June 6, 1990 - Special City Council Meeting

City Clerk Daniel J. Issa read the Ordinance.

City Council President Albert O. Laroche opened the meeting to a Public Hearing at 8:10 P.M.

Mayor Lazieh addressed the City Council, "At this Time; he stated; you have before you the 1990/1991 operating budget. He then began to read from the Minutes of the March 1990 Council Meeting which reflects on the City Audit report and the deficit and the unfavorable revenue. The Mayor, at that time, recounted the tough cuts that he had to make to address the deficit and the possibility of a $15.00 tax rate increase.

Mayor Lazieh recounted his January Inaugural address in which he stated that he would make cost saving measures. Temporary hiring freeze, reduction of overtime in all departments, eliminate 1 position on Police force, ($31,000) temporary freeze at Library (1 full time position $17,000 and 1 part-time position $5,000, eliminate Municipal Court Clerk/Associate Judge $4,000, eliminate non-essential part time positions in City, delayed the hiring of Minimum Housing Director $6,655, delayed the hiring of Planning Director $7,522, Dept. Heads and Mayor salaries have been frozen, auto allowances and convention dues accounts eliminated, delayed the hiring of Principal Planner, $32,585, Senior Planner $28,595, Rehab/Economic Developer $30,590. Implement recycling program with current compliment of help, re-organization of City Departments, reviewed policy and procedures for assessing and collecting fine for Minimum Housing violations.

Mayor Lazieh stated that he was working with the School Department to meet the required programs. He further stated that the City could not provide the School Department with any increases.

Mayor Lazieh then began to relate the loss in revenue and its impact on the budget.

1990/1991 $ Impact on Budget

Mayor Lazieh then related the increase in expenses and its impact on the budget

Mayor Lazieh further explained that Central Falls was forced to this increase because of the economic times and the lack of area for development. He stated that other communities could broaden their tax base because mills, homes and businesses could be constructed. Central Falls on the other hand could only look at a few developments which will not have an impact on the City in this budget.

Mayor Lazieh explained that the Detention Facility decision has not been made and that Central Falls was one of two Communities being considered for the facility; the other being Plymouth, Mass. he further stated that this facility would bring in approximately $300,000 of tax revenue to the City but it would not help solve the problems of the City. He further explained that Senators Pell and Chaffee, Representatives Schneider and Machtley and Governor Deprete were all supporting the efforts of the City to site this facility in Central Falls.

A proposal to site a Regional Court House at the former Health Tex Complex was also discussed by the Mayor. He reviewed the process being taken with regards to the Resource Recovery Facility and related that the City was in contact with Rhode Island Solid Waste and the Developers.

Mayor Lazieh spoke on some expansion of some businesses in the City and has had meetings with at least three companies in Central Falls who are considering some expansion.

Mayor Lazieh touched upon the School Department suit and stated that this would benefit the City; however, the City has fiscal restraints and has to present a budget based on the current situation not on the promise of future revenues. Mayor Lazieh further stated that the property tax was the only method available to Cities and Towns to raise this revenue. Sales taxes and income taxes are assessed by the State and Federal Government and is not available to the City Government.

Mayor Lazieh thanked the City Council and turned the meeting back to the City Council President.

Meeting opened to questions and answers period.

Josephine McLaughlin questioned last year's tax increase, which exceeded the 5.5% cap and asked where this money went to?

Mayor Lazieh explained that State approval was sort to exceed the cap.

Josephine McLaughlin stated that everyone should quit paying taxes.

City Council President Laroche asked for order and warned the audience that this meeting would be conducted in a civil manner or the public hearing would be closed.

David Wawar deferred comment at this time.

Gerald L. Jette of 10 Temple Place asked how much of the budget goes to wages.

Mayor Lazieh explained that wage increases are not listed but $200,000 is being set aside in the event that contracts with the Fire, Police and Municipal Workers are settled.

Mr. Jette asked the Council President if he planned to give City Employees raises this year.

