City of Central Falls
City Council Finance Committee Meeting
Friday, May 21, 1999
A meeting of the Central Falls Finance Committee was held on the above date in the City Hall Council Chambers at 10:15 a.m.
Councilman Noury
Councilman Weber
Councilman Weber chaired the meeting.
Finance Director, John Kuzmiski also present.
The purpose of this meeting was to continue discussion on the 1999/2000 Budget.
Fire Department
Chairman Weber questioned the number of positions in the Fire Department.
John Kuzmiski responded that there are 37 member plus the Chief.
He stated that there are no raises in the salary portion of the budget nor are there any adjustments made to the current year.
Councilman Weber questioned the Finance Director further on the salaries and benefits of the Fire Department.
John Kuzmiski stated that this figure represents clothing & tool allowances that have not yet been paid out and will be encumbered. He also stated that there are no raises for this budget or for next year.
Chairman Weber questioned the cost of arbitration and where this would come from.
John Kuzmiski stated that this is in Legal contingencies. This would include legal costs, arbitration cost and expert witnesses costs.
Chairman Weber asked if the Finance Director could provide by June 1, 1999 the breakdown in account # 59086 and 59084.
Councilman Noury asked if there is enough to cover the exposure for this arbitration and what is the exposure 1-3%?
Discussion ensued between the Finance Director and Councilman Noury.
Municipal Court non -capital equipment account was questioned.
The Finance Director responded that this included the price of a new computer for the court.
Chairman Weber questioned the salary account in Minimum Housing and asked if this was eliminating a position.
John Kuzmiski responded that there would be a reduction of one inspector in that department.
The Health Department Services of Dr. Gowda would be eliminated, as there really was no need for this fee.
The Highway Department Salary decrease reflected the elimination of the Janitor's position and no pay raises. The Finance Director informed the Committee that there are no pay raises budgeted for anyone employed by the City.
Councilman Weber asked if the City gives a 3% increase what is the cost?
Councilman Weber questioned the part time year round Recreation Director's position.
The Finance Director stated that the Recreation Department breaks down as follows:
1 full time Director at $20,000
1 part time consultant reduced
Summer help $48,908 this includes 6 support
9 supervisors 17 assistants
1 softball director
1 soccer ball director
1 scorer
2 field laborers
Mayor Matthews jointed the meeting.
Councilman Weber asked what number is being hours/days 9-3:30 4 hours per day 10a-2p.
Mayor Matthews stated that it is not only a matter of cutting back, but also, children just don't come to the playgrounds early in fact a majority doesn't come until about 11am. It is 2-21/2 hours per day.
Councilman Weber questioned account 59253 sponsorships.
Mayor Matthews commented on the first night activities planned by the Community Development Director, they include a band, fireworks, carolers etc.
Municipal Debt was discussed by the committee.
The Finance Director stated that the bond payment is $1,595,000 and the interest would be $1,008,580.
The bond was explained in detail.
The committee discussed the Contingencies account.
They commented on the tax billing issues, the tangible phase out, the Munis software program etc.
Legal Contingencies were discussed including the WDC lawsuit, fire arbitration, the Pawtucket Water Supply suit and the Lazieh claim.
The committee also discussed Employee Benefits such as medical insurance which is averaging a 15% increase, the City related that Health Mate would become HealthMate Coast to Coast and that Classic would no longer be available as of July 1, 1999 and that there would be real major changes. The Committee also discussed compensated absences of $100,000 for upcoming retirements.
John Kuzmiski commented on bonding and the Pension Fund Liability as they relate to Legislative Issues.
Other discussion centered on Major Purchases, Special Revenue Account, Improvements etc.
The Mayor also stated that if the City continues to do trash collections a purchase of two new trucks would be necessary. He told the committee that the present 3 trucks have outlived their life expectancy and that the rails are bent and the packers are rotting. He stated that privatization is an option. He also commented on the fire department's pumper truck which has already been repaired and rebuilt and it is not worth refurbishing as is was purchased somewhere in the 1970's. He told the council this would have to be addressed by January.
John Kuzmiski explained the Lease Purchase process and the Municipal Leasing and Purchase Process. He related that this is done with Lease Participation Notes and is tax-exempt.
Chairman Weber asked the Finance Director and Mayor to provide the Committee with the following by June 1, 1999 Budget Workshop Meeting.
1. Breakdown of Rental Income Property receipts.
2. Saving of overtime versus hiring additional personnel.
3. What % exposure will the firefighter labor increase be?
4. Breakdown of Legal and General Contingencies
5. Fund Balance
6. Workers Comp.
Chairman Weber adjourned the meeting at 12:30 p.m.
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Elizabeth A. Crowley, CMC