Tyrone finance director: “We’re broke,”

Fri, 08/22/2008 - 3:27pm
By: John Thompson

The Tyrone Town Council got a huge dose of reality Thursday night.

“We’re broke,”said Finance Director Mary Sturm.

Sturm said the city’s operating costs per month are $275,000 per month, but the town has only collected $53,000 in revenue this month.

The economic climate has taken its toll on the town, with only two building permits this month, she added.

Tyrone, like most other local governments, derives most of its operating costs from property tax revenue. But that revenue doesn’t start rolling in until December, so Sturm had a recommendation.

The town currently has a Certificate of Deposit valued at $794,000 that earns just over 4 percent interest. Sturm recommended cashing in the CD, and invest in another CD when tax money starts rolling in at the end of the year.

The only other options were to shut down the library, close the recreation department and cut down on services.

“We only have 7,000 residents and we’re providing services that towns such as Peachtree City with a population of 40,000 provide,” she added.

The town reluctantly agreed to cash in the CD, but Councilman Tracey Young wants to make sure this does not happen again.

“We’ve had very poor financial advice in past administrations,” said Councilman Grace Caldwell.

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Submitted by NeedtoKnow on Mon, 08/25/2008 - 6:45pm.

Really, does a town as small as Tyrone need it's own police department? Think of how much money would be saved without them. The FCSO already helps them out quite a bit, it wouldn't be that much of a stretch to go ahead and let FCSO take care of all of it. They have a proven record and are there all the time anyways.

I'm not saying that there aren't good officers in the TPD (there are, some). Just wondering how necessary they really are.

The 5-0's picture
Submitted by The 5-0 on Mon, 08/25/2008 - 7:15pm.

You could disband TPD, but the S.O. only has one Deputy that patrols north-west Fayette County.

Due to the small size of uniformed patrol, the Sheriff's Office has around a 10-15 minute response time for each of their zones (depending on traffic and type of call).

If you disband your local PD, you can expect 15-20 minute ETA for most calls. You can also count out vacation watches on your homes and baker (business) checks.

With the way the economy is going, don't expect a north or west precinct to be built anytime soon.


Submitted by Bonkers on Tue, 08/26/2008 - 4:10am.

But the law officers response to the PTC bank robbery yesterday was fast and amazing and awesome and wonderful---he did get away, however.
This is not a knock of PDs, just the braggers.

The 5-0's picture
Submitted by The 5-0 on Tue, 08/26/2008 - 1:11pm.

On 95% of our calls we can't run lights and sirens.
That includes burglar alarms.

That is when response times will run 10-15 minutes.


Submitted by tyrone teen 6 on Mon, 08/25/2008 - 5:10pm.

Did we need a Publix when there was a Kroger right up the road? No. Do we really need hair salons, and HUGE womens centers? We were doing fine with a dentist, medical center, and eye doctor. Do we need 9 restraunts in this small of a town really? Its not a tourist town. Their is no sense in all of it. All the buildings goin up are a waste. This stuff may not be relevant in the broke factor, but it still makes me angry, because it's not necessary and I can't see how all of these businesses are making much money.

And really, did we need a new library? I think not. The old one was just fine. If they thought we really needed a new library how bout put it in one of the old buildings nothings in anymore instead of spend a bunch of money we dont have? PTC and Fayette county have very nice libraries that are only a short distance away. How bout those brand new cop cars? What for? I say they should have never built the new stupid library.

The 5-0's picture
Submitted by The 5-0 on Mon, 08/25/2008 - 5:56pm.

That has to be the first time I've ever heard anyone say that their city had too many dining establishments.

Other than the new Japanese steakhouse, Tyrone doesn't really have anything special.

The city is "broke" because of new businesses NOT being built. Maybe Sandy Creek High should buff-up their Economics 101 classes (as well as their English courses).


Submitted by tyrone teen 6 on Tue, 08/26/2008 - 3:16pm.

"We only have 7,000 residents and we’re providing services that towns such as Peachtree City with a population of 40,000 provide"

Why should we provide services for that many people? Im just saying that Tyrone did just fine before all off these establishments were built. At least as far as I know.

How bout you check out Sandy Creeks high school graduation test scores? We're doing just fine. As much as I hate going to that school, the education I'm recieving is better than I'd get at some schools surrounding it.

Tyrone Teen

ptctaxpayer's picture
Submitted by ptctaxpayer on Mon, 08/25/2008 - 3:36pm.

To paraphrase Larry the Cable Guy-----"Shut 'er down. "


Submitted by outcry30290 on Mon, 08/25/2008 - 1:19pm.

