State considers litigation over Campbell finances SFlb

By jeanne starmack

starmack@vindy.com

campbell

A state commission that oversees the city’s finances wants an explanation of how the city will balance its budget and curb its spending, and it is considering litigation.

The commission is in place because Campbell is in fiscal emergency. It will send a letter to the city that asks how it will implement a balanced budget, how it will cut expenses to live within budget appropriations and how it will avoid a deficit in the street department fund.

The commission also wants to know how the city will balance the general fund, where spending is outpacing appropriations in the fire department, the mayor’s office and the administration, land and buildings fund.

Commission chairman Paul Marshall said it is “very unusual” for an oversight commission to send such a letter.

The commission went into a closed session at its meeting Thursday morning to discuss litigation and confer with its counsel, Matthew Lampke of the state attorney general’s office. City law director Mark Kolmacic was also invited in.

Marshall would not elaborate on what was discussed during the closed session.

“I have said all along there are legal consequences,” he said, for going outside the city’s five-year fiscal recovery plan.

Mayor George Krinos recently hired 10 auxiliary firefighters to help boost the city’s understaffed fire department. Krinos estimates the firefighters will cost the city about $1,000.

But the recovery plan does not allow for new hires. Marshall believes Krinos violated the plan by hiring the auxiliaries, he told the mayor in an e-mail sent May 28.

Marshall told Krinos officials are legally obligated to follow a recovery plan.

He said officials who violate the law can be prosecuted.

Krinos also recalled a laid off firefighter in December, and there was no money appropriated in the budget to pay for him. He costs the city approximately $67,000 annually.

The fire department’s budget is overspent by $10,700 for the year, largely because of the recalled firefighter, said Timothy Lintner, one of Campbell’s financial supervisors from the state auditor’s office.

In other overspending that’s affecting the general fund, the mayor’s office is $2,275 over budget, Lintner said.

City finance director Sherman Miles said the overspending is because there isn’t enough money in the budget to pay for the mayor’s health benefits and his full-time secretary.

Krinos had agreed to give up his benefits to help pay his secretary’s salary but began taking the benefits again in March.

The administration, land and buildings fund is also over budget by $14,000, Lintner said. Miles said building repairs contributed most to the overspending.

“Do you have a plan to bring spending in line?” Marshall asked Krinos.

“If we have to take a look at the firefighter, we’ll look at it,” Krinos said. “Where do I draw the line on safety?”

“You have to live within appropriations,” Marshall said.

“I had very little to say about the budget,” said Krinos.

“Council sets appropriations, and you are responsible for spending within them whether you like them or not,” Marshall said.

Krinos is recommending that officials give up their city health benefits and that Miles’ salary be cut from $41,000 to $30,000. He is also recommending that the police and fire departments combine their dispatching.

Kolmacic said officials could voluntarily give up their benefits, but can’t be forced to in mid-term.