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City of Lauderdale Lakes
Office of the Mayor and Commission
4300 NW 36
1
h Street- Lauderdale Lakes, Florida 33319-5599
Telephone (954) 535-2739 Fax (954) 731-5857
February 7, 2013
Stacy Ritter , Broward County Commissioner
Board of County Commissioners
Broward County Governmental Center
115 South Andrew Avenue, Room
Fort Lauderdale, Florida 33301
Dear County Commissioner Ritter:
Received
FEB 1 1 2013
Commissioner Stacy Ritter
District3
This communication is in regards to concerns raised in your letters, dated January 11,
2013, to the Office of the Attorney General and the Joint Legislative Auditing
Committee. We wish to provide you with pertinent facts relative to the concerns that
you express in your recent letters to State of Florida Attorney Pam Bondi , Senator
Joseph Abruzzo and Representative Lake Ray regarding fiscal matters related to the
City of Lauderdale Lakes and the City's Community Redevelopment Agency.
City's Use of CRA funds
Through an independent CRA Forensic Audit, requested by the CRA Board of Directors,
and an investigation by the Broward County Office of the Inspector General (OIG) it was
confirm that in 2010, the City utilized CRA funds in excess of $2.5 Million without proper
approval by the Community Redevelopment Agency (CRA) and in conflict with Florida
Statute (FS) Chapter 163. The three City employees involved in the use of the funds
were no longer employed by the City at the time the audit and report findings were
finalized and released. The City and CRA acted and initiated corrective actions for all
major findings listed in the independent CRA Forensic Audit and in the final OIG Report.
City/CRA Forbearance Agreement
Based on legal advice from the CRA and City's external attorneys a legal and
appropriate Forbearance Agreement between the City and CRA was prepared and
executed to ensure that the City would repay all funds due the CRA. The agreement is a
seven (7) year agreement for repayment of principal only.
All actions taken by both the City and the CRA in investigating, documenting, reporting,
preparing, and approving the Forbearance Agreement were initiated with proper public
notice, published agendas, and meeting minutes. The repayment of funds by the City to
the CRA will ensure that Lauderdale Lakes and Broward County residents receive the
Mayor Barrington A. Russell, Sr. Vice Mayor Patricia Williams Commissioner Edwina Coleman
Commissioner Eric L. Haynes Commissioner Gloria Lewis Commissioner Eileen Rathery Commissioner Levoyd L. Williams
benefits intended under the CRA Plan through the utilization of these funds for
approved CRA projects and activities in the future.
Rollover of Funds
In accordance with FS 163 Part Ill , the CRA properly adopts annual budgets, including
the re-appropriation of prior year fund balance amounts, and follows all required
standards for the reallocation of CRA funds remaining unspent at the close of each
Fiscal Year.
Waiver of interests
The CRA Board has, in accordance with FS 163, approved the waiver of late payment
penalties in relation to receiving the annual CRA Tax Increment Fund (TIF) payment
from the City after the requi red payment due date of January 1st. This is proper conduct
for a CRA and the approval was provided at a noticed public meeting.
Fund Balance
Annually, the CRA adopts a budget that re-allocates unspent prior year CRA funds
(Including re-appropriation of annual fund balances) in accordance with Florida Statute
163. CRA line item budget entries are approved for specified eligible projects and
activities. Based upon the CRA's budget adoption process and the structure of the
adopted budget as published, the appropriation of CRA resources is proper. No
"refund" would be due to the paying agencies including Broward County based upon the
facts presented herein.
Financial Irresponsibility and Mismanagement
City Officials and City Administration have worked diligently to provide a greater level of
fiscal accountability, transparency, and responsibility enhancing its fiscal processes and
moving the City towards fiscal solvency particularly as it relates to our financial
obligations with Broward County and the Broward Sheriff's Office. The City and CRA
have taken specific and well-planned steps, including monthly self-reporting appropriate
state and county agencies as well as our banking institutions to maintain an open and
transparent environment regarding the implementation of the City's Financial Recovery
Plan.
In Fiscal Year 2011 , the City cooperated with The Florida Legislature Joint Legislative
Audit Committee in completing an independent analysis of the City's financial condition.
The Florida Legislature Joint Legislative Audit Committee also reviewed and provided
valuable feedback on the City's fiscal policies, procedures, and measures required to
reverse the City's deteriorating financial condition. The State's Joint Legislative Auditing
Committee issued a signed report to Honorable Hazelle P. Rogers with a copy to City
Officials on September 21 , 2011.
Since that time, the City has made consistent progress in resolving its financial issues
and improving its financial condition. As mentioned previously, the City has maintained
open communication with the State of Florida Auditor General's Office, Broward County
Auditor, Broward County Sheriff's Office, Banking Institutions, City Residents and
Businesses, and Other Stakeholders on the City's Financial Recovery Plan and related
financial indicators. The City and CRA have also provided comprehensive regular
{monthly) fiscal reports on all City and CRA Funds to designated taxing authorities,
including Broward County, to verify the fiscal integrity and stabilization of the City and
the CRA.
If you have any questions or further concerns, please do not hesitate to contact
Jonathan Allen, City Manager at {954) 535-2740 or us directly at {954) 535-2739.
Sincerely,
1

Chairperson, Lauderdale Lakes CRA
cc: City of Lauderdale Lakes City Commission
Jonathan K. Allen, Lauderdale Lakes City Manager
James C. Brady, Lauderdale Lakes City Attorney
Broward County Commission
City of Lauderdale Lakes State Legislative Delegation
Senator Christopher Smith
Representative Haze lie P. Rogers
Representative Perry Thurston
Representative Gwendolyn Clark-Reed
Attorney General Pam Bondi
Senator Joseph Abruzz
Representative Lake Ray
Kim Mills, State of Florida, Office of the Chief Inspector General
Bertha Henry, County Administrator
Evan Lukic, County Auditor