June 4, 1991 - Special City Council Meeting

CITY OF CENTRAL FALLS

SPECIAL CITY COUNCIL MEETING

TUESDAY, JUNE 4, 1991

CENTRAL FALLS JR./SR. HIGH SCHOOL AT 8:00 P.M.

A Special City Council Meeting was held on the above date at the Central Falls Jr./Sr. High School at 8:05 P.M.

Roll Call present:

Councilman Brousseau

Councilman Charbonneau

Councilman Laroche

Councilwoman Moreau

Councilman Vaudreuil

Quorum present.

City Council President Albert O. Laroche presided.

Council President Laroche asked Mayor Lazieh to present his 1991/92 budget.

Mayor Lazieh addressed the City Council and stated that there were certain points that must be made relative to the budget. He spoke of the massive state wide deficits and state aid reductions. He also commented that the Central Falls taxpayers needed to understand where their money has gone in the past and what the City could look forward to in the future.

Mayor Lazieh remarked on what was accomplished in 1990/91 he stated that wage freezes for Police, Fire and Municipal unions was instituted. Other areas of saving money were in leaving some Administrative positions temporarily unfilled, temporary layoffs and the elimination of unnecessary spending.

Mayor Lazieh stated that he would recommend that there be no tax increase next year if we could manage a common sense budget this year. He asked the City Council to remain objective and decide for themselves what is in the City's best interest. He also commented on what the City of Central Falls had to look forward to with the State take over of City Schools; A state sponsored Enterprise Zone; potential revenue generating projects; and continued economic progress such as Elizabeth Webbing. He closed his comments by stating that the City is turning around and making real progress.

Edna Poulin, Finance Director, addressed the City Council and explained the that the total increase in the budget amounted to $566,000.00. She spoke about revenues and expenditures, GPA; School Housing Aid; Traffic Fines; Fuel; Animal Control and deficit reduction. She then defined how each item related to the tax rate. She also related to the Council that she was in contact with the State Department of Administration, the City's Financial Advisors and Bond Counsel relative to this proposed budget.

City Council President Laroche opened the meeting to a Public Hearing, he stated that he would allow one hour for questions by the Public and then the Council Members would make their comments.

Lorraine Savard of 76 Emmett St. presented the Lincoln Town Budget and asked why the City doesn't do a similar document. She also commented on the Pawtucket City Budget of $16 million in relation to Central Falls' Budget of $13 million.

Edna Poulin responded that the City of Central Falls has no in house computer facilities to prepare a budget in the format of the Town of Lincoln. She also stated that there was a serious shortage of manpower for such a task to be accomplished.

Lorraine Savard commented on cuts and freezes in pay and stated that she didn't feel it was right to give raises at the cost to the taxpayer during this economic period of time.

Richard Muggle asked who the tree warden is.

Edna Poulin replied that he contact the City Clerk's Office for a list of Board members and inspectors.

Richard Muggle questioned what miscellaneous City Property account was all about.

Edna Poulin explained that this was a standardized budget and that there are some items that do not have individual accounts because they be one time or rare purchases.

Richard Muggle questioned the expenditure of $2,000 from this account.

Edna Poulin explained that this was for the purchase of Word Processors for City Clerk's Office, Finance Office and Mayor's Office. She commented that the City Clerk's Office gets reams of materials that needs to be typed for Council record and the like and hours would be spent typing and retyping the same materials. The word processor allows this Office to reduce some of this repetitive work.

Richard Muggle commented on $2000.00 for celebrations. Edna Poulin replied.

Discussion between Mr. Muggle and Edna Poulin continued on various line items in the budget.

Richard Muggle asked Mayor Lazieh if he sought new ways to keep the tax rate down.

Mayor Lazieh replied that the expansion of Elizabeth Webbing Mill, reduced cost in operations, increased departmental revenue, State Aid and School Takeover are some ways that the City has reduced the cost in Central Falls.

Richard Muggle questioned school department expenditures.

