Bradenton Housing Authority suspends payroll cuts in wake of stronger financial standing

BRADENTON -- In administrative cuts alone, Bradenton Housing Authority Executive Director Ellis Mitchell Jr. was hopeful at the conclusion of his first year to show more than $100,000 in savings. The projected savings through Dec. 31 is $7,671, but it was an expensive year taking care of loose ends left behind from years of scandal and high-level staff departures.

"We had projected a much higher amount, but had a lot of costs to take care of," said Mitchell, who when first hired acknowledged that the BHA staff was overpaid and the agency was top heavy in administrative costs.

In his first year, Mitchell sold off agency vehicles that were being used for personal errands and suspended gas cards, saving thousands of dollars in fuel costs alone. He reconfigured health benefits, cut bonuses and implemented a 3-year employee salary reduction plan that was scheduled to reduce salaries by 5 percent a year, although he lobbied for and accepted a $5,000 raise, lifting his salary to $139,000.

Mitchell took up the salary reductions with his board on Thursday, which agreed to suspend the payroll cuts for six months to determine if Mitchell's cost savings goals are being met for the next year.

The agency lost two employees making $109,000 and $121,000, respectively, through resignations. Mitchell shifted employee duties and either hired or outsourced some of the work at much lower cost. He hired one employee at $80,000 and outsourced accounting for $15,000. However, both employees were paid more than $30,000 in accrued leave time and the agency lost an annual $25,000 grant when it wasn't applied for during the transition.

With the transition firmly in place, Mitchell said there will be a $65,000 savings in salaries in the coming year, which includes his proposal to hire two more employees; an administrative assistant and a compliance manager. Looking ahead with all of the pieces of the puzzle in place, Mitchell said total projected savings by the end of 2016 are about $182,000 in administration costs alone.

Board members were initially hesitant to suspend the employee salary reductions. Board chair Napoleon Mills said the public expects the BHA to stick to a strong financial plan given its lack of control over Wenston DeSue, former director, who sunk the agency into a $500,000 debt. DeSue is now serving a federal prison sentence for theft of federal funds.

"This is the plan we came up with and put out publicly," said Mills. "What we've seen this year is 100 percent savings and we've done a good job at looking at our finances and the way our finances are used. For me, we've done a fantastic job, but I'm not ready to abandon ship right now."

Mills recommended one more year of the salary reduction plan, and Commissioner Norma Dunwoody agreed.

"I would say continue it for at least another six months and reevaluate it at that point to more or less confirm you are on your projected cost savings path," she said.

Mitchell said next year's budget is already exceeded his savings goal with the projected $187,000. Mitchell argued that if for any reason during the next year that the board has to revisit the pay cuts, "Then I can see us doing that."

Commissioner Charlie Grace, who is retiring in December and is one of two commissioners left from the DeSue era along with Mills, recommended the cuts be suspended. With only Mills, Grace and Dunwoody present at Thursday's meeting, the vote sided with Grace in temporarily suspending the pay cuts.

Mark Young, Herald urban affairs reporter, can be reached at 941-745-7041 or follow him on Twitter@urbanmark2014.

This story was originally published November 20, 2015 at 4:52 PM with the headline "Bradenton Housing Authority suspends payroll cuts in wake of stronger financial standing ."