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untanglingwebs
El Supremo
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Flint and Highland Park have many similarities. An ongoing loss of population, and declining school numbers are only some. With Flint's unfunded pension liabilities and OPEB expenses, will there eventually be a special assessment to pay pension costs?
http://www.detroitnews.com/story/news/politics/2015/05/28/highland-park-debt-stalls-regional-water-deal/28131909/
Highland Park may be dissolved over water deal
Nolan Finley, Ingrid Jacques and Chad Livengood, The Detroit News 9:41 a.m. EDT May 29, 2015
Mackinac Island — Highland Park may be dissolved as a government entity to finish a long contentious deal to form a regional water authority.
That's one of the solutions under consideration to bust through a major barrier and move the city-owned Detroit Water and Sewerage Department under the control of an authority made up of Detroit and Wayne, Oakland and Macomb counties, county officials confirm.
In the negotiations, Oakland County is insisting on a resolution of roughly $32 million in unpaid water bills, most of which is owed by residents of Highland Park and the rest by Detroit.
The initial water authority deal was forged a year ago with the help of Gov. Rick Snyder during the Detroit Regional Chamber's policy conference here. Although a memorandum of understanding was signed by leaders of the city and all three counties, a final pact has been elusive. There is a June 14 deadline to finalize a deal.
The parties will meet Monday with federal Judge Sean Cox for a mediation session specifically focused on resolving how the delinquent water bills will be covered, according to sources.
Oakland County Executive L. Brooks Patterson, supported by Macomb County Executive Mark Hackel, is balking at the idea of dissolving Highland Park, which would lead to having the debt absorbed into the water system and spread across all customers. The idea would benefit the city of Detroit.
"It's not the responsibility of the suburbs to cover Detroit and Highland Park's arrearage," Patterson says. "That's a deal-breaker. I can't go to my taxpayers and tell them I agreed to this."
Patterson says the memorandum of understanding originally contained so-called backstopping protection, meaning "we're not going to backstop Detroit if it fails." But he says that language is no longer in the agreement.
The memorandum did not contain language about Highland Park's unpaid bills.
Highland Park is $25.6 million in arrears on its water bills and has $2 million in assets, according to a source familiar with the finances. Collecting the debt from the enclave is a lost cause.
So Patterson is asking the state to float a bond issue to cover the water bill debt. Hackel is also objecting to spreading the arrearages of Highland Park and Detroit ($5.6 million) across the system.
"This is a huge issue," says Hackel, who has been vocally opposed to the deal since signing the outline. "It's a bad precedent and sends the wrong message to other communities about their responsibilities. It's an example of the inconsistencies between what the (memorandum) says it will do and the reality of how it's being implemented."
One way out that is being discussed is having the state take Highland Park into bankruptcy and asking a federal judge to dissolve it as an organized community, with Detroit absorbing its residents. The judge could then force the regional authority to take on the debt or impose a special tax levy on the region to raise the money.
"The community goes away, but the debt doesn't," Patterson says.
Last month, a Wayne County Circuit judge ordered Highland Park to pay the Detroit Water and Sewerage Department $20 million for its unpaid water bills. The city's mayor, DeAndre Windom, has vowed to appeal the ruling.
Hackel says another possibility for dealing with Highland Park is to use the first of $50 million in lease payments Detroit will receive from the authority over the next 40 years to wipe away all of the unpaid water bills. That approach would deny Detroit money it is counting on to fix its water infrastructure, forcing it to dip into its general fund for maintenance and repair dollars.
"If all of a sudden now we're trying to divert that $50 million to pay for an unpaid debt or for those who aren't able to pay their debt, that's a conflict of what was agreed upon in the beginning," Hackel says. "That's not what this is for. I don't believe the ratepayers would expect that that's what we should agree to."
Oakland County is also demanding tighter restrictions on how Detroit spends the lease payments. Patterson wants the city to spend the money first on fixing water leaks that are driving up costs for the entire system.
A final agreement needs the approval of Detroit Mayor Mike Duggan and a majority of the six-person regional water authority board. The board consists of two Detroit appointees; three representatives from Macomb, Wayne and Oakland counties; and one appointee of the governor representing water customers outside the three-county region.
Cox, who has placed a gag order on participants in the talks, wants Duggan and Patterson to meet alone with him Monday in hopes the two can get to a handshake on the deal. Patterson says he won't do it.
"I'm not going in there without my team," says Patterson, referring to his deputies, Bob Daddow and Jerry Poisson, who have taken the lead in vetting the agreement.
Duggan sidestepped a question Wednesday after a speech to the Mackinac conference when asked to respond to Hackel's public comments about the water authority.
