Budget Talks Continue Thursday
A wide-ranging budget session Thursday (Oct. 23, 2008) included ways to make up for a $1.7 million typo in the official budget statement, some questions on anticipated revenues, the fate of Dudley House and plans for a technology update for the city.
To fix the typo that overstated revenues, the city can definitely dip into surplus, auditor Bob Swisher of Supplee, Clooney & Co. said.
“The state will allow you to use whatever you have,” Swisher said.
The administration proposed using $831,000 from the surplus to meet about half the needed amount. In the introduced budget, the surplus amount was $2.3 million, but it was adjusted to $3,131,000 after the glitch was found, leaving the difference.
The other half would come from the reserve for uncollected taxes, which the administration proposes reducing by $832,000 from $3.3 million in the introduced budget to $3.1 million. Swisher was not as assured on that number, even though Councilman Rashid Burney began the talk by stating, “We just want you to tell us the numbers are good.”
The city achieved a tax collection rate of 96.08 percent for the 2008 fiscal year that ended June 30, but several factors may affect the rate for the current fiscal year that began July 1. Swisher did say that keeping up the collection rate could involve measures “as simple as calling people” to remind them to keep tax payments current.
New Tax Collector Marie Glavan has instituted just such an aggressive approach to getting all possible tax revenues. The city will also hold a tax lien sale Dec. 1 to help recoup back taxes.
While the revenue mistake may have been simple human error on the part of the auditing firm, the document was counter-signed by several city officials who apparently missed it as well. And even though the city must now contend with making up the $1.7 million, City Administrator Marc Dashield said Thursday, “There is no deficit.”
Among anticipated revenues, the city received $401,378 in Uniform Construction Code fees last year and expects $589,399 this year, despite the downturn on development. Officials explained that the past year’s income reflected fees for the Dornoch Plainfield project on East Front Street that includes 63 condos and a new senior center. The new income is expected from a West Front Street project on the Tepper’s block, officials said. As understood by Plaintalker, that project hinges on approvals from Chase Manhattan Bank for New Markets Tax Credit funding.
Whether all this financial juggling will work out, remains to be seen.
On Dudley House, perhaps the reason why the council is not seeing the turnout of fervent clients in support of the program is that are currently no clients. All were phased out as their terms ended.
The city currently does not actually pay for client expenses. It seems there are state and county grants that pay for services. A future projection called for the clients themselves to pay for the program through payroll from mandated employment as well as eligibility for food stamps and other benefits.
The halfway house on Putnam Avenue is mostly grant-supported and only got $28,000 in city funds last year, but due to new state licensing demands that require handicapped accessibility, the facility apparently lost grants. Budget figures given last week reflected an increase to $178,168, but this week the amount was reduced to $36,645 based on pending grants and other factors..
Here the issues seem to be whether the city should find an entity to run the program in the rehabilitated city-owned property or just to bag the program and somehow get the building back on the tax rolls.
On technology, a plan last week to reduce the Public Information staff was reversed this week even though council members have stated flatly that the current staff is not doing what is needed. A combined Communications/Technology staff might require a director commanding a salary as high as $147,000. According to what Plaintalker knows of City Hall salaries, that amount would trump the compensation of top current municipal officials.
The budget session was an informal meeting Thursday, as only three City Council members showed up. The council waited for a while and then declared the meeting adjourned for lack of a quorum. For the record, council members in attendance were Linda Carter, William Reid and Rashid Burney. Absent were Cory Storch, Don Davis, Elliott Simmons and Harold Gibson.
--Bernice Paglia
To fix the typo that overstated revenues, the city can definitely dip into surplus, auditor Bob Swisher of Supplee, Clooney & Co. said.
“The state will allow you to use whatever you have,” Swisher said.
The administration proposed using $831,000 from the surplus to meet about half the needed amount. In the introduced budget, the surplus amount was $2.3 million, but it was adjusted to $3,131,000 after the glitch was found, leaving the difference.
