Friday, May 24, 2013

New Fiscal Team Mending Operations

A new team is improving the city's fiscal operations, Finance Director Al Restaino said at Thursday's budget meeting, though hiring a full-time chief financial officer is still a challenge.

The City Council and the Citizens' Budget Advisory Committee were reviewing budget requests from Administration & Finance divisions including Audit & Control, Tax Collector, Tax Assessor, Municipal Court and Purchasing. Restaino said Treasurer Diane Sherry-Buono came to the city in September 2012, Purchasing Agent Cindy Lea Weber in January and Tax Collector David Marshall just six weeks ago.

Budget Consultant David Kochel said CFOs are retiring faster than new ones are emerging. Each municipality is required by the state to have a CFO, but even increasing the pay range to a maximum of $125,000 has not helped the city to hire a permanent one and the administration is  still relying on South Plainfield Borough Administrator and CFO Glenn Cullen to give part-time assistance to Plainfield.

The new staff is working hard to address recommendations and findings of city auditors and Marshall is especially challenged to catch up with a backlog in his office, Restaino noted. Marshall called the current tax collection rate "embarrassing" at 94.07 percent and said it should be more like 96 or 97 percent.

The city holds tax lien sales to raise money on delinquent accounts, but Marshall said he wanted to foreclose on about 100 properties which also have PMUA charges.

"Don't we get paid eventually?' Councilman Cory Storch asked.

"Not if we own it," Marshall said.

Kochel said the city would have to be "very cautious" about closing and taking title, citing the example of a leaking underground tank as a possible liability. Once the city closes, it owns the problem, he warned.

Restaino also said the city does not want to be in the position of owning property.

CBAC member Jan Massey questioned why the city is advertising and selling PMUA liens, but Marshall said  the process is required by state law. The process is complicated by the fact that PMUA records are on a different system than city tax records, but Marshall said PMUA lends staff to help out with tax lien sale preparations and also contributes to the cost of advertising, which is about $20,000. Massey asked whether the list could be posted on the city web site and Marshall  said it could.

Longtime Tax Assessor Tracy Bennett said her job has been impacted by an increase in tax appeals. She said she is working evenings and weekends to catch up and needs another person in the office to help. The value of city property is decreasing due to the appeals, she said.

Judge Joan Robinson-Gross also asked for more help to perform Municipal Court operations. She advocated for a collection plan to recoup $780,000 in outstanding fines, saying the council tabled a resolution to hire an agency to collect the fines at no cost to the city.

The next budget deliberation session is 7 p.m. Tuesday at the Senior Center, 400 East Front Street, after which the council will develop amendments, aiming for final passage of the 2013 calendar year budget in June.

--Bernice

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