On Monday evening the Council will consider Resolution R135-10 Councilmanic Resolution Encouraging Timely Introduction of the State Fiscal Year 2011 Municipal Operating Budget. The resolution describes the importance of the budget and why it is necessary to adopt the budget as early as possible. Ultimately it urges the Administration to introduce the budget no later than September 1 and the Council to adopt the budget no later than November 1.
At last week’s agenda fixing session several of my colleagues said that they would not support this resolution. I firmly believe that this resolution is important and must be passed. The Council has a responsibility to the public to set the right policies and expectations for the Administration. There is no reason to adopt the budget 8 months into the fiscal year, or after 2/3 of the year is complete, as was the case this year. That is completely unacceptable and we must change things. The Council needs to set the tone early for what is acceptable.
The problem with such a late introduction is that the City is operating without a true 12-month spending plan which, to me, indicates a lack of vision and prioritization. How can you invest in the right divisions if you’ve spent all of your money without a plan? In addition, a late introduction means that any amendments that the Council makes have little time to take hold in. So, if the Council sees a way to save money, we can’t implement any adjustment until so late in the year that the effect is minimal. As it stands, the process doesn’t do justice to the taxpayer.
Ideally the budget would be adopted before (or concurrent to) the start of the fiscal year. However, there are a few challenges that currently prevent us from doing that. The City must be audited before a budget can be introduced, but the audit cannot happen until after the previous year is closed out. That may push us into the new fiscal year, but in the past the audit has been ready as early as the first half of August, so this does not contribute to an 8-month overdue budget. Also, in the past we have waited on extraordinary aid figures. Given the current financial situation of the State, it is no longer to our benefit to wait for extraordinary aid figures to be confirmed. We should assume that no aid will be given and plan accordingly.
Through discussion with the Administration, the city’s auditors and the Council’s Administration & Finance Committee I was able to put together a timeline that should be reasonable enough to meet. In order to meet this deadline, however, due diligence and planning is required of both the Administration and the Council. Should this resolution receive support from all Councilors and the Administration follow the policy set by the governing body, we will be moving in the right direction. It will also put us a step closer to introducing, amending and adopting the budget by the start of the fiscal year.
The language from the resolution is below:
COUNCILMANIC RESOLUTION ENCOURAGING TIMELY INTRODUCTION
OF THE STATE FISCAL YEAR 2011 MUNICIPAL OPERATING BUDGET
WHEREAS, a municipality’s budget is much more than an accounting document, but a plan of how to best use limited resources to benefit the City’s nearly 50,000 residents. It serves as a vision for the City by setting priorities and supporting a strategic plan that will affect residents both during the current fiscal year and for many years following that; and
WHEREAS, the City Council has a fiduciary responsibility to the residents of Plainfield. The Council is charged with approving the appropriations and expenditures of over $73,000,000 in taxpayer money. The Council has an obligation to its stakeholders to weigh the benefits of services provided with the costs associated with those services. The Council must make decisions that may impact all city services during the budget process; and
WHEREAS, the residents of Plainfield, more than ever, are depending on the City Council and all City leadership to be mindful of the tax burden and their need for quality services. Plainfield residents, not unlike most Americans, are suffering in this economic downturn and understand that the budget affects not only their pockets, but also their quality of life; and
WHEREAS, the Administration has the responsibility of providing the City Council with timely, accurate information and recommendations that will permit the City Council to approve funding that provides the residents with the services they require or request; and
WHEREAS, it is of the utmost importance to have a well-planned budget process in place, allowing for the efficient exchange of information and discussion. This includes, but is not limited to, state mandates required of all New Jersey municipalities and City Council mandates, such as the formation of Plainfield’s Citizen Budget Advisory Committee; and
WHEREAS, the City Council is desirous of maintaining a positive working relationship with the Administration and believes that setting expectations early for both branches of government will only strengthen that relationship; and
WHEREAS, the 2010 City Council of the City of Plainfield recognizes the need to adopt the FY2011 budget as early as possible to allow for healthy discussion of all that the budget entails and for a balanced spending plan to be put in place; and
WHEREAS, this governing body is aware of the statutory deadline requiring the budget to be introduced by August 10, and fully recognize the difficulty the administration may encounter with meeting this statutory deadline; now, therefore
BE IT RESOLVED that the 2010 City Council of the City of Plainfield urges the Administration to move expeditiously toward the introduction of a budget no later than September 1, 2010 which will allow for the timely adoption of the FY2011 Budget; and
BE IT FURTHER RESOLVED that the timeline memorialized in this document be respected and followed by all parties involved in Plainfield’s budget process.
Completion Date & Action Taken
September 1 - Introduction of Budget
September 10 - City Council holds Internal Budget Hearings
October 10 - CBAC Presentation
October 15 - City Council Administration & Finance Committee Recommends Budget Amendments
October 20 - Council Reviews and Approves Budget Amendments
November 1 - Budget Adoption
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