Can someone please explain to me how the millage rate can be cut one week and the next week we find out that we are broke? Shouldn't the fact that the town is broke be discussed before the millage rate is cut? Shouldn't this have been brought up at that meeting? Why is it being brought up now? Why did an employee bring this to the attention of M&C and not M&C informing the citizens? This reaks of something that would have happened in our old administration? What the heck is going on? I am not feeling warm and fuzzy with the way things are progressing under the new M&C's healm. At some point they won't be able to point their fingers at the old administration. They are putting alot of faith into the hands of this Mary Sturm. In fact, it appears that she is now doing what others felt V&B were guilty of doing, which is running the town with the blessing of M&C while they turn a blind eye to what is going on. Wake up M&C, we brought you into this mess to straighten it up, not make things worse.

Submitted by TyroneConfidential on Sat, 08/23/2008 - 9:02pm.

The way the town was being run, a business person could see it coming from years back. When you pass a zoning ordinance that takes away business uses and start using that ordinance to refuse businesses to operate, then it was only a matter of time until Tyrone reduced its income beyond their ability to pay expenses. Reducing income and increasing expenditures is a sure fire way to bankruptcy. In 2007 Valerie & Barry ran off 26 businesses from downtown alone, and that’s just what I’ve been able to document. No telling what the total number was since ordinance 454 was passed in 2004 for all of Tyrone. I tried to tell the old and new councils what destruction they were causing; but neither wanted to listen. The old council was hell-bent on letting bureaucrat Barry, who knew nothing about free enterprise and the business market, to make plans for downtown redevelopment. And when the new council rode into office on public promises to change the ordinance, then refused to do so, the bankruptcy die was cast. Now the town is hoping that property taxes at year’s end will save the day. But when they use these future collections of tax money to pay for past expenditures, what will they have left to pay next year’s costs? In their grandiose plans for redevelopment, the brain-dead council and management never bothered to ask experience business people for their advise. In fact Barry tried to hide their plans from the business community by not notifying property owners properly about the hearing on ordinance 454, therefore, as the Minutes of Feb. 19, 2004 reveal, not one single property owner came to protest. All this secrecy has caused lawsuits which are still winding their way through the courts as Tyrone continues to pay huge lawyers fees to an outside law firm to defend the indefensible. Sooner or later judgment will be rendered against Tyrone. That will be the final blow to Tyrone’s budget that will wipe out their $1 million contingency fund because the liability insurance policy excludes inverse condemnation (taking property and uses without just compensation). As the council instructs their lawyers to battle on, trying to delay the inevitable, the lawyers fees and damages continue to increase. The new council is gambling with tax payers money that everything Barry, Valerie and the old council did was just perfect under the law. And we all know that ain’t true. Even a moron knows that, especially Mary Sturm who is far from a moron, and she says “we’re broke”.

Submitted by truthandjustice on Sun, 08/24/2008 - 12:31pm.

TyroneConfidential not every bad business or investment decision is someone else’s fault. While you contend businesses were run off from the downtown area, what are your “facts”? Was it simply that the business owners were informed that their use was not allowed in that area because it did not meet the zoning ordinance? If so, and I suspect that may be the case, than the two former employees that you have a personnel vendetta against were simply doing their job and to do otherwise would have been illegal. As far as your claim about the “secrete” downtown redevelopment plan, in 2005 the former council sent a copy of the proposed plan to every resident and business in Tyrone before they moved forward with it. . Most of the residents and businesses approved of that redevelopment plan; where were you? And as far as lawsuits, they need to be decided in a court of law not by an anonymous blogger.

suggarfoot's picture
Submitted by suggarfoot on Sun, 08/24/2008 - 5:40pm.

I wish you would quit implying that this person is unhappy over a bad business decision they made. I don't know that and neither do you.
To say the other two people were doing their job, may be correct, but, it seemed, they had a free hand, and all will agree, it looked to the rest of us that they really enjoyed other people's pain.


suggarfoot's picture
Submitted by suggarfoot on Sun, 08/24/2008 - 6:02pm.

It has bothered me so long, how bad people were hurt in Tyrone. Those hurt the worst, have a hard time laying down their swords. It will take the Tyrone government and some local people a long time to get back together, it is not what the new group has done, but the other's horrible disrespect for people that just wanted to open a company and work, and I wonder why? Maybe, they felt their was a higher bidder?


Submitted by Margot on Sun, 08/24/2008 - 2:59pm.

You sound just like snell.

Submitted by TyroneConfidential on Sun, 08/24/2008 - 4:29pm.

