June 28, 1990 - Special City Council Meeting

Councilman Laroche questioned Mayor Lazieh on the section of this Ordinance which prohibits the hiring of persons to the Police Department who have been convicted of a crime and suggests that perhaps this should be amended to include any person who is accused of a crime.

Mayor Lazieh responded that the City Council could amend the Ordinance before final passage and suggested that this point be reviewed with the City Solicitor.

Councilman Vaudreuil questioned part (a) of the Ordinance which deals with the written examination and asked if this could be amended to read that the written exam will be sent out to be corrected.

Mayor Lazieh responded that this also could be amended before final passage.

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

Councilman Charbonneau questioned the Mayor as to why these Resolutions are being presented to the City Council at this time.

Mayor Lazieh explained that the City is presently having a cash flow problem and although there are no immediate plans to borrow TANS the possibility of borrowing may become a reality.

Councilman Charbonneau continued to question the Mayor on the Resolutions.

Mayor Lazieh explained that the Resolutions are being presented to the City Council at this time on the advice of the City's fiscal advisors and Bond Counsel. The Mayor further explained that two different Resolutions are being presented because one is in anticipation of State Aid and the other in anticipation of Taxes. The Mayor commented that State Aid will not be available until February 1991.

The Mayor explained that the City must meet its obligations which amount to 2.1 million dollars. He commented that it is customary for the Mayor to present these Resolutions to the Council and stated past dates when similar Resolutions were brought before the Council even though the borrowing did not occur until a later date. The Mayor went on to explain that the City would have to seek their approval when the actual borrowing occured.

Councilman Charbonneau questioned the Finance Director, Edna Poulin as to when she expected to need to borrow.

Edna Poulin explained that she may need to borrow in the near future.

Councilman Charbonneau asked when in the near future.

Mayor Lazieh responded that he did not know.

Edna Poulin explained that the City presently has $400,000 which should meet the payroll for this week and next week. She further explained that the Tax Bills were mailed on Wednesday and depending on the amount of taxes received in the first quarter this would indicate how soon TANS would be needed. She further explained that the last thing the City wanted to do was borrow additional money and would do so only when absolutely necessary.

Councilman Laroche questioned the Note Rollover and its cost to the City.

Edna Poulin explained that the Note Rollover for this month cost $123,000.

Councilman Laroche asked the Finance Director what she expected to receive in the first quarter.

Edna Poulin replied that the anticipated collected should be approximately $3.5 million.

Councilman Charbonneau questioned the million dollars borrowed from the School Bond and how much would be paid back.

Edna Poulin responded that as much as we can from the revenue of taxes being collected.

Councilman Charbonneau coontinued to questioned the Finance Director and the Mayor.

Councilman Vaudreuil questioned the Mayor as to the procedure necessary when the need to borrow arises.

Mayor Lazieh responded that he would seek the approval of Council and stated that he must do this by law.

Councilman Laroche questioned the rate of interest on those notes.

Edna Poulin responded that the interest would be about 7%.

Councilman Charbonneau made a motion to table Resolution until the Mayor is in need of the funds. No second on Motion. Motion dies.

Councilman Laroche questioned the Finance Director as to the whether it wouldn't be better to borrow the TANS now so that the City wouldn't experience a Cash Flow problem.

Edna Poulin responded that the City was still looking to float its bonds but that she didn't want to borrow until it was needed.

Councilman Laroche questioned Edna Poulin further on the borrowing of TANS.

Mayor Lazieh explained that the Resolutions were drafted by Bond Counsel.

Councilman Charbonneau questioned the Mayor on borrowing money when it was not needed.

Council President Larohce responded that he did anticipate a need for the borrowing of the money.

Mayor Lazieh responded that he was dealing with the City's finances on a daily basis and is constantly reviewing the City's accummulated deficit with bond counsel and the City's financial advisors. He explained that there is a shortage and that this shortage starts immediately. He stated that we must act responsibly and take proper and prudent action as is advised by the bond counsel.

Councilman Charbonneau asked the Mayor if he needed the money immediately.

Mayor Lazieh responded that we may have to but that he would do everything in his power not to borrow.

Councilman Charbonneau commented that the Resolutions should be tabled until the need for borrowing arises.

Councilwoman Moreau commented that the passage of the Resolutions does not actually allow for the borrowing without further Council consent.

Council President Laroche questioned the Finance Director on whether she could live within a $3 million dollar figure.

