Cities: In A League Of Their Own.
League prospers as Ky. cities struggle
By Linda B. Blackford
Last year, the Kentucky League of Cities warned that cities were on the financial brink, facing higher retirement costs and growing fiscal pressures.
"Make no mistake," said League Executive Director Sylvia Lovely in a press release. "Cities are in a full-blown financial crisis."
But as Kentucky cities' coffers have been depleted, the League — funded through city dues, city insurance premiums and city loan payments — has, in its own words, become "one of the largest and most successful municipal leagues in the country." The small non-profit that was formed 80 years ago to help cities is now a multimillion-dollar operation, but one with little oversight and plenty of perks for its employees.
As cities have laid workers off, Lovely, who came to the League as a lawyer in 1988, has seen her compensation package grow to $315,000 — a 25.5 percent increase since 2006. She drives a BMW SUV provided by the League and, when she travels, her husband, Bernard Lovely, often goes with her at the expense of the organization.
As cities have cut services, the top three executives of the League have charged more than $300,000 for travel, meals and other expenses since 2006, according to records obtained by the Herald-Leader under the state's Open Records Act. In 2008, travel by all League employees cost about $457,000, according to its 2008 financial statement.
As cities struggled to pay higher rates in the state's retirement system, the League gave more than a quarter of a million dollars to five employees, including Lovely and her top lieutenants, in the form of forgivable loans to buy more years of retirement benefits in the same system — money they never had to pay back.
The League is a mixture of non-profit and for-profit enterprise, which, supporters say, does untold good for 382 Kentucky cities by providing free legal advice, superlative insurance service and lobbying on such issues as lower pension rates.
"It's dynamic, it's exciting, it is unique and it helps cities in so many fundamental ways," Lovely said of the League.
At the same time, the organization — which provides insurance and services only to cities — has little oversight from the state or its own executive board, which is made up entirely of the mayors and city managers it serves. The board was informed of executive compensation, according to Lovely, but it does not sign off on individual travel or other expenses.
State Auditor Crit Luallen questions the lack of oversight. "The League is an association of government entities and they are governed by a board of elected officials who have a fiduciary responsibility to ensure the appropriate use of public funds," Luallen said. "Their expenditures should be transparent and reasonable in nature, and those expenditures should be tied to quantifiable benefits to the public."
The Herald-Leader examined the credit card expenses of Lovely, Deputy Executive Director Neil Hackworth and Chief Insurance Services Officer William Hamilton. Included in the $304,000 in expenses for the three were nearly $176,000 for travel, and more than $77,000 for meals. Their travels included stays at the Portola Hotel and Spa in Monterey, Calif., the Fairmont Hotel in San Francisco and the Alyeska Resort in Alaska. Lunches and dinners entertaining others included thousands spent at restaurants such as Galatoire's in New Orleans and Citronelle in Washington, D.C.
In addition to numerous meetings and travel, the executives enjoy other privileges charged to the League, including a box at Churchill Downs, Ryder Cup tickets, University of Kentucky football and basketball season tickets, and roughly $2,300 spent for Lovely and her husband to fly to Washington, D.C., to attend President Barack Obama's inauguration and the Bluegrass Ball.
Lovely said she believes the League is serving cities well.
"I think we stay in touch with those cities," Lovely said. "If I could, I'd be in every one of them because my heart is breaking for them for what they're going through. Our travel brings back so much more. If I could explain it to them, I would."
Editor's comment: Check out KLC salaries here, and members of the KLC board.
Also, read Mayor Jim Newberry's letter to Connie Lawson, President of the board.
By Linda B. Blackford
Last year, the Kentucky League of Cities warned that cities were on the financial brink, facing higher retirement costs and growing fiscal pressures.
"Make no mistake," said League Executive Director Sylvia Lovely in a press release. "Cities are in a full-blown financial crisis."
But as Kentucky cities' coffers have been depleted, the League — funded through city dues, city insurance premiums and city loan payments — has, in its own words, become "one of the largest and most successful municipal leagues in the country." The small non-profit that was formed 80 years ago to help cities is now a multimillion-dollar operation, but one with little oversight and plenty of perks for its employees.
As cities have laid workers off, Lovely, who came to the League as a lawyer in 1988, has seen her compensation package grow to $315,000 — a 25.5 percent increase since 2006. She drives a BMW SUV provided by the League and, when she travels, her husband, Bernard Lovely, often goes with her at the expense of the organization.
As cities have cut services, the top three executives of the League have charged more than $300,000 for travel, meals and other expenses since 2006, according to records obtained by the Herald-Leader under the state's Open Records Act. In 2008, travel by all League employees cost about $457,000, according to its 2008 financial statement.
As cities struggled to pay higher rates in the state's retirement system, the League gave more than a quarter of a million dollars to five employees, including Lovely and her top lieutenants, in the form of forgivable loans to buy more years of retirement benefits in the same system — money they never had to pay back.
The League is a mixture of non-profit and for-profit enterprise, which, supporters say, does untold good for 382 Kentucky cities by providing free legal advice, superlative insurance service and lobbying on such issues as lower pension rates.
"It's dynamic, it's exciting, it is unique and it helps cities in so many fundamental ways," Lovely said of the League.
At the same time, the organization — which provides insurance and services only to cities — has little oversight from the state or its own executive board, which is made up entirely of the mayors and city managers it serves. The board was informed of executive compensation, according to Lovely, but it does not sign off on individual travel or other expenses.
State Auditor Crit Luallen questions the lack of oversight. "The League is an association of government entities and they are governed by a board of elected officials who have a fiduciary responsibility to ensure the appropriate use of public funds," Luallen said. "Their expenditures should be transparent and reasonable in nature, and those expenditures should be tied to quantifiable benefits to the public."
The Herald-Leader examined the credit card expenses of Lovely, Deputy Executive Director Neil Hackworth and Chief Insurance Services Officer William Hamilton. Included in the $304,000 in expenses for the three were nearly $176,000 for travel, and more than $77,000 for meals. Their travels included stays at the Portola Hotel and Spa in Monterey, Calif., the Fairmont Hotel in San Francisco and the Alyeska Resort in Alaska. Lunches and dinners entertaining others included thousands spent at restaurants such as Galatoire's in New Orleans and Citronelle in Washington, D.C.
In addition to numerous meetings and travel, the executives enjoy other privileges charged to the League, including a box at Churchill Downs, Ryder Cup tickets, University of Kentucky football and basketball season tickets, and roughly $2,300 spent for Lovely and her husband to fly to Washington, D.C., to attend President Barack Obama's inauguration and the Bluegrass Ball.
Lovely said she believes the League is serving cities well.
"I think we stay in touch with those cities," Lovely said. "If I could, I'd be in every one of them because my heart is breaking for them for what they're going through. Our travel brings back so much more. If I could explain it to them, I would."
Editor's comment: Check out KLC salaries here, and members of the KLC board.
Also, read Mayor Jim Newberry's letter to Connie Lawson, President of the board.
Labels: General information, Keeping them honest
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