By Katherine Massopust
– PERTH AMBOY – The Temporary Budget for 2014 was discussed at the 5/21/14 Special BID (Business Improvement District) Meeting.  Board Member Sergio Diaz presented the budget list and was concerned about the cost of the attorney (who was not present at this meeting).

There were three issues on the agenda. One was a Bill List for $73,017.00. The Bill List is a list of expenses for the past month of past or present expenses or incumbencies The second item was to move the BID from a fiscal calendar to a calendar year in order to match the City. The third item was the temporary budget which needed to be passed to allow for the temporary fiscal budget to cover the BID from July to December.

The BID has also been considering separating itself from the City and going completely by itself as an independent entity.

Board Member Virginia Lugo felt that the BID was voting without discussing the issues and cited the opinion letter of the lawyer.

Chair Barry Rosengarten stated, “The attorney presented his opinion. It is MY opinion that we don’t need an attorney. (To vote on the agenda issues presented at this BID Meeting) The attorney cites law. The facts are law. Are you challenging law?”

Lugo said, “I thought the attorney would be here.”

The Bill List passed with BID member Virginia Lugo voting “No.”

BID Treasurer Sergio Diaz the addressed the temporary budget, “We need to be reimbursed for administrative services as of July 1, If we agree to go forward to separate with the administration.”

C.P.A. Robert Botvilla spoke, “Roxana (Troche) asked me to come to change the BID from a calendar year to a fiscal year – now to convert back from the fiscal year to the calendar year. This way we will match the calendar year of the City. Presently, the budget of the BID can get confusing with taxes. That depends if the budget comes in monthly or quarterly. The BID doesn’t need the City’s permission to do this. You need to only vote on a six month budget for July to the end of December. You have to take the budget over to the City Council. It’s required to have an audit. I’ve prepared forms and submitted it to the IRS, the services and given how the BID is run. It’s open to the public. My firm has done audits for the past 3-4 years.”

BID Member Israel Varela asked, “Do you do a forensic audit in order to clear the room that we are really using money correctly? Are we off the path?”

Botvilla answered, “A forensic accountant is much more expensive. We are not looking at efficiency.”
BID Treasurer Sergio Diaz again spoke about the temporary budget for 2014. “These items are all approved, but the first line on administrative services. How much should the amount be is in question, so the line item should be left open. $44,500 for six months was there if we need to have someone to run it (BID).”

BID Member Virginia Lugo stated, “I went to the Budget meeting although I wasn’t invited. I am a chair of the by-laws committee. The rules come and go and are made up as they go along. This budget – it stinks. How can everyone approve the budget? The documents are written with no cover sheets. At this point we need to find another person.”

Lugo proceeded to hand out to everyone their appointment letters.

Sergio Diaz stated, “Stick to the budget.”

Lugo continued, “We should terminate services we presently have. We failed to keep a membership list. We failed to submit annual reports. We are misguided as a Board. We prepared a resolution without the Board’s approval. You made me sign a confidentiality agreement.”

Chair Rosengarten answered Lugo, “What you signed was a receipt only. You signed no agreement.”

Wilda Diaz said, “There’s a lot of allegations.”

Lugo said, “This is all hearsay.”

Wilda Diaz said, “I don’t know – when the attorney is here. In the event if we don’t have someone as of July 1st. People are here, we should make use of their advice. July 1st is just around the corner.”

Sergio Diaz said, “We agreed to the line items for the temporary budget. This line should be addressed.”
With that Wilda Diaz recused herself, “I will not vote on this budget. I cannot. We do setup and clean up on BID activities. If we (the BID) does not reimburse the City we cannot provide services and not be compensated back. The BID is going to do everything. The City has a huge investment. We supply 99.9% of what happens in the City. It takes a lot of manpower. Who is going to provide all those services? Moving forward, I hope the BID will have what it needs. This is a budget. What does the budget need to go forward?” Diaz then walked to the back of the audience section of the City Council Chambers.

BID Member Israel Varela stated, “The Mayor would be in conflict. Everything is simple. We know the expenditures. No additional funds. It’s not rocket science. The BID is very small. The BID exists for the sole reason to help businesses. We are a supplemental thing. The City pays $0 on PA-TV. All is paid by the Board of Education. We should be focusing funds toward the business zone. It’s getting ugly. We’re not being productive. We are supposed to promote the business owners. That is it. We should table it until we have a full Board. Anybody that is a City Employee is in conflict.”

Troche stated, “The City Council should get the budget no later than June 11.”

Annie Hindenlang offered her opinion, “Why not reduce the amount (for the director)?”

Reyes Ortega said, “How will we use this money?”

Roxana Troche said, “This is a working budget. The next is a resolution that everyone has to sign the budget.”

After a discussion, Annie Hindenlang asked that administrative services be tabled and the budget approved with a reduction in the first line item from $44,500 to $34,500 allowing an extra $10,000 to help business owners and thereby passing a more balanced budget.”
The budget passed with all BID Members voting “Yes,” except for Wilda Diaz who abstained.

When it came to change the BID’s calendar from a fiscal year to a calendar year, the vote was a unanimous “Yes.”

During the public portion resident Ricky Aviles said, “There are four people here that don’t live in the City and sit on the board. You don’t pay taxes. I don’t have any problem with that. Some people don’t pay taxes. It’s taxation without representation. You are totally dysfunctional. When you, Mr. Diaz ran the meeting there was a little order. There is too much infighting – too much ego clashing. I think it’s good that Ms. Lugo is asking questions. I’m partially glad it’s not videotaped. It’s an embarrassment. If I came from another town, I wouldn’t open up a business here.”

Former Council President Ken Balut spoke, “You just hired a lawyer. You don’t have a lawyer here. That’s Joe Vas speak – a continuation of Vas’ policy. The Administration says 1/3 paid by BID starting with the signs. It’s a sad part of what is going on here. We were the poster child of what doesn’t work. Something is wrong with the picture.”

Wilda Diaz came up and spoke at the podium, “I was listening to all the comments. These are the facts. I cannot be part of every activity. If you don’t’ want to be here anymore, you will have to pay for the new place. To run a business or a nonprofit there is a cost. If you decide to go on your own, you will have to find a location and there will be an additional cost. There is not one person here that does not care about the City. Not one of you had anything to do with the previous administration. Let’s not forget the former Councilman (Balut) had a check signed by Joe Vas every week (as a paid police officer). We got to work together and move the BID forward. Operating the BID I have spoken to other town’s BID’s who work closely with the City. It’s better we work together. Not one of you had anything to do with the Vas administration. I want that clear. I will talk to the attorney. People see good there is in this City.”

The meeting which started at 6:00 p.m. ended at 8:34 p.m.