Wednesday, March 30, 2011

Pension Deferral Debt Coming Due

It was two years ago that the governing body agreed, not without reservations, to accept a pension deferral plan offered by the state. It saved the city $2.7 million for the 2009 fiscal year, but incurred a debt to be paid back over 15 years starting in 2012.

From the March 31, 2009 post:

"Facing a $3.2 million shortfall in the yet-to-be-passed budget for the year ending June 30, the alternative would have been to make drastic cuts in police, fire and public works staff, City Council President Rashid Burney said.

"The city hopes to create a reserve that will lessen the impact of the future debt by allowing early repayment, officials said."

Some might say the drastic cuts were only deferred and the debt remains to be paid. As far as creating a reserve, did that happen? Given the turnover in the cabinet, does anybody know for sure? Perhaps this debt figures into the new shortfall identified, but not yet publicly explained, by new Chief Finance Officer Ron Zilinski.

Click here to read Plaintalker's post from two years ago.

The current council has proposed an early start on budget deliberations for the 2012 fiscal year, but the departure of Bibi Taylor may slow things down. Dan Williamson's stint as acting city administrator is up and unless there is a candidate to replace Taylor as city administrator through 2013, the mayor must name another acting city administrator.

The council meets Monday for an agenda-fixing session, 7:30 p.m. in City Hall Library. Perhaps there will be an update on the budget situation.

--Bernice

3 comments:

  1. Unfortunately, there will be massive layoffs to police, fire, and all other municipal employees to cut the 3.2 million deficit. I expect anywhere between 40 to 60 police/firemen in FY 2012. Plus we must operate with a 2% cap on taxes. I hate to say this but, Taylor probably had no serious interest in returning to Plainfield after her maternity leave. The council should have vetted her more before they decided to rescind her dismissal.

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  2. I wonder if Jerry and Sharon had anything to do with Bibi getting the county position. It seems the job search was not legally done and we know Sharon didn't want to face Bibi, as Bibi was too organized and made Sharon look even worse than she really is. Makes one wonder about the dirt that happnes here.

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  3. I believe the CBAC was told by the City Administrator, Marc Dashield, that the pension deferral plan was paid in full in the 2009-2010 budget. That was the reason the tax rate was high, but we would not have to pay anything after that budget season.

    The 2010 - 2011 CBAC was told by Bibi Taylor and it was not paid in full, which indeed it is not.

    Makes putting a budget together seem silly since we cannot get the real numbers.

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