"He's not as afraid of the federal judges as I am," the mayor quipped, referring to the gag order.
nfinley@detroitnews.com
Last edited by untanglingwebs on Fri Jun 12, 2015 2:14 pm; edited 1 time in total |
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Thu Jun 11, 2015 5:07 pm |
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untanglingwebs
El Supremo
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The school for K to grade 8 is sad to only have 350 students. Flint continues to close school and sill has a staggering deficit.
Highland Park’s high school to close as enrollment dips
Shawn D. Lewis, The Detroit News 7:10 p.m. EDT May 28, 2015
Three years after the state took control of the Highland Park school district and turned it over to a charter operator, the city’s high school will close next month, officials said Thursday.
Low enrollment at Highland Park Renaissance Academy High School forced the closure, said Don Weatherspoon, the district’s emergency manager. Since 2012-13, when the Leona Group began operating the district’s schools, the number of students at the high school has fallen from nearly 400 to 160.
Overall, the Highland Park Public School Academy System has 509 students this school year, according to state figures.
In a release, Weatherspoon said Leona Group officials told him “they can no longer provide high school students with the full benefits of a well-rounded high school experience given the currently low enrollment.”
Weatherspoon said high school students from Highland Park can enroll in nearby Detroit Public Schools, another neighboring district, a charter school or the state-run Education Achievement Authority. DPS will be the students’ home district.
“They can go to Detroit Public Schools or any school they choose that runs a 9-12 system,” he said.
A letter is being sent to parents explaining the decision, and a community meeting is scheduled for 6-8 p.m. June 8 at the Ernest T. Ford Recreation Center, 10 Pitkin, in Highland Park.
“We’ve had to make a difficult decision after months of studying our enrollment, and we had to make the determination that it’s no longer feasible to operate a high school, and we discussed this with the Leona Group, the Department of the Treasury and the executive staff,” Weatherspoon said.
Dan Quisenberry, president of the Michigan Association of Public School Academies, the state charter school association, said the association would help parents and students find “quality schools nearby.”
“If any school is not succeeding academically or financially, the students need to move to a school that’s performing at a higher level,” Quisenberry said. “That’s true in Highland Park, and it’s true in every community in the state. Students in Highland Park only have one chance at an education, and they deserve an education at a quality school.”
DPS said it will work with displaced Highland Park students.
“We will work closely with the families to ensure an exceptional educational experience with a smooth transition that addresses each student's individual needs,” said DPS spokesman Steve Wasko.
Terry Stanton, a Department of Treasury spokesman, said no decision has been made about grades K-8.
“We’re still evaluating where the district will be based on enrollment,” he said. “We will continue to work with parents and families to make sure they have all the information they need to make the best educated decisions on where they will be in the fall.”
Stanton said bus passes will be part of the package offered to Highland Park students. He also said DPS and charter schools probably will have tables set up during the June 8 community meeting “where they can present their best case for why parents may want to chose their facility.”
Highland Park’s schools have struggled for years with declining enrollment and persistent deficits. By early 2012, when the state stepped in, the district had an $11 million deficit, and enrollment had fallen from more than 3,000 in 2006 to less than 1,000.
The Legislature approved $4 million in emergency aid to keep the district’s schools open that year. That followed a $4.2 million hardship loan from the state in August 2011.
Last month, Gov. Rick Snyder chose Don Weatherspoon to return as emergency manager of the Highland Park schools. He replaced his brother, Gregory Weatherspoon, who had been EM of the troubled Wayne County district and the Muskegon Heights schools since October 2013.
Snyder named Steve Schiller, a former Muskegon Heights educator, as that district’s new emergency manager.
Both districts were turned over to charter operators in 2012, essentially creating new districts and having the old districts collect property taxes and service past debts of about $12 million each. |
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Thu Jun 11, 2015 5:15 pm |
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untanglingwebs
El Supremo
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http://www.freep.com/story/news/local/michigan/2015/05/30/water-talks-highland-park/28233015/
Highland Park officials dismiss talk of dissolving city
Detroit Free Press 3:04 p.m. EDT May 31, 2015
Highland Park officials dismissed talk of dissolving their city to make way for the new Great Lakes Water Authority.
"That's ludicrous," Mayor DeAndre Windom said Saturday. "People have been talking about that for years."
News of the prospect of folding the city into Detroit and spreading its debt over a broader population base was first reported in the Detroit News on Friday, though Gov. Rick Snyder seemed to distance himself from the idea later.
"I don't put a lot of stock into it," said Highland Park City Council President Christopher Woodard. "The trial balloon that was thrown up was just that."