Council President Laroche explained that the City Council does not give raises. That the purpose of the Council is to legislate. The City Council can cut the budget and allocate the funds. The Mayor expends those funds. Last year the Mayor at that time allowed the Council to make line item cuts, however that is not the function of the Council.

Roland Chabot asked about the Blue Cross and suggested that the employees pickup this cost.

Mayor Lazieh responded that the City was in negotiations and explained the process.

Mr. Chabot asked if the Mayor considered Bankruptcy.

The Mayor replied No.

City Council President Laroche explained what Bankrupcy would do to the homeowners citing the situation in Fall River. People lost their homes.

Pauline Bouvier waived.

Chet Arcisz remarked that this was the poorest budget he's seen presented and it should contain a Departmental Budget of each Department Head.

Council President Laroche reminded Mr. Arcisz that his time was for asking questions, comments or statement could be made later.

Mr. Arcisz asked if Boards received Blue Cross.

Mayor Lazieh responded that no Board member receives Blue Cross.

Mr. Arcisz questioned the interest on investments.

Edna Poulin responded that the City doesn't have the money to invest. The investments made by the City were short term on the weekends.

Mr. Arcisz questioned the $500,000 in G.P.A.

Edna Poulin responded that this is a dollar for dollar reimbursement and expenditure. She also explained that the $3,000 was the salary for the part time Director of Welfare.

Mr. Arcisz stated that the City shouldn't lay of police but rather the Personnel Director.

The Mayor responded that he had to do what is responsible and complimented the Finance Director and Personnel Director on the work they have done.

Conrad Langevin questioned the $9.70 tax increase per thousand. He stated that the City wouldn't have to worry about room for development because there would be no one left in the City and there would be all the land that you could want for development.

Mayor Lazieh responded that this was not a final budget but a proposed budget as it required by Charter and State Law.

Dave Bergeron declined.

Norman Bergeron, Vice Chairman of the School Committee questioned figures of State Reimbursement for School Department. He further questioned restricted funds.

Mayor Lazieh responded that the budget does not reflect restricted funds.

Edna Poulin responded that the figures were attained from the State Department of Education, Jim Martin and the Superintendent.

Mayor Lazieh further explained the figures approved by the City Council last year.

Edna Poulin explained the figues received with regards to restricted funds.

Jim Martin from the School Department explained that the School Department is in direct receipt of restricted funds for very specific programs like the literacy program and special purposes.

Robert Canavan School Committee Chairman questioned the Mayor on the tax increase and asked what the School's contribution was to this increase.

Mayor Lazieh responded that not 1 cent and the City could not afford to fund School Department increases.

The Mayor further explained the School Department revenues and expenses.

Len Nadeau deferred.

Maurice Hamel questioned the Police and Fire Pension and the short term disability pensions awarded the past 6 years.

Mayor Lazieh responded that the City has tightened up the disability procedures and explained that the documentation of these disability retirements must be complied with before granted.

Maurice Hamel questioned whether the City could look at present pension disabilities and require other options to the pensioned personnel.

Mayor Lazieh responded that he was not sure if you could go retroactive with the pensioned personnel.

Maria A. Pappa questioned how much could be squeezed from the Taxpayer, She asked that the Council have compassion. These increases are pushing good people out of Central Falls.

Susan Gazaille asked if it were possible not to grant wage increases and make employees pay blue cross.

Mayor Lazieh responded that the City was in negotiations.

Council President Laroche commented that if you looked in today's Evening Times you could find a listing of 34 appartments for rent that means that homeowners are not receiving the revenues that they need to meet the tax increases.

Tony Garcia questioned the Mayor and stated that if Central Falls lost GTE and other large companies because of these increases, the City would be in worst financial trouble. He also questioned school department spending. Is it necessary to have 14 buses in Central Falls.

Robert Canavan responded that 60 students attend Davies Vocational.

Mr. Garcia questioned the need for 1 Superintendent and 2 assistants. He stated that Boston has 1 Superintendent.