I’m not talking about good or bad investment decisions. I’m talking about inverse condemnation. The zoning ordinance is unconstitutional, therefore, applying it is a substantive law violation. You’re a little dense but I’ll try again to educate you. I was saying that the notification procedures for THE HEARING ON ORDINANCE 454 WAS NOT FOLLOWED. Therefore the ordinance is unconstitutionally void. As for the redevelopment plan, the plan itself states it is unscientific because certain groups were unrepresented. I was never mailed this survey. If the damn plan’s so good why is it now being changed? The two employees you say I have a vendetta against are currently being investigated by the Tyrone Police and the D.A. for possible criminal violations of taking public funds. Most residences and businesses did not approve of the redevelopment plan. Only about 160 people approved it. No businesses were sent the plan. Actually I’m not totally against the plan; only the taking away of long existing land uses to implement it. As for deciding the case in court, your government is spending huge sums of your money to lawyers to avoid having the case go to court to be heard on the merits.

The Case Against Tyrone is Clear Cut.

1. Tyrone did not post signs announcing the public hearing on ordinance 454 as required.
2. Valerie did not mention the location, current & proposed zoning classifications affected in the legal ad for the public hearing on ordinance 454 as the law requires.
3. The planning commission did not investigate the benefit to the public vs. the harm to property owners using the 12 required standards. Nor did they make a written report of those investigations to present to council as required by law.
4. The council did not have said report to evaluate in making their decision and did not discuss any reasons. Therefore, they cannot justify ordinance 454 under the law.
5. Tyrone’s charter says every ordinance must have a purpose stated in its title. No purpose was stated. By the way untruth & injustice, what was the purpose? I’ve got $100 that says you won’t state the real purpose.
6. Valerie and Barry then started using the issuance of business licenses to regulate land uses under 454. Problem is, Tyrone doesn’t have a business license law. See the Town’s admission in paragraph 14 of their answer to the complaint.
7. Valerie then violated the equal protection claim of the 14th amendment by allowing some businesses to continue to use deleted land uses while denying other C-2 businesses the same right.
8. Federal, State & Tyrone laws all say that you cannot deny prior existing land uses to be taken away by passing a law that prohibits them. If you do, the law says its condemnation without just compensation requiring damages determined from the time of the taking (2004) and continuing until the government repeals the law. That means the longer the lawyers delay trial, the larger the damages are. Tyrone is gambling with your tax money that they will win on every single one of the 8 above listed items; anyone of which will win this case. And not included are the tort claims for damages for misrepresentation, negligence, wrongful interference with contracts, and criminal fraud for altering public records, which Mary Sturm has already given to the police.

I dare you to take each one of the 8 items and lawfully refute them. The lawyers haven’t been able to.

Submitted by Shaquita on Sat, 08/23/2008 - 3:30pm.

This open and fiscally responsible council that took office in January must be stopped now. They inherited over $2,000,000 in cash reserves, a balanced budget and no town debt from the old council and now the town is broke! What did they spend the $2,000,000 on? I see nothing new since they took office except the Mayors car, a new manager, a new finance director, a new attorney and a bunch of money hungry consultants. They refuse to tell us voters how much money they are wasting on attorney fees, consultants, or whatever they are doing with our money, no accountability. The citizens of Lithonia have the right idea, recall them!

The 5-0's picture
Submitted by The 5-0 on Mon, 08/25/2008 - 6:01pm.

Not to mention- why did a city of 7,000-8,000 need a new library building with more staff?

Shouldn't you worry about paying your bills before taking on more debt and increasing your overhead?


Voice of Fayette Future's picture
Submitted by Voice of Fayett... on Fri, 08/22/2008 - 9:33pm.

And Grace Caldwell was the one who hired the manager and Overbill the Lawyer that cost a half a million a year among other dumb moves (like the audit). Poor financial advice from past administrations? Look in the mirror.


Cyclist's picture
Submitted by Cyclist on Fri, 08/22/2008 - 7:48pm.

“We only have 7,000 residents and we’re providing services that towns such as Peachtree City with a population of 40,000 provide,”

-------------------------------------------
Caution - The Surgeon General has determined that constant blogging is an addiction that can cause a sedentary life style.


mudcat's picture
Submitted by mudcat on Fri, 08/22/2008 - 6:48pm.

You PTC people are the next obvious target of the Tyronese PD. Speeding makes you an easy target - don't do it. Let the teeneagers pay the tickets. 10-12 at night is prime time for their PD - actually any PD.


Submitted by NeedtoKnow on Fri, 08/22/2008 - 5:41pm.

