Petri: ‘memo confirms city’s dire finances’

John Howell
Posted 10/23/14

In an ironic twist, Stacia Petri, and the group that supported her unsuccessful bid for mayor, came before the City Council Monday brandishing a memo written by the council auditor - who they say …

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Petri: ‘memo confirms city’s dire finances’

Posted

In an ironic twist, Stacia Petri, and the group that supported her unsuccessful bid for mayor, came before the City Council Monday brandishing a memo written by the council auditor - who they say fails to meet qualifications to hold the job - as evidence that the city faces “dire” financial times.

“These numbers are accurate…these numbers show we have a financial problem,” Roy Dempsey, who managed Petri’s campaign, said in the open microphone portion of the meeting.

Petri went a step further, reading the Oct. 15 memo from auditor Catherine King Avila.

Responding to the May 1 request of Ward 9 Councilman Steve Merolla to “verify the numbers” of a financial analysis prepared by former Ward 1 Councilman Robert Cushman, Avila writes that, based on her review and discussions, “I can confirm to the best of my knowledge, the Cushman analysis of the pension and healthcare liabilities is accurately stated.”

Petri used Cushman’s analysis to support her claim the city is faced with a debt of almost $1 billion from borrowing and unfunded pension and healthcare liabilities due current and future city retirees. During the Republican primary campaign, Mayor Scott Avedisian dismissed the Cushman charts as being drawn on the kitchen table and giving a false picture by pulling information from different sources. In response to an email yesterday, Avedisian referred to the “hypocrisy” of Merolla’s argument, pointing out that Cushman is neither a CPA nor a financial expert.“Consequently, the request of Councilman Merolla to have Mr. Cushman evaluate a report prepared by professional qualified auditors contradicts the very argument he uses to question the City Council Auditor’s credentials. “Whatever Councilman Merolla’s motivation may be, the fact remains that there is a professional actuarial company that performs an audit and issues professional assessments that I have confidence in and employ in the decision-making process.” In the memo Avila explains she needed to contact the firm that prepares the city’s actuarial reports to gather the information and that it wasn’t until Aug. 1 that she received the last of about 20 documents needed for her review. She said that most of the healthcare information that spanned ten years was gleaned from prior years’ budget documents. Avedisian notes that Avila simply verified numbers Cushman used and didn’t offer an opinion.

“I can’t wait to see what’s going to happen with taxes,” Petri said.

Yet, earlier in the evening, during committee hearings, Roger Durand, who worked on the Petri campaign, said City Council President Donna Travis and Ward 3 Councilwoman Camille Vella-Wilkinson, chair of the finance committee, owe an apology to the public and the council for the manner in which they appointed Avila. He said Avila is not a certified public accountant and that the full council should have voted on her selection.

“I think the council should re-advertise this job. Thirty-two dollars an hour is what you’re paying…publish it and see what it brings in,” he said.

Dempsey, who is a CPA, and was one of the finalists for the job, said the process hadn’t allowed him to get beyond Travis and Vella-Wilkinson. And Rob Cote, who also supported Petri, said the Avila appointment violated the city charter, because it had not been voted on by the full council and that any money paid her should be refunded.

Ward 5 Councilman Ed Ladouceur said the council should have had the chance to interview the candidates. He said on April 16 he requested an executive session of the council to interview the top six finalists for the job. No meeting was held.

Ward 9 Councilman Steve Merolla congratulated Travis for placing the Avila appointment on the docket to “right a wrong.” He suggested the council hold the matter until November so members could look at all the resumes and candidates.

Travis said she, Vella-Wilkinson, the city personnel director and a member of the personnel department followed “procedures done previously” in selecting Avila. She said votes were cast in envelopes and each member of the selection committee reached their own decision.

“The only thing we’re doing now is to confirm by the council. I’m asking to confirm her so we don’t hear about it anymore,” she said.

When the issue reached the council floor, the vote was postponed until next month for additional legal review.

In a call the following morning, Ladouceur said he would not vote “to confirm a wrong that has occurred.” He said he wants to interview the top six candidates.

“My problem is with the process. The process was flawed and it needs to be corrected.”

Comments

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  • Reality

    Thank You Bob Cushman for your analysis. I know Bob that you have been vilified for years but finally the actuarial firm confirms your numbers are correct. Hope Councilman Merolla's resolution is ratified so you can explain the dire financial straits Avedisian has placed the city. Notice Scottie's modus operandi is still in play.....attack the messenger and not the message.

