Previous Finance & Budget Essentials

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Mayor unveils city budget plan
Author(s): BRENT CURTIS Rutland Herald Staff Date: June 7, 2005 Section: NEWS

Rutland Mayor John Cassarino's promise to bring in a budget that would fit under the 85-cent charter limit seemed to come true Monday when he submitted an $18.9 million spending plan for the city. But some members of the Board of Aldermen, who had their first look at the plan Monday night, wondered how the city could afford a $535,473 general budget increase when the city's grand list growth is projected at less than 1 percent this year.

….some board members wondered how the city could afford more than a half million dollars of additional spending a year after dealing with a $100,000 deficit. "It seems like common sense to me that ……. the budget must be $100,000 less," Alderman Christopher Louras said. "How do you [stay under the 85 cent limit] when there's almost $600,000 more in the budget than last year?"

But doubts about the budget didn't end when the mayor sat down Monday. When Shortle stepped up to the bar to ask the board to approve $1.5 million in short-term borrowing - a practice the city uses to pay its bills during lulls in its cash flow - Louras and Alderman Roy Thomas said they were concerned that the city was running a credit line to pay for its budget. "We've had a pattern the last two or three years of borrowing quarterly throughout the year," Louras said. "That's $1.5 million in bank loans for ongoing operations. It sounds like deficit spending for lack of a better word."

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Routine budget issues turn testy
Author(s): BRENT CURTIS Rutland Herald Staff Date: June 22, 2005 Section: NEWS

A fairly routine budget meeting erupted into a tug of war between a city alderman, who thinks the city is heading for a financial crisis, and the administration, which argued the proposed '06 spending plan is sound.

….. tensions between Cassarino and committee chairman and Alderman Christopher Louras came to a head. Louras has been an outspoken skeptic of the mayor's budget this year. After running the numbers on the budget, he said his calculations would put the city over the mandated 85-cent tax limit for general fund expenditures.

Cassarino said Louras' comments and actions of late had gone beyond fiduciary responsibility. "We've been doing it this way 16 years. You've been on the board a lot of those years and you've never said anything before. Why this year? This year, you've been nitpicking everything because there's a new treasurer," Cassarino said. "You're not the mayor, you're not the treasurer and just because you crunched some numbers doesn't mean that you're right."

The verbal flurry led into a lengthy debate about the shape of the budget. Louras contended that projections for revenue and the grand list suggest that the budget would come up short. Pointing to a $105,000 spending gap that existed for a time in one of the city's accounts last year, Louras said the city was in jeopardy of making the same mistake twice. "I don't believe there's enough revenue in the general side of the budget to offset the expenditure side of the budget," he said. "I believe we have a fiduciary responsibility to approve a budget that's under 85 cents."

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City OKs budget
Author(s): BRENT CURTIS Rutland Herald Staff Date: June 28, 2005 Section: NEWS

After weeks of scrutiny and occasional contentious debates, the Rutland Board of Aldermen voted 9-1 Monday to approve a proposed $18.4 million city budget. As in previous years, this year's budget review was marked by the introduction of a budget by Mayor John Cassarino that has been described as bare bones, a grand list estimated to rise only slightly and a predicted tax rate right around the 85-cent limit set by the city charter.
The debate essentially pitted Alderman Christopher Louras against the rest of the board and the administration. The argument, in a nutshell, came down to whether or not the board could pass a budget that exceeded the 85-cent limit. Louras said they could not. "It's irresponsible of the board to approve a budget that, by using data from the Treasurer's Office, results in a deficit of more than 2 cents (on the general fund tax rate)," Louras said.

The rest of the board and the administration didn't trust Louras' estimates that the budget would come in over the 85-cent limit. But Louras said he raised his arguments and continued to oppose the budget's passage because the numbers didn't add up. "The city assessor has submitted a certified grand list that's only going up three-quarters of a percent, so only the surplus is an unknown and I don't think we should expect a lot," he said. "I understand the argument that it's not our job to balance the budget. I appreciate that argument, but I don't agree with it."
But several members of the board and the administration said Louras was making the budget situation sound worse than it really was.

