06/16/1987 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 6/16/87 -9 - Miscellaneous business (cont'd): Mr. Tallon asked the Mayor if .she had investigated the parking at Fragapane's as he had requested at the last council meeting. Mayor responded that she thought the parking had been taken care of and had been addressed at the last meeting; thought that Mr. Tallon was concerned with just the landscaping. Mr. Tallon advised that he was concerned with both issues - the parking does not conform to the plan submitted and approved by the Planning Commission and council. Mayor advised that she had been told it did meet the plan, according to what they are using as seating; will be glad to recheck this. Mr. Wilamosky stated that in looking at the most .recent balance of appropriation report, he was concerned with the ever growing number of line items reflecting a negative balance. Asked the Mayor for an explanation as to why this was occurring when the Finance Committee had shared with the administration its views relative to spending over and above the appropriated amount of dollars. The administration has apparently expended in excess of what had been appropriated and would like a brief explanation; would like the Mayor to reiterate her position on issuing purchase orders when there are insufficient line item dollars in an account. Mayor Petrigac said her administration has taken a very stringent position that everyone work within their budget; has been very concerned with some of the minus balances that are showing; would be glad to discuss this in depth at a Finance Committee Meeting when she has the proper material in front of her. Mr. Wilamosky asked if the Mayor knew if there were any .purchase orders, right now, that have been issued on fund line accounts that do not contain sufficient dollars to cover their cost. Mayor said she had no idea; the Budget and Management Director was not present to answer this question. Mr. Wilamosky asked if perhaps Finance Director Boyle had any information relative to such purchase orders. Finance Director Boyle stated that he did indeed have some information on this subject: State law as well as city law mandate that the Director of Finance is responsible for approving purchase orders to insure they do not exceed the appropriation. Last year, the Director of Finance was taken off the purchase orders and they are no longer submitted to the Department of Finance. Purchases are being made prior to the Finance Department becoming involved. They are signed by the Director of Budget and Management, sent out to the vendors and 907 of the time are on hand even before the paper work reaches the Finance Department. Finance Department has received numer- ours calls from vendors asking for payments and Finance Director refuses to issue checks that exceed the purchase orders. What council is not seeing in the financial reports are these purchase orders because the Finance Director is not allowed to sign them; is not allowed to encumber them;. is not allowed to pay them; therefore, they do not appear in the financial reports but there are maybe thirty or so purchase orders on his desk right now that exceed the appropriated amounts and in fact many of them exceed what would be appropriated if council passed every transfer and appropriation ordinance that is before it this evening. Mr. Wilamosky stated that the Finance Committee recognizes that there are always. going to be a few line items that could be $100/$150 short but he sees an ever growing number; does not appreciate this trend because in December of 1986 council had to transfer somewhere in the area of about $200,000 to cover defieia Line items; does not want to fall into that trap again this year. Mr. Wilamosky asked if the Finance Director had any idea of the kind of dollars needed to cover the items he was talking about and has this merchandise been received by the city? Mr. Boyle responded that the ones he knows about, that are on his desk, have all been received; many items have been coded to "Service, Miscellaneous and are normal, operational purchases that should not even come close to exceeding"appropriations until maybe November and are ~- exceeding it now. Mayor stated that council has been sent memo after memo stating that the administration has asked for balances; it is most difficult for the Budget and Management Director to keep track of money when the balances do not balance; council should sit down and talk with the Budget and Management Director.