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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Strong Financial Leadership Needed

Plainfield has not had a certified CFO for over 2 years and has suffered major vacancies in the position of Director of Administration & Finance for the last 5 years. Without a strong financial leadership team in place, the business of the City cannot be handled properly. This is an issue that should outrage all residents!

By not having these key positions filled, the City has suffered from lack of direction and oversight and poor financial planning and management. These shortcomings have manifested themselves in major ways including a late budget introduction, repeatedly unaddressed audit findings and questionable financial decision-making.

The Council is ultimately responsible for the finances of the City. We have a fiduciary responsibility to the public and cannot be afraid to insist that more be done to address any issue, especially one so critical to the basic functioning of government.

At last night’s meeting the Council had an opportunity to begin correcting this situation with the approval of Resolution 190-10. That resolution, however, failed to pass. Councilors Mapp, Storch and I voted in favor of the resolution. Councilors Burney and Reid did not. Councilors Rivers and Carter were not present at the time of the vote.

The resolution gives a brief synopsis of the current financial management situation that Plainfield is facing and why the need for a qualified CFO is so vital to the functioning of the City. Ultimately it calls on the State to appoint a temporary CFO and assist the Administration in finding a qualified permanent CFO. The language of the resolution is included at the end of this post.

The Administration made it clear that they completely oppose this resolution, arguing that the Mayor alone has the ability to appoint a CFO and that the Council would overstep its boundaries in passing such a resolution. I do not believe that this is the case as the resolution is clearly asking the STATE to make an appointment. Surely the Governor has more authority than the Mayor.

The Administration also attempted to make the case that the resolution was offensive by making it seem that the Mayor has done nothing to appoint a CFO. As I said on Monday night, this resolution is not intended to offend anyone, nor is it the intent of any Councilperson to disparage the Mayor’s efforts. This is not about the Mayor. This is about the residents of Plainfield and what is right for them.

Over the course of the week it became clear that certain members of the Council also did not agree with the resolution, believing that at the very least we should wait until after the 90 day extension from the state (the third granted) expires on July 19th. The problem here is that the Division of Local Government Services has continually granted extensions. What will cause DLS to take pause and do something different? The passing of this resolution could have done just that.

Although the resolution did not pass, I am including it on the July agenda. By then, perhaps all members of the Council will see wisdom in pressing forward and putting Plainfield First.


Councilmanic Resolution Requesting the Division of Local Government Services, in the Department of Community Affairs, to appoint a Temporary CMFO for the City of Plainfield

WHEREAS Plainfield has not had a permanent Certified Municipal Financial Officer (CMFO) since the retirement of Peter Sepelya in 2008; and

WHEREAS the lack of a permanent, Certified Municipal Financial Officer is compounded by the lack of a Director of Administration and Finance, a position that has been vacant since Bibi Taylor elevated to the position of City Administrator on Jan 1, 2010; and

WHEREAS the Plainfield City Council has not received regular monthly financial reports during the time of these vacancies thus impairing its ability to carry out its financial fiduciary responsibilities; and

WHEREAS Plainfield had many financial audit findings in the most recent annual audit, many of which were repeat findings; and

WHEREAS the FY2010 introduced budget was presented to City Council on November 23,2009, almost 5 1/2 months into the fiscal year, making it extremely difficult for the governing body to reduce a 10% introduced property tax increase; and

WHEREAS the Division of Local Government Services in the Department of Community Affairs has extended the deadline for Plainfield to fill the CMFO position for the third time to July 19, 2010; and

WHEREAS the Plainfield City Council has continually urged the Mayor to appoint a qualified candidate with no success to date,

NOW THEREFORE BE IT RESOLVED that the Plainfield City Council hereby requests the Department of Community Affairs to appoint a temporary CMFO immediately, and provide assistance to Plainfield in recruiting a qualified, permanent CMFO.