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City officials examine large fund transfers
Author(s): BRENT CURTIS Rutland Herald Staff Date: October 4, 2005 Section: NEWS

City aldermen were told Monday that the recently departed city treasurer had made large transfers from restricted funds to bolster the city's general fund. The 10 aldermen at Monday night's meeting held differing views about how the board should respond to new allegations regarding former Treasurer William Shortle, who resigned a week ago.

……..the problems in the treasurer's office appear to go beyond personnel issues and late bills. Alderman Christopher Louras told the board he had found evidence that more than $400,000 was transferred in June from a variety of city accounts into the city's general fund for unknown purposes. "In my opinion, these funds were used to pay for general city expenses and to inflate the numbers to create the $100,000 surplus we carried over from last year," he said.

"I think we have some real exposure here," Louras said. "The books weren't closed for the '05 fiscal year in June and we had a half-million dollars moved into the general fund that's not supposed to be there." He said the board needs to take matters into its own hands to make sure funds are being transferred properly. He said the city needs to change its charter to require all balance transfers from the city's various accounts come before the board for approval - a motion that was defeated 6-4.

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Shell game (Rutland Herald editorial page)
Date: October 5, 2005 Section: NEWS

Questions about the operations of the city treasurer's office appear now to have the potential of growing into a serious scandal involving the improper or illegal transfer of large sums of money.

Alderman Christopher Louras has discovered that Shortle used money from a variety of special funds to cover apparent shortfalls in the general fund. Details of these transactions are not yet clear, but we are seeing the outlines of what might have been a shell game to make it look as if the city's budget were under control.

Louras estimates that more than $400,000 has been transferred from several city accounts without explanation. Louras has raised questions in the past about city finances, and he is eager for the board to exercise greater oversight. It is unclear how much the board can do until it has more information, but now is not the time for the board to assume a passive pose. It is important for city officials to determine if there is a hidden deficit, previously covered up by the inappropriate transfer of funds. That is a first step in figuring out how to move forward without miring the city in a deeper budget morass.

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Budget mess (Rutland Herald editorial page)
Date: November 23, 2005 Section: NEWS

Rutland City government is gradually figuring out how the city's finances got out of whack, but it has been a process clouded with hard feelings and tinged with politics. Alderman Christopher Louras has proved a nettlesome critic of the city's budget problems, and now it is becoming clear that his criticism was warranted. The confusion that emerged with the resignation of Treasurer William Shortle, with funds shifted to other funds to disguise looming shortfalls, showed that the city's finances were a mess.

Louras had been warning about budget problems, and finally when the situation became a crisis, the board and Mayor John Cassarino were forced to listen.

After contentious debate, the board finally agreed on Monday to borrow $4 million to prevent a default on money it owes. But they could not do this until Louras had forced the board to address the problem of the city's tangled finances and what he contends are excessive costs.
To Louras' persistent concerns about the city budget, Cassarino counters that he is reluctant to lop from the payroll employees performing important services. Cassarino has long had to fend off accusations from Louras that there was too much fat in the budget. Now he will look at the budget again.

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Denying charge of obstructionism (letter to the editor from Christopher Louras)
Date: February 9, 2006 Section: NEWS

Normally I refrain from submitting letters to the Herald, but due to recent actions during a Rutland City Board of Aldermen meeting at which I was soundly and erroneously criticized, I am forced to make an exception to this personal rule. It has been suggested that I have acted as an obstructionist and that I have stood in the way of the city moving forward when dealing with its financial crisis. Nothing could be further from the truth; in fact, I have consistently and historically looked out for the welfare and interests of the city and her taxpayers. During the spring of last year and throughout the budgetary process I had raised concerns over what I found to be questionable practices and non-standard procedures regarding the city's fiscal management, specifically within the Treasurer's Office. For that, both the administration and some colleagues on the board publicly vilified me. Mayor Cassarino was quoted as saying to me during a committee budget meeting that I was "not the mayor, not the treasurer and just because you crunched some numbers doesn't mean that you are right." To that I responded, also as reported in the Herald, that "just because I'm a jerk doesn't mean I was wrong, either." My worst fears and concerns were then confirmed when the house of cards that had been propped up by the administration and some board members finally came crashing down around them in September after the delegation's trip to Japan.

