City Council Requests Elorza Deliver Report on Current Financial Position of Providence
Friday, April 17, 2020
City Council members are saying the Elorza Administration needs to turn over key financial information.
At Thursday's City Council meeting, Majority Leader Jo-Ann Ryan (Ward 5) and Majority Whip John Iglozzi, Esq. (Ward 7), Vice-Chairwoman and Chairman of the Council’s Committee on Finance, introduced a resolution requesting that the City Finance Director submit a detailed report on the current financial position of the City to the City Council for review.
Last week, GoLocal reported, "Providence Facing “Cash Flow Crunch”—Will Likely Need to Borrow to Meet Revenue Shortfalls' -- READ HERE.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“The COVID-19 global pandemic has caused havoc on the economies of almost every nation around the globe, and locally, Providence is facing economic challenges like one we have not seen since the Great Recession of 2008,” stated Majority Leader and Vice-Chairwoman Jo-Ann Ryan.
Council Members Say City Refusing to Disclose Key Info
Ryan said that Mayor Jorge Elorza's administration has been refusing to turn over information.
“Because of the partial economic shutdown caused by the COVID-19 mitigation efforts, the City is set to see a significant reduction in revenues, which is creating a fourth-quarter budget shortfall. Furthermore, as we look to the next fiscal year, the Council and the Committee on Finance needs to be proactive instead of reactive as we prepare to review the City’s FY 2020 budget," said Rayan. "We have requested this information for several weeks from the Administration, and it has yet to be provided to our City Treasurer, the Internal Auditor, or the Committee on Finance."
Before the City of Providence borrows any funds to address a shortfall or passes a budget for the fiscal year 2020, the Administration must provide the City Council with a thorough analysis of the City’s current financial situation.
“The Committee on Finance is tasked with ensuring that the City of Providence meets its obligations and that we are protecting our City’s tax dollars for our residents. Without a complete financial analysis, our Committee has no way to prepare for the coming budget and the best way to meet our responsibilities. Our request for a complete financial forecast is not only prudent but imperative during this economic crisis," said Igliozzi.
Resolution
The Council resolution requests that the financial report include an austerity plan for the City to address anticipated budget shortfalls. In addition, the report should include an assessment of all existing City contracts, as well as identify all unspent Capital Improvement Plan (CIP) funds (including any CIP projects that have not yet been initiated), and an evaluation of all planned expenditures for the remainder of the fiscal year including operational and personnel expenses.
Upon the passage of this resolution, the Council has requested that the detailed financial report be submitted within three days to provide time for the Council to review before engaging with the fiscal year 2020 budget.