BE IT FURTHER RESOLVED, that duly authenticated copies of this resolution be forwarded to Governor Chris Christie, Commissioner of Community Affairs, Acting Director of the Division of Local Government Services, Marc Pfifer, Mayor Sharon Robinson-Briggs and Assemblyman Gerald Green.

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Albert T. McWilliams III in the Paper/ Update on McWilliams kids

Residents constantly ask me about how my family is doing. For those who are wondering, click on the link below.

The link will take you to an article on my little brother, Albert McWilliams III, which was published in the Sunday Edition of the Courier News. He was recently accepted into the highly competitive Institute for Responsible Citizenship and will be interning in D.C. this summer. He is doing very well at Yale University where he just completed his second year. As you can imagine, my mother and our entire family is extremely proud of him.

The article also mentions the successes of my other younger brother and sisters. Allison (21) recently graduated last month from Savannah College of Art and Design with a B.A. in Film & Television. She produced a number of short films and music videos while on campus and has her own production company – Beyond Sight Films.

Adam (17) will be graduating from Union County Magnet High School this week and attending Fordham University in the Fall. Although he isn’t sure what he wants to study, the excellent education he received at the Magnet School (a public school) has given him a college-level understanding of technology and science.

Avery (15) is a sophomore in high school and excelling in school, sports and socializing. As the youngest of 5, she is truly 15 going on 50. She is also passionate about cooking and has a gift for making delicious dishes.

***I want to thank Mark Spivey for consistently writing positive articles about Plainfield. It is easy to write controversial stories that highlight only negativity, but Mark has found many positive stories about Plainfield residents that give us all a sense of pride.


http://www.mycentraljersey.com/article/20100612/NEWS/100612008/1018/NEWS0401

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Congratulations to Rebecca Williams

Congratulations to Candidate-elect Rebecca Williams for a well-run and hard-fought campaign. The numbers speak for themselves and indicate that residents continue to seek positive change. Rebecca Williams is a loyal member of the New Democrats and the mastermind behind many successful campaigns, including my own. Her background as an activist and educator give her a skill set that we need to move the City forward. I have no doubt that with a favorable outcome in the general election she will bring a passionate and progressive point of view to the 2011 City Council.

I hope that Councilman Burney and long-time Plainfielder Don Davis will continue to offer their many talents to the City. It will take more than just the City Council to improve Plainfield.

Emotions run high in elections and local primaries are no “exception to the rule”. As I stated at the Democratic City Committee at which Councilman Burney was given party support, after the campaign is over, we have to put our differences aside and work together for the sake of Plainfield. Working together does not mean blind loyalty. It means checking egos at the door and leaving petty politics out of serious city business. If all City leadership does this, we can make meaningful progress.

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Setting Expectations for the FY2011 Budget

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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Fiscal Year 2010 in Review

On Monday night the Council approved a lay-off plan. This act was the last required in fixing our budget woes this fiscal year. While I understand why several of my colleagues voted against the plan, the reality is that the Council was left with little choice. Based on discussions with the Administration, had the layoff plan failed on Monday night even more employees would have been affected because there would have been less time in which to achieve the same amount of expense reductions.

It was not an easy choice. It is not a choice I hope to make again. Let’s review where this fiscal year went wrong and what the City’s leadership must do to keep history from repeating itself.

1) Problem: Lack of financial leadership
Solution: Fill the roles of CFO and Director of Administration & Finance. Explore why we have not attracted qualified candidates. Based on those conclusions, create and commit to an aggressive search for a qualified CFO and Director of Admin & Finance.

This is, without a doubt, the main cause of Plainfield’s financial difficulties. The City has not had consistent financial leadership in 5 years. We have not even had a permanent CFO for over 2 years. We currently do not have a Director of Administration & Finance. This means that our City Administrator is essentially filling the role of multiple positions at once. This is both unnecessary and irresponsible. Without a CFO or Director of Admin & Fin, there is limited oversight to the city’s financial processes and no checks and balances. We cannot begin a new fiscal year without whole financial leadership in place.

