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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9 comments:
This resolution seems generous enough and it will be interesting to see how each City Council member votes, and more interesting to see if the Administration is able to speed up the process and become pro-active with its fiscal planning. In fact, if the City has received any of the $250,000 in extraordinary state-aid for FY10, it is obligated under the Memorandum of Understanding to submit a fiscal and operational plan to the State within 60 days detailing the steps it will take to reduce the need for extraordinary aid for the upcoming fiscal year. So a plan for the budget, and greater operational controls, should already be in the works, and budget issues should be front and center long before the budget introduction deadline of September 1 as stipulated by the resolution.
Needless to say, I am not holding my breath. Delay, and delay again, seems more akin to the City's operating philosophy. We wait years to raise certain fees simply to a level to offset our costs, and we are still waiting for certified personnel to fill positions required by statute. We even wait until we have no choice but to demolish our past, as the recent North Ave. demolition shows fairly plainly.
All Council members should recognize the extremely precarious position we have left for ourselves. Several have shown little inclination to do anything but wait. They'll wait for a budget with no tax increase, they'll wait for a budget that doesn't include layoffs, they'll wait for manna from Trenton or heaven, and they'll wait two more weeks, or 10, with the hope that something will come about. If anyone votes against this resolution, let it be only because it is too generous with time, and let's see them introduce an alternative that moves it up by three or four months.
Before long, the future becomes the past, but in a city that demolishes the past so readily, our future is jeopardized when we have no past to learn from.
Well thought out and a great start. There is no reason why the council cannot have preliminary discussions and insight into the budget. The remark made by Bibi Taylor that once a budget is introduced it is set in stone is ridiculous - and I am sure she was strong armed into saying that statement in order to keep her job. Sounds like the mayor's response who has no clue, not an intelligent administrator's answer.
So don't "introduce" it. "Show it" to the council. Let's stop playing games. The issue is, we need to get a budget done in a timely manner. Can we not all work together to do that?
I must agree with others that this is more than generous for the time needed and would not be required if we had a mayor who was able to complete important city business in a timely manner. I, like many others, will keep my eye on those council members who do not vote for this and are not willing to provide the citizens of Plainfield the type of service we require from our administration and council.
The most logical conclusion is to convert from a state fiscal year budget year to a calendar year. State fiscal year budgets serve no purpose with the decrease in state aid and extraordinary aid
Simply: No one does a household budget and waits to find out if they are going to win the lottery before allocating expenses etc. Do the budget, expect nothing from the state...and be done with it.
Forgive me for saying this, but at your young age you are already corrupted by the political process. When the budget year starts there should be a budget in place period. Your idea of fiscal responsibility is to allow one third of the year to pass before adopting a budget. There is no private business that could operate like this and remain viable. This nonsense about waiting for clarification from the state, on municipal aid, is nothing more than burying your head in the sand. If you want to be a leader in Plainfield show it and drive the Administration and Council to meet their responsibility to the residents of Plainfield.
Unfortunately, government has never felt the need to spend within their means. The reason being -- business and individuals have to earn their money by providing services. If a business or individual does not provide a fair value, they don't get funds, they can't spend money.
Governments, on the other hand, can spend, spend, spend -- and just simply raise taxes. You can throw officials out -- but the next individuals get sucked up into the process, and government spending has, continues, and will always go out of control with no connection to reality.
Look at what has gone on at the Federal and state levels for years -- spending, spending, spending ...
Personally, I think at all levels of government their should be a constitutional amendment disallowing spending/increases beyond the inflation rate.
Government is trying to appease all the niche groups by providing services that government can simply not afford any more.
What is killing government budgets are the cushy perks to government employment.
The balancing act for someone trying to make a chance is they don't want to piss off the powers that be COMPLETELY -- because they'll need that support. It's called politics. Not about doing what is truly right, but making changes and furthering your political career (which by definition means you get corrupted due to compromise).
I'm still waiting to hear what the city pays the PMUA $1.2 million per year for? Since that's part of the annual budget one would think the administration and council know what they are getting for that appropriation. Inquiring minds want to know - do share!
What difference does it make what the council does? At every turn the city administration does whatever it wants. The residents of Plainfield are sick, tired, and fed up with all the lies and wasteful spending. In many cases, there is little or no value to the actual services provided. Take for example the appropriations. Most council members don't even know what or why $'s are appropriated and what services will provided in return. You can pass whatever resolution you want but actions speak much louder than words or in this case resolutions.
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