Material Misstatement

It doesn't take a CPA degree to realize the City of Edmonds is fiscally challenged. Even the Mayor, who is not a CPA, describes the current financial state as "cash strapped". The Mayor's 2009-2010 Budget presentation to the Council blamed Tim Eyman for the City's current financial predicament.

The Mayor's Fire District 1 Contract proposal presentation to the citizens and council contains a material misstatement of fact. Slide 11, Cost from a contract, Fire District One is offering a contract for 2010 that will cost $6.2 million. This figure is from Exhibit A, Fire District Cost Model which excludes the EMS Transport Fees estimated at $700,000 in the 2009 Budget. The Budget figure amount is based on 50% collectible of the billed rates plus mileage charge. My calculation using the 2007 Edmonds Fire Department Annual Statistics Report conservatively found the billed amount at $1.4 Million.



Material Misstatement
The cost to Edmonds taxpayers would be somewhere between $6.9 Million and $7.6 Million Dollars, not the $6.2 Million amount floated and proclaimed by the Mayor.

The Mayor blames this situation on Tim Eyman. When in fact mismanagement of two interlocal agreements providing Edmonds Fire Department Services to Fire District 1 and Woodway below the cost of service are squarely the root cause of the city's current fire department finance dilemma. In 2007, Snohomish County Fire District 1 collected almost $1 Million Dollars for Fire/EMS Service taxes from the Esperance area. City of Edmonds provided all fire/emergency medical services for $295,074. Woodway, one of the wealthiest communities in the nation paid Edmonds $168,772 for fire/emergency medical services. Guess who negotiated these two interlocal agreements? Answer: Gary Haakenson, not Tim Eyman!

Additionally, the disbanding of Medic 7 and the incorporating of those assets and personnel into the Edmonds Fire Department caused the Fire Departments costs to double over the past 7 years! From $4,349,434, 2002 Edmonds City Budget - Fire Department to $8,557,569, 2009 Edmonds City Budget - Fire Department Budget. Guess who negotiated the sale and transfer agreement? Answer: Mayor Gary Haakenson, not Tim Eyman!

The Fire District 1 swindle has been going on since 1995 and the Edmonds purchase of Fire Station 20. Both the Fire District 1 and Woodway interlocal agreements were re-negotiated by Mayor Gary Haakenson. Sorry to say, Edmonds has lost Millions! It's no wonder our Firefighters and Medics want to abandon the Mayor's sinking ship!

Comments

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