Council President Laroche responded and congratulated the School Committee on the State Takeover and commented on the Detention Facility and Incinerator projects.

Josephine McLaughlin commented on the unemployment and low income of the people in Central Falls and stated that the employees should pay their own Health Benefits.

Wilfred Demeule asked what market value was used to arrive at total.

Edna Poulin responded that the Tax Assessor determined this and that every $1.00 on the tax rate represent $186,000. in property values.

Wilfred Demeule commented on the Department of Administration and total assessed valuations.

Council Discussion began at 8:55 P.M.

Councilman Brousseau asked if the figures presented here represented a $2.85 tax rate increase.

Edna Poulin responded yes.

Councilman Brousseau commented and presented an alternative budget proposal and stated that he would prefer a no tax rate increase budget. His proposals include the following:

Reduce Mayor's expense account from $5,000 to 1,500 for a savings of $3,500.

Eliminate car allowances for City Clerk, Legal Department, Tax Assessor, Finance Department, Minimum Housing and Library a total of $3,300 and creating a car expense account for all department heads in the amount of $1,000.

Net Savings from Mayor's account and car allowances would be $5,800.

Department Head raises eliminate for a savings of $14,530. or for raises to begin in Jan. 1992 for a savings of $7,265.

Do not rehire a personnel director and continue the stipend of $3,500 for a net savings of $21,831.

Remove $27,500 from salary account in City Clerk's Office.

New Administrative Secretary in Mayor's Office leave at present salary for net savings of $1,306. or increase in salary 1/1/92 for net savings of $653.00.

Minimum Housing Salary Account $18,000 more in account that present allotment which equals to a clerk II position.

Eliminate part time clerk in Municipal Court since a computer to process the court's records is to be installed for that purpose. Recommends use of money in the Minimum Housing salary account to hire full time person with dual responsibility of Minimum Housing Department and Legal Department for a net saving of $11,856.

Police Department salaries with 37 officers and men without overtime $947,700 plus overtime of between $50-70,000. Amount requested $1,103,178. net savings $35,478.

Fire Department salaries with 41 officers and men less overtime $1,096,123, requested $1,243,630 difference of $147,507. overtime approximately $30-50,000. a net savings of $92,507.

Reduce the computer cost in the Tax Assessor's Computer Account by separating the account to reflect tax bill processing and MMC updating and eliminated the updating.

Recommended using the cost of Tax Assessor Computer Account and Finance Department Computer Account to finance a Computer System for City and recommended by Review Commission.

Reduce insurance account to $120,000. net savings $15,000.

Be more specific in the Misc. City Property Account.

Questioned City Property Telephone Account.

Questioned Highway Department Salary Account.

Questioned Library Telephone account.

Recommended a contract with Community Center for financing Children's Recreational Programs and reducing expenditures in Recreation Department.

Questioned personal services in the amount of $65,000.

Questioned contingencies account.

Eliminate incinerator cost if money is not being collected.

Proposed total net savings $478,966 to $471,148.

Councilman Brousseau stated that he didn't touch debt service account and remarked that the Council and Mayor could produce a no tax increase budget.

Council President Laroche commented that he agreed with the Mayor that the City must pay its debts and that debt service could not be touched. He questioned the reserve for uncollectables. He also questioned what was being done to collect unpaid taxes.

Edna Poulin responded that the City is in the process of a Tax Sale and that certain things must be done before this can happen such as hiring someone to do title searches and the like.

Council President Laroche commented on the burden unpaid taxes create relative to other taxpayers and the cash flow shortage.

Edna Poulin responded that her Office has worked vigorously in collecting taxes by having the State send registrations directly to the City, who in turn, send registrations only to persons whose taxes are paid. Also all tangible business taxes are collected prior to the issuance of any licenses approved by the City Council.

She further explained that Dave Lawrence recommended the increase to $400,000 because this would represent 97% in collections which is the average throughout the State.

Councilman Brousseau questioned the cost of title searches.

Edna Poulin stated that the cost is born by the individual taxpayer.