David Wawer of the Blackstone Valley Chamber of Commerce addressed the City Council and congratulated the Mayor and his Department Heads for their honesty in presenting the budget. He commented that $9.70 was a lot of money and asked the Administration to look the following measures to reduce this tax burden:

1. Regionalization of Schools

2. Negotiate a -0- increases and seek some employee participation in the payment of Health Care Benefits.

3. Regionalization of some City services ie: Highway, Fire & Police Departments.

4. Other co-operative ventures with other Cities and Towns.

Mayor Lazieh responded that the City has addressed some of the points that Mr. Wawer has suggested. For example the City is putting the question of Regionalization back on the ballot for November. The question of co-payment of health benefits is being negotiated. Purchasing has been regionalized with the State and other Communities. Mutual aid is being used in the area of Fire and Police Departments and equipment for the Highway Department during emergencies is also being sought from other communities.

Mr. Beauchemin commented that the City's future is dim.

Chet Arcisz questioned the $440,830 School Housing Aid.

Edna Poulin, Finance Director responed that the Bonds for the School is for 20 years and we cannot be reimbursed for the Bonds until they are sold. If we cannot sell the bonds $249,000 in additional interest will be added to the expenses of the City.

Chet Arcisz commented that the Police Department could be making more money.

Superintendent Deneault commented that $450.000 Housing Aid must be spent and reimbursement would start July 1, 1990. He further commented that it will take two years to spend the Bond money.

Edna Poulin, Finance Director read a memorandum from Senate Fiscal Advisory staff regarding the Central Falls School Housing Aid. The memorandum explained the reimbursement from the State Housing Aid.

Mayor Lazieh and Superintendent commented.

Robert Canavan commented as a Taxpayer and not as Chairman of the School Committee regarding the $9.70 tax increase. He stated that this increase is unrealistic and stated that the Council has not put enough collective effort on the Budget. He complimented the Mayor on his efforts for the first 5 months in Office. Mr. Canavan suggested that R.I. P. E. C. do a 5 year study on the fiscal survival of the City. He also suggested that the City be divided into 3 equal parts. He suggested that the Council do something innovative or crazy or whatever it took to help this City.

Council President Laroche commented that Mr. Canavan's remarks are well taken and that something should be done. He commented further on some City projects. Council President Laroche further commented on what hope the City's taxpayer had. He stated that the present Mayor was not to blame for the City's Financial situation and that this problem is one that the Mayor inherited.

Councilman Charbonneau commented on a May 9, 1990 Times article relating to the school budget. He further recommended that the School should operate on that same budget it had for last year.

Councilwoman Moreau asked about the 18 positions in the School Department that are not filled and recommended a freeze on further School Department Hirings. This would be a savings of approximately $415,000.

Robert Canavan commented that he couldn't answer that question. He stipulated that this question is one that the School Committee must decide upon.

Mr. Muggle questioned that Salaries of the Superintendent of Schools and the Assistant Superintendent. He then asked what the Salary of the Mayor was. He asked why these people earned more money that the Chief Executive Officer.

Council President Laroche responded that this is common in all Cities and Towns. The Superintendent of Schools traditionally earned more that the Mayor's of each Community.

Mr. Muggle commented that the Mayor should at least earn more than an Assistant Superintendent.

The City Council President closed the Public Hearing at 10:23 P.M.

Council President Laroche called for a discussion from the Council members.

Councilman Charbonneau commented that the people of Central Falls could not afford a $9.70 tax rate increase and suggested that the budget go back to the drawing board.

Councilman Vaudreuil commented that the Local Government has tightened up its spending to a bare minimum and that there was nothing left for the City to do. He further commented that he hoped that the School Committee would be sucessful with its suit.

Council President Laroche stated that the Mayor has tried to create a fair and reasonable budget. However, with the cuts from State Government, this still created a burden on the people of this City. Especially in light of the fact that this Community has the lowest per capita income and the highest tax rate in the State.

City Clerk Daniel J. Issa read the Ordinance.

Motion was made by Councilman Charbonneau to return the Budget to the Mayor for revision. No second.