Related: Highland Park losing its high school to low enrollment
Windom declined to comment on the talks surrounding the creation of the Great Lakes Water Authority, citing a gag order from U.S. District Judge Sean Cox, who is helping mediate an agreement.
Woodard noted that Highland Park continues to litigate a judgment last year ordering them to pay $20 million to the Detroit Water and Sewerage Department for unpaid bills. The city didn't even bill residents for water and sewer services for months at a time in recent years.
Highland Park has been finanically struggling for years. Once a thriving city, its population has shrunk to 10,441 people, about 51% of whom live below the poverty level, according to Census Bureau estimates.
The Great Lakes Water Authority was incorporated late last year, but the articles of incorporation included a 200- day deadline for suburban communities to sign a lease with Detroit for the plants, pipes, pumps and other assets of the system.
If the lease isn't signed by June 14, then the authority is supposed to dissolve.
Suburban leaders have been worried about the prospect of the new authority being saddled with unpaid water bills from Highland Park, Detroit and other places.
"People in Macomb County are sick and tired of paying for everyone else's bad behavior," Macomb County Executive Mark Hackel said Saturday. "The ratepayers are going to get stuck or statewide taxpayers are going to get stuck with this bill."
Hackel said he is furious that the details of the lease have been negotiated in private under the gag order. He said the deal places little emphasis on making the regional water system more efficient.
"It's all about Detroit's bankruptcy," Hackel said. "This is the key element to the bankruptcy or the whole house of cards comes tumbling down. This wasn't mediated, it was dictated."
Contact John Wisely: 313-222-6825 or jwisely@freepress.com. |
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Thu Jun 11, 2015 6:25 pm |
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untanglingwebs
El Supremo
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http://www.detroitnews.com/story/opinion/editorials/2015/06/03/edit-pensions-police-bruality-c
In Inkster and Wayne County, bad leaders prove costly
The Detroit News 11:52 p.m. EDT June 3, 2015
Special tax levies in Inkster, Wayne County reflect the price of choosing the wrong leaders
When government screws up, taxpayers are stuck with the bill. That's the unfortunate reality smacking residents of Wayne County and the city of Inkster this week.
In Inkster, an almost $1.4 million settlement to Floyd Dent, a motorist abused by city police during a traffic stop, will most likely be paid by a special summer tax assessment on all property in the community.
Inkster's police department is poorly run and staffed by officers who are underpaid, and many have been given insufficient training. In this case, one of the cops involved had trouble in other departments before being hired by Inkster. The decision to add him to the force was a bad one, and now Inkster residents will pay the price.
Those same Inkster residents are also on the hook, along with all residents of Wayne County, for a $49 million pension obligation to county employees.
Former County Executive Robert Ficano in 2010 pulled $32 million from the pension system's Inflation Equity Fund that would have gone to pay retirees their annual bonus check. Ficano argued the 13th check wasn't required, and used the money instead to cover its annual pension contribution.
The state Supreme Court disagreed and ordered the county to repay the money, with interest. Ficano took a reckless gamble, and now taxpayers must cover the loss.
His successor as county executive, Warren Evans, wants to find the money from a one-time additional tax levy on home and property owners. It would amount to $62 on a $100,000 home and go on summer tax bills.
It's painful, but it's a responsible way to meet the debt.
County commissioners will consider Evans' proposal today. Many are balking, looking for a pain-free way to cover the obligation. There isn't one.
A proposal to raid the Delinquent Revolving Tax Fund, used to bridge communities through lags in tax collections, is being floated by commissioners.
Robbing the tax fund is a Band-Aid fix that compounds the county's overall fiscal problems. Evans is trying to figure out how to resolve a $52 million annual structural deficit and bring a grossly underfunded pension system into something close to long-term solvency.
He's going to have to cut spending by $230 million over four years to get there. The county executive rightly notes that shifting the debt to the revolving tax funds will hurt the county's credit status, making it harder to float bonds to complete the new Wayne County jail.
Commissioners are desperately clinging to the denial of the past, believing they can push hard decisions to the future. Time has run out for Wayne County. It has to pay the price for decades of mismanagement.
The commission should vote today to place the debt on the summer tax bill and make it go away for good. That's too bad for the county's already over-burdened taxpayers. But it was the voters of Wayne County who put so many incompetents into office for so long, and it is the residents of the county who must pay for their bungling. |
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Thu Jun 11, 2015 6:38 pm |
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untanglingwebs
El Supremo
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https://www.cityofflint.com/wp-content/uploads/Reports/MSUE_FlintStudy2011.pdf
EXECUTIVE SUMMARY
America’s older industrial cities are facing chronic fiscal and service delivery challenges. This paper uses the case of Flint, Michigan to explore what is meant by chronic fiscal stress, identify its symptoms, and to propose some solutions to address long-term solvency. The lessons learned from this case study provide insight into the structural and management challenges that confront all local government leaders. This case also offers additional perspective for policymakers charged with local government sustainability. The precarious financial position of cities in fiscal stress provides a barometer to evaluate proposed legislative actions.
