CITY OF CENTRAL FALLS
COUNCIL BUDGET WORKSHOP
TUESDAY, MAY 28, 1991
CITY HALL COUNCIL CHAMBERS
A City Council Budget Workshop was held on the above date in the City Hall Council Chambers at 11:08 a.m.
Councilman Brousseau
Councilman Charbonneau
Councilman Laroche
Councilwoman Moreau
Councilman Vaudreuil absent due to death in family.
Workshop was chaired by Councilman Laroche.
Also present at this workshop were the following:
Mayor Thomas Lazieh
Dave Lawrence, Chief of Department of Administration
Edna Poulin, Finance Director
Patricia McGovern, Deputy Finance Director
Daniel Varin, Chairman of Central Falls Review Commission
Mayor Lazieh introduced guests.
Edna Poulin remarked on the 5.5% State Cap which represents a $2.94 tax rate increase. She told the Council of the $1.5 million dollar decrease in automobile tax collection due to the reduction of new car sales purchase. She stated that other cities and towns were experiencing similiar revenue losses due to this situation. She also commented on an increase in the uncollectable taxes.
Councilman Laroche asked what was being done about unpaid property taxes.
Edna Poulin responded that a tax sale would be conducted.
Councilman Charbonneau commented.
Edna Poulin responded.
Dave Lawrence commented on the state's tax revenue collection which is about 97.2% and about average. He stated that the City's was also in that area.
Edna Poulin explained other revenues such as the telephone tax, general revenue sharing, school operations, GPA, school housing aid and departmental revenues. She further explained departmental revenues stating that the City Clerk's Office and Probate Departments are on line and that other departments anticipated revenues would be increased.
Councilman Laroche questioned a quota system.
Mayor Lazieh responded.
Councilman Charbonneau commented.
Dan Varin questioned interest bearing accounts.
Edna Poulin responded.
Edna Poulin explained that the Housing Authority revenues are down due to the formula and a loss of rents because of renvoations. She stated that the estimated receipts would be $13,433,040.00.
Dave Lawrence commented that there may be an additional $50,000 to $60,000 from the state possible. He also stated that there may be less revenue from the telephone tax and school housing aid.
Edna Poulin then commented on the expenses for this fiscal year. She commented on an increase in audit fees of $10,000.00. She stated that there would be a decrease in the Fire Pension but that the Police Pensions would increase. Also the sewer and waste disposal would increase.
Dan Varin commented on water run-off.
Councilman Brousseau questioned water and sewer.
Councilman Laroche asked the status of Water Department take over by Pawtucket Water Supply.
Mayor Lazieh responded that this was still in the discussion stages with the Water and Sewer Systems. He stated that the value of the system must be determined.
General discussions ensued regarding the sewer and water system.
Edna Poulin commented on incinerator.
Councilman Laroche commented.
Edna Poulin stated that this fiscal year would start $2.1 million short.
Councilman Laroche questioned the tipping fees.
Dave Lawrence stated that to budget correctly, tipping fees must be included in the budget as an expenditure. He further stated that the audit would reflect this as part of the deficit. He commented to the Council that in dealing with the budget the thought of cash must be left behind. He further stated that in the auditing process the tipping fees are part of the deficit and that cash is dealt with seperately.
Edna Poulin stated that tipping fees are increasing this year.
Discussion continued.
Edna Poulin commented on the salaries in the Highway Department relative to custodian being transferred to this department. She explained that this replaced 3 1/2 positions.
Councilman Laroche commented that a better job was being done as a result of this.
Councilman Charbonneau commented on this position.
Edna Poulin commented on an increase in the recreation department.
Councilman Charbonneau, Councilman Laroche and Mayor Lazieh commented.
Mayor Lazieh explained the programs and personnel that were cut in the recreation department last year and commented that the minimum wage was increased.
Councilman Brousseau commented.
Sponsorship was discussed.
Edna Poulin discussed debt reduction was to be increased to $800,000.00. She commented on $570,000.00 which was on the school side would be set aside for school deficit.
Dave Lawrence commented.
Edna Poulin commented.
Dave Lawrence commented on the pay deferrals, deficit, and $500,000.00 debt service. He stated that he was concerned about the City's bond rating.
Edna Poulin commented that the cash flow was the biggest problem.
Dave Lawrence commented that the interest rate will be important if Tans were needed for deferrals. He stated that the note in audit report will be helpful and the state bailout explained.
Councilman Brousseau commented.
Dave Lawrence explained that for rating agency purposes you need to show these amounts as deficit reduction.
Edna Poulin commented on fringe benefits.
Councilman Laroche questioned contingency account.
Edna Poulin explained that this is for lawsuits, claims which are outstanding and will not be reimbursed.
Dan Varin asked what the current year's expenditure was for this account.
Edna Poulin responded $32,000.00 to date.
Councilman Laroche asked if a fire engine appropriation was included in the budget.
Mayor Lazieh that it was in the budget under capital improvements. He stated that $200,000.00 would be needed for a new fire engine. He continued to explain the capital improvement ordinance and stated that there is still authorization for the last four years. He stated that a capital improvement bond for the future would be needed.
Mayor Lazieh explained the interlocal risk and lawsuits.
Edna Poulin commented on salary increases and that the librarian was the highest increase.
Councilman Charbonneau questioned salary of new tax assessor.
Edna Poulin responded to questions on assessor and minimum housing director salaries. She also commented on raises for all Department Heads.
Councilman Charbonneau commented on raises for Department Heads and stated that he believed that there was a light at the end of the tunnel with regards to the City's finances. However, he asked that the Department Heads not be given a raise this year. He stated that he felt that the taxpayers need the relief. He also stated that he knew that the Department Heads were deserving a raise but that it should wait until next year, when the taxpayers would feel some relief in the School takeover.
Edna Poulin commented that the raises amounted to 10 cents on the tax rate and that the Department Heads have not received raises for almost three years.
Councilman Laroche commented to strike council raises and that the administrative secretary raise should have a 6 month delay. He also suggested that the probate judge's salary increase should be eliminated. He commented on the part time legal secretary and associate judge/clerk. Amended by City Council 8/26/91.
Mayor Lazieh commented on summer help, oscar program, union problems, hourly wages and temporary help.
Councilman Brousseau stated that the Civilian Defense Director's position should be eliminated.
Dave Lawrence commented.
Councilman Brousseau stated that he agreed with Councilman Charbonneau that Department Head raises should be delayed one more year.
Mayor Lazieh commented that Department Heads have not had a raise in three years, he also stated that they have earned a raised and have worked hard to keep the deficit down.
Dave Lawrence commented on the State survey of Salaries of Department Heads in other cities and towns.
Councilman Brousseau commented that he had problems with Mayor's expense account and other items such as car allowances and suggested that slips be made out from a pool for car allowances.
Councilman Laroche commented.
Mayor Lazieh commented.
Workshop closed at 1:55 P.M.
Daniel J. Issa
City Clerk