June 15, 1990 - Special City Council Meeting

Public Hearing opened 8:08 P.M.

Mayor Lazieh addressed the City Council and explained that the amended $3.00 increase for the budget proposal does not meet the obligations of the City. He explained what the $6.90 increase in the tax rate represents. $956,030 represented lost revenue and $161,687 represents the blue cross increase. He emphasised that $6.00 of the tax rate increase is just to equal lost revenue. He explained that 90 cents was to cover the minimum increase in the budget to operate the City. "I must do what is responsible for protection and trash pick up." The Mayor further commented that the previous audit shows $2.1 million dollar deficit and $700,000 is the deficit in the existing budget. He recounted the measures he has taken to reduce the cost of operating the City. He emphasised that a $3.00 tax rate increase does not provide for debt service but does provide for layoffs. He indicated that he would be forced to reduce the personnel. He recounted that $1.00 in taxes brings approximately $185,000 in revenue to the City whereas Cumberland brings in $850,000 for the same $1.00. He also reported on what the Town of Lincoln, City of Providence, Woonsocket and Warwick tax rates produce in revenue.

Random comments by the audience were made.

Council President Laroche called the meeting to order and responded to the remarks by stating that the Mayor has a proposal to cover and that he be given the courtesy to continue.

Mayor Lazieh remarked that he has made substantial cuts but more will be needed with a $3.00 increase. He stated that to meet this rate the budget must be cut by $727,000. He explained that 29 people cut from the personnel would represent $564,504 in salaries with $243,888 in fringe benefits, less unemployment cost of $338,724 would make a net savings of $469,704. Recreation Department closed for the summer would add another $78,000 to the savings. This however, would not decrease the budget to meet the $727,000 decrease needed to balance the budget and other departments would also have to be cut. He stated that the School Department has already been cut $1 million. These cuts would drastically reduce services.

Council President Laroche responded.

Joseph P. Moran III of 97 Richmond St. asked why the Mayor didn't contact the Police Union before layoff notices were sent to 10 policemen.

Mayor Lazieh responded that all unions were contacted prior to the notices being given to the employees.

Joseph P. Moran commented on the four vacancies already existing in the Police Department.

Mark Brayall of 64 Bagley St. asked how the $100,000 in outstanding summonses to the Municipal Court would be collected with less manpower on the Police Department and how would this be accomplished with overtime.

Mayor Lazieh responded.

Edward McLaughlin of Lonsdale Avenue asked to be heard later.

Lorraine Savard of Emmett St. asked about $720,000 in cuts and what they represented.

Mayor Lazieh responded.

Lorraine Savard questioned the overestimation of revenues and asked what this represented.

Mayor Lazieh responded that the telephone tax has a shortfall of $53,690 and the Revenue Sharing was short $360,000.

Wilfred Demeule asked when the State Auditor General approved the increase over the 5.5% cap and asked when the correspondence was received by the Finance Director.

Edna Poulin Finance Director responded that she received the reply after lunch.

Wilfred Demeule asked to see the correspondence.

Kathy Gaudette of Rand St. asked why School personnel weren't among the personnel being given lay-off notices.

Mayor Lazieh responded that the School Committee has control over School Personnel not the Mayor.

Robert Canavan, School Committee Chairman responded to questions pertaining school cuts and personnel.

Kathy Gaudette asked if the Mayor intended to respond to Public Safety calls when the Police Force was reduced.

Mayor Lazieh responded that although he didn't want to cut personnel, especially Police Officers, he would have no other choice if the tax increase he proposed was not passed.

Kathy Gaudette stated that we need our Police and Fire Departments and questioned the equipment that both Departments had to work with.

Mayor Lazieh responded that the funds were not available to add new equipment to the Police and Fire Departments.

Kathy Gaudette stated that she is already paying $200.00 a month for City Taxes and could not afford to add any increases to that figure. She stated that perhaps the time has come to dissolve the City. She elaborated on the possibility of the detention center, the resource recovery facility and other proposals that have yet to be accomplished. The reduction of the Police Force will only bring more Prostitution and Drug crimes to a City that is trying to reduce these activities. She further stated that the City is in shambles. She then asked if the budget is passed would the Police Officers be reinstated.

Mayor Lazieh responded that if the $6.90 tax increase were passed that there would be no layoffs.

Chet Arcisz asked if the budget would be passed as presented. He asked the salaries of the Finance Director and Personnel director.

Edna Poulin responded.

Chet Arcisz questioned that Salary of the Planning Director.

Edna Poulin responded and stated that only 10% of his salary is from the City the rest is reimbursed.

Chet Arcisz questioned the salaries of the Patrolmen.

Edna Poulin responded.

Chet Arcisz replied that the Police Department contributed revenue to the City.

