City of Central Falls
City Council Finance Committee Meeting
Thursday, May 10, 2001
City Hall Council Chambers
At 4:30 p.m.
A meeting of the Central Falls City Council Finance Committee was held on the above date at 4:40pm.
Members present:
Councilman Lazieh
Councilman Leger
Councilman Noury
Councilman Leger chaired the meeting.
Also in attendance were Mayor Lee M. Matthews, and Milton Velencia from The Times.
Councilman Noury stated that from now on he would serve on all Council sub-committees as an ex-officio member.
Councilman Noury asked the Mayor if it was his intent to pay the clothing allowance arbitration award to the Fireman.
Mayor Matthews replied, yes it was.
Councilman Leger questioned the Mayor about cost of Police overtime.
Councilman Noury questioned the Mayor on whether the increases applied to the police and fire retiree's due to the direct settlement of the contracts.
The Mayor responded that there would some pay outs made to the retiree's. There is some costs involved.
More discussion took place with Councilman Noury on the different ways the pay out of the arbitrator's award could be paid.
Mayor Matthews explained more details of the conditions of the arbitration.
Councilman Lazieh questioned Mayor Matthews on which of the conditions for additional appropriations listed in the Charter.
Mayor Matthews responded 2-33- balancing the Budget.
Councilman Lazieh responded that it was not an appropriation. He also stated that this budget was already passed.
The Council has already balanced the budget for last year.
Mr. Lazieh stated that this item does not meet the criteria.
Councilman Lazieh asked Mayor Matthews if he had any recommendations for reductions or suspension in any line item or department for this budget.
Mayor Matthews referred the cuts back to the Council.
Councilman Noury questioned the Mayor on the clothing allowance for the Fire Fighters for 98-99.
Discussion between Mayor Matthews and Councilman Noury on how the payments to the Firefighters could be made.
Councilman Noury asked for breakdown of the clothing allowance for that year.
Councilman Leger asked Councilman Noury if he understood it clearly if was recommending to bring back to the City Council a proposal of $60,000.00 leaving a balance of $500,000.00 and we would address that on July 1?
Councilman Noury stated that he agreed with Councilman Lazieh that the aggregate total cannot be increased. He also stated that the Mayor stated that he should look for some other revenue.
Mr. Leger asked to allow him to finish. We talked about the clothing allowance being $188 then we talked about $17,000.00 bringing down to $ 171 talked about possibly paying some of that out of the budget and some money may be left in other areas. So if we could find $171,000.00 to take care of that item, possibly we could find $60,000.00 instead and then deal with rest on July 1, to me that would answer everyone's argument. This way we would not be touching the surplus.
Councilman Noury said that was what he was thinking.
Councilman Lazieh stated that the first obligation should be the arbitration award, which took place in February.
More discussion took place between Councilman Leger and Councilman Lazieh on contractual obligations in relation to the arbitration award. Also discussed was the WDC suit as the obligation, as was the Pawtucket Water Supply Board.
Councilman Leger asked Councilman Lazieh if he wanted the Mayor to estimate the potential suits.
Mayor Matthews estimate is 0.
Councilman Lazieh asked about the Police contract.
Councilman Leger asked Councilman Lazieh to put any questions down in writing and he would get the answers for them.
Councilman Lazieh stated that they should look at the entire picture. He also asked for total figures of the surplus.
Mayor Matthews stated that he asked for access to the surplus, he may not use it.
Councilman Lazieh stated that the finance Committee must see the realistic figures of surplus. He stated he is waiting for the audited figures.
Mayor Matthews stated that there was 1.9.
Councilman Leger stated that on the last page of the report they of March 31,had it stated that there was 1.8 million, bottom line if we have to take $578, 000.00 then it would be 1.3.
Mayor Matthews advised them to check with financial experts. He also cautioned the Council on the results of this situation, on the Bond rating status. Running deficit is not the way to go. He also stated that this arbitration needs to be paid.
Councilman Leger asked about the rubbish truck. On how this transaction was done.
Councilman Lazieh asked if the funds from the sale were deposited into the treasury.
Councilman Lazieh stated that in the budget there used to be a line item on the revenue side used for surplus property. He also asked does that line item reflect the increase of surplus property. The City has an obligation for rubbish, which was budgeted last year, then the fund should be taken out of that line item, to cover that expense.
Councilman Leger said he would ask that question in behalf of Councilman Lazieh.
That is my question, is there an additional amount.
Mayor Matthews said that the way that the transaction was done was appropriate and that the auditors recommended it.
Councilman Lazieh asked where any cuts or transfers could be made in the current budget.
Mayor Matthews said there were none. but that he would listen to any recommendations.
Councilman Leger stated that the financial report that they had in hand, it was hard to make recommendations on May 10, 2001 it is hard to get a clear picture off a report that is dated March 31, 2001 after 40 days have gone by. It makes it very difficult.
Councilman Lazieh spoke of budget priories. He stated that before they look into proposed budget, they must have a handle on the current budget.
Councilman Leger asked what the status of the Audit is, he also asked the Mayor if it would be complete for budget time.
The Mayor responded that whatever happened last year, has nothing to do with what is going on this year. Last years audit was for last year.
Councilman Leger said it would just give a clear picture of where we are at, and he would feel comfortable. A break down report will help.
Discussion took place about the Ordinance that was past on the format of the budget that it would look like a worksheet.
Councilman Lazieh asked Mayor Matthews if he had sat down for a final audit review?
Mayor Matthews responded that he had not been contacted.
Councilman Lazieh asked Mayor Matthews if had discussed the management letter or final copy a draft copy of the audit.
Mayor Matthews responded no.
Councilman Lazieh recommended that there were two bids, submitted to do the audit, and should not be awarded at this time. It should be discussed maybe with the full council.
Mayor Matthews commented that it was not the fault of Parmalier that the audit is late, but because of the short staff.
Councilman Leger stated that the frustration of some of the Council members is that out of the two bids, (concerning current auditors), they are not convinced that the auditors are doing it in a timely fashion if there is a way to improve that, that is what they want.
Mayor Matthews commented on what some of the obstacles are.
Mayor Matthews suggested to go with the most qualified and not the lowest bidder. Some of the time delay was due to Channel One.
Councilman Leger said the present auditing company should be given the opportunity to explain the delay.
Councilman Lazieh asked when the new Budget would be presented to the City Council?
Mayor Matthew responded by Charter it must be presented by May 15th.
Councilman Lazieh asked that the Budget should be sent out immediately upon receipt.
Deputy Clerk Marie Twohey, responded so noted.
Councilman Lazieh asked if a Finance Director will be hired.
Mayor Matthews explained that he has placed ads in the paper.
The salary of the Director of Finance was discussed.
Councilman Leger asked if they had tried posting it on line and if that was and option.
Mayor Matthews said he did not know why not.
Councilman Lazieh asked to recess this meeting.
Discussion on why this would take place between Councilman Lazieh and Councilman Leger.
It was decided not to recess, but to set a new agenda.
Councilman Leger feels the entire City Council should be in on budget discussions.
Councilman Lazieh feels it should be discussed between the Finance Committee and worked out then brought to the entire City Council.
Motion to Adjourn made by Councilman Lazieh, seconded by Councilman Leger.Meeting adjourned at 6:07pm
Respectfully submitted,
_____________________________________
Marie Twohey, Deputy City Clerk
Interpreters for the hearing-impaired available by request made at the Office of the City Clerk.
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