Auditor: Upcoming Transfers Should Not Expend Budget

For the second time at a public meeting, Bloomingdale's Borough Auditor Dieter Lerch said he does not expect the borough to have to dip into money out of next year's budget or pay bills late due to budget shortfalls after Nov. 1 budget transfers are allowed.

Lerch attended Tuesday's borough council meeting upon the request of Council President Linda Huntley as the borough's Chief Financial Officer Donna Mollineaux was also at the meeting to discuss what she projects the shortfalls to be.

In September, the council voted on a resolution for a $300,000 emergency appropriation to cover budget shortfalls. While Mayor Jonathan Dunleavy said then and repeated on Tuesday that the $300,000 was an estimate, Mollineaux projected a $170,000 total shortfall, although at that time, Dunleavy said there were still three months left in the year.

At last month's meeting, the council passed two resolutions to appropriate a combined $50,000 to compensate for budget shortfalls in the social security line item and to compensate for Hurricane Irene-related costs, such as police overtime.

Lerch said having line items to appear to be near or in shortfall at this point in the calendar year is typical of many municipalities, which is why they are legally allowed to complete budget transfers from one line item to another after Nov. 1.

"I don't know one single town that does not make a budget transfer," Lerch said.

At Tuesday's meeting, Dunleavy still maintained that, by the calculations provided to him by Mollineaux, the borough has approximately $153,000 in shortfalls through October, including unpaid bills in the legal salaries, legal other expenses, engineering, animal control and gasoline line items. But Lerch said "I don't concur with a $150,000 shortfall."

The councilmembers, Lerch and Mollineaux could not seem to agree on what the borough has spent to date on gasoline this year, what was spent last year and whether there will be and how much of a shortfall. Dunleavy said $120,000 was already paid this year in gasoline whereas only $75,000 was budgeted.

"We may have paid out $120,000 this year, but $10,000 of that was from last year," Huntley said.

Mollineaux said December's bill came in January but was charged against the 2010 budget for gasoline.

"In my opinion, you're making a mountain out of a molehill and I don't understand why unless you're trying to make a scene here," Huntley said to Dunleavy.

But Mollineaux said the price of gas increased tremendously this year and that she was not there to argue but rather get a sense from the council on what she should do about the outstanding bills in the finance office. The council did not take action on the item Tuesday but instead is waiting to see what can be transfered. Dunleavy said he does not believe the transfers will cover the shortfalls.

"I hope this year Santa Claus gives you a calculator so you can learn how to do the calculations right," Councilwoman Jo-Ann Pituch said.

Councilwoman Linda Shortman said she was proud of the job the council did with cutting $900,000, by Lerch's calculations, from the first draft to bring the budget under the 2 percent state-mandated cap.

"If we managed to cut [$900,000] to save the taxpayers and we have to put a few thousand back, I think it's a job well done," she said.

Shortman said the borough was also forced to incur unforseen expenses this year, such as arbitration over the police contract. But even as the budget was being developed, Mollineaux said the council was aware of the situation the borough now faces with outstanding bills.

"Absolutely we discussed that these things were going to be a problem before now," she said.

Editor's note: An earlier version of this story incorrectly stated that Mayor Jonathan Dunleavy called for a resolution in September for $300,000 in emergency funds to cover budget shortfalls.