The City of Flint faces severe chronic fiscal stress. The twenty year budget projection is based on curing years of accumulated deficits by issuing additional debt and provides no increase in future fund reserves. Significant governmental revenue losses are unlikely to be recovered. Expenditures, especially those related to labor costs, are at alarming levels. The City’s pension system has negative cash flow. The unfunded OPEB liability, primarily owed to those who have already retired, is the second highest in the State of Michigan. Despite cost control efforts resulting in staff reductions of 50% over the past ten years, personnel costs have continued to increase. City services and infrastructure maintenance have suffered. Attracting and retaining taxpayers is dependent on providing reliable service and value for the high rate of taxes paid.
The causes leading to chronic fiscal stress are both internal and external. While the City can do some things to manage its fiscal stress, the revenue structure does not provide a means to solve the fiscal stress. Long-term problems will require long-term solutions at both the state and local level.
This case study contains eight sections. The first four sections provide demographic, financial, debt, and service level background and analysis. Section five provides an in-depth analysis of personnel costs as it is the City’s single largest category of expenditures. The remaining three sections consider long term solvency, potential solutions, and a commentary on city fiscal stability.
Contact:
Dr. Eric Scorsone
State and Local Government Program
Department of Agricultural, Food, and Resource Economics and MSU Extension
(517)353-9460
scorsone@msu.edu
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Thu Jun 11, 2015 6:47 pm |
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untanglingwebs
El Supremo
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http://www.truthinaccounting.org/news/detail/michigan-report
http://www.mlive.com/news/flint/index.ssf/2014/12/non-profit_study_michigan_citi.html
Non-profit study: Michigan cities hiding debts, in poor financial condition
Print
Ron Fonger | rfonger1@mlive.com By Ron Fonger | rfonger1@mlive.com
on December 18, 2014 at 11:00 AM, updated December 18, 2014 at 2:23 PM
Ron Fonger | The Flint Journal
Read the Truth In Accounting reports for 10 Michigan cities
A group that advocates for clearer disclosure of retirement liabilities for local governments says 10 Michigan cities are in poor financial condition with unfunded pension and other liabilities that they can't afford and aren't fully showing on today's balance sheets.
The nonprofit group Truth In Accounting claimed in a news release that the "hidden debt" of those cities range from $7 billion for the city of Detroit to $14 million for Kalamazoo.
Other cities on the list with what TIA calls their true debts are: Lansing, $612 million; Flint, $539 million; Saginaw, $318 million; Grand Rapids, $278 million; Midland, $114 million; Battle Creek, $110 million; Jackson, $101 million; and Holland, $43 million.
"Current accounting practices allow for government financials that are neither accurate nor transparent," Sheila Weinberg, chief executive and founder of TIA, said in a news release. "Citizens deserve to know the truth about their city's financial condition, and without this knowledge they cannot make informed decisions ..."
Flint spokesman Jason Lorenz questioned the relevancy of TIA's claims, saying the city is audited and makes quarterly financial reports to the state that detail pension and other liabilities.
Emergency manager Darnell Earley has attempted to cut back on retiree benefits and warned that the city could be driven into bankruptcy without concessions.
Terry Stanton, a spokesman for the state Department of Treasury, said his office "has not reviewed the study and/or its rationale and cannot speak to its validity."
"Treasury has long been concerned about long-term costs and liabilities associated with municipal pension/retirement liabilities," Stanton said in an email to MLive-The Flint Journal. "Through our Office of Fiscal Responsibility, staff works with local units to address these and other financial issues.
"Specific to Flint, city officials have been very clear that they have a significant (Other Post Employment Benefits liability. In fact ... Earley and his staff have taken critical steps to address and reduce long-term OPEB liabilities, but have been sued as a result."
Stanton's email says transparency in government has been a priority for Gov. Rick Snyder's administration both for state finances and for local government "through various statutory requirements."
Weinberg said Michigan isn't much different than other states in that government accounting allows expenses to be left off balance sheets when costs are incurred.
"Pretty much everybody is in this boat," Weinberg said of Michigan compared to the rest of the nation. "It's a game everybody is playing."
