| | CITY OF EAST PROVIDENCE RHODE ISLAND JOURNAL OF SPECIAL COUNCIL MEETING AUGUST 16, 2007 | |
The City Council meets in the Council Chambers on Thursday, August 16, 2007 and Mayor Isadore S. Ramos calls the meeting to order at 7:04 p.m.
The invocation is read by Councilman Silva and the Salute to the Flag is led by Mayor Ramos.
| Present: | Mayor Isadore S. Ramos | | |
| | Robert E. Cusack | ) | Council Members |
| | Bruce DiTraglia | ) | |
| | Valerie A. Perry | ) | |
| | Bryan P. Silva | ) | |
| | Richard M. Brown | ) | City Manager |
| | William J. Conley, Jr. | ) | City Solicitor |
| | Virginia B. Nunes | ) | City Clerk |
Mayor Ramos stated this is a special city council meeting for public comments relating to the 2007 -2008 budget. At this time I am turning the meeting over to Mr. Brown the City Manager.
Mr. Brown stated over the years he noticed in the budgetary process that we have our public hearings after the City Manager and City make recommendations. City Council and I thought we would give the public the opportunity to have some input before the November 1 FY. We spend the summer months gathering information meeting with the Department Heads going through budget requests then presenting a document to you sometime around the 2nd meeting of September and then we have our full fledged public hearings. As revenues get tighter and tighter I believe it’s important that you provide a chance for the public to understand in advance. Mr. Brown presented a power point and explained it. Basically the Department Heads are asking for an increase over last year of $2.395 million in the General Fund. We haven’t gone through reducing that yet. The state increase @ 5.25% $4.162 million revenue which would sufficiently cover the General Fund assuming there’s no budget from the schools. The City is mandated 3.5% which gives us $3.17 million. We don’t know what the schools going to project. Their budget is due August 21, 2007, but even looking at everything the same with a 5.25% exceed $73 million dollars and with some revenues, Medicare and some others, closer to $74 million dollars. Some of the major increases are payroll this is exclusive of cost of living adjustments $348,000 excludes pay increases, Pension Contributions $344,500, Lease Expense $261,748 Projected Payroll & Medical Insurance increases $1 million, Rubbish & Recycling $102,600, Longevity Pay $67,000, Building Repairs at least $63,000, plus miscellaneous items brings that to $2.395. Jim looked at the allocated projected @3.5% and $1.65 of that comes from the City; we need mandatory reductions of at least $745,000.
This is just a little bit of history over the last four years:
Salaries going from $18.5 million to $21.5 million
Longevity going from $990,000 to $1.1 million
Pension Expense going from $1.4 million to $3 million
Overtime going from $1.9 million to $2.6 million
Municipal Pension Municipal Contribution Rate:
| 2003 | 4.63% |
| 2004 | 7.85% |
| 2005 | 7.43% |
| 2006 | 10.84% |
| 2007 | 13.38% |
| 2008 | 15.03% |
If you look at the rate of increase from 13.38% to 15.03% the percentage increase there alone exceeds the amount of increase to the tax rate.
Mr. Brown presented ideas to explore:
1. Simplifying the Compensation Plan: Pay based on performance and not time in grade or additions to base compensation.
| Salaries: | $23,027,370 |
| Longevity: | 1,258,499 |
| Deferred Comp: | 1,182,620 |
| Fitness Membership: | 24,680 |
2. Lower Pension Cost:
Contributions to City Outpaces S 3050 (Went from 13% to 15.03%)
GASB 45
Defined Contribution Plan
3. Lower Health Insurance Costs: $5,500,000
Greater Premium Sharing
Self-Funded Plans (i.e. United Health Care)
High Deductible Health Savings Accounts (HAS)
