City of Central Falls
Special City Council Committee of Fiscal Affairs
Meeting
Wednesday, January 10, 2001
City Council Chambers
At 7:00 p.m.
A meeting of the Committee of Fiscal Affairs was held on the above date in the City Hall Council Chambers at 8:50 p.m.
Councilman Leger
Councilwoman Canavan
Councilman Lazieh
Councilman Noury
Quorum present.
Council President Gene R. Noury presided.
December 18, 2000
Motion to accept and place on file was made by Councilman Leger and seconded by Councilman Lazieh. All Agreed. So Voted.
Mayor's claim that there is insufficient funds in current operating budget to run City.
Council President Noury pointed out the reason for placing this on the agenda and commented on a newspaper article which reported that the Mayor claims that the Committee and the Council are obsessed with winning the dispute between the Mayor and the Council rather than being concerned with the fiscal affairs of the City.
Council President Noury stated that the Council has been concerned since the day of their inauguration , and, in September of 2000 created a Special Committee on fiscal affairs because it knew what the real concerns are; and that was ,the fiscal condition of the City. He spoke about the budgetary process and the role the Council played during that time. He said the Council's role was to be the guardian of the people's savings account. He stated that each member commented during that time their concerns with regards to the Mayor's comments about the 1.6 million dollar surplus and that he may have not been completely forthright about the known expenditures that could affect this surplus. Council President Noury stated that at the time of the budget hearings the Council created a chart of known expenditures; such as the three years of contract negotiations with the firefighters, he spoke of the two years of contracts with the public works and the one year with the police department and the impact they will have on the surplus. He said that in the article, the Mayor stated that the Council is not interested in the taxpayers' funds in dollars. They just want to prove themselves right. He stated that his response to this is; the Council and in particular the Committee has always been interested in the use of the money and that's the only thing the Council has ever been interested in.
Council President Noury stated that the budget is the most important policy statement a community can make about what its priorities are. He stated that it was some of the policies of the Mayor that the Council disagreed with that led the Council to reduce the final appropriation of the budget. He said that specifically it was the use of outside attorneys that the Council objects to where the City paid over $100,000 for a labor attorney to fight the City's working people and that expenditure has yielded nothing in return. He related that the firefighter's most recent settlement by the arbitrators awarded a 3% salary increase as well as their clothing allowance. He stated that there has not been a financial gain for the City by this action. He stated that the Council disagrees in paying Mr. Harsch and his associates almost $300,000 in fighting WDC. He stated that the Council told the Mayor in June that the Council would not pay any more money to Mr. Harsch. He spoke of the bonded fees and stated that the Attorney could collect his fee when the issue is settled through the bond. He stated that the Council is well aware of the labor contracts and he commented on the Review Commission. He stated that the Mayor said that he doesn't have enough money. He commented on the Mayor's request last June for an additional $150,000 which the Mayor stated he needed to balance last year's budget. The Council President stated that the Council would not approve the request and two months later the Mayor announced an excess in revenues over expenditures. He asked how could the Mayor make a request for money he did not need. He stated that he doesn't understand how the Mayor can claim that there are insufficient funds for the Mayor to operate the City. He said that that the City is only at the 1/2 way point and he's concerned. He stated that the Council's role is to act as guardian for these funds.
He turned the Chair to the President Pro Temp. Canavan.
Councilman Noury moved that the City Council Fiscal Affairs Committee examines each and ever check that was prepared on behalf of the City of Central Falls since the beginning of the fiscal year July 1, 2000 until present. He stated that the committee reviews those checks because of the need to know what the Mayor is talking about and where the money has gone. Motion was seconded by Councilman Leger.
Chairwoman Canavan repeated the motion and asked Councilman Noury if it was correct.
Councilman Noury stated that the clerk would clarify the motion from the tape.
The Clerk repeated the motion.
Councilman Noury commented on the Mayor's remarks relative to the issue.
Councilman Lazieh stated that he agrees that the committee has a right to look and review the checks but would the committee rather look at certain checks and not each and every check.
Councilman Noury stated that he doesn't want to place any parameters on this.
Councilman Lazieh commented on the financial picture of the City.
Councilman Noury commented further.
Councilman Leger agreed that there shouldn't be any limitations placed on this review. He also commented on the issue of tax increases and the money in the surplus.
Chairwoman Canavan commented on the Council meeting where the Council discussed in great length the issue of $15,000 and the Mayor's position that there is no money in the budget for this expenditure. She agrees with the other members of the committee and their concerns relative to this year's budget.
On the motion the 4 members present voted to approve. Councilman Robichaud and Judge Sawyer were not present.
None
Councilwoman Canavan questioned the Council President on the manner in which the motion just passed by the Committee would be implemented.
Council President Noury stated that he would just turn it over to Judge Sawyer and he will handle it from this point forward relative to this issue.
Councilman Leger asked the Council President if anything has been reported back from Mr. Sheridan regarding the issue of the Committee and the complaint filed with the Attorney General.
Council President Noury stated that in his conversation with Mr. Sheridan he related that he is prepared to file a declaratory judgement.
Councilwoman Canavan asked if he was referring to the legality of the committee.
Council President Noury responded yes.
Councilman Leger stated he was asking about the complaint.
Council President Noury commented further on some of the steps that needed to be responded. He said that it is possible that the City Council may be found in some type of minor infraction on how it posted its agenda. He stated that he wanted to let the Council and the people of Central Falls know that he would take full responsibility for that it since he was posting those agendas. He stated that he would not deny what is his responsibility. He stated that he would apologize on behalf of the Council if this become so. He also stated that he blames the unlawful advice of the Solicitors given to the Municipal employees instructing them not to co-operate.
Motion to adjourn was made by Councilman Leger and seconded by Councilwoman Canavan. All Agreed. So Voted.
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Elizabeth A. Crowley, CMC
City Clerk