Ron Fonger | rfonger1@mlive.com
Dec 18, 2014
I've added a link at the top of this post to the reports for each city named in the story. You can also access the information here:
http://www.truthinaccounting.org/news/detail/michigan-report
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mliveparent
Dec 18, 2014
From a non-accounting\non-actuarial perspective, I can understand why it is not reported.The biggest is pension\retiree health costs are estimated numbers versus true actual numbers.Granted they might be in the ball park, but they are based on estimating when an employee will retire (nobody really knows when they are 40-50 when they will retire), estimate on what the employee’s wage will be at the time of retirement (again it is a guess), estimate on what the cost of health care will be in the future, and an estimate on how long a retiree will live after retiring.That is probably why information is usually placed in foot notes
@markvws
I guess you don't have the information. Actually they are paying it down the goal is to be debt free in 25 years.
You can simply look up Flint's most recent audited financial statements -- the information is disclosed in the footnotes.
Ron Fonger | rfonger1@mlive.com
Dec 18, 2014
The report says Flint's unfunded employee retirement benefits amount to $323 million of pension benefits and $382 million of retiree health care benefits.
Ron Fonger | rfonger1@mlive.com
Dec 18, 2014
Each taxpayer's share of the city's debt is $20,600, according to the TIA report. |
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Thu Jun 11, 2015 7:14 pm |
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untanglingwebs
El Supremo
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Flint is addressing blight by demolishing large numbers of properties. As I drive the city it is apparent that while homes are being demolished, there is still a significant number of both old and new abandonment. The Census projections are meaningless because they are unable to reconcile people leaving because of fear of crime and an increasing cost of living in the city.
I picked up a copy of a real estate brochure at the West Side Diner. Two Flint homes were listed for $1,200 each. The streets were not given but the homes looked net, well maintained, and at least somewhat updated.
About two years ago there was several homes in the Mott Park area selling between $5,000 to $7,000. Within the last two months a townhouse on Sheffield old for $10,000. Some people just want out of the city. Some are stuck here because they are "under water" on their mortgages.
The property tax base is eroding. Several new businesses demolished to build anew, due to the low property prices. But then that raises the issue an M-live reader raised about why the downtown property asking for a tax break has such a high assessment. |
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Thu Jun 11, 2015 8:04 pm |
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untanglingwebs
El Supremo
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The Flint administration has abandoned all promises of transparency. Ever since City Attorney Peter Bade told the city council he did not tell them or the community about the Department of Energy Grant OIG investigation and loss of the grant because it was a confidential issue, the city has withheld pertinent financial information about HUD grants. They are helped by HUD who now s asking$1200 for a FOIA request of the latest monitoring report. How much has been paid back for HUD findings?
Early reports to the state were revealing. Much was said about pension related liabilities. The city was dealing with the URGE lawsuit, which ha just come to somewhat of a solution.
Over two years ago Attorney Tom Pabst filed a lawsuit on behalf of a large number of Flint officers, alleging discrimination and improper promotions by then Chief Lock of the Police Department. A similar lawsuit against former Mayor Williamson cost millions when the city lost. What will be the cost of this lawsuit? Legal fees are mounting.
From the MSU Executive Summary:
"The City of Flint faces severe chronic fiscal stress. The twenty year budget projection is based on curing years of accumulated deficits by issuing additional debt and provides no increase in future fund reserves. Significant governmental revenue losses are unlikely to be recovered. Expenditures, especially those related to labor costs, are at alarming levels. The City’s pension system has negative cash flow. The unfunded OPEB liability, primarily owed to those who have already retired, is the second highest in the State of Michigan. Despite cost control efforts resulting in staff reductions of 50% over the past ten years, personnel costs have continued to increase. City services and infrastructure maintenance have suffered. Attracting and retaining taxpayers is dependent on providing reliable service and value for the high rate of taxes paid".
Last edited by untanglingwebs on Fri Jun 19, 2015 9:12 pm; edited 1 time in total |
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Thu Jun 11, 2015 8:37 pm |
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untanglingwebs
El Supremo
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Flint residents have been paying the costs of a Circuit Court case, a Federal Court case and an Appeals Court case. And the case is continuing.
Robert Garceau v. City of Flint, No. 13-2588 (6th Cir. 2014) :: Justia
SUTTON, Circuit Judge. Fourteen police officers sued the City of Flint, its chief of
police, and its police captain. The police officers alleged that the defendants ...
http://law.justia.com/cases/federal/appellate-courts/ca6/13-2588/13-2588-2014-07- |
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Fri Jun 12, 2015 6:30 am |
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untanglingwebs
El Supremo
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NOT RECOMMENDED FOR FULL-TEXT PUBLICATION
File Name: 14a0510n.06
Case No. 13-2588
UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT
ROBERT GARCEAU, et al.,
Plaintiffs-Appellees,
v.
