City Council Finance Committee Meeting
Thursday, February 24, 2000
City Hall Council Chambers
At 11:30 a.m.
A meeting of the Central Falls City Council Finance Committee was held on the above date at ll: 40 a.m.
Councilman Lazieh
Councilman Leger
Councilman Leger chaired the meeting.
Also in attendance City Council President Gene R. Noury And Finance Director John Kuzmiski
a.) Status of 1999 Audit
Chairman Leger questioned the Finance Director regarding the Audit.
John Kuzmiski stated that he spoke with Peter Chattellier to receive the latest account regarding the audit and was told that they are a few weeks away from receiving a draft.
Councilman Noury stated that he also spoke with Mr. Chattellier. He asked the Finance Director about cash reconciliation.
Councilman Lazieh asked the Finance Director if he thought the draft would be ready before the next City Council Meeting.
The Finance Director responded that the draft isn't the actual audit and is presented to the administration first to review by the administration.
Councilman Lazieh asked if the City Council also reviews the draft.
The Finance Director stated for the record that he would object to the Council receiving the draft at the same time as the administration because it has never been a practice to do so.
Councilman Noury questioned the extension and stated that he spoke with the Auditor General who related that Town Managers, Finance Directors etc are not required by law to seek Council approval for an extension.
The Finance Director stated that this is so and has also been his experience when he was the Finance Director in Woonsocket and he has not operated any differently in either Community.
Councilman Noury stated that the Office needs to improve on its performance relative to the timely completion of the audit.
The Finance Director stated that the Deputy Finance Director, Patricia McGovern is the person who makes this happen and that there is a lot of work involved with the audit. He stated that the staff is making its best effort to comply with the issue but there is a resource problem, which is being dealt with in the best possible way by the Department.
b.) Status of Fiscal Year 1999/2000
Chairman Leger asked the Finance Director if there are any tight areas overall in the current budget.
John Kuzmiski gave the Committee a brief review of the current budget stating that the budget is a little tighter than last year and that the areas that are the tightest are in the Police, Fire and Highway Departments.
Councilman Lazieh asked what is the City looking at in the overtime budget of the Fire Department.
The Finance Director responded that $420,000 has been budgeted and that as of January 31st $307,000 has been expended. He stated that the Chief or the Mayor could relate more accurately the amount, which is expected to be over budget, which may be $80,000.
Chairman Leger asked if this is the same for the Police Department.
The Finance Director responded that this is a little trickier because the department is down by several officers and that the department is doing more with less, which in the area of Health Insurance there is a considerable saving.
Councilman Lazieh commented on the budget work sheet and requested that a monthly budget report showing the previous year and the present year be included.
Finance Director Kuzmiski noted the Councilman's request.
Councilman Noury asked if the Finance Director would attempt to provide the request.
The Finance Director stated that he would consider the request and will pursue the matter with other parties.
Councilman Lazieh stated that these figures are already in the computer and he doesn't feel that this is an unusual request but that the information provided will help to better understand the budget and expenses of the City.
Chairman Leger stated that the committee is not looking to pick on anyone only to seek more information that will make the budget process easier.
Councilman Noury stated that the worksheet is very helpful and then questioned the contingency account and an expense of $114,000 in December and then a January amount of $104,000.
The Finance Director replied that the Police Pension case was budgeted in debt service category and was taken from the wrong account.
Councilman Noury questioned different accounts.
Discussion continued.
Councilman Lazieh questioned the Major Purchases account and stated his concerns. He also asked the Finance Director about unbudgeted revenues and unbudgeted expenditures and if there would be any greater than expected.
The Finance Director responded no.
Councilman Lazieh questioned the expenditures related to arbitration, legal suits what type of condition would exist.
John Kuzmiski responded that arbitrators have not made any awards and for prior fiscal year the amount would come from the fund balance and for current year from contingencies.
Chairman Leger asked where the legal expenses would come from.
The Finance Director explained where and when adjustments would be made.
Councilman Lazieh asked if there has been any unprojected expenses concerning suits such as WDC cost of litigation, cost of arbitration and consultant fees.
Finance Director Kuzmiski stated that he was not aware of any.
Councilman Lazieh asked if the City is holding any bills.
The Finance Director responded no and stated that any unexpended funds revert to surplus from the general fund.
Councilman Noury questioned Major Purchases and Capital Projects and carryovers. He related to the committee that they should look into bringing back all Capital Projects that weren't expended, take a look at what projects will continue and reprogram the dollars to other projects.
John Kuzmiski stated that this is a legal question as it pertains to the Capital Projects and Programs and needs legal interpretation.
Councilman Noury asked about $550,000 in Capital Projects.
Mr. Kuzmiski responded that they are all in the audit.
C. Report of any unbudgeted revenue.
Councilman Lazieh asked if this information could be downloaded onto a disc. And could the Finance Director report on any unbudgeted revenues.
The Finance Director stated that there aren't any unbudgeted revenues.
Councilman Lazieh asked about the $17,000 bonus from the Interlocal.
Discussion continued.
d.) Fiscal Proposal 2001
Chairman Leger questioned the process taken for the new budget request.
The Finance Director explained that he would send request for the budget to Department Heads around January 31st with budget submittals due around the 25th of February. The Department Heads would be asked to estimate the expenses for the current fiscal year, the next fiscal year, and a break down of cost and the reasons for any increases. He then stated that he would meet with Department Heads from March 1st to April 15th. Then He would discuss the proposals with the Mayor in order to prepare the budget for public release by May 15th. Then from that point until June 15th the Finance Committee would have workshops, the Review Commission would review the proposal and the City Council would have budget workshops and finally budget hearing and passage. The Council would traditionally hold 2 Public Hearings.
e.) Budget Process 2000/2001
Councilman Noury asked if the budget could be at least given a week earlier.
Mr. Kuzmiski stated that there are State issues and he would attempt to get it to as soon as possible but that he would like it to be accurate when presented and there will be increases in Health Insurance cost of about 16%-18%. He also stated that the Budget has to be revenue driven.
Meeting adjourned at 1:00 p.m.
_______________________________
Elizabeth A. Crowley, CMC
City Clerk
Interpreters for the Hearing-Impaired Available upon 72 Hour request made at the Office of the City Clerk
This Notice Posted at City Hall & Library on Friday, February 18, 2000