F.A.I.R. Legislation Passes, More Action to be Taken

On Monday, the Plainfield City Council advanced major items improving financial oversight and management of all City funds. Three resolutions were approved and two ordinances were approved on first reading (with seconding and final reading to occur in August). Two additional ordinances will be introduced in August (with second and final reading to occur in September). Collectively, these 7 items can be referred to as the Fiscal Accountability, Integrity and Responsibility Legislation Package (FAIR for short).

There were several changes made throughout the night. Here is a review on Monday night’s meeting as it relates to these items:


3 RESOLUTIONS AMENDED AND APPROVED

1) Resolution requesting that the State appoint a temporary Certified Financial Officer (CFO) and assist the Administration in hiring a qualified, certified permanent CFO

At Monday’s meeting, the Administration announced that a candidate for CFO had been offered a position and as such, this resolution was no longer necessary and should not be considered. Upon hearing this, I requested that a copy of the offer letter and applicant’s resume be provided to the Council. The City Administrator informed the Council that such information was not available. I requested a 10 minute recess so that the information could be retrieved from City Hall by the City Administrator, Corporation Counsel, Mayor and Mayor’s Confidential Aide (all of whom were at the meeting). Unfortunately, the Administration opted to not retrieve any of the information that the Council requested. As such, several members of the Council urged that we move forward but agreed to amend the resolution so that if a qualified candidate was brought before the Council and approved on or before July 28th, the resolution would be considered null and void. The purpose of this resolution is not to embarrass the Mayor or Administration, but to ensure that we have adequate staff in place. If the Mayor was able to find a qualified person, even if it was at the last minute, the Council should be willing to look into this candidate. A special meeting on July 28th will provide us with the opportunity to review and possibly approve a CFO. If this happens, then the resolution will be considered null and void and no copies will be sent to the State. If not, the resolution will be put in our records and sent to the State as originally intended.

2) Resolution urging the Mayor to fill the position of Director of Administration & Finance immediately

Similar to the CFO position, the Administration announced that a candidate for this position had been identified, although no offer had yet been extended. Again, the Council opted to move forward with the resolution, but amended it so that if a qualified candidate was approved on or before July 28th, the resolution would be considered null and void.

3) Resolution appointing FY2011 Citizen’s Budget Advisory Committee (CBAC)

Minor changes were made and 2 new names were added to the list of appointees.


2 ORDINANCES APPROVED ON FIRST READING
** These items will return to the Council in August for second and final reading

4) Ordinance requiring the Administration to present all bills for the Council review prior to payment

5) Ordinance setting the bid threshold at a lower amount to encourage greater competition between vendors


2 ORDINANCES SET FOR AUGUST AGENDA
**If approved in August, these items will return to the Council in September for second and final reading

6) Ordinance setting a strict policy limiting discretionary spending for this administration and every administration that follows

7) Ordinance requiring the City to utilize an RFP process for City’s designated banking service provider

This item was originally on Monday’s agenda as a resolution. However, upon discussion with Corporation Counsel, it was advised that the Council put this in Ordinance form to better meet the Council’s intentions or making this a long-term practice. The resolution was tabled indefinitely, but the item will return in the form of an ordinance in August.

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Policy That Will Put Our Financial House in Order

At the beginning of the year, I identified several goals for the Council. Those goals included improving the budget process and evaluating the City’s current financial policies. The July 19th agenda will contain six major items improving financial oversight and management of all city funds. If passed, these resolutions and ordinances will make the City more efficient, more effective and a better steward of your tax dollars.

There are two resolutions urging that appointments to key administrative positions be filled expeditiously, ensuring that the City has the right people in place to review and manage the budget.