CITY OF FLINT, et al.,
Defendants-Appellants.
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ON APPEAL FROM THE UNITED
STATES DISTRICT COURT FOR
THE EASTERN DISTRICT OF
MICHIGAN
BEFORE: GIBBONS, SUTTON and WHITE, Circuit Judges.
SUTTON, Circuit Judge.
Fourteen police officers sued the City of Flint, its chief of
police, and its police captain. The police officers alleged that the defendants used race-based discriminatory promotion practices and retaliated against them when they complained, all in violation of their First and Fourteenth Amendment rights.
After the defendants moved to dismiss the complaint under Civil Rule 12(b)(6), the district court allowed part of the case to go forward. The defendants seek interlocutory review of that part of the district court’s decision that declines
to dismiss the case in full. We affirm.
In 2011 and 2012, the Flint Police Department promoted some patrol officers to the rank of sergeant on a provisional basis. To determine whether those provisional sergeants should stay on permanently, the department administered a test. Some of the provisional sergeants did not pass the test, but the department allowed them to stay on as provisional sergeants anyway. The provisional sergeants, as it happens, were African-Americans. The plaintiffs, all Caucasian, saw these provisional promotions as part of a pattern designed to skirt the department’s internal rules (requiring seniority-based promotions) and to favor African-Americans.
The plaintiffs raised their concerns with the department, after which the defendants
allegedly began “harassing” them and “retaliating” against them through “increas[ed] scrutiny” and “pretextual discipline.” R.6 at 8 ¶¶ 31, 33. The plaintiffs as a result filed this lawsuit against the City, Police Chief Alvern Lock in his individual capacity, and Police Captain Darryl Patterson in his individual capacity. All of the plaintiffs allege racial discrimination in violation of the Fourteenth Amendment, and four of them separately allege retaliation in violation of theFirst (and Fourteenth) Amendments.
The defendants filed a motion to dismiss the lawsuit under Civil Rule 12(b)(6), which
succeeded in part. The district court agreed with the defendants that some of the counts—the conspiracy count and two of the First Amendment retaliation counts—failed to state a claim. At the same time, it allowed one of the First Amendment retaliation claims against Chief Lock and Captain Patterson—based on their actions after the plaintiffs filed this lawsuit—to go forward. And it held that the claim against the City could proceed as well. This interlocutory appeal
followed. Three sets of rules frame our consideration of this appeal. The first is that we give fresh review to a district court’s decision on a Civil Rule 12(b)(6) motion to dismiss. See Jasinski v. Tyler, 729 F.3d 531, 538 (6th Cir. 2013). The second is that a court may grant a motion to dismiss under Civil Rule 12(b)(6) only if, after drawing all reasonable inferences from the allegations in the complaint in favor of the plaintiff, the complaint still fails to allege a plausible theory of relief. See Ashcroft v. Iqbal, 556 U.S. 662, 677–79 (2009). And the third is that a government official seeking qualified immunity may defend a section 1983 lawsuit on one or both of two grounds: (1) that his conduct did not violate the plaintiffs’ constitutional or statutory rights or (2) that any right violated had not been clearly established at the time of the violation. See Harlow v. Fitzgerald, 457 U.S. 800, 818 (1982).
The claim against Chief Lock and Captain Patterson. On appeal, Chief Lock and
Captain Patterson claim that qualified immunity shelters them from this First Amendment retaliation lawsuit, and that the district court erred in concluding otherwise. To state a claim for relief, the complaining officers had to show that they (1) engaged in activity that the First Amendment protects, (2) that the defendants took an adverse action against them, and (3) that the defendants did so in response to the protected activity. See Mattox v. City of Forest Park, 183 F.3d 515, 520 (6th Cir. 1999). Lock and Patterson focus on the protected activity
requirement, saying that the filing of this lawsuit does not count. Generally speaking, when public employees like the plaintiffs speak on “matters of public concern” and do so separate and apart from their responsibilities as public employees, the First Amendment protects that speech. See Garcetti v. Ceballos, 547 U.S. 410, 421 (2006); Connick v. Myers, 461 U.S. 138, 145–46 (1983). The plaintiffs’ complaint alleges that the Flint Police Department discriminates on the
basis of race. “[A]llegedly racially discriminatory policies involve[] a matter of public concern,” Connick, 461 U.S. at 146, a clearly and well-established principle. The First Amendment thus protects the plaintiffs’ complaint.
