Finance Committee Approves Fund Transfers To Cover New Positions

The Finance Committee voted 2-1 Monday to approve an ordinance shifting line item funds to cover a number of administrative expenses, including funding for two new municipal positions.

The committee voted to send the ordinance to the full City Council after an amendment that removed information related to administrative positions not affected by the change. Mayor Daryl Finizio, who proposed the ordinance, said the proposed changes fall within the , said he found that such line item transfers have been routine in the city finances but that he wanted to inform the City Council about the proposed changes. He said the transfers would address some issues that came up during the appointment of his administration.

“I think this current situation is basically about neatening up transition issues,” said Finizio.

New administrative positions

One point the ordinance addresses is Finizio’s as the director of the with a $90,000 salary. A position of was proposed for the fiscal year 2012 budget, but was ultimately not approved.

Finizio said the position was included among the list of appointments he was authorized to make and would require $50,192.31 to be earmarked for the salary in the fiscal year 2012 budget. He said the position can be funded by $39,600 in savings in the due to the appointment of a new department director on a reduced salary as well as $10,592.31 from a $65,893 housing rehabilitation coordinator position which has been vacant since August.

The ordinance also proposes the establishment of a deputy fire chief for the , a position which also for the 2012 fiscal year budget. Finizio said discussions on creating the position with funds available from the department’s approved budget took place shortly before he took office.

The ordinance states that $35,336.54 of the $90,000 position would have to be accounted for in the fiscal year 2012 budget. It says the department has $44,072.25 in the firefighting divisional payroll account available to cover this amount due to recent resignations.

Finizio said the deputy chief’s position has been posted and will be filled from within the department.

“It was a deep concern of mine that there wasn’t a second tier of command in the fire department,” he said.

Other financial shifts

The ordinance also explains other line item shifts to cover unexpected financial issues in the mayor’s office. The office administrator’s salary was increased $25,000, but covered by reductions in the budgeted salaries for the chief administrative officer and executive assistant. The ordinance says the $295,559 budget for the mayor’s office was underfunded by $7,340 since the budget did not take into consideration that the staff would begin work immediately, but that the shortfall was covered since only two of the four new hires required health insurance.

Finizio said there was also the mistaken assumption that the city manager’s administrative assistant would remain in the same role in the mayor’s office. The ordinance states that a budget oversight also left the City Council without staffing funds, and that Finizio authorized the withdrawal of $150,000 from the fund balance to help establish the position of . The position will require $34,799.50 to be included in the 2012 fiscal year budget.

Committee reaction

Kevin Cavanagh, a volunteer consultant to the City Council, said the city has made approximately 56 percent of this budget’s projected expenditures and received approximately 53 percent of projected revenues, each budgeted to $81.9 million. He said the proposed changes would not have a significant effect on the budget.

Councilor Michael Passero, chairman of the committee, also said he thought the changes would have a minimal effect on the budget.

“I see these as housekeeping matters,” he said. “I don’t see them as affecting the bottom line.”

Councilor Adam Sprecace, the dissenting member of the committee, said he had reservations about funding the two positions that weren’t approved by the council. He said he was also reluctant to make the changes without a better perspective on the budget, saying separation agreements with departing employees could also affect the current budget.

“I think it would be wise to wait for that overall picture before acting on this,” he said.

Finizio said the ordinance would clear up matters related to the transition and allow the City Council and himself to better prepare the 2013 fiscal year budget.

“The old budget didn’t really anticipate a lot of these things,” he said.