Honorable Mayor, Distinguished Council Members, Ladies & Gentlemen (see below)

Ken Palmer for Brea City Treasurer

[v] Vote Yes to Government Accountability

[v] Vote No to Higher Taxes

Ken’s Pledge:

I promise to be of service to the people of Brea. I will help the City Council to be wise stewards of our funds, by seeking to “tighten our belts” and balance the budget.

Ken’s experience in Corporate America and CPA / MBA education help him to understand more options available to increase City efficiency and productivity without raising taxes.

Non-deductible contributions to defray campaign costs are greatly appreciated.
Make checks payable to Ken Palmer for Treasurer to 275 Morning Glory St.

Organizations Served: City of Placentia Financial Oversight Committee, North Orange County Leadership Institute, Brea Chamber of Commerce, Park Paseo HOA, Brea Foundation, Knights of Columbus, Brea Soccer Association, St Angela Merici.

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October 21, 2008

Honorable Mayor, Distinguished Council Members, Ladies & Gentlemen:

My name is Ken Palmer and I live with my family at 275 Morning Glory. I’m a self employed CPA and I’m also working to be your City Treasurer.

Years ago the City meant very well in the formation of the Investment Committee and separately the Finance Committee; and they do function for the betterment of our community. However, in these difficult times a higher level of fiduciary responsibility (the wise use of our money) is needed and expected. I have a couple of examples I would like to share.

I recently reviewed the Comprehensive Annual Financial Report or CAFR, as it is known. I was surprised to note that it was signed by the same Independent Auditor that had signed Audit Reports 10 years ago! 10 years! This is outrageous! The audit contract for the City of Brea is extremely complex and lucrative. With such a cozy arrangement, the City has provided outside auditors an occasion to avoid the uncomfortable job of communicating internal control weaknesses and the recommendations needed to correct them (like - don’t bite the hand that feeds you). Since there are many qualified auditors in the area, I am wondering why the Finance Committee allowed this to happen.

I also had the opportunity to review the August 2008 Treasurer’s Report. It was largely prepared by our Investment Counselor who has been preparing the same stale and regurgitated reports for at least eight years. 8 years! The report, submitted to the Council by the City Manager, indicated that even during the current troubling bailout of Fannie Mae and Freddie Mac, the City and the Redevelopment Agency still owned over $26 million of their securities. This report also indicated that the amount invested in these types of securities did exceed the limit developed by our very own Investment Committee. Naturally, I was shocked to read that even though the report contained this violation of policy, the recommendation to the Council was simply “receive and file.” (like – a rubber stamp)

I believe the following actions are needed to strengthen the City of Brea’s financial controls:

1. Implementation of a formal and independent Audit Committee that will choose and evaluate the outside auditors and to whom the auditors will directly report. Of course, language developed by our fine City Attorney will address Brown Act concerns so that confidentiality can be maintained.
2. Require mandatory outside auditor rotation, at least every five years. Because the City, as a municipality, is exempt from the provisions of the Sarbannes-Oxley Act this provision needs to be clearly stipulated.
3. Conduct a thorough review of Investment Strategy and Policies; including a formal performance appraisal of our Investment Counselor.

My summary and conclusion requires “connecting the dots”. I have addressed this Council during previous Matters from the Audience sessions about cost saving measures at the Brea Sports Park. I also previously addressed the Council about implementing transparency through “read-only” access to the city’s financial database. Today my concerns about improvement in Fiduciary Responsibility, does connect the dots. What has now become apparent is that Brea needs a treasurer with a solid financial background.

Ladies and gentlemen, let’s not let Good Old Brea turn into “Good Ole Boys” Brea.
It’s time for a change! Thank You!

To the Honorable Mayor and City Councilmen (see below)

Ken Palmer for Brea City Treasurer

[v] Vote Yes to Government Accountability

[v] Vote No to Higher Taxes

Ken’s Pledge:

I promise to be of service to the people of Brea. I will help the City Council to be wise stewards of our funds, by seeking to “tighten our belts” and balance the budget.

Ken’s experience in Corporate America and CPA / MBA education help him to understand more options available to increase City efficiency and productivity without raising taxes.

Non-deductible contributions to defray campaign costs are greatly appreciated.
Make checks payable to Ken Palmer for Treasurer to 275 Morning Glory St.

Organizations Served: City of Placentia Financial Oversight Committee, North Orange County Leadership Institute, Brea Chamber of Commerce, Park Paseo HOA, Brea Foundation, Knights of Columbus, Brea Soccer Association, St Angela Merici.



To the Honorable Mayor and City Councilmen:

October 7, 2008

Last week I was able to attend the Budget meeting held at the Museum. I applaud the City’s effort to raise awareness of the budget process. It does need to be a collaborative effort. One of the hand-written notes Mike Messina posted during a morning brain-storming session read: “TRANSPARENCY”.

I think this a very important concept, one that needs to be understood and implemented. Webster’s definition of the word “transparent” includes - something “characterized by visibility or accessibility of information”. The City of Brea “information system” is used to measure costs, evaluate budgets and identify variances. In order to make wise and informed decisions this data needs to be more visible and accessible.

I propose that the City Council and the City Treasurer, along with appropriate staff personnel be granted online “read-only” access to the financial and accounting database. Of course, our vaunted tech people would proscribe the proper security clearances, passwords, and confidentiality which must be maintained. Perhaps a task-force could be set-up to perform a feasibility study.

