Florida City's Solvency to be Analyzed

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BRADENTON, Fla. – A south Florida public administrator will determine if Opa-locka is solvent for the state-appointed panel overseeing the city's finances.

Merrett Stierheim will report on the "gravity of the situation faced by Opa-locka," and hire a finance director for the city, according to Melinda Miguel, chairman of the Financial Emergency Board.

The appointment was announced Thursday when Miguel gave an opening statement complaining that the panel had received incomplete financial reports and requests for payments without details or invoices.

Stierheim, who will work for free, has been the manager for Miami-Dade County and various cities, and superintendent of the county's school district.

Stierheim has also worked with many troubled governments, including Miami in the late 1990s when it was in the midst of a corruption scandal and a financial crisis that led then-Gov. Lawton Chiles to appoint a Financial Emergency Board.

In Opa-locka, the city's cash shortage is so severe that employee hours have been cut back, and layoffs are being considered. Every bill is being questioned. Contracts for outside legal assistance and Internet service are being terminated.

City council members have been ordered to turn in city-owned vehicles, and keys to the gas pumps are being taken from non-essential personnel.

Gov. Rick Scott appointed the oversight board June 1 after the city entered an agreement seeking the state's assistance, which does not include funding.

Miguel, who is Scott's chief inspector general, said Thursday that Opa-locka Mayor Myra Taylor had approached her for a second time requesting that the state provide the city a bridge loan, such as advance on revenue-sharing funds.

Acting city manager Yvette Harrell has said that the city could run out of money by the end of September.

The city's last audit was in 2014, and the panel is considering asking the Florida Auditor General to conduct an audit.

"I think this city cries out for a forensic audit on every single account," said board member Frank Rollason.

In addition to those troubles, federal corruption investigations are ongoing and the Securities and Exchange Commission has opened an inquiry into whether proper disclosures were made about the city's fiscal state when bonds were sold.

Last week, the former city manager, David Chiverton, and former public works supervisor, Gregory Harris, were arrested and charged with taking kickbacks from business owners and individuals.

Miguel mentioned the arrests in her opening statement and said residents have "paid a steep price" by placing trust in their government officials.

"The citizens of Opa-locka have a right to know that their money is well spent," Miguel said. "Instead, we see corruption. We must continue on our search for the truth."

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