Councilman Charbonneau asked if the banking crisis is being abused.

Edna Poulin responded no. She further stated that she was working with individuals who are having problems to work out payment plans on a weekly and monthly basis.

Edna Poulin explained the process she used to arrive at a proposed budget and she told the Council that she used very conservative revenue and expenditure estimates. She stated that many of the items were recommended by the Department of Municipal Affairs.

Edna Poulin further commented on radar program, Fire Department Minimum manning requirements and what the cost of revaluation will be. She stated that a budget that was balanced and what the City could live with was needed.

Councilman Brousseau commented on the lease purchase of a computer terminal main frame and the overall savings for such a purchase and the recommendations of the Review Commission.

Edna Poulin suggested that Councilman Brousseau could set a time to discuss with her future plans to computerize City Hall.

City Council President Laroche asked what was spent this year repairing the fire truck.

Chief Coutu responded $5,000.

Council President Laroche asked about the lease purchase of a Fire truck.

Edna Poulin commented on the bill in the legislature which will affect all City spending when the new Commission is formed.

Council President Laroche asked what the cost of a lease purchase for the truck would be.

Chief Coutu responded about $39,000. per year for 5 years. He also stated that the newest fire apparatus is from 1975 and the oldest was a 1961 ladder truck. He further commented that hoses and scott air packs would solve many problems.

Councilman Brousseau commented on a balanced budget.

Councilman Charbonneau asked if a private trash collections agency was looked into and wouldn't this eliminate trucks and other expenses.

Mayor Lazieh responded that the Highway Director did look into this matter and that the two-fold system presently used by the City, was financially better than any other method at the present time.

Council President Laroche asked if there any other questions from the audience.

Lorraine Savard questioned the cost of computer services presently being used for the maintenance of Tax records and billings. She also questioned the $37,000. used for the Market Study.

Councilman Brousseau stated that this is in the audit report and copies of this report are on file in the City Clerk's Office.

Lorraine Savard questioned the contractual services billed to the School Department by the City in the amount of $70,000.

Edna Poulin explained that this was for the cost of crossing guards, mechanic and ballfields etc.

Richard Muggle commended Councilman Brousseau on his proposals for savings in the budget and commented that additional revenues could be available if Minimum Housing Violations were brought to Court and fines charged.

Council President Laroche commented on the Minimum Housing Department and the Municipal Court and asked what was being done to bring these cases to court.

Councilman Charbonneau commented.

City Solicitor George Muksian stated that there is a manpower problem in the Minimum Housing Department which is in need of a full time director and because of the financial situation one hasn't been hired. He further stated that there was a formal defect in the Ordinance which has since been corrected.

Richard Muggle asked when a full time director would be hired.

Mayor Lazieh responded in about a month.

Councilman Laroche commented on the Minimum Maximum Ordinance.

Councilwoman Moreau commented on the Minimum Housing Department and that they are doing their jobs she also stated that she has talked with the Mayor about hiring a full time director. She stated that the Municipal Court was not lacking.

Mr. Demeule asked if the cap in 1989/90 was expanded.

Edna Poulin replied and stated that the Auditor General requires that the deficit be reduced.

Council President Laroche commented on the Review Commission and what role it will play in future spending.

Mr. Zacharie asked if the Minimum Housing Director would be qualified. Council President Laroche closed the Public Hearing at 10:59 P.M.

Councilman Charbonneau complimented Councilman Brousseau on the work he has done with the budget.

Motion to table was made by Councilman Charbonneau and seconded by Councilman Brousseau.

Discussion:

Councilman Brousseau explained his reason for his second and stated by doing this it would keep the budget process alive and give the Mayor and Finance Director time to look over his proposals.

Council President Laroche commented that because of the cash flow shortage he would not like to see this go beyond June 10th.

Councilman Brousseau commented on last year's action of the Council voting on a tax rate. He stated that he had no wish to have this happen this year.

Edna Poulin commented.

Mayor Lazieh commented that Edna Poulin has worked on this budget since January.

