June 11, 1990 - Regular City Council Meeting

Councilman Vaudreuil commented that it was totally irresponsible of the City Council to cut the budget to $2.85 tax increase. Councilman Vaudreuil agreed that $9.40 was too high and suggested that the Mayor be given an opportunity to amend his budget. Councilman Vaudreuil motioned that action be deferred on the budget until 4:00 P.M. on June 12, 1990. Motion was seconded by Councilwoman Moreau.

Council President Laroche commented.

Councilman Charbonneau moved to vote on motion.

Council President Laroche commented that no change on budget or his position.

Motion restated by City Clerk.

Motion dies.

It was unanimously agreed on by the City Council to proceed on with the remaining Agenda and to return to the Annual Operating Budget Ordinance and the end of the meeting.

Public Hearing opened at 8:20 P.M. Closed Public Hearing at 8:21 P.M.

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

Motion was made by Councilman Charbonneau to approve as amended. Councilman Laroche seconded the motion.

Roll Call vote:

Motion dies 2 yes 2 no.

Discussion ensued between the Mayor, City Council and City Solicitor.

Mayor Lazieh expressed the need to pass a budget. He stated that if the City Council didn't give first passage to the budget the City would be facing serious problems. He reminded the Council that a 5.5% cap was not a responsible answer to the City's deficit. The 1989/1990 budget is already in deficit by nearly $700,000. He reported that over the past several months the financial standing of the City was explained to the Council and that it was originally thought that it was possible the tax rate increase could be as high as $15.00. Mayor Lazieh explained that he has reduced the operational cost of the City by at least $300,000, this was accomplished by reductions in personnel and other cost saving cuts. Mayor Lazieh asserted that it was his responsibility to submit a realistic budget to the City Council. He further reported that his budget has been reviewed by Bond Counsel and the Financial Advisors of the City. It is their opinion that the Budget submitted by the Mayor was realistic. He warned that the more the budget passage is delayed the more severe the financial situation of the City becomes. He then reported on the current proposed budget and the mandatory increases in the budget. He also reported that the City must meet its obligations.

Councilman Charbonneau stated that the Mayor hasn't shown where the budget could be cut.

Mayor Lazieh responded that 63 cents represents the total increase in the operation of the City. He stated that this is not unrealistic.

Councilman Vaudreuil asked how much the Mayor could cut from the budget.

Mayor Lazieh responded that he could reduce the budget and that the cuts must be done realisticly and responsibly.

Councilman Vaudreuil moved to send the budget back to the Mayor.

Council President Laroche stated that the budget is still under discussion.

Mayor Lazieh commented that he didn't have the exact figures to make the budget cuts and would have to review them.

City Council President Laroche stated that he recognizes that the 5.5% cap is unrealistic, but to keep increasing taxes every single year is also unrealistic. He compared the City to a sinking ship floundering at sea, the purpose of the rescue is to save the people, not the ship.

Council President Laroche expressed the need of State action regarding revenue to the City. He further stated that he had a moral obligation to the people who elected him to office. He commented that unless the problem was addressed this year the same situation would arise next year and nothing would be accomplished.

Motion was made by Councilman Vaudreuil and seconded by Councilwoman Moreau to defer action on the budget and send it back to the Mayor; and to also recess this meeting until Tuesday, June 12, 1990 at 4:00 P.M. at City Hall.

Roll Call Vote:

Motion carried 3 yes 1 no.

Motion to recess was made by Councilman Vaudreuil and seconded by Councilman Charbonneau. All Agreed. So Voted. Time 9:55 P.M.

Daniel J. Issa, City Clerk

CITY OF CENTRAL FALLS

RECONVENED MEETING OF THE CITY COUNCIL

FROM JUNE 11, 1990

A Reconvened Meeting of the Central Falls City Council was held in the City Hall Council Chambers at 4:22 P.M. on Tuesday June 12, 1990.

Roll Call present

Councilman Charbonneau

Councilman Laroche

Councilwoman Moreau

Councilman Vaudreuil

Councilman Sienkiewicz absent due to illness.

Quorum present.

Council President Albert 0. Laroche presided.

Mayor Lazieh addressed the City Council and informed them that the City could expect a minimum loss of $853,000 in revenue. He stated that this loss coupled with blue cross and other increases adds $6.00 to the tax rate. He then proposed a $6.90 tax increase to the tax rate and stated that this was the minimum that could be cut." This is as basic a budget as possible."

Floor was opened to discussion.

Councilwoman Moreau asked the Mayor what areas of the budget were cut.

The Mayor responded that the School and Deficit reduction were cut. He stated that this was from 20.1% to 14.9%. Mayor Lazieh further commented that if a budget wasn't passed this week tax bills would not be sent out and bonds would be in trouble. The minimum increase must be passed. He stated that for every $1.00 of the tax rate this represented $180,000 in revenue, which in Pawtucket would represent $780,000 in revenue.

Councilman Charbonneau stated that we revert to last year's budget.