• Resolution requesting that the State appoint a temporary Certified Financial Officer (CFO) and assist the Administration in hiring a qualified, certified permanent CFO:

This position has been vacant for over 2 ½ years, contributing to a late budget introduction, repeat audit findings and poor financial controls. The State has granted the City two extensions on this matter thus far. It is likely that a third extension will be granted when the second extension expires this Monday. This resolution gives the background of the situation, identifies problems resulting from operating without a CFO and specifies action that the State can take to help our City. This did not have enough support last month to move forward. I hope that the Council will unanimously support this resolution this time.

• Resolution urging the Mayor to fill the position of Director of Administration & Finance immediately:

This position has been inconsistently filled over the last 5 years and vacant since the beginning of this year. There are no records of this position being advertised for. Furthermore, the City’s Charter (which lays out the legal structure of City government) requires that this position be appointed by the Mayor. We are currently out of compliance with the Charter.

There is one ordinance setting policy around fiscal restraint, guaranteeing less waste of tax dollars and wiser use of public funds.

• Ordinance setting a strict policy limiting discretionary spending for this administration and every administration that follows:

When the City accepted extraordinary aid from the State during the last fiscal year, we agreed to terms and conditions limiting the use of funds on items not critical to the functioning of the City for that fiscal year. As a result, there was a hold on the purchase of food, flowers, social events, etc. This ordinance will keep similar limitations in place indefinitely.

There are two ordinances granting the Council access to financial information and the ability to provide better oversight.

• Ordinance requiring the Administration to present all bills for the Council review prior to payment:

Many municipalities require that the governing body review bills before payment is made. In some cases these bills cannot be paid without Council approval. Due to Plainfield’s Charter, our Council does not have the authority to approve bills. However, we absolutely have the right to oversight and that includes the right to review bills prior to payment. If the governing body recognizes a pattern of spending that is worrisome or warrants further review, we can take the necessary steps to ensure that tax dollars are being spent wisely.

• Ordinance setting the bid threshold at a lower amount to encourage greater competition between vendors:

Governor Christie recently adjusted the bid thresholds for awarding contracts by municipalities. The bid threshold for contracting units governed by the Local Public Contracts Law rose from $21,000 to $26,000 on July 1, 2010. If any municipality has an appointed Qualified Purchasing Agent (QPA) the maximum bid threshold increased from $29,000 to $36,000. Local governing bodies have the authority to adjust this threshold as necessary. This ordinance will adjust that threshold to the pay-to-play level of $17,500.

There is one resolution mandating the continued involvement of residents in the budget process.

• Resolution appointing FY2011 Citizen’s Budget Advisory Committee (CBAC):

The budget process is one of the most important aspects of running the City. The Mayor sets forth her vision when she introduces the budget. The Council can then adjust the proposed budget by increasing or decreasing funds as it sees fit, being sure to meet all obligations while prioritizing where city funds are most needed. An important piece of this process is the CBAC. This committee, made up of 16 residents appointed by the Council and Mayor, has the responsibility to review the introduced budget, attend budget hearings and make final recommendations to the Council before amendments are made and the budget is adopted. The proposed goals for this year’s CBAC are:
a. Conduct analysis comparing Plainfield to municipalities with similar size, demographics and budget size to review sources and types of revenue, service costs, etc.
b. Identify possibilities for shared services, reviewing what shared service agreements, if any, similar municipalities have agreed to
c. Identify core services, as defined by residents and rank their priority order
d. Make a final set of budget recommendations for 2011 Budget

These items were initially vetted by the Council’s Administration & Finance Committee and then shared with the Administration. After feedback was received and legal review conducted, they were then recommended to the entire governing body. At Monday’s agenda fixing session, there was consensus to put these items up for Monday’s vote. In other words, none of these items are surprises to either Councilors or the Administration. All have had an opportunity to express their support or concerns about each and every item.

I support ALL of the above motions. Despite concerns from the Administration, the Council is not overstepping any boundaries in proposing these items. We are simply acting on our right and obligation to oversee the City’s financials, ensure that competent, qualified people occupy our top management positions and continue to work towards tax stabilization.
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