Politics & Government
State Clears West Deptford 2013 Budget for Approval
But adviser John Barrett warns that surplus spending is going to back the township into a financial corner for 2014.
On Wednesday, Committeeman Sam Cianfarini provided Patch with an email from Division of Local Government Services (DLGS) Bureau Chief Christine Zapicchi stating that the budget will be cleared for adoption.
Cianfarini regarded that approval of the budget as vindication that his surplus-spending proposal was financially sound, and not "garbage," as it had been termed in an email from financial adviser John Barrett that Committeewoman Denice DiCarlo shared with the committee in June.
“The way I recall it, the first person to call any of these budget attempts 'garbage' was Denice DiCarlo,” Cianfarini said.
“Then after that, I get this note from our financial consultant calling it garbage in the third-party form, saying that the DCA had called it garbage.
“Just unprofessional dialogue,” he said.
Cianfarini also said Barrett had failed to communicate directly with him in drafting the budget amendments, which contributed to the process becoming unnecessarily contentious.
“When you put the budget together for a township, you can’t just do a resolution on the fly,” Cianfarini said. “You have to have the CFO and financial consultants involved in constructing a budget.
“I asked him to put something together; he didn’t even send an email back to me, and I’m the one requesting it,” Cianfarini said.
Despite Barrett's reservations and partisan opposition to the surplus spending, Cianfarini said, “the people of West Deptford put a majority in place for the governing body, and we’re going to use that majority.”
Timelines and 'garbage'
Barrett had a different perspective.
“Sam is correct in that revised amendment was not sent to him directly,” he said.
But Barrett said his contract with West Deptford stipulates that he reports exclusively to Township Administrator Eric Campo and CFO Brenda Sprigman.
“It would be up for Eric or Brenda to forward the amendment to the council members because that was their direction, not mine,” Barrett said.
To put it in perspective, he said, “if a councilman asked me to jump, I would have to ask Eric first if I could jump, and how high.”
A temporary DLGS employee, Emilia Alexopoulos, whom Barrett described as “an old-school reviewer,” is the person who first characterized the proposed surplus spend-down as garbage, he said.
Find out what's happening in West Deptfordwith free, real-time updates from Patch.
“The first thing that she said to me was ‘Is this a joke?’” Barrett said. “'The division will never approve this’ was the characterization she used.”
Alexopoulos left the DLGS on June 30, Barrett said—while he was on vacation.
Find out what's happening in West Deptfordwith free, real-time updates from Patch.
In his absence, Barrett said, he instructed Sprigman, “who has no previous experience dealing with the division,” to contact Zapicchi, who eventually approved the budget as amended.
One-time revenues
Barrett also said that West Deptford Republicans’ intended use of the surplus is not an uncommon one in New Jersey—lots of townships are surplus spending—but it’s not without its drawbacks.
“The problem with West Deptford is that they are utilizing most of their fund balance, which will become one-time revenue,” Barrett said.
“The chances are the results of operations for 2013 will not replenish all of that $3.6 million that they are utilizing this year.”
Then, when West Deptford prepares its 2014 municipal budget, Barrett said, it will have a short list of options for replenishing that surplus, or else risk torpedoing its bond rating—which means greater cost of debt service.
None of the likeliest possibilities is particularly attractive or expedient, he said.
Other than selling off township properties or issuing liquor licenses—both of which are one-time revenues, Barrett said—West Deptford would be facing a tax increase or layoffs of township employees.
Moreover, Barrett said, bringing arguments about whether surplus spending is prudent or foolish to the state won’t amount to much.
“You can argue fund balance; the state will tell you that’s a local decision,” he said. “You’re never going to get any kind of guidance with the state in coming in because that’s not their mandate.
“Two and two’s going to equal four, regardless of a Republican or Democrat answer,” Barrett said.
“You need to keep raising taxes, live within the levy cap, and maintain your surplus,” he said. “If you increase taxes at a slow and steady rate, it’s going to avoid those one-year spikes.”Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