The other half would come from the reserve for uncollected taxes, which the administration proposes reducing by $832,000 from $3.3 million in the introduced budget to $3.1 million. Swisher was not as assured on that number, even though Councilman Rashid Burney began the talk by stating, “We just want you to tell us the numbers are good.”
The city achieved a tax collection rate of 96.08 percent for the 2008 fiscal year that ended June 30, but several factors may affect the rate for the current fiscal year that began July 1. Swisher did say that keeping up the collection rate could involve measures “as simple as calling people” to remind them to keep tax payments current.
New Tax Collector Marie Glavan has instituted just such an aggressive approach to getting all possible tax revenues. The city will also hold a tax lien sale Dec. 1 to help recoup back taxes.
While the revenue mistake may have been simple human error on the part of the auditing firm, the document was counter-signed by several city officials who apparently missed it as well. And even though the city must now contend with making up the $1.7 million, City Administrator Marc Dashield said Thursday, “There is no deficit.”
Among anticipated revenues, the city received $401,378 in Uniform Construction Code fees last year and expects $589,399 this year, despite the downturn on development. Officials explained that the past year’s income reflected fees for the Dornoch Plainfield project on East Front Street that includes 63 condos and a new senior center. The new income is expected from a West Front Street project on the Tepper’s block, officials said. As understood by Plaintalker, that project hinges on approvals from Chase Manhattan Bank for New Markets Tax Credit funding.
Whether all this financial juggling will work out, remains to be seen.
On Dudley House, perhaps the reason why the council is not seeing the turnout of fervent clients in support of the program is that are currently no clients. All were phased out as their terms ended.
The city currently does not actually pay for client expenses. It seems there are state and county grants that pay for services. A future projection called for the clients themselves to pay for the program through payroll from mandated employment as well as eligibility for food stamps and other benefits.
The halfway house on Putnam Avenue is mostly grant-supported and only got $28,000 in city funds last year, but due to new state licensing demands that require handicapped accessibility, the facility apparently lost grants. Budget figures given last week reflected an increase to $178,168, but this week the amount was reduced to $36,645 based on pending grants and other factors..
Here the issues seem to be whether the city should find an entity to run the program in the rehabilitated city-owned property or just to bag the program and somehow get the building back on the tax rolls.
On technology, a plan last week to reduce the Public Information staff was reversed this week even though council members have stated flatly that the current staff is not doing what is needed. A combined Communications/Technology staff might require a director commanding a salary as high as $147,000. According to what Plaintalker knows of City Hall salaries, that amount would trump the compensation of top current municipal officials.
The budget session was an informal meeting Thursday, as only three City Council members showed up. The council waited for a while and then declared the meeting adjourned for lack of a quorum. For the record, council members in attendance were Linda Carter, William Reid and Rashid Burney. Absent were Cory Storch, Don Davis, Elliott Simmons and Harold Gibson.
--Bernice Paglia
posted by Bernice at 9:48 PM
4 Comments:
Good report. These kinds of things happen when you have incompetent, unqualified people running the City. While dipping into surplus gives the illusion there is no deficit, there certainly is. Imagine following that course of action for the next few years. What is going to happen to the City's bond rating??
I haven't seen Don Davis at any budget meeting, and Elliott Simmons maybe one. Nice to know our council members are so interested in Plainfield. Wonder if they truly live here? Could be why Plainfield is in such disarray.
To the previous reader;
Trust me, neither Don Davis nor Elliot Simmons would make any difference to this mess. Their presence is equal to their contributions= 0
Bernice,
Budget talks are a lame excuse for doing nothing but go along with the same-old same-old. You guessed it, a tax increase. One would think, that there would be one politican that would challenge a tax increase - of any size. Boarded houses, stabilized rents, existing maintenance issues thoroughout the city, job loss, and decrease income would be enough for a thoughtful politician to say "no increase" - put on hold those 4% salery increase for the uniform employees as well. When was the last time you saw them -unless you needed them. I will answer with my vote - through the rascals out.
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