4. Sewer Connection Fees
Could generate an additional $58,000
5. Revise Fire Staffing to 24 hours on/48 hours off
6. Sub-Contract Municipal Services
Custodial
Water & Waste Water
Tree Trimming
7. Increase Fees
Mattress Disposal Fees
Building Permit and Inspection Fees
Conveyance Taxes – Cable T.V. Fees
8. Efficiency Issues
Consolidate Senior Service Activities in the
Senior Center
Combine Building and Fire Inspection Activities
City – School/Consolidation Issues
9. Contractual Issues
Assignment of Vehicles based on Seniority
Use of Sick Time
10. Allow Advertising on the City’s Web Page.
11. Eliminate Health Insurance for Elected Officials
12. Reduce Stipends for Boards and Commissions
13. Combine Police and Fire Departments and create a
Public Safety Department
Mr. Brown stated he would answer questions and if anyone wanted to speak.
Someone asked from the audience that they would like a copy of this power point presentation and Mr. Brown stated they would be available.
Mayor Ramos asked anyone to come up with comments regarding the budget. This is the time for input or comments to the City Manager or the Council.
Jack Fahey, 2535 Pawtucket Avenue (02915) was sworn in by City Solicitor.
Mr. Fahey stated in all the years he lived in East Providence I want to commend our City Manager for drawing the public early in the process and for further exploring 100% I commend you from my heart. There’s been a political machine in East Providence understand that we have fiscal problems and not use the City Manager as a scape goat, let him use his resources and the professionalism he brings to the City.
Councilman Cusack thanked Mr. Brown for the presentation and asked do you feel we have to cut back $750,000 from the City side, apart what will happen on the School side.
Mr. Brown stated no I still need to fund our capitol improvement. The State commitments are not quite as strong as they use to be for some of the development projects to go forward bonds to borrow for the infrastructure.
Councilman Cusack asked if they could be revenue notes.
Mr. Brown stated no.
Councilman Cusack stated there are a number or projects that will be put on hold because of the Minneapolis bridge collapse, while the State Governments are inspecting bridges. And as we saw in Rhode Island Legislation there is no additional money.
Mr. Brown stated the amount of revenue you have is generally never sufficient for the demands of that revenue. The added problem is one of our partners the State of Rhode Island has absolutely no money.
Councilwoman Perry stated she understands that the school committee meets next Tuesday and they expect to have first passage of their budget. When do you anticipate we will have our first public hearing on our budget?
Mr. Brown stated he would probably have it for Council for the 2nd meeting in September, so it will be sometime after that. What’s critical is us identifying a number for the school committee and then letting them do their work.
Councilwoman Perry stated she attended a school committee meeting and they were talking about the budget and said they would be coming in with a balanced budget. I thought that was very strange, what happen to the big deficit we heard about.
Mr. Brown stated it would be very easy to come in with a balanced budget. I could come in with a balanced budget I could ask Council to ignore the 3.5% and let me stay within the state 5.25% and I won’t have a problem.
Councilwoman Perry stated well they are saying they are coming in with a balanced budget by the end of year and I don’t know what’s happening to all these deficits, it’s confusing.
Mr. Brown stated he doesn’t know because he hasn’t seen their documents nor have I spoken to the Superintendent about it, but I would be very concerned based on the preliminary information as to how they achieved a balanced budget, because if it’s based on revenues that they are not likely to accrue at the level they say, that deficit is funded by us at the end of the fiscal year.
Mayor Ramos stated the school budget is not going to be balanced. Their deficit is going to be larger than you think and I don’t know where they think they are going to get the money from. I will not go more than the 3.5% cap that was put on this City, the State is 5.25% but the City is 3.5%.
Councilman Silva asked will you give us projected numbers on your ideas.
Mr. Brown stated these are the things I’m going to be looking at. Some of them it’s impossible to achieve for this coming budget. Some I will have ball park estimates.
On motion of Councilman Silva, seconded by Councilwoman Perry, it is voted to adjourn.
Mayor Ramos adjourns the meeting at 7:55 p.m.
Attest:
_________________________________
Virginia B. Nunes
City Clerk
Approved: September 4, 2007