The Broward Inspector General’s final report on the “gross mismanagement” of millions in tax dollars by Hallandale Beach is sharply critical of city leaders it says have shown a “basic misunderstanding” of what’s gone wrong.
Hallandale Beach city managers past and present, the city attorney, the mayor and other city officials defended the handling of funds of the city’s Community Redevelopment Agency in formal responses included in the 56-page report released last week.
The Inspector General, after a year investigating, determined that from 2007 to 2012, city leaders used the CRA like a piggybank to improperly pay for the city’s general expenses and other pet projects, including donations to favored charities and loans to local businesses.
By law, the Hallandale Beach CRA is a limited purpose special district whose funds are only to be spent to address slum and blight conditions within a defined area. It receives 95 percent of the taxes collected on the appreciated value of properties within its boundaries, or about $70 million since it began in 1996.
Some of the report’s bluntest words rebut claims by Mayor Joy Cooper and City Attorney V. Lynn Whitfield that the Inspector General had no authority to investigate the CRA’s activities.
Whitfield’s “assertions ignore the fact that the [Office of Inspector General] has authority over all municipal officials in identifying mismanagement of public resources,” the report says. “A municipality cannot avoid OIG oversight by spending taxpayer funds through an agency that is independent in name only.”
Likewise, the report ripped “another common theme” of the city’s defenders that the Inspector General mistakenly relied on a Florida Attorney General’s advisory opinion that the Inspector General said precluded the city from spending CRA funds as it had.
City Attorney Whitfield’s arguments “reflect the basic misunderstanding that is at the core of the gross mismanagement identified in this report: the city has failed to comprehend that the CRA has a limited purpose and that the powers of the CRA to expend CRA…funds is not equal to the power of the municipality to expend general funds.”
The report urged Hallandale Beach’s leaders to ask the Attorney General for another opinion if they don’t like the original one.
The report also criticized City Manager Renee Crichton Miller, who it said made “unsupported” arguments to support Cooper and Whitfield’s erroneous claims that the Inspector General had incorrectly determined that CRA funds were improperly used to repay city bond obligations for park improvements in other parts of the city.
City officials contended that it was always the city’s intention to repay any CRA funds spent on parks outside the CRA boundaries. The report, however, says those arguments failed to “address the plain fact that $416,365 in CRA funds — deemed ‘negligible’ by [Miller] — have already been expended on parks outside the CRA boundaries” without any repayments or any plan for repayment.
Miller, hired last summer and not identified in the report as being responsible for past mismanagement, stuck by her arguments in an interview after the report’s release, saying the city has every intention to repay funds owed the CRA. She said it does not have to do so now because those projects have yet to get underway.