    By the way Bob, don't you have an MBA ? Maybe you can apply for city council auditor. Hope Ms. Travis is told what an MBA is.....it is not a MOP. What a disgrace.

    Thursday, October 23, 2014 Report this

  • Stacia Huyler

    Actuary Joe Newton at GABRIELROEDER who prepares the city's actuarial reports confirmed Bob Cushman's pension and healthcare analysis to be accurate and that "they were consistent with his own findings"

    All Avila did was make a phone call to confirm this. Mayor appointed Mr. Al Marciano, who heads the city of Warwick retirement board, could have done the very same thing, but why would he want to admit under his watch, the city of Warwick is facing a pension catastrophe? That would have too many asking too many questions....why would he ever want THAT.

    Now, that is quite misleading.

    Thursday, October 23, 2014 Report this

  • patientman

    Hopefully all the work from Mr. Cushman, Ms. Petri and others will finally get the taxpayers some clarity into the cities unfunded liability. Ideally the Mayor will be forced to ask the retiree's for the necessary concessions to slow down the run into bankruptcy. If the retiree's can't find a way to pitch in to help save Warwick the taxpayers will have to replace the mayor and entire city council for new leadership that refuses to raise taxes any further. The taxpayers have been hammered, the workers have had stagnant wages and massive cuts to their budgets. All to make sure Avedisian's voter base stays whole.

    Thursday, October 23, 2014 Report this

  • Bob_Cushman

    Now that my analysis has been verified to be accurate by professionals contracted by the city. I requested that I be given an opportunity to present my analysis before the city council and public.

    The following council members stated to me personally that they would support a resolution to schedule such a presentation: Councilman Merolla, Solomon, Ladouceur, Gallucci, Chadronet and Colantuono.

    I look forward to the council passing this resolution soon and scheduling this presention in the months ahead. Hopefully the Mayor and his executive staff will attend. In addition it is my hope that the rank and file union memebers in the city also attend the session so they can get a different prospective on the condition of their pension plans and the overall financial challengers facing this city that will effect the funding of these benefits, their wage compensation, and the overall funding of all city and school programs in the future.

    Thursday, October 23, 2014 Report this

  • fenceman

    Now that mr. Cushman's analysis has been confirmed by the actuaries that represent the city of Warwick, I look forward to see Stevie D's comments. Stevie D has done nothing but harass and degrade Bob Cushman and others who have been bringing the facts of the pension crisis to light for the benefit of the general public. I wonder if Steve's position will now change to where he now degrades the actuaries that have confirmed mr. Cushman's analysis. Maybe SteveD and Scott Avedisian are related. they both condemn anybody that speaks the truth about the finances in Warwick. They both fail to realize fiscal incompetence, and they both failed to get up in public and face the general public to pose their point of view or answer any questions. I look forward to a healthy debate when Mr Cushman presents his analysis. Maybe we can make some first grade math charts with funny little animals, and provide SteveD and Donna Travis with instructions on how to use an abacus so that they can understand the basic fundamentals of addition and subtraction.

    Thursday, October 23, 2014 Report this

  • wwkvoter

    .

    Friday, October 24, 2014 Report this

  • Reality

    Still haven't heard from Stevie D aka big mouth. Hey Stevie you aren't talking because you finally see Bob Cushman figures were correct ant not the baloney Scottie been peddling,

    Note the city council auditor only made a phone call to Warwick's actuarial firm and guess what Stevie.....they confirmed Mr. Cushman's analysis. Maybe now that your retirement isn't looking so secure.....your trips to Dave will be cut back.

    Saturday, October 25, 2014 Report this

  • spope66

    The mayor has raised taxes almost every year I have lived in Warwick, as long as he has been in office. He refuses to return the money to the annual school budget that should have been replaced in 2010 and every year since. How is that $8000 carpet job. These people that are hired outside of the proper channels , see also Dr. D'Agostino, should be giving the public more and more reason to doubt the ability of those in power to do the job they were voted in to do. The people hired may be qualified, that is true, but being hired outside of normal channels gives and air of impropriety. Some of the people on these committees have been on two long and have become forces for political agendas and not for what is right for the people of Warwick. November 4th you have a chance to elect some new representation, representation that isn't concerned with doing favors or promoting political agendas. Make a change November 4th, if you want things to change. It would be nice if we could take a vote of NO CONFIDENCE in the mayor....

    Tuesday, October 28, 2014 Report this

  • MikeDisalvia

    It's still not to late write in Stacia for MAYOR for a change we all need

    Wednesday, October 29, 2014 Report this