The City Council meets in the Council Chamber on Tuesday, October 5, 2004, and is called to order at 7:30 P.M. by Mayor Rolland R.Grant.

Lori Merolla Carole, Merandi Reporting, is present to record the proceedings of the public hearings.

The Mayor yields to the City Solicitor regarding the Wild Animal Ordinance. Because DEM is reviewing and revising the definition of wild animals he recommends deferral of a vote on the ordinance. The current definition is part of the proposed municipal ordinance.

Motion to defer by Mr. Miranda, seconded by Mr. Harrington, it is unanimously voted to defer.

The invocation is given by Mr. Harrington. The salute to the flag is led by Mr. Rogers.

AN ORDINANCE APPROPRIATION $119,660,346 FOR THE SUPPORT OF THE CITY GOVERNMENT FOR THE FISCAL YEAR ENDING OCTOBER 31, 2005.            (Advertised in the Providence Journal-September 24, 2004)

The City Manager gives an overview of the Budget as presented on September 15, 2004. He points out the cumulative deficits in the School Department and the Wastewater Fund which totals over $4,000,000. He also points out that the Police and Fire Pension Fund is underfunded by approximately $16,183,000.

The reserve fund of $4,100,000 is slim and our flexibility has been diminished over the over the past few years compared with other comparable cities. There are significant capital needs that we can no longer defer such as the bridge collapse on Crescent View Avenue.

Mr. Fazioli refers to the credit rating being lowered twice in the last two years. Further deficits could lead to more downgrades. He is concerned about a lower bond rating. This could lead to higher borrowing costs and higher interest. The amount paid in interest could be used to provide more services.

Mr. Fazioli discusses the main budget drivers:

We have eight positions on the Fire Department which we hope to fill. This will help to decrease the cost of overtime for the department.

On the revenue side the picture is not that good either. In fact, the city has to replace $1,000,000 in revenue that was used in last year’s budget but does not recur in FY 2005.

What we are facing in fiscal year 2004-2005 is a significant increase in fixed operating cost.

- Net new revenues of only $318,000

- Catch-up appropriations for the purchase of 10 new police vehicles.

- Proposed funding to bring library funding back to snuff.

- Hiring an Information Technology Director.

- Repairs on the City Hall elevator to bring it up to Code.

- Avoidance of the system of charging $75.00 for oil changes on city owned vehicles.

- Avoidance of a budget that defers costs.

- Upgrading the City website.

- Establishing a capital improvement plan.

- $5,000,000 has been cut from Department requests.

- Cut $2,000,000 from the school budget.

- Proposal of a tax increase of $1.06 per thousand so that if a person has a $200,000 home, his (her) increase would be about $15.00 per month.

The proposed budget is sustainable, no longer defers costs and will get away form one time revenues.

The City Manager states that we have a low tax rate and debt burden but we also have a low revenue fund. He states that sewer and water Rates will remanin the same.

Mr. Manuel Vinhatiero, School Superintendent addresses the City Council regarding the School Department Budget. He points out a deficit of $1.3 Million and reviews a plan to prevent future deficits. The deficit reduction plan calls for:

- Sale of the Thompson School

- Allocation of a portion of the state meal tax for education,

- A $65,000,000 budget which was approved.

- Increase in cost reduction in the budget.

- A total of 34 positions were reduced.

- Teachers agreed to a give back of $900,000 scheduled for November of 2004.

- Custodians agreed to a 0% hike.

- The new budget is $2.1 million less than requested.

- The amount saved will allow the School Department to operate without making drastic cuts.

- There will be a budget for text books.

- The dept. will be able to purchase necessary supplies.

- Draconian cuts in extra-curricular activities will not have to be made.

- Threats to student transportation will not have to be made.

The steps that were taken include:

- Eliminating 22 full time teachers.

- Combined staff reductions of 34 positions including principals, custodians and others.

- The Grove Avenue School has been leased.

- The talent development program has been eliminated.

- The Thompson School has been leased and is in the process of being sold.

- The Walters School has been leased.

- Elementary Schools are only open every other night.

- Renegotiation has taken place with the collective bargaining units.

Mr. Vinhatiero urges support of the City Manager’s Budget in its entirety.

Mr. Fazioli and Mr. Vinhatiero are congratulated by Mr. Rogers for their new leadership and financial discipline.

Mr. Miranda questions the custodial duties at the schools.

Mr. Harrington notes that this is the worst that things can get but that hope is on the horizon with the Waterfront Development. He is happy to see the School Committee make some tough decisions and that it is hopeful to see the teachers forego what is rightfully a pay raise.

Mr. Vinhatiero addresses the leasing of schools as opposed to selling them. He believes that changing demographics dictate that they might be needed in the future.

Dr. Ramos thinks that the School Department staff is doing the right thing. He congratulates Mr. Vinhatiero and Mr. Fazioli.

Mayor Grant points out how state unfunded mandates are crippling the cities and towns. He believes that an income tax or sales tax should be used to support the schools as opposed to increasing the property tax. He calls property taxes oppressive and there has to be a better way of funding schools. He states that the people who can least afford it are being taxed and calls for a new taxing system.

The mayor invites anyone wishing to testify for or against the budget to be sworn in. The City Solicitor then swears them in.

Mr. Thomas testifies about the City not installing a fence on the overlook at Rose Larisa Park. He states that a child could climb over the 22 inch high wall at the edge of a 15 foot drop. He had previously talked with officials who installed a mesh barrier.

Council members asked Mr. Fazioli to have a temporary fence installed immediately, until the City is ready to install a fence that considers both safety and a view of the Bay.

Mr. Joseph Crook testifies that they are planning to remove the fence and put up a permanent one that provides safety but considers the aesthetics of the park also. The situation was a temporary one.

