Council Rejects Financial Reporting Ordinance

Councilors turned down a proposal to require more information on the city’s finances each month, saying they supported the goal but not the way a councilor sought to achieve it.

The Finance Committee voted 2-1 against the measure, which proposed by Councilor Adam Sprecace, to require the Finance Department to provide more expansive reports on city budgets and funds to the City Council. The proposal was also rejected 4-3 after Sprecace submitted it as a minority report, allowing the full Council to vote on it despite the committee rejection.

Sprecace said the Council receives reports from the Finance Department providing information such as quarterly reports, how close the departments are to their allotted budgets, and whether the city is projected to end the fiscal year within the approved budget. He requested that the Council receive monthly reports with line item detail including expenditures, revenues, fund-to-fund transfers, unpaid taxes, staffing levels, capital expenditures, and other funds and accounts such as pensions and outstanding bonds.

“I guess this is an accumulation of many months of questions and concerns and details related to the finances of the city,” Sprecace said.

Council President Michael Passero said he was in favor of improving the financial reports to the Council. However, he said he would prefer doing so through a financial reporting policy following the completion of an audit on several departments as well as input from the Finance Department. Passero also said he was not sure if the department would be able to provide the requested level of information each month in the course of their regular duties.

“Some of them, I think, are really more the nature of an audit than a financial report,” Passero said of Sprecace’s recommendations.

Councilor Anthony Nolan said he thought the proposal would improve the transparency of the city’s finances, but was not willing to support it before meeting with Sprecace.

“It’s not that I don’t agree with it. I do,” said Nolan. “But I need to sit down with him and discuss it.”

Councilor Donald Macrino, chairman of the Finance Committee, also said he agreed with the intent of the proposal. However, he said he believes the Finance Department is working to monitor the budget and rebuild a depleted fund balance and that he was not sure the department would have the time to provide the level of detail requested.

“It’s as silly as creating a law you can’t enforce,” he said.

Councilor John Maynard said he supported the proposal and that he thought it would make the Council more accountable in monitoring the budget.

“How can we say that previous Councils have mismanaged money when they aren’t getting detailed reports on how monies are being spent?” he said.

Sprecace said he did not think the Council is able to keep track of the budget or explain it to the public under the current level of information provided.

“I’m disappointed, not just for myself but for the city,” he said. “I think we’re missing a great opportunity here to exercise the authority of this Council.”

Passero said he is willing to work with Sprecace to develop a way to address the issue.

“I share your concerns,” said Passero. “I just don’t share your approach.”

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