Councilman Vaudreuil commented and asked if the meeting could be recessed until Friday.

Councilman Brousseau withdraws his second.

Councilman Charbonneau withdraws his motion.

Councilman Vaudreuil asked the mayor and Finance Director to Consider Councilman Brousseau's proposals.

Councilman Laroche asked what the Council is looking for with this budget.

Councilman Charbonneau stated that the Council is looking for a no tax increase budget.

Edna Poulin commented on the deadline that she has to meet with the bond for solve the cash flow. She stated that she may not have the time to work on all the proposals.

Council President Laroche commented that the Council could always revert to last year's budget if this was not passed.

Edna Poulin commented.

Motion to recess to Friday, June 7, 1991 was made by Councilman Charbonneau and seconded by Councilman Brousseau.

Roll Call:

Motion carried 5 yes 0 no 0 absent.

Meeting recessed at 11:15 P.M.

Elizabeth A. Crowley

Deputy City Clerk

CITY OF CENTRAL FALLS

SECIAL CITY COUNCIL MEETING

JUNE 4, 1991 RECONVENED TO JUNE 7, 1991

CENTRAL FALLS JR./SR. HIGH SCHOOL AT 8:00 P.M.

A Special Meeting of the Central Falls City Council was reconvened on the above date at the Central Falls Jr./Sr. High School at 8:00 p.m.

Roll Call present:

Councilman Brousseau

Councilman Charbonneau

Councilman Laroche

Counwilwoman Moreau

Councilman Vaudreuil

Quorum Present.

Council President Albert O. Laroche presided.

Council President Laroche asked Edna Poulin to comment on the proposals to the budget made by Councilman Brousseau.

Edna Poulin commented on an Article in the Pawtucket Times which stated that City Officials were ready for a budget war. She stated that she disagreed with that assessment saying that although the City Council and Administration may differ on the budget that the City Council and City Administration's goals and objectives were the same in that, they both had the desire to make Central Falls financially sound.

Edna Poulin then began to address the different proposals made by Councilman Brousseau.

Personnel Director's position was not being paid a stipend at the present time and is in the City Clerk's Office account. Ms. Poulin explained that there is a deperate need for this position to administer such things as workers comp. cases, and personnel policies and practices. She stated that none of these items were being addressed at present. She addressed the salary of the Administrative salary and stated that the increase was calculated to begin on Jan. 1, 1992. In the Minimum Housing Department a clerk's position was discussed and she stated that the acting director feels that the position is needed but could begin in January for a savings of $9,000.00 which represents about 4.5 cents on the tax rate. The Police Department Salary account was discussed and she related to the City Council that the base salary is $956,509 in addition to that there is also a civilian clerk, 2 police matrons, Holiday pay, longevity and overtime. She then explained how she arrived at the additional figure of by relating that she took expenditures in salaries for the past 6 to 9 months and the encumbered amount of $35,478.00 in last year's budget to arrive at the current budget figure in the Police Department Salary Account. She then related that presently she is looking at 9 cents on the tax rate not in the present budget for estimated overtime in the Police Department. She also stated that the same held true for the Fire Department. She explained computer cost in Tax Assessor's Office and the revaluation expenses in the future. She reduced the City Property Account by $10,000.00 for a savings of 5 cents on the tax rate. She explained misc. city property account and related that these expenditures to diverse things which had no specific categories. She then named such purchases.

Edna Poulin related the expenditures involved in the New Telephone system. She then related the calculations related to the Highway Department and told the City Council that longevity is included in the Salary Account. She talked about the Recreation Department and the possibility of merging with the Community Center which has a year round program. She explained that the Community Center does not have the staff and in the summer the Recreation Department provides staff members to assist in the overflow of use of the center during the summer. She also related that this allows use of the pool at the center. Other expenses in the Recreation Department relates to the fields and leagues. She stated that if the center is related to the City that the Director feel they may loose some of its funding.

