Sen. Beck calls for investigation of city finances
'This predicament is mind-boggling'
State Senator Jennifer Beck on Oct. 3 called for an investigation by the State Division of Local Government Services of Asbury Park’s finances, according to a prepared release from her office.
Beck [pictured at right] called for the investigation due to the recent announcement of a $1 million shortfall in the health insurance line item of the city’s 2012 municipal budget.
“City officials knew before adopting this year’s budget that there were insufficient funds to pay for the employee health insurance costs, but proceeded with the budget in hopes of allocating the $1 million in the future,” according to the release.
“This predicament is mind-boggling,” Beck is quoted as saying in the release. “How do you approve a budget when you know you can’t cover its costs? This could be fiscal mismanagement of the highest order and it demands answers.”
Beck is a Republican senator representing the state’s 11th legislative district.
The city is set to apply to the state’s Local Finance Board for permission to bond for the $1 million and pay it off over the next five years.
“Due to the unusual nature of the City’s request and the recent allegations made by a former city employee who was intimately involved in the process, he have to ask some questions [sic],” Beck is quoted as saying in the release. “Asbury Park receives millions of dollars in state aid every year, more than any other town in Monmouth County. The state has invested itself into the future of Asbury and we need to know exactly what the City’s leadership is doing with all this money.”
A fiscal monitor has already been assigned to the city, according to the release.
“Clearly we need to dedicate more resources to helping them get their house in order,” Beck is quoted as saying. “The Division of Local Government Services will have to increase its involvement to find out exactly what is going on in Asbury.”
Officials announced the $1 million shortfall at the Sept. 19 council meeting. Since the announcement was made, former finance director and chief financial officer [CFO] Juan Uribe came forward with allegations that officials knew of the shortfall before the budget was finalized and planned to bond for the extra $1 million all along. But according to city officials, they did not know the discrepancy would be so large and thought other health insurance cost decreases would balance the line item.
The city council on Oct. 3 approved a resolution allowing officials to seek an emergency appropriation to fill the gap in the budget. On Oct. 17, the council will have a final vote on whether to bond $1 million.
