Slattery Opposes Budget, Adoption Delayed

Needing all four present councilmen to vote in the affirmative, the adoption of Caldwell's 2010 municipal budget was delayed Tuesday night when Democrat Kay Slattery opposed the due to what she believed are potential shortfalls in "quite a few critical areas."

According to Municipal Attorney Greg Mascera, four votes needed to be cast in favor of the budget for its adoption.

Without Councilman Richard Hauser, who was on vacation, and Gordon Lawshe, who resigned two weeks ago, Council President Ann Dassing and councilmen Peter Murray and Joseph Norton voted in favor of the budget, while Slattery opposed.

The council will vote again on Wednesday, Aug. 25, during a special public meeting.

The budget carries a tax rate of 2.243—a 1.1 percent increase from a 2.219 rate in 2009. The municipal portion is .680, 1.2 percent more than .672 last year, while the school is 1.106, up .9 percent from 1.096, the county rate is .447, a 1.4 percent increase from .441 last year, and the open space rate remained the same, Borough Administrator Paul Carelli said.

Margaret Cherone, Caldwell's chief financial officer, explained several amendments that were made to the budget that altered a few line items but did not impact the overall appropriations, she said.

According to Cherone, the municipality was unable to sell a fire truck that was advertised on GovDeals.com for $40,000. As a result, there was an increase in the revenue anticipated from surplus from $359,115 to $399,115, she said.

In addition, general line item appropriations were changed for the electric and gas other expenses category from $92,000 to $89,932.70, telephone other expenses went from $38,500 to $37,000 and there was an increase for employee insurance group health that went up from $1,113,830 to $1,115,830, Cherone said.

One line item that didn't change was police overtime, alloted at $100,000, down from $165,000 that was appropriated last year. It's one of the areas where Slattery was concerned the borough could have a shortfall since it had accrued $61,155.33 in police overtime as of July 27, she said.

"There was some concern that we don't have enough in some of the line items," Slattery said. "The police overtime is one, our revenue is down in quite a few critical areas."

Among them is sewer fees, which haven't yet been paid this year by three of the five other municipalities that use the service, Cherone said.

While payments from Essex Fells and Roseland are each current, West Caldwell, North Caldwell and Fairfield have all not yet paid this year, Cherone said.

"I'd like us to begin conversations with West Caldwell again as to their lack of payment, also North Caldwell and Fairfield—the towns that have not paid," Mayor Susan Gartland said. "I don't want to get us into a situation where we're backed up again."

Another area of the budget that once again surfaced was the compensation for Gregory Seaman, who was appointed as sewer director in January at an annual salary of $22,000.

Lawshe had called that amount a "typo" and a "clerical error" as Slattery has often voiced her opposition to the $8,000 salary increase and additional $6,000 that was given to Seaman several months ago to become Caldwell's regulatory compliance officer for a total compensation of $36,000.

In response to a question by a resident during the budget adoption's public hearing Tuesday night, Dassing explained the reasoning behind the compensation.

"There was a mistake on the resolution of $22,000 on Jan.1. So we had another resolution to fix that to $30,000, which is what the salary was last year," Dassing said. "There was $30,000 for the sewer director last year. It's in the budget this year.

"The additional $6,000 was also in the budget that was also in the budget last year. Our [former] borough administrator had that position and we needed to have that by state law. Mr. Seaman stepped up to the plate and we gave it to him since it was in the sewer plant and it was a position that we needed to have by state law. That was also done by resolution out in the public, out in the open."

However, Slattery for the first time Tuesday night claimed the entire governing body discussed in closed session the compensation for the sewer director position prior to it being awarded to Seaman at the reorganization meeting.

"First of all, the contract for the sewer director was discussed, and discussed and discussed in private executive session what would be offered, what would not be offered, what it would include, what it wouldn't include, benefits and whatever else. It was agreed on $22,000 in executive session," Slattery said adamantly.

"It was put into a resolution. It was not as former Councilman Lawshe said a 'typo.' Every one of you sat here on this council and allowed that to go unchallenged that it was a typo. The $22,000 was not a typo. It was a contract and Mr. Seaman signed it at $22,000. Shame on him, if it was a typo that he didn't know better than to sign his own contract with a typo in it.

"It was not a typo. I'm tired of hearing it was a typo and a mistake. It was discussed how much you could offer this person and whether they would take it or not. It was $22,000 and three months later he came back and said he was doing a good job and he wanted an increase and he was given an increase to $36,000."

As Slattery continued on what she later called "a tirade" during the council meeting that lasted four-and-a-half hours, Dassing did not respond to the claims.

Dassing said Thursday that she didn't feel it was appropriate to comment on discussions that occurred in executive session and her recollection of the events differed from what Slattery recalled at the meeting.

"It was not a mistake," Slattery concluded at the meeting. "I'm tired of hearing this council say it because every single person participated in that discussion and they knew it was being offered at $22,000 before it was ever offered to him. To use former Councilman Lawshe's term, stop being liars."