Pittsfield Council Calls For Early Audit Next Year
PITTSFIELD, Mass. — The City Council is hoping to get next year's audit done earlier to help guide budgeting.
The council approved asking the mayor to call a joint meeting with the City Council, School Committee, and the auditor as soon as the audit is completed. The council also requested that Director of Finance Matthew Kerwood ask for the audit to be done earlier in the year.
"I really think we need to push for the audit to be done earlier. I think next year is going to be a critical year for our finances," Councilor at Large Kathleen Amuso said.
The audit is typically completed in April but Amuso had petitioned for a joint meeting in March. Kerwood said having the audit completed before the meeting would be more useful and suggested holding off until then.
"Traditionally they do get the audit done in the April timeframe so March may be a little early," Kerwood said, adding that the timing of the audit first depends on when the city gets its books in order and when the auditor schedules time to do his work. "Ideally, you would want to have that conversation with the auditor after it is complete."
Amuso at first said while the work may not be done, there would be enough to help guide the process. But, she ultimately agreed to amending the wording of the petition to remove the March date and instead move to whenever it is ready.
But, she is still asking Kerwood to see if the work can be done as early as possible.
"There was a change in the schedule this past year so we ended up coming in later than he traditionally does. We could have that conversation with him, he is amenable," Kerwood said.
In late April, the city's financial team consisting of Kerwood, Board of Assessors Chairwoman Paula King, actuary Michael Frank of Aquarius Capital Solutions Group and auditor Thomas Scanlon of Scanlon & Associates delivered a presentation to both bodies with worrisome news about the city's future financial position.
However, that late in the year the budgets had already been in the works and Amuso hopes by having a similar presentation earlier, it will help both committees with their budget.
Overall, the city faced a crunched timeframe for budgeting. Not only did that presentation come late in April but the series of budget hearings took until the end of June with the final one just a week before and the final approval just days before the start of the fiscal year.
Mayor Linda Tyer was new to the office, taking over in January, so the administration's budget took additional time to create. But she says next year, the process will be much smoother.
"It is my hope we can accelerate the budget process next year so we have more time to assess budgets and have bigger conversations so we are not pushing up against July 1 and need a budget to pass," Tyer said.
The last joint meeting was fruitful in particularly expressing the city's struggles with the tax ceiling and reserves.
The approved 2017 budget adds to reserves by asking the state to release $1.6 million in restricted aid, which won't be available next year. The budget also calls for a $6 million increase, which is expected to eat up more than half of the available levy capacity for next year's budget.
Early projections show the city will have the ability to raise taxes by $2.4 million — a figure that leaves little wiggle room in the future unless the budget is cut, the city sees increased property value growth, or a Proposition 2 1/2 override is passed.
However, in that $151 million budget, the mayor has a number of initiatives eyed to yield future savings, easing the budget process. Further, the city has a grant to work with the Edward J. Collins Jr. Center for Public Management at the University of Massachusetts on improving a number of financial areas, which the mayor feels will yield some additional cost containment measures.
Amuso asked for an update on a number of those as well from Kerwood as part as a series of regular briefings on the current budget. But ultimately the council's Finance Subcommittee has to receive those updates and bringing that before the entire council would be repetitive.
"I do want this to be full council. I know the Finance Subcommittee has updates on this," Amuso said. "I just feel like with the financial situation the city of Pittsfield, this comes before the full council."
The council rules require the Finance Subcommittee to hold such reviews and Council President Peter Marchetti said he intends to follow those rules and call the meetings. The council agreed that anybody could attend those meetings and read the report.
"There are reasons we have subcommittees. It is important that he presents to a smaller group and they can ask questions," Councilor at Large Melissa Mazzeo said.
Council Vice President John Krol and Ward 5 Councilor Donna Todd Rivers were both opposed to just leaving it at the subcommittee level, with Krol suggesting that there be a special meeting of the council to handle only that issue.
Tags: audit, municipal finances,