At that point, those responsible for the city's financial negligence tried to absolve themselves of responsibility and began to run for political cover. When the issue of questionable and potentially illegal transfers within city funds and nonpayment of bills was brought to light, I was chastised and accused of grandstanding as others chose to ignore or cover up the inevitable consequences of lax oversight and poor administration.

Fast forward to the city's current dilemma. Treasurer Wilkinson on Jan. 3 advised the board that, due to an accounting change, the city would be forced by statute to report a $500,000 deficit that would need to be erased. Treasurer Wilkinson subsequently told the Finance Committee we would have to fund the deficit with a bond, note or through an increase to the tax rate. I insisted at that meeting that we find a mechanism, if at all possible, that would guarantee we not penalize property owners who meet their tax obligations by forcing them to pay twice, once for themselves and again to pay for a deficit created by delinquent taxpayers. I advised Treasurer Wilkinson that my conversation with city bond counsel Paul Giuliani had led me to believe that mechanisms could be put into place to achieve that goal.

Treasurer Wilkinson then told the committee that all correspondence with bond counsel must go through the treasurer and that no aldermen should contact Mr. Giuliani directly. Furthermore, when I made the request that the committee meet with Mr. Giuliani to discuss our funding options and their potential impacts, Treasurer Wilkinson told us explicitly that he would not invite him to speak with us and that we would have to rely solely on the treasurer to tell us what bond counsel advises. These are the facts of the matter.

For the mayor, the treasurer or any board member to assert that I have anything other than the best interests of the taxpayer at heart is pure fantasy and grossly irresponsible. All members of the Board of Aldermen have a fiduciary responsibility to the taxpayers of Rutland City and none should be admonished, either in public or private, for exercising due diligence in the administration of the city's fiscal matters. Also, there has been no obstruction to progress on my part; in fact, any input I've provided to find solutions has been met with resistance or dismissed outright rather than be considered as a viable option worth pursuing.

These editorial pages have made the case that all city officials must work together to get through these difficult times, and I agree wholeheartedly. But in order to work to solve the Rutland's financial problems, policymakers must have access to unfiltered and objective information directly from the experts who can provide unbiased guidance. That is all that I ask and that is exactly what the taxpayers deserve.

CHRISTOPHER C. LOURAS (Alderman)

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Board dissects budget
Author(s): BRENT CURTIS Rutland Herald Staff Date: June 9, 2006 Section: NEWS

No expense was safe from the axe - or at least the threat of cuts - during the Board of Aldermen's first review Thursday night of Mayor John Cassarino's proposed $23.5 million budget. Conscious of taxpayers' concerns about rising property values due to a recently completed reappraisal, as well as a $3.5 million, or 18 percent, increase in the proposed 2007 fiscal budget, aldermen in the room during the board's General Committee meeting seemed willing to entertain cuts to almost anything.

Seconds after the meeting opened, work began. "I make a motion to cut $24,331 from line 0901," said Committee Chairman Christopher Louras. The $24,331 represented all of the stipends paid to the 11 aldermen during the course of the year. The motion to cut the line item failed by a committee vote of 4-1, with aldermen Paul Barbagallo, Steve Reilly, Karen Bossi and Joseph Tilden voting "no;" Louras cast the lone "yes" vote.
While the committee approved only one cut by early evening, committee members also argued about other expenses and voted on one other cutback. The motion that failed proposed to trim $4,000 from an $8,000 line item used to pay for unforeseen expenses in the legal budget. Louras again was the only "yes' vote on the motion that failed 4-1.

