Among the temporary budget appropriations for April was one really big amount, $5,314,398.12. Don't worry, it is not a recurring monthly expense. It is the contribution due April 1 for the Police and Firemens' Retirement System. Another $1,283,398.12 contribution must be made for the Public Employees' Retirement System.
These hefty payments are the result of a deferral the council approved in 2009. See Plaintalker's post here.
A look at this chart shows the fluctuations over recent years, including times when no payment was required.
Contrary to what some officials would have you believe, the city can't just do whatever it wants with tax money, whenever it feels like taking action. The value of having a chief financial officer is that he or she knows how to interact with the Local Finance Board, a division of Local Government Services within the Department of Community Affairs. Local Finance Board Notices are sent to the CFO and are heavily detailed (click here to see an example). Municipalities are expected to follow state guidelines on budgets and according to the item linked, Plainfield is already a bit behind.
Finance Director Al Restaino said on March 4 the budget will go to the City Council "for action" in April, perhaps meaning it will be introduced. The 2013 Citizens Budget Advisory Committee members must also be named and the council will have to set a schedule for budget hearings. The budget may then be amended and a public hearing and final passage can take place.
One might conclude that by letting budget passage straggle past state guidelines, sometimes even to the fourth quarter, the city is doing its own thing. But the price of late budget passage is that most of the funds have then been expended in salaries and wages, and there is little leeway for cuts.
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Why can't we get a budge in on time. I don't understand why the budget can't be ready by the end of January? Perhaps if we had a full time CFO that could happen. I know that under Adrian Mapp's guidance, the city hall will be more productive and things will get done in a timely manner.
ReplyDeleteI agree Bob. But having a full time CFO will not resolve that. Do you know how many times the City has had a budget in place prior to fiscal year? 0 - Always an excuse like we are waiting to get figures from the State. Why can't a budget be adopted and amendments can always be made at a later date - Is that an option?
ReplyDeleteA budget is an ongoing planning process. Any Division within the City should be able to submit a budget within 1-2 weeks tops.
Yes - it's that easy and I would dare any division head to explain otherwise.
ahhhh the deferral ... Kicking the can down the road.. and the can keeps getting bigger.. What a wise decision that was.
ReplyDelete( it's pricey now.. but will be more expensive later... tick tock tick tock... what should we do.. I KNOW.. LET'S PAY MORE LATER SO WE LOOK GOOD NOW ! ) problem... most of you all are still here.. whiz in kids in City Hall.