Mayor Lazieh commented that he has no choice but to reduce the personnel in all departments if his proposed budget is not passed. He further stated that no Department Head or unclassified personnel received wage increases last year.

Al Tudino, Jr. of the State F.O.P. asked about Police Layoffs, the budget the number of positions in the Police Department and the State Budget.

Mayor Lazieh responded that $147,000 was indicated to be received in State Aid to distressed Cities.

Al Tudino stated that the State F.O.P. represented over 3,000 Police Officers in the State of Rhode Island and that Police should not be be involved in politics. He commented that the Mayor was holding the Police Department as hostages in this budget situation.

Lorraine Savard questioned the $350,000 in uncollectable taxes.

Mayor Lazieh responded that 100% tax collections is never accomplished no matter how aggresively collections are made.

Edna Poulin remarked on the activities of the Tax Collector's Office with regards to the collection of taxes. She explained that the staff uses every tool available to collect taxes. She mentioned the tax sale and the motor vehicle registration process used in collection of taxes.

Lorraine Savard stated that the City must look in other areas to cut the budget, not at the Police Department. Perhaps saving could be made in purchasing.

Mayor Lazieh responded that a purchasing freeze was already in effect.

John Burns of Rand St. asked how the services would be cut due to the layoffs.

Mayor Lazieh responded that the Water Department, City Hall Staff, Highway Department, Minimum Housing Department, Library, Street lighting and vehicles would all feel the effects of the layoffs.

John Burns questioned the City Council President regarding the layoffs.

City Council President Laroche stated that his first knowledge of layoffs came to light when he found a notice posted in the Police Station. He stated that he felt that this was targeted to the Council. He stated that the City Employees perform their duties and that he never sees anyone not doing so. He stated that a hard decision is being made here.

John Burns stated that as President of Local 1627, representing Highway, City Hall, Police Clerk and Library Clerks he feels that this group of employees are just as important to the City as the Police.

Councilman Charbonneau stated that it is the Mayor who is doing the layoffs.

Councilman Vaudreuil defended the Mayor's position and responded that if the City Council didn't approve the budget the Mayor would have no choice about the layoffs.

Chet Arcisz stated that the City could care less about the Police Department or other employees. Why are you not laying off the Personnel Director or Planning Director. "What are we planning?"

Ovila Beauchemin stated that the City must have a down to earth five year program to get Central Falls on its feet and suggested that expenses be cut, wages frozen etc. for a period of one year. This would be better than a layoff. Future blue cross increases should be split 50/50. Look at the School buses and Policemen should walk the beat.

Tony Garcia stated that he owned a business in the City for 25 years and urged the Council and Mayor not to layoff Police Officers. The City will have major problems if this were to occur. He stated that most City Employees stay busy and most people don't appreciate what they do. He urged the Council to run the City like a business and look into the School Department.

Robert Canavan, School Committee Chairman stated that he didn't advocate layoffs but that the Mayor has already made the biggest cut in the City when he cut the School Budget by $2 million dollars. He warned that the Commissioner of Education would not hesitate to raise a levy if the City did not properly fund the School. He reminded the Council and the Mayor that this happened in Exeter/West Greenwich. He further stated that the School Department will sue the State regarding the education in Central Falls, but added that this process takes time. He also stated that School buses are used for special needs students.

The audience began to comment causing the City Council President to call for order.

Conrad Langevin asked about bankruptcy.

City Council President Laroche responded to the question and explained that this would cause the homeowner more problems than we have at present.

Councilman Charbonneau commented that a $3.00 tax increase was the answer.

Council President Laroche commented.

Gloria Ogni asked the Mayor if it were true that his Liquor Store had been robbed three times. "Did the Police respond?" She commented that two of her sons were Police Officers and that she was proud of them. She stated that the Department was already understaffed wouldn't you be upset if they didn't respond when you need them. The City Council is being put in a tough spot.

Mayor Lazieh responded that $6.00 of this increase is just for lost revenue if we don't make up this revenue then cuts have to be made. "I don't want to cut Police Officers or any other City Employee but I will have no other choice."

Councilman Charbonneau stated that the Mayor has threatened to layoff 10 Police Officers and that he would go to the Governor to seek the assistance of the State Police.

Mr. Weldon stated that he is a taxpayer and doesn't want to see a tax increase he doesn't however, want to see layoffs, which would result in the reduction of City services. He suggested that the Mayor and Council sit down with the Unions to work together to keep taxes down.

Mark Gordon of Aetna St. commented that this was the first time he's been to a Council Meeting and stated that he didn't want to see Police layoffs and as a homeowner he didn't want to see a tax increase. He stated that he's heard a lot of comments but no suggestions as to how to solve the problems facing the City. He reminded people that you can't have both the services required to run the City and a freeze on tax increases. He told the Council and Mayor that he would give them the $6.90 tax increase, hoping that it was not permanent and advised them to make a plan before next year when the budget was due again.

