An $8.5 million surplus and a 97.05 percent tax collection rate are the good news for the 2016 budget, but a $6 million drop in residential ratables is just one of several challenges the city still faces.
The figures came from a presentation to the City Council Monday by Chief Financial Officer Ulrich "Al" Steinberg and Finance Director Ron West, in advance of budget introduction next Monday. The governing body will then begin weeks of deliberations with the help of the Citizens' Budget Advisory Committee before a public hearing and final passage..
The process began late last year with departmental requests that were subject to modification by the administration. The budget now ready to hand off to the council totals $79,412,520.58, a 1.74 percent increase over last year's figure. It reflects a $94 increase on taxes for the average home valued at $113,000. Of that amount, $23 is due to the loss of ratables. The total value of all city property declined by $38,266,307 since 2011, now standing at $1,216,502,273.
Sixty percent of the budget is for the Police and Fire divisions, with 33 percent for all other union employees and just 7 percent for department heads and managers.
Councilwoman Bridget Rivers challenged West over the projected $94 average increase, saying the city saved $1.2 million on insurance in 2015 and she thought it would reduce taxes.But she said insurance was budgeted for the same amount this year.
"Yes," West said.
Rivers asked why.
"We are only allowed to budget against the prior year appropriation," West said.
"I still don't like the answer," Rivers said.
After Mayor Adrian O. Mapp took office in January 2014, West and Steinberg did the municipal equivalent of rifling the couch cushions for cash, selling off unwanted city property, claiming dormant grant money and reviewing fiscal practices for economies. A list of key accomplishments includes an upgraded Moody's bond rating, "financial housekeeping" that resulted in recouping $1.5 million and audit findings reduced 75 percent to just four.(In 2013, auditors found 16 problems, nine of which were repeat findings.)
This year, West and Steinberg plan more of the same and want to establish a multi-year forecast to stay on track for tax rate stabilization. A list of key priorities notes "56 projects underway" in economic and community development.
The council still has to set dates for budget talks. Plaintalker will publish the schedule as soon as it is available.
--Bernice
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Bridget comments are spot on regarding the Council's understanding of budgets. I don't like the answer translates into "I cannot argue with you because I don't understand a word of what you just said". I think it should be an ordinance that members of the council should either have a business degree or attend a "budget understanding class for city councilors". She absolutely reflects the lack of knowledge in understanding anything about budgets. And our fate is in her hands. How scary is that?
ReplyDeleteI guess you would like a test to issued at the polls also . Mr. X
DeleteI would imagine there’s a fair amount of qualified people in Plainfield without a business degree that can understand the budget and the budget process. I take issue with your statement and condescending tone. We all know that a degree doesn’t necessarily make you the brightest star in the galaxy. I understand the reason for the insurance budget line reflecting last year’s cost, what he should have said, fiscal 2017 budget would show the decrease insurance if the rate remains at the lower pricing. I know a bunch of highly educated fools that lack basic common sense and wouldn’t even know the correct questions to ask to get at an answer.
DeleteIt is a very good sign the Administration and Council are getting an early start on the budgeting process this year. Hopefully the Council will start the Departmental Budget Review Meetings as soon as possible to allow enough time for a review and discussion of ALL sections in the budget by both the Council and the Citizens Budget Advisory Committee (CBAC).
ReplyDeleteHaving sufficient time allocated for a comprehensive budget review has been a recommendation by last four CBACs. Last year we only 2+ weeks for review meetings and as a result only 11 of the 39 sections/departments in the budget were reviewed by the Council and CBAC. Major items including the City Debt and Police and Fire pension payments, which cost the City millions of dollars a year, were not reviewed or discussed at all. The Council, as representatives of the people, has a fiduciary duty to understand the entirety of the budget. The CBAC and the public have the right to a full understanding of how our tax dollars are being spent.
Tom Kaercher
2015 CBAC, Chairman
It sounds like we're heading in a good direction. Rivers should have known her questions was moot, but I guess she didn't learn much during her time as Council President. Too bad.
ReplyDeleteTo Mr X. - No sir, I would not. What I would like, however, is informed members of the council who take the time to understand what they are doing when they spend my, and your, money.
ReplyDeleteBy the way, to be clear, I am not implying that the council members are not capable of understanding such matters, I am saying that they obviously do not take the time to do so. Very different points.
Not sure what yours is.
To 4:56pm - I believe the point was not in having a formal education, but seeking the knowledge to understand the budget that is put in front of you.
ReplyDeleteRun for City Council - I would feel better having you on it than Rivers since you have an understanding of budgeting.