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Jobs at stake in budget finale
Author(s): BRENT CURTIS Rutland Herald Staff Date: June 29, 2006 Section: NEWS

Out of the roughly $23 million in the proposed city budget, $84,066 in wages and benefits for three proposed positions are expected to garner the most scrutiny from the Board of Aldermen prior to today's vote on the spending plan. Four out of five board members reached Wednesday said they had doubts about approving two new positions in the Recreation Department. Another proposed position in the Treasurer's Office also was a concern for two aldermen reached Wednesday……

Alderman Christopher Louras said Wednesday [he had] doubts about all three new positions in this year's budget…..

Louras, …. said he still was weighing how he would vote on the new positions….."We certainly need to make some significant cuts," he said. "And in this budget, cutting positions is the way to go. I think we need to cut six figures from the budget."

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Board is told mayor controls city attorneys
Author(s): BRENT CURTIS Rutland Herald Staff Date: July 28, 2006 Section: NEWS

The board decided to take a closer look at the attorney's office during its review of the city budget last month, when Alderman Chris Louras made a motion to cut $70,000 from the office and cut it from two to one attorney. That motion was never voted on because it was sent to committee instead……

But the budget numbers weren't on the table Thursday. Members of the committee, including Louras, the chairman, directed their questions toward learning about the attorneys' duties, who they answer to, and how much control the board has over appointing and instructing them…….
……..most control over the office resides with the mayor, who decides how to structure the office and how much involvement the attorneys should have in city affairs.

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Cassarino's departure (Rutland Herald editorial page)
Date: September 15, 2006 Section: NEWS

….Alderman Christopher Louras has been a lightning rod, pointing out a variety of budget mistakes in an effort to get the city back on track. …….. so Louras' criticisms were not well-received, even when justified. Louras' methods have rankled Cassarino and Wilkinson, but his oversight has also been an important spur.

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Cuts vs. public safety
Author(s): BRENT CURTIS Rutland Herald Staff Date: August 10, 2006 Section: NEWS

Rutland's police chief and the head of the Police Commission said Wednesday they've found ways to work without the $78,300 in spending that Mayor John Cassarino hopes to save from the police budget. But some members of the city's Board of Aldermen, which has yet to decide whether to go along with Cassarino's plan, said they don't believe the mayor should reduce public safety as part of his plan to trim 3 cents from the yet-to-be-set tax rate……Alderman Christopher Louras said he believes there are other places in the city's budget where savings could be found. "For me, if it's a choice between taking individuals off the street or foregoing hiring new people in the Treasurer's Office or recreation, then I'm going to forego those new people," he said.

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Rutland alderman wants closer scrutiny of city fund transfers
Author(s): BRENT CURTIS Rutland Herald Staff Date: September 29, 2006 Section: NEWS

Aldermen are looking at keeping a closer eye on fund transactions that have contributed to the city of Rutland's financial woes. Alderman Christopher Louras asked Thursday that the city's Charter and Ordinance Committee change a city ordinance dealing with the powers and responsibility of the city treasurer. The one-sentence addition would require the treasurer to provide the board with written notification of every transfer or loan from a city fund.

Last year, when problems in the treasurer's office began to surface, aldermen learned that former Treasurer William Shortle had transferred funds from a number of accounts to pay the city's bills. One of the accounts he tapped contained invested funds.…..And some aldermen have asked if balance transfers from the water and sewer accounts contributed to deficits in those accounts of as much as $5 million, before the debts were addressed.

"This has to do with improving a system of checks and balances that sorely needs improvement," Louras said. There was some debate over the types of transactions Louras wants the board to be told about. Some aldermen said the transactions already appear in monthly budget updates that Treasurer Al Wilkinson delivers to the board.

But Louras said he wanted the ordinance changed so the notification requirement would outlive the current treasurer and board. Louras' proposal was received more warmly than motions he has made in the past that would require the treasurer to come to the board for approval before transferring funds. The treasurer and a majority of the board frowned on that idea, saying some transfers need to be made in a more timely fashion than the aldermen's two-week meeting schedule would allow.