In arguing to the contrary, Lock and Patterson invoke Rice v. Ohio Department of
Transportation, 887 F.2d 716 (6th Cir. 1989). But that decision has been vacated. See 497 U.S. 1001 (1990). On top of that, the decision relied on an overly narrow understanding of matters of public concern. That “employee complaints over internal office affairs” are cordoned off from First Amendment protection, Connick, 461 U.S. at 149, does not mean that matters of both personal and public concern lack protection, Chappel v. Montgomery Cnty. Fire Prot. Dist. No. 1, 131 F.3d 564, 575 (6th Cir. 1997). And it assuredly does not mean that all employment disputes lack protection. “[W]hether [the plaintiffs’] racial discrimination complaint was borne
of civic-minded motives or of . . . individual employment concern[s] is irrelevant. What is relevant is that the subject of [the] complaint was racial discrimination—a matter inherently of public concern.” Perry v. McGinnis, 209 F.3d 597, 608 (6th Cir. 2000). The district court properly concluded that, at this phase of the case, the First Amendment retaliation claim against
Chief Lock and Captain Patterson should be allowed to proceed.
The claim against the City of Flint. The City of Flint claims that the district court erred in declining to grant the City’s Civil Rule 12(b)(6) motion to dismiss the
discrimination/retaliation claim against it. Here, too, no error occurred.
In their complaint, the plaintiffs allege that the City and department maintained a “policy, rule, custom and/or practice of” discriminating against Caucasians in favor of African-Americans and of retaliating against those who opposed them. R.6 at 3 ¶¶ 8–9; see also Monell v. Dep’t of
Soc. Servs. of City of New York, 436 U.S. 658, 694 (1978). They allege that the City and the department previously maintained policies allowing unlawful affirmative action and preventing police officers from speaking to the media. They allege a two-year long discriminatory practice of filling sergeant positions. And they allege that high-level city and department officials complained about the trouble the plaintiffs’ complaints about that discrimination had caused.
Given these allegations, the complaint contains sufficient factual material to raise a “plausible” inference that the defendants maintained a policy or custom that led to discrimination and retaliation. Iqbal, 556 U.S. at 678. That is all they needed to do at this early phase of the case.
For these reasons, we affirm. |
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Fri Jun 12, 2015 6:42 am |
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untanglingwebs
El Supremo
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Flint loses $4 million reverse discrimination lawsuit. Who pays?
by Dan Armstrong
Posted: 07.08.2011 at 2:48 PM
Read more: Local, Flint Police Lawsuit, Reverse Discrimination Lawsuit, Glen Lenhoff Reverse Discrimination Attorney, Lawyer, Flint Mayor Don Williamson, Multi Million Dollar Lawsuit, Flint Lawsuit, Citizens Service Bureau, 2006, 2007, Election Year, Flint Mayor Dayne Walling, City Attorney Peter Bade, Taxpayers, $150 a Year, Flint Loses Millions
The already cash-strapped City of Flint now finds itself losing a multi-million dollar lawsuit.
An arbitration panel says race was a significant factor in the promotion of Flint Police officers in 2006.
Now, the city is out more than four-million dollars.
In 2006, Flint Mayor Don Williamson promoted several officers to an elite group called the Citizens Service Bureau.
It included four African American men and one white woman.
All three police unions raised a red flag saying Williamson did not follow procedures for the promotions.
"He didn't post these positions. He didn't test for these positions. He simply decreed," says attorney Glen Lenhoff, attorney for the majority of plaintiffs.
The 47 plaintiffs say the promotions were for political gain saying Williamson was feeling pressure from the African American community to install more African American commanding officers.
Williamson formed the bureau in 2006 and 2007 was an election year.
Both the city and the plaintiffs say the decision of one caused enormous damage to the city.
Who's going to pay for it?
City attorney Peter Bade says, "The administration's position is that this will not be put on the tax roll and that we'll figure out a way to pay for it."
Citizens say even if they don't have to pay an additional tax for this lawsuit, they still don't like it because they know it's still going to come from them.
"I don't think it's right. That's what I think about it. There's no way they got a choice but to pay it," says Flint resident Walter Gatewood.
"They spent the people's money," says David Peterson of Flint.
All this just nine months after the city lost a more than $8-million lawsuit over the abandoned Genesee Towers, which residents will have to pay an additional $150 a year to cover it.
NBC25 called former Flint Mayor Don Williamson and asked him about the lawsuit.
He says he has no comment on the matter.
Now comes the issue of collecting.
Flint doesn't have $4-million to pay.
Every day it goes unpaid, the interest gets higher.