Edna Poulin explained that the City already has $2.8 million dollars in unpaid bills and would not know the actual need until the taxes started to arrive.

Councilman Charbonneau questioned Edna Poulin on the deadline for the Bond.

Edna Poulin responded August.

Council President Laroche turned the Chair to President Pro Temp. Charbonneau.

Councilman Laroche motioned to fix the amount of $1 million on the Resolution. No second.

Councilman Charbonneau questioned the Finance Director on TANS in the amount of $1 million dollars and asked if this was to pay back on the Bond.

Edna Poulin responded that if the City didn't go out for TANS then the money would have to be paid back from revenue comming in.

Council President Laroche returned to the Chair.

Councilman Vaudreuil motioned to approve the Resolution. Motion seconded by Councilwoman Moreau.

Roll Call vote:

Tie Vote 2 approve 2 against Motion dies.

Council President Laroche commented on a fixed amount for the Resolutions.

Councilman Vaudreuil questioned the fixed amount.

Council President Laroche asked the Finance Director Edna Poulin what the weekly payroll amount is?

Edna Poulin responded that the payroll is approximately $165,000 per week the pensions $100,000 every two weeks and the Blue Cross $130,000 per month.

Councilman Vaudreuil questioned the Finance Director on the borrowing of funds.

Edna Poulin assured the Council that money would not be borrowed until it was needed.

Mayor Lazieh explained that the passage of the Resolutions now saves the City a step and allows the City to borrow anytime during the year. However, this does not allow the City to borrow without Council consent.

Councilwoman Moreau commented.

Councilman Charbonneau commented.

Councilwoman Moreau commented that the City would have to borrow at some point.

Council President Laroche questioned Edna Poulin on the length of time before the City ran out of funds.

Edna Poulin responded that she would stretch the time as long as possible but the City would run out of funds in a short period of time.

Councilman Charbonneau again questioned if the City needed the funds right now.

Councilman Laroche commented that he wanted to take a different direction and fix a limit on what can be borrowed.

Mayor Lazieh responded that the resolution in section 3 addresses that problem which indicates that the fund could only be borrowed with City Council approval.

Councilman Charbonneau asked if the matter could be tabled until September.

Edna Poulin responded that no action could have a great effect on the TANs.

Councilman Laroche asked if there were a fixed amount set by the Council would that affect the Bonds.

Edna Poulin replied that it could.

Councilman Laroche asked wha the Municipal indebtness was.

Edna Poulin replied $2 million.

Mayor Lazieh responded that there is also $1.3 million Bond indebtness. and $9 million long term indebtness.

Edna Poulin stated that the approximate indebtness of the City is $19 million.

Councilman Laroche commented that he would like to set a one million dollar limit on the first resolution.

Councilman Charbonneau commented.

Councilman Laroche asked what the cost to rollover the notes of the Bonds.

Edna Poulin responded that it was $123,000.

Councilman Laroche commented that it is costing the City more money every time the notes are being rolled over.

Edna Poulin responded yes.

Motion to approve was made by Councilman Vaudreuil and seconded by Councilwoman Moreau.

Roll Call vote:

Tie Vote: 2 against 2 approve Motion dies

Council President Laroche commented that he was still of the firm attitude that a set amount should be indicated in the Resolutions. He further stated that every time the Council delays it is costing $123,000 to the City.

Councilman Vaudreuil questioned the maximum amount of the Resolution.

Mayor Lazieh responded that it could not exceed the amount returned by the State.

Councilwoman Moreau motioned to approve the Resolution authorizing the issue of Notes in anticipation of State aid.

Councilman Laroche commented.

Councilman Vaudreuil seconded the motion.

Roll Call vote:

Motion carried: 3 approve 1 against.

Clerk read the Resolution authorizing the issue of Tax Anticipation Notes.

Motion to approve was made by Councilwoman Moreau and seconded by Councilman Vaudreuil.

Roll Call vote:

Motion carried: 3 approve 1 against.

Unanimous consent was given to Councilman Vaudreuil to introduce a Resolution.

Resolution extending the Condolences of the City Council in the passing of Edmond Patenaude former Director of Welfare.

Motion to approve was made by Councilman Vaudreuil and Unanimously seconded. Unanimaously approved.

Motion to adjourn was made by Councilman Charbonneau and seconded by Councilman Vaudreuil. All Agreed. So Voted. Time 6:25 P.M.

Elizabeth A. Crowley

Deputy City Clerk