How about getting rid of the supposedly "extra" officer they have? Or lowering speed limits again? Or raising ticket prices? And give no warnings? How about becoming more small business friendly? Cancel the carnival at the Founder's Day parade? Take a survey of those who actually use the library, and reduce the operating hours based on that?

I'm not saying these are all good ideas, or that I support them. Some of them have been done in the past. Some of them have been done elsewhere. Some of them are stupid.

But at least they are ideas. Anyone else?

Submitted by sogreen on Fri, 08/22/2008 - 10:15pm.

ok apparently you are not aware that the carnival and the Founders Day is NOT costing the town a dime! It is supported by its citizens who enjoy and want to participate in Founders Day, Vendors and local businesses. NOT THE TOWN! The carnival itself pays the TOWN money to be here but that is the information that they do not bother to tell us citizens. Everything is paid for from the money that the Vendors, sponsors and the carnival pay including the Police dept's pay. They even added a SMALL fee to the Parade to help support the prizes and Police for their time of service also so that the town does not pay for that either. So learn the facts before throwing things into the fire.
BUT go ahead shut down the Library and the Recreation Center and then the Town will dissolve and Tyrone will be considered Unincorperated Fayetteville. Crime rate will go up (more than it already has) and there will be alot of unhappy citizens that have paid all their tax money to over priced means and we will not have a local Library or local sports to keep the children entertained. Heck why don't we go ahead and shut the schools down too, then we could be like a 3rd world country .. right here in our little town! Surrounded by Cities that already look at us like we are fools because of who we bring on board, that are not even citizens of Tyrone in the first place. OF COURSE they do not have the best interest of Tyrone. That is like our President of the US going to Jamaica...letting his lawyers making major finicial decisions for Jamaica and Jamiaca paying 50% more that they can afford in the first place and at the end of the day the president, who gets his whole families insurance paid, while Jamaica's families get none without a price to pay, a car with his gas paid for, along with not having to make a decision at all because the lawyers did all the work for double the price, gets to leave the falling apart country and go back to his little white house in the sky in his owwwwnnnn country without care in the world because he does not live there... what does he care?? Hmmmmm.. are we getting the picture yet? I hope so.. there is just too much information that is not out there and unfortunately it is open to the public.... or is it?

suggarfoot's picture
Submitted by suggarfoot on Sat, 08/23/2008 - 7:17am.

you aren't making sense. First, the whole thing is nuts, now we have money, now we don't? It sounds like someone got a little theatrical.

I don't know where you got your info about Founders Day, but it made money only one time and that was about 2 years ago when a guy from United Community Bank managed the money. Every other year it has cost the town to have Founders Day. This is fact, not hysterics.

The rec center has also been a dudd. It was, as of a couple of months ago, was over a hundred thousand dollars in the hole. I was at town hall and heard it. Part of the reason was people were using the ball fields, light on etc, and no one was collecting money for the usage, so all that money went out the window, gone.

Whoever said we were trying to compete with Peachtree city is right. We are a very small area and never had the tax base. We didn't need that library. It cost about 24,000. a month to run. Peachtree City's is 3 miles down the road. The library was an extravagance we didn't need at this time. Thank goodness we didn't get the new Town Hall and Police station that some wanted to build.

If the new group hadn't put the skids on everything we would really be screwed. We had a town clerk with a salary of 60 plus with a 20 thousand or so bonus, that no one has yet figured out. We had way too many employees. If we are out of money, it isn't the present groups fault at all.

If there is such a shortfall, it didn't happen in 8 months. It would have been an accumulation of cost for all this extra we didn't need.
The new group has been cutting back, not adding to.

If all things are true, and worse comes to worse, it isn't the end of the world. The county would take over garbage pick up, the parks, police, and even the library. We would still have everything, but the county would pay for it.

I don't think we are broke, but if that is the case, then we would just have to do what it takes. If we are broke, the current group did nothing to cause it.


suggarfoot's picture
Submitted by suggarfoot on Fri, 08/22/2008 - 5:41pm.

have this dropped on them at a meeting? Why were they not informed ahead of time? Who ever is responsible for the day to day, town manager?, should have known there were no funds, and known a tan was better than the other. This doesn't sound like we are getting our money's worth out of town employees that were responsible for the way this was presented. This is not a nice way to do the Town Council who put their faith in you guys!

PS.. if they are looking for job cuts..I think you just gave them some we might all aprove of!


Submitted by Mike Smola on Fri, 08/22/2008 - 4:18pm.

So let's see, the council could have issued a tax anticipation note (TAN) for about 2.4% but they instead chose to cash in a CD earning more than 4%. Yes Grace, you're getting great financial advice.

