As the administration continues to look for a chief financial officer, it might be interesting to look back at a former department head's view of fiscal matters in Plainfield. Douglas Peck came to the city in April 2008, but despite making a bold initial attempt at change, he left after nine months. Peck was one of seven permanent or acting finance directors heading the department in the past six and a half years.
Read Plaintalker's post here.
Subscribe to:
Post Comments (Atom)
Part 1
ReplyDeleteReading over your linked post, I noticed a comment left by an anonymous poster who decried the lack of an available tax deduction for PMUA services. In fact, this has been a common complaint, although recently PMUA attorney Leslie London proposed legislation that would extend a state tax deduction for services provided by a municipal utilities authority.
Any CFO, mayor, council member, or city administrator should look carefully at the financial arrangement entered into by the City and the PMUA and memorialized in the Inter Local Agreement. So too should every resident, taxpayer and ratepayer.
Although the ILA provides that the City will not be billed for service charges or fees, save for illegal dumping on city-owned property which the city refers to PMUA for cleanup, there is nothing in the agreement that says the city should not pay its fair share. There is nothing to prevent the city from appropriating additional sums to cover increased costs to help stabilize rates, or that PMUA must cover its expenses solely through service charges. The ILA rate covenant includes "other available monies".
If the city actually paid its fair share, instead of sloughing it off onto the shoulders of PMUA ratepayers, the cost of servicing the public areas would be tax deductible. What is insidious is that ratepayers are essentially forced to make up the difference because the city acts as if it's a deadbeat by laying off its obligation, even using its tax and legal authority to stick it to any 'suckers' (that's the rest of us) who may have difficulty paying their bills.
Part 2
ReplyDeleteA new CFO, all public officials, and all Plainfield citizens should know that our city and its 'agency and instrumentality' the PMUA have been defrauding us for about 14 years.
Section 203B of the ILA requires the city to appropriate within its budget the total cost of solid waste disposal within the city's geographic boundaries, and for the PMUA to make a lease payment to the city equal to the difference between the appropiation and $1.2 million. The total cost is certified by resolution of the commissioners, and the lease payment is altered by a subsequent reconciliation, etching in stone what was initially an estimate with actual costs.
In addition, the Revenue Sharing calculation provided for in Section 204B, provides added transparency, as does the requirement that PMUA submit its budget to the city, requesting written recommendations, BEFORE the budget goes to Trenton and the Department of Local Government Services for approval.
In practice, however, a secret agreement between unknown individuals discarded Section 203B. This basically removed the many checks and balances built into the ILA, turning PMUA into a renegade operation with limited accountability and fiscal controls. Any amendment to the ILA must be voted upon by the City Council and the Board of Commissioners, but this was never done.
Call it improper, illegal, a bait and switch, or just plain fraud, and you won't be far off the mark. To add salt to the wounds, and clearly fraudulent, is the characterization of the Sewer Lease (section 203A) by the city as Revenue Sharing. The amount due the city on the Sewer Lease finds its way into the city budget on a line titled "PMUA Revenue Sharing", and former City Administrator Bibi Taylor (currently Union County's finance director) referred to the payment as the "typical" PMUA contribution to revenue sharing in a public meeting. That description came after PMUA Chairman and former mayor Harold Mitchell can be heard mumbling "The check, the check," and a giggling City Council President asks Ms. Taylor to explain what "The Check" is all about. What lies we are told! PMUA has never once made a revenue sharing payment to the city, at least according to its own financial statements.
Let's hope we get a CFO with integrity. I'm not holding my breath. Most of those on the City Council, in the Administration, and on the Board of Commissioners, have way too much to lose from from a real light being shined on them. Their personal conflicts of interest are huge, and most of them have supported efforts to limit transparency and accountability at virtually every turn. Fiscal affairs are managed haphazardly, while laws and regulations are ignored or violated.
Perpetrators are rewarded with promotions.
This is our local government for you, and the problems span different adminsitrations. You can't blame Plainfield Democratic Committee Chairman Jerry Green, he says he has nothing to do with day-to-day city affairs, although being in his voting bloc on the PDCC does seem to confer many with jobs and perks. It could get you on the PMUA board, where you can steal your share of $100,000s in illegal compensation. Or on the Plainfield Housing Authority where you can get a 'short-term loan' to contribute to a PMUA commissioner's run for City Council.
Lot's of fraud and improprieties. What short-time CFO could possibly deal with this? Many of the actions are just morally indefensible, and those who obstruct closer scrutiny are the real enemies of the people, the purely self-interested and self-serving.
It is sad that this mayor is such a mess that responsible, qualified people will not stay in the job. The job pays very well and is rewarding in many ways. I see the only solution is to get rid of this mayor, even if we have to wait until the next election. She has been a diaster for all of her years in office and has few, if any, redeeming qualities. Let's hope the next Democrat who runs for mayor is qualified and knows what their doing. If not, I urge all Democrats to voted Republican or for an independent candidate.
ReplyDeleteWhat is even sadder is that most ofthe people of Plainfield don't seem to care (they voted the mayor in TWICE) or they are really dumb.
ReplyDeleteBernice , you posted my comment to that blog:
ReplyDelete" Let us hope this is not more "talk the talk" but he will be able to "walk the walk". It will be interesting to watch if there is any change. I just can't conceive the present powers permitting su ch radical ideas.
Unfortunately did not Peck leave abruptly and under a cloud? Once again poor vetting not only limited to the Mayor and Council but to the BOE. SWee track records.