She then spoke on the Fringe Benefit Account and its relation to workers comp., unemployment comp. and arbitration cost. She spoke on Solid Waste and tipping fees. She related that there is no agreement between the City and Solid Waste to eliminate these fees and they must be accounted for in the budget because this is a bill and it may have to be paid.

Council President Laroche asked where the $158,000.00 was from last year's budget.

Edna Poulin responded that he was looking at a cash flow rather than as an expenditure which is accounted for in the deficit. She also explained the uncollected for the year and explained the traffic fines and municipal court fees.

Councilman Brousseau questioned Uncollectables and asked if any of this is shown as a receipt in current year.

Edna Poulin explained the accounting procedures related to tax collections.

Council President Laroche questioned the School Department Budget for last year and asked if this included the $1.9 million.

Edna Poulin responded that it does not include any additional funds from the School Department.

Councilman Brousseau commented on the budget process and explained that he has worked on budgets for more than three years in the School Department. He commented that budget process should have been worked on earlier so that the City Council would have all the information needed before being presented the formal budget. He stated that he was told that if the City Council didn't pass this budget there would be lay-offs.

Edna Poulin commented on the budget process and stated that at no time during the budget process has there been any mention of lay-offs. She also stated that the City Council has been invited on a number of occasions to come to her office so that she could explain the budget and how she arrived at the proposed budget.

Council President Laroche commented on when the budget was presented and stated that the work on this budget should have been presented to the City Council Finance Committee in April to allow time for revisions and questions and that it shouldn't have waited until now.

Councilman Brousseau asked if the raises were left in budget.

Edna Poulin responded yes.

Councilman Brousseau asked if auto expenses were left in budget.

Edna Poulin responded yes.

Councilman Brousseau asked if the Mayor's Expense Account was left as presented.

Edna Poulin responded yes.

Councilman Brousseau asked why none of these were changed.

Edna Poulin responded that she felt the raises for Department Heads and Auto Expense account were justified. She told the Council that she did adjust the salaries of new department heads and the Mayor's Administrative Secretary to reflect an increase in January but felt the others have worked hard to save money and that because of their hard work about 20.8 cent on the tax rate was saved and this should be recognized by the City.

Council President Laroche stated that the Council is aware of the hard work of the Department Heads but that the taxpayers have born a tax increase every year and that it wasn't fair to them.

Edna Poulin responded that all City Departments have worked extra hard and done much for the City by doing more than they have been asked to do and by working hard and they should be recognized for their efforts.

Discussion continued on Budget.

Edna Poulin commented that she could reduce the increase to about $2.78 if the salary increases are delayed to January this would come to approximately $2.76.

Councilman Brousseau commented that unfortunately this was approximately $2.20 to much.

Chief Sasso addressed the Council and explained the method he used in calculating the expenses for the budget and the number of officers and patrolmen on the force and the cost.

Councilman Brousseau commented.

Chief Sasso, Chief Coutu and Highway Director Rodrigues commented.

Council President Laroche commented Police and Fire Equipment.

Councilwoman Moreau commented on cuts in Police and Fire Departments and stated that with the present situation in the City she would not abide any cuts in manpower.

Edna Poulin commented that no cuts were intended in any Department and that the City is working with minimum man power.

Council President Laroche asked if non-union workers and volunteers were creating problems.

Edna Poulin commented.

Council President Laroche recessed the meeting for fifteen minutes at 9:35 p.m.

Meeting reconvened at 9:50 p.m.

Councilman Brousseau questioned the interest charged on deliquent taxes and where this is shown in the budget.

Edna Poulin responded.

Council President Laroche read a letter from the Governor's Office.

Council President Laroche read from a prepared statement which states that the present tax rate of $54.75 per thousand is the highest in the state and with the present economic times in the City which faces a 9% unemployment rate, people living on fixed and low incomes, empty apartments and houses that are not selling, it would be heartless to raise the tax rate by $2.85 per thousand. The statement continued to relate that tax increases are not the goals of the Council. The City must make sacrifices in order to save the taxpayers any further tax burden. He spoke on the agreement signed with regards to the School takeover which includes $1.9 million dollars in local taxes and a reduction in the bond indebtendness and deficit. He states that this could be done without a tax increase. He further stated that the City Council intends to keep its commitments and obligations to the taxpayers and the State of Rhode Island.