And what about this, here's what Mayor Rehwaldt said the towns financial situation was when they approved the budget on June 26th
“Currently, the town has accumulated sufficient assets to maintain a four month contingency reserve and sufficient additional reserve funds of almost $1 million,” said Mayor Don Rehwaldt." What happened in less than two months?

Submitted by Margot on Sun, 08/24/2008 - 12:52pm.

Mike Smola, one of those responsible for the problem, suggests a “TAN” (Tax Anticipation Note). That is government speak for borrowing yourself out if debt. HaHaHaHaHaHa.

Needtoknow says: Become more business friendly. Now that is a good idea, but he/she does not say how? And cancel Founders Day. Why don’t we just rename it “Enders Day” for celebrating the end of the municipality. Or Re-Founders Day, if we can ever come up with a solution.

Suggarfoot implies that cutting payroll is an answer. Now, that will definitely do it. Why don’t we start with the Lawyers & Town Manager? That will save at least $500,000. Good idea Suggar, but don’t depend or our council to do it.

Mudcat says: Punish the citizens by requiring police to give more tickets. Bad idea Mud.

OhNoYouDidn’t suggests: That a new council can raise money by not being jealous of the $675,000 spent by the old council for the library. That ought to convince the bankruptcy Judge.

VoiceofFayette: Has no solution, only blame of which there is a lot to go around, including you too Voice. Where’s your solution? We already know we can’t depend on any elected representatives. Only the citizens can solve the problem.

Here are my solutions as starters:

1. Make Barry & Valerie pay back the money they took - $36,000 income.
2. Fire all the lawyers and hire one who represents and listens to the citizens. $400,000 savings.
3. Tyrone doesn’t need a high priced Town Manager - Hire a Clerk for $40,000 salary. Town Managers cause more trouble than they’re worth. Savings $62,000.
4. Repeal Ordinance 454 and reinstitute the pre-Barry land uses under Ordinance 181. Downtown business will flourish and bring in many thousands of dollars in revenue.
5. Elect 5 people who have businesses in Tyrone to act as a citizens’ grievance committee to oversee the council. Planning and management. Give them veto and subpoena powers.
6. Require that all officials learn the zoning code and pass a test on it.
7. Require all employees, elected and appointed officials to write 500 times. “My job is to represent all citizens. I promise never to ignore complaints and will investigate all things required of me by law”.

Voice of Fayette Future's picture
Submitted by Voice of Fayett... on Sun, 08/24/2008 - 1:12pm.

Margot, you make some good suggestions but I am reminded of the entertaining spoof of Westmoreland by Stephen Colbert who danced him around the intellectual maypole with the statement: "Let's cut deeper."

How a small town with fragile finances can hire overpaid personnel that were just fired by the county with no bids speaks not just of incompetence but of the type of questionable politics that earned Bill Campbell three hots and a cot.

The Taxpayers of Tyrone can no longer afford the luxury of being a town. They need to be part of unincorporated Fayette. Schools? They are county wide anyway, there is no impact. Library--- who cares if it is county or town run. Public safety? Tyrone will certainly not end up with a law enforcment downgrade for with its own police department the town looks at the highest source of retail trade as drug sales at the Publix. What few arrests are made are made by the county anyway. Close it down. Sell Town Hall to the County, pay the debts and clear it out. Job 1 for the county: bring in a bulldozer trade convention and clear a lot of those eyesores out of there.


Submitted by tyrone teen 6 on Mon, 08/25/2008 - 5:20pm.

Your a moron.
Tyrone Teen

Submitted by Margot on Sun, 08/24/2008 - 2:58pm.

Right on Voice of Fayette.

Submitted by fayettebanker on Fri, 08/22/2008 - 5:26pm.

Bad move. You won't be seeing 4% on a CD for quite a time now. Stop this if you can. Call any bank in town, I'd love you to call mine, BB&T......the TAN is your tool of choice. Most governing bodies use it to bridge the gap for revenue collection but please.....giving up a 4% CD when you can probably get a TAN for between 1.94 and 2.5% is just plain foolishness.

Submitted by OhNoYouDidnt on Fri, 08/22/2008 - 4:01pm.

The current council should stop pointing fingers at past administrators and step up to the plate and get the job done! They need to take ownership and find solutions and quit blaming others. "The only other options were to shut down the Library or Rec dept"?! Please! The Library is the only decent thing The Town of Tyrone has. I think the current council is a little jealeous because they were not here to get it built in the first place! Stop your whining and get to work!

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