Implementation of this concept while not easy, should not be difficult or costly, and it would yield many real benefits. If the City truly means what it says about TRANSPARENCY, the Council will direct the Staff to evaluate and report upon “on-line read-only” access.


Sincerely,


Kenneth M. Palmer


CC: submitted for recording to Lucinda Williams, City Clerk

Speech to Brea Republican Women (see below)

Ken Palmer for Brea City Treasurer

[v] Vote Yes to Government Accountability

[v] Vote No to Higher Taxes

Ken’s Pledge:

I promise to be of service to the people of Brea. I will help the City Council to be wise stewards of our funds, by seeking to “tighten our belts” and balance the budget.

Ken’s experience in Corporate America and CPA / MBA education help him to understand more options available to increase City efficiency and productivity without raising taxes.

Non-deductible contributions to defray campaign costs are greatly appreciated.
Make checks payable to Ken Palmer for Treasurer to 275 Morning Glory St.

Organizations Served: City of Placentia Financial Oversight Committee, North Orange County Leadership Institute, Brea Chamber of Commerce, Park Paseo HOA, Brea Foundation, Knights of Columbus, Brea Soccer Association, St Angela Merici.

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SEPTEMBER 25, 2008 SPEECH

to Brea Republican Women

“Government is not the solution to our problem, government is the problem”.
This quotation is from President Ronald Reagan’s Inaugural Address, and I have adopted it as my motto. That being said, in post 9/11, post Enron, and mid-financial bailout USA,there is definitely a place for government. To protect civilians like you and I from terrorists and criminals, civil defense and financial regulations are needed.
I believe, however, that the bureaucracy in America and NOC and Brea has sort of created a beast which must be fed…with more and more tax dollars. I have two examples which directly address this phenomenon. #1 – The new Brea Sports Park. I am in favor of community activities and sports organizations. I am glad the property at the corner of Birch and Valencia was purchased and developed with City dollars. However,the landscaping and shrubbery is way over the top! You have sycamore trees planted a few feet from each other. Maintenance will be very costly!
And, what about watering? When we are in the middle of a drought and the City asks us to conserve! Practice what you preach! Do you think we are blind?
#2 – My second example of feeding the beast was exemplified when I attended the City Council meeting. The administration supported the imposition of sales tax to balance thebudget. There may be times when this becomes necessary, but not until expenditure reduction has been explored and rejected. Councilman Simonoff requested an analysis of how the expected $3.5 million shortfall could be addressed with cost reductions. I believe Marty wanted to gauge just how painful such a plan would be. What programs would be discontinued, etc. I understand that no budget analysis was ever presented!

Instead, a survey was concocted to justify the imposition of a tax increase. The Council originally rejected a motion to impose a sales tax by a 3-2 margin, (a super majority or 4 in favor would have been necessary to place this initiative on the ballot.) Once this would be on the ballot, I can only imagine the time and energy devoted to educating the people of our City as to why such a tax increase is necessary! I believe this type of behavior is arrogant and an affront to the citizenry!
My understanding is that the current job description of the elected City Treasurer is as follows:

• participate as member of the City’s Investment Advisory Committee, which meets quarterly (March, June September and December) throughout the calendar year.
• The elected City Treasurer shall act in concert with all Fiscal Policy Statements adopted by the City Council.
• The elected City Treasurer’s signature shall appear as one of the authorizing signatures used on all City of Brea Redevelopment Agency bank accounts.
• The elected City Treasurer shall meet with the Financial Service Director on an as needed basis to discuss treasury-related City issues.
  

My perception is that the current scope of these activities is very narrowly defined, and unnecessarily limits inquiries into financial data. With all due respect to sensitive payroll information, I think the activities of the City Treasurer should be expanded. I propose that a “read-only” access to the financial database be granted to the new city Treasurer.

My time is almost up before the luncheon is served but let me pose a final question. You may ask……….Why am I running for the Office of Treasurer? (pause) The very meeting which I attended and witnessed the scary predictions about the ruin of our great City, a portion of the meeting, matters from the audience, was addressed by the incumbent Treasurer. He supported the sales tax increase. Councilman Beauman later spoke and referred to the City Treasurer as supporting it; therefore, “it must have merit’. I am running to challenge this logic and offer innovative thinking to our councilmen, not just the slick presentation they get from City staff. President Reagan also said, “Government is the problem and the people have the solution.”

Ken Palmer for Brea City Treasurer

[v] Vote Yes to Government Accountability

[v] Vote No to Higher Taxes

Ken’s Pledge:

I promise to be of service to the people of Brea. I will help the City Council to be wise stewards of our funds, by seeking to “tighten our belts” and balance the budget.

Ken’s experience in Corporate America and CPA / MBA education help him to understand more options available to increase City efficiency and productivity without raising taxes.

Non-deductible contributions to defray campaign costs are greatly appreciated.
Make checks payable to Ken Palmer for Treasurer to 275 Morning Glory St.

Organizations Served: City of Placentia Financial Oversight Committee, North Orange County Leadership Institute, Brea Chamber of Commerce, Park Paseo HOA, Brea Foundation, Knights of Columbus, Brea Soccer Association, St Angela Merici.