Sophie Horton commented on the tax situation and stated that she can't sell her house because of the taxes.

William Butler thanked Councilman Charbonneau and Councilman Laroche for not buckling under the Mayor's terroriost threats to raise taxes. He further expressed the need for minimizing the increases to high salaries, blue cross and advised the Council not to cut Police Officers.

Edward McLaughlin of Lonsdale Ave. commented and offered consolation to Mayor Lazieh. "I have attended hundreds of Council Meeting, taxes have never gone down. I offer this solution, the United States Government is $25 Billion Dollars in the red, the State of Rhode Island $100 Million dollars in the red, let the City of Central Falls run in the red and the City will be here next year."

John Gilgun commented that cuts should be made but in the right places. He then made comments regarding the position of the City Clerk, Minimum Housing Department and absentee landlords that are bleeding this City. He said that Police Officers should be reinstated. He also stated that the Mayor should give up his expense account.

Jean Duval questioned the State Revenue Sharing.

Mayor Lazieh replied.

Al Tudino, Jr. commented on the Police Department.

Mrs. Moran questioned the overtime that would be necessary if Police Officers were on layoff and questioned the savings of this.

Lorraine Savard asked the City Council if they understand the budget that was presented. She also questioned if the Council has a line item budget or if they were acting on the proposal that the public is in possession of.

Council President Laroche responded.

Councilman Charbonneau responded that he did understand the budget and that it wouldn't change his position. "I'm voting on a $3.00 tax increase."

Councilwoman Moreau responded that she is in possession of the same budget that the other Council members have and that she has been working on it with the Finance Director.

Chet Arcisz commented that the City is trying to bring additional revenue to the City by approving the incinerator, detention center and why not make the Health Tex Complex a jai alai complex.

Council President Laroche commented perhaps a twenty four hour bingo hall would help.

City Council President Albert O. Laroche closed the Public Hearing at 10:14 P.M.

Mayor Lazieh commented on the budget and emphasised that 48% of the budget goes to Salaries. $727,000 would have to be cut from the budget if the Council reduces the tax rate to $3.00 and this means that personnel have to be cut.

Councilman Charbonneau commented that the Mayor is in a tough situation and previous Administrations have put the City in a bad situation. He suggested that the hours at City Hall be cut. He further commented that the ability to pay for City services are limited and there are many people who cannot afford to take any further tax increases. The time has come for the Council to take action. He mentioned that the Governor is the culput of $5.00 on the Tax Rate, however his position is firm and he is voting for $3.00 tax increase.

Councilman Vaudreuil stated that the City needs $6.90 to keep the City going. He agreed that the situation is the same every year but we have to act responsibly.

Councilman Charbonneau commented.

Council President Laroche stated that the problems in the City first occured when the President cut grants and Federal Revenue Sharing. The State picked up the funds and now the State is cutting those funds. He commented that taking money from the School Department will not solve the problems and the same situation will arise next year. He stated that the Council should have been told about the layoffs and that this is like a hammer being held over the heads of the Council by the Mayor.

Councilwoman Moreau commented that she has received many calls about the tax increase. She also stated that she would like to thank the City Employees for all they do. She commented that she doesn't like layoffs in the Police, City Hall and Highway and she stated the she has been well treated by all City Employees. Serious consideration must be taken with regards to layoffs and taxpayers. She then questioned Robert Canavan.

Councilman Vaudreuil motioned to increase the Annual Operating Budget Ordinance from a $3.00 tax increase to a $6.90 tax increase.

No second.

Councilman Charbonneau motioned to keep the tax rate increase at $3.00. Motion seconded by Councilman Laroche.

Roll Call Vote:

Tie Vote motion dies. 2 yes 2 no

Council President Laroche commented that we must have a budget and that the Mayor has a tought job. The present tax rate is $51.75 and he further stated that he knows that the Mayor cannot operate on a $3.00 tax rate increase.

Councilman Charbonneau moved to keep tax rate increase at $3.00. Motion was seconded by Councilman Laroche.

Discussion ensued.

Roll Call Vote:

Tie Vote: 2 yes 2 no motion dies.

Councilwoman Moreau moved to amend the tax rate increase to $4.50 on the Annual Operating Budget Ordinance.

No second.

Motion dies.

Councilman Laroche moved to go to the 5.5% cap for the Annual Operating Budget. Councilman Charbonneau seconded.

Roll Call Vote:

Tie Vote: 2 yes 2 no motion dies.