Motion by Mr. Miranda to instruct the City Manager to rent a fence until the City gets ADA approval, seconded by Mr. Rogers, it is unanimously voted to approve.

Mr. Joe Larisa is now sworn in. He criticizes the tax increase and states that it is the causation for people leaving the City. He points out that the tax shifted from commercial enterprise to the homeowner and that it should not have happened. He claims that the rate to the homeowner has increased 20% or more and their bills have gone from $2000 to $2400. He questions what we got for the increase? Nothing! Now we have the largest property tax increase-7% which is another180 for the average homeowner.

People are leaving the City and it is hoped that the Waterfront development will help.

Mr. Larisa proposes to increase the Homestead exemption. He recommends a 20% Homestead exemption.  He also recommends having a revaluation every 10 years.

Maryann Matthews now testifies. She inquires into the salary of the City Solicitor now that he also has the title of Assistant City Manager. Mr. Conley states that there is no separate salary for that position. She also questions about the City Shelter. The City Manager replies that shelter will be funded as a permanent function and not as an emergency appropriation as in previous years.

Antone M. Gouveia from the School Committee now addresses the Council. He suggests that at some point we run out of things to cut. He says that you can only cut so many police and fire department positions. He mentions the lack of technology, including a Website that is no good. He thinks that we should forget about having the lowest tax rate, we need money to fix our infrastructure and that we should listen to our City Manager and School Superintendent.

Dr. Ramos states that his tax proposal is for the very neediest people.

Dr. Ramos asks Mr. McDonald, City Finance Director what the cost of the Homestead Act would be. Mr. McDonald states that it would be $1.8 million in lost taxes. Dr. Ramos questions where the lost revenue will come from. Mr. Fazioli suggestions that this would mean staff reduction and cutting city service to make up the difference.

Bob Rodericks from the School Department now comes to the podium to speak. He states that there is only one person to handle technology in the school for a department of 1000 people. The Personnel Manager is in Iraq and the assistant is filling in for him. There are no teaching coaches in the system. He commends the waterfront development. He commends the councilman for opening up the dialogue on tax relief for the seniors. He notes that his late dad is not here to address the council but in his honor he supports the budget.

Mr. John Conley is now sworn in. He is pleased that Mr. Fazioli wants to correct the infrastructure. He states that things were neglected. We have big problems because certain things should be done each year. Things have not been done because the council does not want to raise taxes. He states that if we do not pay now, we will have to pay later. He commends the Manager and members of the Council for going in the right direction.

Mr. Larisa wishes to address the Council again, but Dr. Ramos objects because he does not want to get into a debate. 

Mr. Joe Souza now comes forward and complains that his taxes went from $1800 to $2400. His concern is that he cannot keep raising the prices in his business to meet the tax payments. He recommends a co-pay of city employees.

Motion to continue the Budget for further public hearing is made by Mr. Harrington, seconded by Mr. Rogers.

Motion passes 5 to 0

ORDINANCE IN AMENDMENT OF CHAPTER 18 OF THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED “VEHICLES AND TRAFFIC” SECTION 1. Sec. 18-269 entitled “Stop and yield intersections designated: when stops requires,” adding: DON AVENUE (northbound and southbound traffic) at LEWIS STREET.     (By Councilman Patrick Rogers)

Motion to approve by Mr. Miranda, seconded by Dr. Ramos.

Motion passes 4 to 0.

AN ORDINANCE IN AMENDMENT OF CHAPTER 18 OF THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED, “VEHICLES AND TRAFFIC,” SECTION 1. Sec 18-269 ENTITLED “Stop and yield intersections designated; when stops required” adding: MAURAN AVENUE (eastbound and westbound traffic) at BENTLEY STREET.  (By Councilman Norman J. Miranda)

Motion to approve by Mr. Miranda, seconded by Mr. Rogers.

Motion passes 4 to 0.

RESOLUTION BY THE CITY COUNCIL RATIFYING A WAIVER OF CUSTOMER CREDITS FROM NARRAGANSETT ELECTRIC COMPANY.

Anna Rosario testifies after being sworn in. She wishes that the public vote on this matter. The City Solicitor explains that the average cost would be $1.71 per month.

Motion to approve by Mr. Harrington, seconded by Mr. Miranda.

Motion passes 4 to 0.

AN ORDINANCE IN AMENDMENT OF CHAPTER 18 OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED (VEHICLES & TRAFFIC) SECTION 1. Article X “Stopping, Standing and Parking,” Subsec 18-307 entitled “Parking prohibited at all times” deleting: APPIAN WAY (east side) from WATERMAN AVENUE south for 135 feet.

Motion to approve by Mr. Miranda, seconded by Mr. Harrington, it is unanimously voted to approve.

Motion passes 4 to 0.

(BUDGET)

Because the Budget did not pass the last 3 ordinances could not be acted on. The ordinances include “ORDERING THE ASSESSMENT AND COLLECTION OF PROPERTY TAX ON THE RATEABLE REAL ESTATE, TANGIBLE PROPERTY AND AN EXCISE TAX ON REGISTERED MOTOR VEHICLES AND TRAILERS.”AUTHORIZING THE DIRECTOR OF FINANCE TO BORROW FUNDS IN ANTICIPATION OF TAXES.” “ AUTHORIZING THE DIRECTOR OF FINANCE TO BORROW  FUNDS IN ANTICIPATION OF REVENUE.”

Motion to defer is made on all three ordinances by Mr. Harrington, seconded by Mr. Miranda, it is unanimously voted to defer.

Motion to adjourn by Mr. Miranda, seconded by Dr. Ramos, it is unanimously voted to approve.

The meeting adjourns at 10:00 P.M.

ATTEST____________________________                         October 25, 2004

JOHN M. O’HARE

CITY CLERK