Council President Laroche opened the meeting to a Public Hearing at 10:00 P.M.

Chief Coutu clarified some items in the budget. He stated that his original request was $288,000. He reduced this amount to $74,000. he stated that he couldn't cut any more from the budget that this was bare bones.

Jack Walienkowicz stated that there was room to cut in the Budget. He stated that the Fire Department could cut equipment like scott air packs. He asked that Fire and Police pensions be looked into and he asked what kind of improvements were being made in the City to improve the quality of life in the City. He further stated that the City should institute a program where interest would not be charged on deliquent taxes for a period of time to allow people to pay some of these taxes.

Wilfred Demule questioned that tax levy and estimated income of the City.

Edna Poulin responded.

Lorraine Savard questioned the contingenoy account last year.

Edna Poulin responded.

Lorraine Savard called for a comprehensive audit.

Robert Moreau commented on $22,000 in computer cost.

Stanley Pietraszka commented on the City's troubles and the Weigner Case and the effect this had on the City.

Chester Arcisz commented on the original tax increase requested by the Administration last year and stated that the City Council didn't allow this increase. He also commented on the Detention Facility, the Incinerator and the School Takeover.

Richard Muggle commented on the Budget process and stated that this should begin earlier.

Council President Laroche commented. Amended 8/26/91 to read: Council President Laroche stated that a Resolution should be passed by the City Council which would mandate an earlier budget process. He also commented that this was recommended by the Central Falls Review Commission. He stated that the Central Falls Review Commission would have a great deal of control in the future relative to the budget and the City's expenses.

Councilman Brousseau commented. Amended 8/26/91 to read: Councilman Brousseau commented that the State takeover of schools does not allow for taxes to be reduced and would allow a tax rate increase if required not to exceed the 5.5% cap.

Mayor Lazieh commented on Budget and told the Council that the Budget was arrived at with the assistance of the Central Falls Review Commission, the Governor's Office, Bureau of Audits and the Department of Administration. He stated that he gave financial information to the City Council in January and he stated that this is a fair and responsible budget.

Edna Poulin commented that the budget is set according to contractual and debt services and that the least the tax increase should be is $2.71.

Councilman Vaudreuil asked if there would be another tax increase next year.

Mayor Lazieh responded that the City could expect that there would be no tax increase next year and maybe for the next two years.

Councilman Brousseau stated that he would prefer a no tax increase budget this year but that he would vote for a 50 cents tax rate increase. He further stated that the City Council should direct where the 50 cents increase should go in the line items of the budget.

Edna Poulin stated that she didn't believe that the Council had the authority for line item veto.

George Muksian, City Solicitor stated that the City Council, in the pass, acted on the aggregate of the budget, however, the Charter doesn't address specifically if the Council could act on line items. He stated that in Section 2-301 Section 3 of the Charter the City Council could not act on the estimated receipts of the budget. Councilman Brousseau commented. Edna Poulin commented.

Motion was made by Councilman Brousseau and seconded by Councilman Charbonneau that a tax increase of 75 cents be approved with the provision that 25 cents of the increase be used for a lease purchase of a new fire truck.

Council President Laroche commented.

City Solicitor Muksian commented.

Mayor Lazieh commented that a lease purchase for a new fire truck would no be possible.

Elizabeth Crowley, Deputy Clerk asked for a clarification on the motion.

Roll Call on the motion:

Motion carries 5 yes 0 no 0 abstentions 0 absent.

The Annual operating Budget Ordinance.

Motion to approve as amended was made by Councilman Brousseau and seconded by Councilman Charbonneau.

Roll Call:

Motion carries 5 yes 0 no 0 abstentions 0 absent.

The Capital Program Ordinance.