Council agrees it could use some financial advice

Posted 11/17/11

The City Council unanimously approved a resolution Monday asking Oscar Shelton, the personnel director, to hire a council auditor, as they believe this will save the city money.

They believe a …

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Council agrees it could use some financial advice

Posted

The City Council unanimously approved a resolution Monday asking Oscar Shelton, the personnel director, to hire a council auditor, as they believe this will save the city money.

They believe a person with financial training is needed to properly analyze city revenues and expenditures; assist them during the fiscal year to monitor expenditures; and help to review, analyze and adopt the city budget.

This year’s budget allocates $30,678 for the job.

Council members Steven Merolla (Ward 9), Joseph Solomon (Ward 4) and Charles “C.J” Donovan (Ward 7) sponsored the resolution. Merolla said he is willing to fill the position part-time.

“I’ll take whatever I can get right now,” he said.

But Solomon and Ward 8 Councilman Raymond Gallucci, who have accounting backgrounds, want to hire someone full-time because they feel they need a person who is more versed in the field than them.

“The position should not be part-time [and] I think we could find the money in the budget,” he said. “Sometimes we lack information that allows us to go forward with procedures and we need that information to move forward. I have received numerous calls from people interested in the position.”

Solomon also said he believes Warwick is the only city in the state that doesn’t have an internal auditor. While the council typically has an auditor on staff, Gallucci pointed out that the it voted to abolish the auditor position in the past.

“I was one of the ones who voted not to eliminate it,” he said. Solomon said while they did choose to remove the funding for the position, it was intended to be temporary. However, he feels they are now in need of one.

“The fact remains, it’s getting more and more difficult [to be without an auditor],” he said. “A year ago, we were able to keep the car tax in place. This year, we were not able to do that and it’s partly because we didn’t have an auditor.”

Merolla reminded the council and the members of the assembly that their previous auditor, Brian Silvia, found another job shortly before the budget hearings but made himself available to the council at no cost to the city.

In an e-mail statement released by Mayor Scott Avedisian through his chief of staff, Mark Carruolo, he said, “I’m not sure why Councilman Merolla felt the need to introduce a resolution to hire a Council Auditor as the City Council has the authority to hire for the position at any time. The funding for the position was included in this year’s budget and I believe the Council President is responsible for hiring Council staff. The City Council President simply needs to make the request to the Personnel Department to initiate the hiring process.”

Another resolution, also sponsored by Merolla and Donovan, requested that the administration provide the council with information about how it plans to comply with the Governmental Accounting Standards Board (GASB) and state laws in relation to the police and fire pension fund, which is underfunded.

In a letter dated Oct. 4, 2011, the acting auditor general wrote that the annual required contribution (ARC) made by the city in fiscal year 2011 was only 67 percent of the amount, which is required to be contributed under GASB Statement No. 27.

Further, the acting auditor general also advised that Rhode Island General Laws 45-10-15 require the city to provide a plan to fund the ARC in compliance with GASB 27; Rhode Island General Laws 45-35-10 require the city to provide a five-year budget projection plan, including a scenario where the city will contribute 100 percent of the ARC and other post-employment benefits; and that these requirements conflict with the city ordinance for funding the police and fire Pension 1.

“This resolution simply asks the administration do that within 60 days,” Merolla said.

Further, a resolution relative to tax abatements was also approved, which Gallucci sponsored.

All three resolutions were passed by an 8-0 vote, as Council President Bruce Place was not in attendance.

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