital cash flow analysis recently sent to the BOMA stated that after such expensive approvals like the police headquarters, there would be no money available for additional capital expenses projected until 2026, thwarting the funding of major road projects and infrastructure, expanding City Hall and relocating and/or expanding the Spring Hill Public Library.

"We've got, in my opinion, trouble everywhere," Nieves said.

This article originally appeared on The Daily Herald: 'Operating in the blind': Spring Hill aldermen raise concerns about budget