Mayor Lazieh responded that layoff would result and other drastic measures would be taken.

Councilman Vaudreuil asked if the layoffs would effect the police, fire and other departments.

Mayor Lazieh responded yes. He further responded that he has already reduced 10 positions in all areas of government and we will cut more in all departments.

Councilman Charbonneau commented.

Mayor Lazieh responded that we are headed for major problems if the budget is not passed. "If you don't act responsibly, we will doom the City." "We've done the best we can in the 5 months and we are looking at the future."

Councilman Charbonneau asked the Mayor if he cut the budget to the bone.

Mayor Lazieh responded that he has cut the budget to the bone in all departments and that $6.00 of the tax rate is revenue decreases and $.90 is for the operation of the City.

Councilman Charbonneau responded that he would do what he has to do.

Councilman Vaudreuil informed the Council that he has spoken to the financial advisors about the consequences of no budget. "I move to accept the Mayor's budget."

Councilman Laroche commented on the phone calls that he has received regarding the budget. He stated that he hasn't seen the taxes decrease and that the City was going to loose the good people who live in Central Falls. He stated that the budget could be at the 5.5% cap. He further stated that City Workers are helpful and needed and none were overpaid. He stated that the tax rate closest to Central Falls' was 50% less than the City presently has. "We can't survive at the rate we're going."

Councilwoman Moreau stated that she voted for the 5.5% because firstly she doesn't want to see taxes raised. She stated, however, "Is is fair to ask the Mayor to run the City on 5.5%. No, its unrealistic." She stated that $9.70 was too high and $6.90 was in the middle. The Mayor can't be blamed for the present financial situation, especially with the pension funds and the deficit reduction, which weren't taken care of in the past. She stated that she knows how hard the City Hall Workers and other Municipal Employees perform their duties. "I have to be responsible and do the right thing. I don't want to take away the Police Department or other needed services."

Councilman Laroche stated that he considers the budget cuts particularly in the Police Department to be a threat.

Mayor Lazieh responded that the cost of each department is personnel and only cuts in personnel will cut the budget.

Motion was made by Councilman Charbonneau to approve the budget as amended. Councilman Laroche seconded.

Councilman Laroche withdrew second.

Councilman Charbonneau restated the motion. Motion to amend budget to stay at 5.5%cap.

Councilman Laroche asked Councilman Charbonneau to withdraw his motion.

Councilman Charbonneau withdrew motion.

Councilman Laroche moved that first passage on the Annual Operating Budget as amended with 5.5% cap. Motion seconded by Councilman Charbonneau.

Motion was restated by City Clerk, Daniel Issa.

Motion dies tie vote.

Councilman Laroche asked where do we go from here. "If we don't pass the budget we're going to default because tax bills won't go out." He further stated that the Mayor has done the best he can. "We must pass some kind of a budget."

Councilman Charbonneau asked if tax bills would go out without budget.

Mayor Lazieh responded no. He further commented that he was presenting a realistic budget. "I'm proposing a 90 cent increase!" The rest is mandated.

Councilwoman Moreau commented.

Councilman Laroche commented.

Councilman Vaudreuil commented.

Councilman Laroche commented that he had no doubt that the Mayor has hit bottom. What other ways are there, he questioned.

Mayor Lazieh reiterated that this is a realistic budget. "The budget I inherited is in deficit. Last year over 20,000 tax bills were sent out at an additional cost of $25,000. If we don't have a budget more problems are ahead for the City."

Senator Issa commented at the request of Councilwoman Moreau.

Councilman Laroche commented.

Councilman Charbonneau stated that he stands firm on his decision.

Councilman Laroche also stated that he stands by his decision. He added that he is not condemming the Mayor.

Councilman Charbonneau commented.

City Clerk was asked to comment by City Council President.

Councilwoman Moreau commented.

Mayor Lazieh commented.

Councilman Vaudreuil asked Council President Laroche if he would vote for anything over the 5.5% cap.

Council President Laroche responded no.

Councilman Vaudreuil asked the same question of Councilman Charbonneau.

Councilman Charbonneau responded that he was flexible.

Councilwoman Moreau questioned Edna Poulin the Finance Director.

Edna Poulin responded.

Councilman Vaudreuil motioned to increase to $6.00 for the budget. Motion seconded by Councilwoman Moreau.

Discussion ensued.

Council President Laroche commented.

To cut proposed budget-tax increase $6.00

Tie vote motion dies.

Council Vice Chairman Hector Charbonneau took over chair.

Councilman Laroche moved to approve budget with $3.00 tax increase.

Councilman Charbonneau seconded.

Motion carries 3yes 1 no

Councilman Charbonneau motioned to approve Ordinance as amended. Motion seconded by Councilwoman Moreau. All Agreed. So Voted.

Motion to adjourn was made by Councilman Charbonneau and seconded by Councilwoman Moreau. All Agreed. So Voted. Time 5:45 P.M.

Daniel J. Issa, City Clerk