City finance officials trying to cope with budget overruns

11/17/2006

Angela Carter , Register Staff

NEW HAVEN — City finance officials will send a request to the Board of Aldermen Monday for approval of a budget amendment that exceeds the $393.7 million bottom line for last year’s municipal budget. During an aldermanic Finance Committee meeting Thursday, City Controller Mark Pietrosimone said monthly finance reports from December 2005 through June 2006 projected shortfalls, particularly in line items related to police and fire department overtime and health coverage costs.

The city’s transfer station had a $1 million overrun in disposal costs, contributing to about $4 million in costs beyond the approved budget.

"There was an article in the newspaper and a subsequent editorial that said we were not disclosing expenditure overruns," Pietrosimone said. "I want to set the record straight."

The budget is set by ordinance amendment every year and aldermen must approve any transfers or changes to the bottom line, per the city charter.

In the day-to-day operations of the city, it is not always practical to secure aldermanic approval before a budget line item is exceeded and the board often gives its approval retroactively.

But Alderwoman Andrea Jackson-Brooks, D-5, of the Hill said that while there were deficit alerts in the monthly financial reports, the board was not asked at the close of the 2005-06 fiscal year in June to approve the city’s actual expenditures and revenue.

"In previous years there’s always been communication when there were issues and there were always transfers within the budget," she said, adding that an exception was in 2003 when the state lowered its aid and the city had to use its rainy day fund to cover shortfalls.

Pietrosimone said the city ended the year with a nearly $44,000 surplus because of higher collections in permit fees, real estate conveyance and other taxes and voluntary contributions from nonprofit organizations that own tax-exempt properties.

Documentation on the actual year-end figures were not given to the committee Thursday. "Even though the reports were submitted, the committee took no action on it," said Hill Alderman Jorge Perez, D-5. "Going forward, if we’re going to impact the bottom line, we need to get this sooner."

Aldermanic President Carl Goldfield, D-29, of Beaver Hill, suggested that the aldermen and city staff determine a way to adjust the sequence of financial reporting, so aldermanic action can be taken in a more timely fashion.

Fair Haven Heights Alderman Alexander Rhodeen, D-13, said "a real commitment needs to be made in reigning in expenses," and the city can not rely on one-time revenue boosts at the end of every year. "Hocus-pocus and miracles is not a way to budget."