2) Problem: Failed union negotiations
Solution: Ensure that union concerns are being addressed to foster better working relationships with the Administration.

Poor communication, unreasonable expectations and uncooperative attitudes contributed heavily to the creation of this year’s layoff plan. Before a layoff plan is submitted to the Council for approval, unions have the opportunity to negotiate and agree to concessions or givebacks in lieu of layoffs. It is only after some unions communicated that they would rather move forward with layoffs than consider concessions that a layoff plan was created by the Administration. In these economic times everyone must give a little. In order to develop better relationships with the unions, City leadership must work to understand and meet their needs. For example, several PMEA members expressed concerns about employees living outside of the City. The Council started discussion on this matter and will continue that discussion in April’s meeting in order to determine how we can address the PMEA’s concerns.

3) Problem: Late budget introduction
Solution: FY 2011 budget introduction no later than September 1. Look into moving toward a Calendar year budget.

The fiscal year begins in July, however the budget was not introduced by the Mayor until mid-November, already 1/3 of the way through the fiscal year. The Council was then rushed to render budget hearings, gain consensus on and approval on amendments and approve the budget. All this was done in just two months. Now, in March, we are approving a layoff plan that due to state mandated timelines, won’t take effect until May. This leaves us with barely 2 months of savings. The obvious solution is to ensure that the budget is introduced earlier. If the budget was introduced earlier, there would have been more time left in the fiscal year so fewer employees would have been affected. Another solution that the Council has been discussing for some time is to move to a calendar year model. A budget year that runs from Jan 1 to Dec 31 will align us with terms of elected officials and prevent delays for political reasons.

4) Problem: Unclear expectations set by City Council
Solution: Council should adopt a resolution specifying a timeline for FY2011 budget process and urging the Administration to follow the set timeline.

Good leadership requires accepting responsibility when things go wrong. The Council did not set clear standards for the Administration. We must set higher standards. As a member of the Finance Committee, I requested that a formal schedule be put together and distributed to the Council. The Council should review this timeline and incorporate it into a resolution urging the Administration to act in the best interest of the City by moving the budget process along as quickly as possible.

I am committed to putting the City’s financial house in order. As Council President, I take this process very seriously. The Council’s fiduciary responsibilities cannot be taken lightly.

I am open to other suggestions on making the process a better one. Please share your thoughts. How do you think we can improve the budget process?

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2010 Budget Adopted

Tonight the Council finally took the last steps needed to put the FY 2010 budget in place. Since we already approved the amendments put forth earlier this month, we had only two options – to either adopt the budget or vote it down. There were no other options. Following the roll call the budget was adopted 4-3. Although I would have preferred unanimous support of the budget, I am still pleased with tonight’s outcome.

We were 8 months into SFY 2010 without an adopted budget. Delaying a vote to adopt the budget would have resulted in less savings for taxpayers and would have put us closer to the originally proposed 9.6% tax increase instead of the now 7.5% tax increase. While a 7.5% tax increase is nothing to brag about, it is certainly an improvement. More importantly, it sets the stage for greater savings next year. Now that the SFY 2010 budget is adopted, we can move forward and begin planning for SFY 2011.

As has been stated several times before, this has not been an easy process – but this is what true leadership is about – examining the details, separating necessities from desires, and making tough decisions. I commend the Council for working so diligently on this budget and being willing to make decisions that may not be politically expedient but that are the right thing to do for our taxpayers and residents.

The adopted budget will not be detrimental to the operation of the City. Rather, it will force us all to live within our means and be more creative and efficient in our operations. Plainfield’s finest will be able to continue to serve and protect, Public Works will continue to plow our streets, and the Recreation Department will continue to serve our kids and will not need to cut a single program. This budget may not be ideal but our taxpayers cannot afford a nearly 10% tax increase. As has become our motto, we must all share in the pain.

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