Sunday, March 11, 2012

Budget Lighting Bolt

As I write this late Sunday night I must confess that last week when I went over the packet for that meeting I spent only a glance at the Resolution for approval of a temporary budget for April.

A poor excuse is that these temporary budget are routinely 1/12th of the previous yearsa expenses.

I missed the pension plan payments that are due in April and if not met result in substantial fines

In late January and early February 2009 I posted 3 blogs about fiances and the city's answer to its problem. The blogs not in order are # 2 , #3 and #1. You may read them by clicking on each one.

What is happening this year can be explained below by this quote from #2:
"After next April, the contributions would be phased up again, from 50 percent of the required contribution in 2009, to 60 percent in 2010, and 80 percent in 2011.

We will again require 100 percent funding by 2012, payments that will then be larger so as to compensate for the lowered level of contributions over this three-year period."

This is a case of "one reaps that which one sows". The protagonist for solving our financial problems in 2009 was DaSheilds Then City Administrator under our Mayors grace.

Plainfield has had 6 years of fiscal irresponsibility with an administration that has not been able to keep responsible appointees in the financial offices. One would like to believe that these problems are not by design.

However it is the third month of 2012 and we have a newly appointed City Administrator, and a minimial part time CFO in place. Neither could be expected to develop a workable budget and apparantly the process is in the hands of the Director of Administrations and Finances who has been in office perhaps 6 months.

I can see no way that Plainfield will meet its budget without a substantial tax increase over the Cap.

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