Council President Laroche stepped down and turned the meeting to the Vice President Hector Charbonneau.

Motion was made by Councilman Laroche to revise the budget to the 5.5% state cap for a $2.85 tax increase.

Councilman Charbonneau seconded the motion.

Mayor Lazieh commented that this is an unrealistic tax rate and that all Cities and Towns are exceeding the 5.5% State Cap because of the State's Revenue Sharing cuts. He stated that the Schools could be closed and that lay offs of Fire and Police and Municipal Workers would occur.

Council President Laroche commented that the School suit could take up to 5 years and he realizes that the cap is not realistic.

Roll Call Vote:

Motion carries 3 yes 1 no 1 absent

Councilwoman Moreau commented on this vote and stated that this was not a realistic amount for the City to operate on.

2. The Capital Program Ordinance.

Motion to approve was made by Councilman Vaudreuil and seconded by Councilwoman Moreau. All Agreed. So Voted.

3. The Annual Capital Budget Ordinance

Motion to approve was made by Councilman Charbonneau and seconded by Councilwoman Moreau. All Agreed. So Voted.

4. An Ordinance Amending Section 2-68 "Salaries for Firemen & Policemen"

Motion to approve was made by Councilwoman Moreau and seconded by Councilman Charbonneau. All Agreed. So Voted.

5. An Ordinance Pertaining to Salaries of Department Heads and others in Unclassified Service. 

Motion to approve was made by Councilwoman Moreau and seconded by Councilman Charbonneau. All Agreed. So Voted.

6. An Ordinance Amending Chapter 2, Article VII, Section 2-67 (Wage Schedule Generally) of the Revised Ordinances as Amended.

Motion to approve was made by Councilwoman Moreau and seconded by Councilman Charbonneau. All Agreed. So Voted.

7. An Ordinance Establishing the Classes of Positions, the Maximum Number of Employees and the Number of Employees in Certain Classes in the City Departments.

Motion to approve was made by Councilman Charbonneau and seconded by Councilwoman Moreau. All Agreed. So Voted.

8. An Ordinance relating to the Establishment of a "Juvenile Hearing Board." City Solicitor Muksian explained this Ordinance and the enabling legislation that is pending before the State Legislature.

Mayor Lazieh commented on this Board.

Deputy Chief John Fram spoke in favor of this Ordinance and strongly urged its passage.

Councilman Charbonneau questioned the Ordinance.

Senator Issa commented that he would acquire a copy of the Bill.

City Solicitor Muksian urged first passage of the Ordinance.

Motion to approve was made by Councilwoman Moreau and seconded by Councilman Charbonneau. All Agreed. So Voted.

9. An Ordinance Amending Chapter 14 entitled "Licenses" As Amended.

Motion to approve was made by Councilman Charbonneau and seconded by Councilwoman Moreau. All Agreed. So Voted.

Public Hearing opened 11:10 p.m. Public Hearing closed 11:11 p.m.

Motion to approve was made by Councilman Charbonneau and seconded by Councilwoman Moreau. All Agreed. So Voted.

2. An Ordinance Amending Chapter 11 Article III Entitled "Refuse Disposal Facilities."

Daniel Issa City Clerk read Ordinance.

Public Hearing opened at 11:14 p.m. closed 11:15 p.m.

Motion to approve was made by Councilwoman Moreau and seconded by Councilman Charbonneau. All Agreed. So Voted.

2. Authorizing the Mayor and the President of the City Council to sign a contract between the City and Central Falls Lodge #2, Fraternal Order of Police.

3. Authorizing the Mayor and the President of the City Council to execute a contract between the City of Central Falls and local 1485, International Association of Firefighters.

City Clerk Daniel J. Issa read resolutions.

Motion to approve collectively was made by Councilwoman Moreau and seconded by Councilman Charbonneau. All Agreed. So Voted.

Motion to adjourn was made by Councilman Charbonneau and seconded by Councilman Vaudreuil. All Agreed. So Voted. 11:18 P.M.

Daniel J. Issa, City Clerk