The City Council meets in the Council Chamber on Tuesday, October 19, 2004, and is called to order at 7:36 P.M. by Mayor Rolland R. Grant.

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

The invocation is given by Councilman Rogers. The Salute to the Flag is led by Councilman (Dr.) Ramos.

AN ORDINANCE IN AMENDMENT OF CHAPTER 18 OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED, “VEHICLES AND 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.

Motion passes 5 to 0.

Re-designation of East Providence Enterprise Zone. In conjunction “A RESOLUTION OF THE EAST PROVIDENCE CITY COUNCIL AUTHORIZING AND ENDORSING THE APPLICATION FOR RE-DESIGNATION UNDER THE RHODE ISLAND ENTERPRISE ZONE PROGRAM.

SECTION 1. That the Mayor of the City of East Providence be authorized and empowered to submit area designation application to the Rhode Island Enterprise Zone Council for the acceptance and re-designation of the City of East Providence Enterprise Zone established on January 1, 1995.

SECTION 2. That the mayor be, and hereby is authorized and empowered to make any and all assurances; accept any and all terms and conditions necessary and required to meet the obligations and requirements of the Enterprise Zone Council as part of the redesignation process, and in consideration of such re-designation, the City Council of the City of East Providence hereby acknowledges its responsibilities and duties to undertake further actions as shall be essential to meet                 the  requirements and obligations of such re-designation as to them shall be necessary and proper and shall have been recommended by the Mayor, the Director of Planning and Urban Development and/ or the Planning Board.

SECTION 3.This resolution shall become effective immediately upon its passage by the East Providence City Council.

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

Motion passes 5 to 0.

BUDGET

AN ORDINANCE APPROPRIATING $119,660,346 FOR THE SUPPORT OF THE CITY GOVERNMENT FOR THE FISCAL YEAR ENDING OCTOBER 31, 2005.

Mr. Fazioli gives a brief update on the budget. He states that the City did receive state approval above and beyond the state override of 5.5%.  He predicts that this budget will stabilize our credit rating. It establishes the foundation for future budgets so that there will be sufficient money in the budget to develop a true pay as you go capital plan so we no longer have to rely on bonding.

Those individuals wishing to speak out on the budget are sworn in by the City Solicitor.

John F. Conley states that to discuss the budget a person must be a resident of the City of East Providence.  Mr. Conley questions Councilman Harrington if he is a resident of the City of East Providence?  Mr. Harrington states that he is an elected official of the City and is now officially in  transition and will serve out the rest of his term and not disenfranchise the votes of his district.

Mr. Conley objects to Mr. Harrington voting on the budget because he is a Massachusetts resident.

Mr. Conley requests that Mr. Harrington recuse himself from voting on the budget.

Mr. Conley also speaks out in favor of a capital improvement budget.

Mr. Harold Gerstein testifies. He states that we cannot run the City with deficits. He criticizes the last revaluation by the way it was done. He is critical of the school budget. He recommends privitazation to save money. He believes that putting a greater tax burden on the homeowner than businesses was wrong.  He summarizes that he is against the budget and that we have to make some changes. He recommends that cuts be made. 

Mr. John Fahey now speaks on the budget. He speaks in favor city employee contributions to their health benefits, exercise of management controls and downsizing. He does not support the budget and encourages the council to reject it.

Joe Larisa now wishes to speak. He states that for the first time we are going to exceed the 5.5% cap set by state law. This follows last year’s 5.5% increase which is the highest set in East Providence. He claims that the Homestead exemption should have been increased to 20% last year and it should be reinstated after the next revaluation to mitigate the facts of the two largest tax increases in the City.

Dr. Ramos requests Mr. McDonald, Finance Director to approach the Council. He asks if anyone has ever presented such a proposal as Mr. Larisa to increase the Homestead Exemption?  Mr. McDonald States that what we did to reduce the burden on homeowners was to create the dual tax rate in which the commercial tax rate is approximately 25% higher than the residential rate. He states that we could not have this rate plus an increase in the Homestead Act.

Mr. Harrington thanks everyone who participated in the discussion. He mentions that co-pays are on the table for the next Council. He states that some of the worst days are behind us. He states that he will support the budget.

Dr. Ramos states that he will stick with the 5.5% for the budget.

Mr. Miranda states that we need capital improvements and gives trucks at the highway department as an example. He states that in the school system, the children need books. He has a lot of faith in the new City Manager and in the new Superintendent of Schools. He states that the new Manager is trying to get things straightened out and it is time to step up to the plate. He pledges to Mr. Fazioli to support his budget.

Mr. Rogers joins Mr. Miranda in commending Mr. Fazioli as financial expert. He states that there was a spirit of cooperation between the City Manager and the Superintendent. He says that this budget will make it easier for the next council. He will join Councilman Harrington and Councilman Miranda in supporting the budget because it is for the best long term interest of the community. We are giving a vote of confidence to Mr. Vinhatiero and Mr. Fazioli. We are giving you the financial tools and we look to your leadership to make sure that things happen.

Mr. Harrington and Mr. Miranda commend the Police and Fire Departments and the teachers for stepping up to the plate in taking a pay cut and setting an example.

Mayor Grant brings forth the idea that the state of Rhode Island should provide support for the schools and not Cities and Towns. The mayor is critical of Blue Cross and other insurances. Now the City Government that taxes are going up. Government has to put these insurance companies on the right track because these companies are bleeding the public dry. The mayor says that he will go against the budget even though it is one of the better budgets. He states that he cannot vote for it, it is hard, but we do have an idea of what we should and should not do. It is his answer to what we should do in these inflationary times The mayor states that is that it is the unfunded mandates that are hurting the cities and towns. 

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

Motion passes 3 to 2.

A RESOLUTION OVERRIDING THE 5.5% PROPERTY TAX LEVY CAP BY $905,160 FOR FISCAL YEAR 2005.

WHEREAS, the City of East Providence sent a request to the Rhode Island Department of Administration Office of Municipal Affairs to exceed the property tax cap for fiscal year 2005 under the provisions of 44-5-2 (c) (1) and (3) of the General Laws of the State of Rhode Island and;

WHEREAS, The Rhode Island Department of Administration Office of   Municipal Affairs has reviewed the request and, based on the information provioded, has certified exclusions to the cap in the amount of $329,942 for loss in non-property tax revenue and $575,218 for increase in debt service expenditures and;   

WHEREAS, The Rhode Island Department of Administration Office of Municipal Affairs has certified to the City of East Providence that it may exceed the property tax cap by a total of $905,160 dollars for the fiscal year 2005

NOW, THEREFORE, BE IT RESOLVED, the City Council does hereby approve exceeding the tax cap by a total of $905,160 for fiscal year 2005.

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

Motion passes 3 to 2.

(BUDGET)

1. AN ORDINANCE ORDERING THE ASSESSMENT AND COLLECTION OF PROPERTY TAX ON THE RATEABLE REAL ESTATE, TANGIBLE PERSONAL PROPERTY AND AN EXCISE TAX ON REGISTERED MOTOR VEHICLES AND TRAILERS.

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

Motion passes 5 to 0.

2. AN ORDINANCE AUTHORIZING THE DIRECTOR OF FINANCE TO BORROW FUNDS IN ANTICIPATION OF TAXES.

Motion by Mr. Miranda, seconded by Mr. Miranda.

3. AN ORDINANCE AUTHORIZING THE DIRECTOR OF FINANCE TO BORROW FUNDS IN ANTICIPATION OF REVENUE.

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