DiCarlo: Republican Budget Puts West Deptford at Risk

This letter was originally sent to Thomas Neff, Director of the New Division of Local Government Services, on July 5 by West Deptford Committeewoman Denice DiCarlo. She shared it with Patch for publication.

Dear Director Neff:

My name is Denice DiCarlo and I am a member of the Township Committee of West Deptford Township. Regrettably, I am compelled to write you to share my deep concerns regarding the recently amended West Deptford Township budget.

Unfortunately, the last-minute amendments clearly show that political considerations have taken precedent over sound budgeting and financial planning. I respectfully request that the Division of Local Government Services conduct a thorough and rigorous review of the proposed budget.

As you read my concerns, I think it is important for you to consider that I have worked in the accounting and finance field for 17 years. I am currently the Vice President of Finance and Controller for a division within a Fortune 100 company responsible for a budget much larger than West Deptford’s, and I’m currently an active CPA.

The budget amendments approved on July 2, 2013 utilize $3,735,000 in Fund Balance, $1,035,000 more than the 2012 municipal budget. Despite repeated requests that Acting CFO Sprigman provide a three-year projection that might give me a comfort level with this dramatic, last-minute increase in Fund Balance utilization, no such analysis has been provided.

As you know, Fund Balance is replenished primarily by growth of the ratable base. Unfortunately, the opposite is occurring in West Deptford, as the enclosed table I prepared illustrates.

Since 2011, ratables have decreased by 12.5%. Clearly, Fund Balance will not be regenerated by additional revenue from Added and Omitted Assessments this year, nor will the tax base generate additional revenue in the near term.

It is clear to me that the governing majority has given no thought to consequences beyond the election this November.

The amended budget also provides for unrealistic and irresponsible reductions in appropriations:

• Cuts Police Department overtime to zero when over $35,000 has already been expended.
• Reduces Landfill/Incinerator Fees to $860,000, despite an increase in tipping fees, when $1,152,792 was spent in 2011.
• Slashes Road Maintenance OE by $70,000 (54%), below the level that allows proper road maintenance leaving us with fewer funds for the remaining 7 months of the year than what we already expended in the 1st 5 months of 2013.
• Gambles on another exceptionally mild winter and reduces Snow Removal salary line item by 74% and OE by 46%. It also anticipates use of a premium from a 2013 refinancing of current debt that may not actually occur.

The author of this budget is using irresponsible fiscal gimmicks to avoid any increase in the Local Purpose Tax levy. Our township financial advisor has cautioned against using this much Fund Balance, employing fiscal gimmicks, and implementing unrealistic expenditure cuts that could result in an actual over expenditure of the 2013 budget.

The financial advisor has gone on record advising us that this will have a negative impact on our credit rating based on prior representations made to Standard and Poor’s related to the issuance of a $33 million Tax Refunding Bond last year. 

I am also concerned that our current Chief Financial Officer lacks the knowledge and experience to navigate the dangerous financial course this budget charts for West Deptford Township. Ms. Sprigman does not possess the certificate required to be a municipal CFO and has no experience in local government finance.

This would be less troublesome if the governing majority heeded the advice of Mr. Barrett, the consultant hired to assist Ms. Sprigman in the development and management of the budget. Unfortunately, Mr. Barrett’s warnings regarding the budget amendments were ignored.

In summary, it is my belief that this budget is being purposefully underfunded to avoid any increase in the municipal tax levy.

As a member of the Township Committee, I am accountable to the taxpayers of West Deptford and I am very sensitive to keeping the taxes as low as possible. However, I also understand I have a legal responsibility to adopt a realistic, responsible budget that complies with New Jersey law, a budget that does not knowingly and willfully underfund essential services or put the township’s financial health at significant risk. 

I sincerely appreciate your time and willingness to hear my concerns, and I do hope the Division of Local Government Services will give due consideration to the serious concerns outlined in this letter.

Kindest Regards,
Denice DiCarlo
Committeewoman, West Deptford Township