Councilman Vaudreuil commented that the Mayor needs $6.90 tax rate increase in order to operate the City.

Councilman Vaudreuil moved to amend the Annual Operating Budget Ordinance to reflect $6.90 tax rate increase instead of $3.00.

No second.

Motion dies.

Council President Laroche commented.

Mayor Lazieh commented.

Meeting was recessed at 11:10 P.M.

Meeting reconvened at 11:20 P.M.

Councilman Vaudreuil commented.

Councilman Vaudreuil moved to amend the Annual Operating Budget Ordinance to reflect $6.90 tax rate increase instead of $3.00.

No second.

Motion dies.

Councilman Vaudreuil and City Solicitor Muksian discussed the Charter provisions relating to the Annual Operating Budget.

Councilman Charbonneau commented.

Mayor Lazieh commented.

Councilman Charbonneau moved to amend the Annual Operating Budget to reflect a $3.00 tax rate increase.

No second.

Motion dies.

City Council President Laroche commented.

Mayor Lazieh commented that if a $6.90 tax rate increase was not approved the City could not operate and the City will default on its obligations.

Councilwoman Moreau moved to amend the Annual Operating Budget to reflect a $4.00 tax rate increase.

No second.

Motion dies.

Councilman Vaudreuil moved to amend the Annual Operating Budget to reflect a $6.90 tax rate increase.

No second.

Motion dies.

Council President Laroche suggested they the Council move onto the Resolutions and then return to the Budget Ordinances. Council agreed to this suggestion.

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

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

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

3. Resolution Authorizing the Mayor & the President of the City Council to sign a contract between the City of Central Falls and Local 1485, International Association of Firefighters.

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

Council President Laroche commented on the Budget Ordinance.

Mayor Lazieh commented on the Budget.

Council President laroche commented.

Councilman Laroche moved to amend the Annual Operating Budget Ordinance to reflect a $3.00 tax rate increase. Councilman Charbonneau seconded the motion.

Roll Call Vote:

Tie Vote: 2 yes 2 no

Motion dies.

Council President Laroche commented.

Finance Director Edna Poulin commented that she has done extensive work on the budget and that she has consulted Richard Sylvester from RIPEC. She explained that the deficit must be reduced and she welcomed the City Council to assist her in reducing the deficit and preparing the budget.

Council President Laroche commented.

Councilwoman Moreau moved to amend the Annual Operating Budget Ordinance from $3.00 tax rate increase to a $4.00 tax rate increase.

No second.

Motion dies.

Council discussion ensued.

Mayor Lazieh commented on the budget.

Councilman Vaudreuil moved to amend the Annual Operating Budget Ordinance from $3.00 tax rate increase to a $5.00 tax rate increase.

No second.

Motion dies.

Mayor Lazieh commented and asked permission from the Council to allow the City's financial advisors to address the City Council.

Councilman Charbonneau objected. Council President Laroche stated that unanimous consent from the Council must be given in order to allow them to speak.

Councilman Laroche moved to amend the Annual Operating Budget Ordinance to a $3.00 tax rate increase over the present tax rate of $51.75.

Councilman Charbonneau seconded.

Roll Call Vote:

Tie Vote: 2 yes 2 no Motion dies.

Council recessed at 12:05 a.m.

reconvened at 12:07 a.m.

Councilman Laroche moved to amendase the Annual Operating Budget to reflect a $3.00 tax rate increase. Motion seconded by Councilman Charbonneau.

Roll Call Vote:

Motion carries 3 yes 1 no.

Public Hearing opened 12:12 a.m.

no comments

Public hearing closed 12:13 a.m.

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

Public hearing opened 12:15 a.m.

no comments

Public hearing closed 12:16 a.m.

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

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

City Council President Albert O. Laroche informed the Council that there are two Ordinances before them. The second is an Amended version of the above Ordinance. City Council President Laroche read and compared each item of this Ordinance.

Councilman Vaudreuil asked the City Solicitor George Muksian to answer questions pertaining to the Amended Ordinance.

George Muksian responded that an Amendment can be made as long as the intent of the Ordinance remains the same.

Public Hearing opened at 12:20 a.m.

Public comments were made regarding the number of employees in various Departments.

Public Hearing closed at 12:55 a.m.

Motion to approve the Originally introduced Ordinance was made by

Councilman Charbonneau and seconded by Councilman Laroche.

Roll Call Vote:

Motion carries 4 yes 0 no.

Mayor Lazieh commented that he will present a revised budget reduced by $27,000.

Councilman Vaudreuil commented.

Mayor Lazieh commented.

Motion to adjourn was made by Councilman Charbonneau and seconded by Councilman Vaudreuil. All Agreed. So Voted. Time 1:05 a.m.

Daniel J. Issa, City Clerk