The city could appeal, but that is costly, and there's no guarantee it would win.
Plaintiffs could have gone after Don Williamson personally, but since he was a city employee at the time, there's the issue of indemnity. That means the city would have to pay the bill anyway.
The plaintiffs in the case say they hope this ruling sets a precedent that reverse discrimination is unconstitutional. |
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Fri Jun 12, 2015 6:56 am |
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untanglingwebs
El Supremo
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"All three police unions raised a red flag saying Williamson did not follow procedures for the promotions.
"He didn't post these positions. He didn't test for these positions. He simply decreed," says attorney Glen Lenhoff, attorney for the majority of plaintiffs.
The 47 plaintiffs say the promotions were for political gain saying Williamson was feeling pressure from the African American community to install more African American commanding officers"
It is my understanding from reading the current lawsuit, that the procedures for promotions were also not followed by then Chief Lock.
Lock did test, however the materials given to those preparing for the test did not match the test materials. Thus most failed the test. Policy dictated the test results should have been thrown out. It is odd that a very small group of officers passed the test with high scores. Lock continued to promote officers that had failed the test.
Last edited by untanglingwebs on Fri Jun 19, 2015 9:10 pm; edited 1 time in total |
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Fri Jun 12, 2015 7:04 am |
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untanglingwebs
El Supremo
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"Who's going to pay for it?
City attorney Peter Bade says, "The administration's position is that this will not be put on the tax roll and that we'll figure out a way to pay for it."
Citizens say even if they don't have to pay an additional tax for this lawsuit, they still don't like it because they know it's still going to come from them. "
Flint residents are paying the legal fees. But if there is a judgment on this Pabst lawsuit, will the administration impose another special tax? |
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Fri Jun 12, 2015 7:07 am |
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untanglingwebs
El Supremo
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Doesn't the city of Flint Major Grants pay anyone?
https://www.cityofflint.com/wp-content/uploads/EMA1842015.pdf
This is a settlement agreement and release of claim arising from the lawsuit in the 7th Circuit court entitled:
Smith Village Construction Services LL vs City of flint et al 14-103736 CK
The Plaintiffs settled for $45,000 distributed a follows:
American Wall Systems $6,993
Braun Electric $2,680
DR Nelson & Associates $458.70
Hallem Enterprises $3,268
Just right $13,903.46
Michigan Lumber $9,996.51
Stokbridge Overhead $2,025
Sterling Homes LLC $5,673.33 |
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Wed Jun 17, 2015 7:46 pm |
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untanglingwebs
El Supremo
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From the proposed 2 year budget:
In the Background section-
" The City of Flint has been in state receivership since December 2011, as a result of consistent deficits in the general fund, a decline nin pooled cash, unrealistic budgeting, and unfunded liabilities for postemployment benefits. Significant progress has been made in addressing these financial issues, ......
.....Making progress to date has required hard decisions and sacrifices for all. The FY15 and FY16 budgets were balanced through a mixture of significant revenue increases, significant expenditure decreases, and steps were taken to reduce legacy costs. Revenue increase included a 25 percent increase in water and sewer rates, passage of a 6 mill property tax increase for police and fire, establishment of a special assessment district for street lighting, and an implementation of a fee sufficient to cover the cost of waste collection. Expenditure reductions included elimination of 20 percent of the City's workforce. compensation decreases equivalent to a 20 percent wage reduction for remaining employees, and the restructuring of health and retirement benefits for remaining employees and retirees necessary to develop a credibly balanced spending plan.
.....The steps taken o restore the City to financial solvency have not been without conflict and changing circumstances. A significant legal challenge has been made in the decision to move retirees from their historical health insurance plans into the same plans offered current employees. This action resulted in an initial cost reduction in FY 13 of $3.5 million to the City and imposed deductibles and copays on retirees. This challenge is pending in federal court. if the challenge is ultimately upheld, it will pose a significant challenge to the City in its efforts to regain and maintain financial and service solvency. Due to the stay imposed by the federal court, the City must increase its budget for retiree healthcare costs in the FY15 budget by $5 million and may even need more as retirees seek reimbursement for past medical expenses. These healthcare costs will continue to increase in subsequent years.
Legacy costs in total will continue to be a cost burden to the City of flint. In FY14, the City budgeted $30.2million for its retiree healthcare and pension costs, an amount equal to 17% of its total revenue. By FY15, it is projected that the City will need to budget over $43 million, an amount equal to 23% of its total revenues. For the General Fund alone , the amount projected to be needed will exceed $23 million, an amount equal to 34% of general Fund revenues.
......" |
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Fri Jun 19, 2015 9:08 pm |
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