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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