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CITY OF EAST PROVIDENCE
RHODE ISLAND
JOURNAL OF WORK SESSION OF CITY COUNCIL
October 9, 2013
Council Chambers, City Hall, 145 Taunton Avenue, East Providence, RI 02914
7:00 P.M. Open Session
A. Review and Discussion of the FY 2013-2014 Budget
The City Manager speaks regarding the adjustments to the budget reflecting the goals the Council specified. He also recognized Councilwoman Rossi and Assistant Mayor Rose for their many hours working with himself, Finance Director Moore and Fiscal Advisor Luba. Adding they worked line by line to find additional cuts while maintaining the reserve for synchronization.
Director Moore described the information in the Council’s packet indicating the second page details the savings for each department. The reserve would have to be reduced by $400,000 to meet the goals Council has selected.
Fiscal Advisor Luba thanked City Manager Graczykowski and Finance Director Moore for making the job easier adding that a lot of effort went into making this budget work. Councilwoman Rossi spent roughly 17-18 hours of her own time at City Hall working on the budget and more hours at home going through the budget line by line to assure the Council and residents had a detailed line by line review. This budget is pretty close to a zero based budget. This work which will only get better over the years is a very good budget review. The surplus is now close to $3.6 million and given the potential instability of some of the revenue streams he probably would be comfortable if they added a quarter point to the tax revenue stream making it .75. Tax payments are not coming in like they had in the past and it could be due to the discount for early tax payments being reduced. Therefore, the tax rate should increase slightly to be on the safe side and this would bring the funds in the synchronization reserve to $3.8 million which is really close to initial $4 million.
Mayor Briden asked if Mr. Luba felt the State would be supportive of this and Mr. Luba responded yes.
Mayor Briden asked Solicitor Chapman if the way to do this properly would be to take a vote on these particular issues this evening in order to give the City some guidance and if the Council does so do they have to advertise if they increase the tax rate.
Solicitor Chapman stated he felt the Council should vote and at least discuss and determine what they want to do since all department heads are present to answer any questions the Council would have. They would hold the advertising off until the next meeting.
The City Manager stated regarding the budget adjustments, based on the Charter it appears that if there are any additions or increases from any line item from what was originally proposed, and that could be the addition of a position or positions, then yes they do have the obligation to advertise again and hold one more public hearing.
Mayor Briden stated he valued the fiscal advice and the budget is fluid and he would rather play things more conservatively.
Assistant Mayor Rose agreed adding the City needs the services and the savings and overall everything is moving in the right direction.
Councilwoman Rossi stated they also needed to be able to hold the homestead frozen at 13% and the early pay for taxes at 1.5%.
A motion to go with the recommendation of Mr. Luba and reduce the tax rate to .75% is made by Assistant Mayor Rose, seconded by Councilman Cunha and on a roll call vote it is unanimous.
The Council then discussed various line items in the budget.
Assistant Mayor Rose spoke regarding an increase in the Mayor and the Council’s salary comparable to other cities and towns. This increase would not take effect until the start of the next elected Council. Currently each Council member receives $3,500 per year and the Mayor receives $4,500 per year. The increase would be for $2,500 more for each member. This is still under the salary level of the majority of cities and towns in RI.
Assistant Mayor Rose makes a motion to increase the Council member salary for the 2015 budget reflecting a $2,500 increase for each member.
Director Moore states this will have to be done by ordinance.
Assistant Mayor Rose requests the Law Department draft the ordinance and withdraws his motion.
The City Manager goes through the various changes starting with the removal of the equity adjustment of the salaries as he was instructed, the 2 % COLA for all non union staff has been removed. They further reduced travel and training and dues and subscriptions. The line item for municipal insurance was removed as this was an allocation to each department based on the actual workers compensation which might happen and was a best guess from the EPBC.
Director Moore asked if there were any specific questions by Council as they would be here all night if they went line by line. They had looked at all travel and training and dues and memberships asking each division to submit their requests and made cuts in those areas as well as cuts on spending on equipment and supplies and also over time any temporary salaries
The City Manager added the two additions to personnel one laborer in the Highway Division and one plumber in the Maintenance Division were eliminated. The Building Division part time clerk is a real need based on a desk audit conducted and this definitely is a need for a minimum of a 1.5 position in this division where the City only has one position currently.
Assistant Mayor Rose asked about a position in the law department which appears to have been cut adding that he feels they can look into another avenue and keep this position. The salary with everything included is $74,338 and stated that Council needs to find someplace else to take this money from.
Councilwoman Rossi stated she would just like to make one notation that everything the Council reverses we have to find elsewhere or it further erodes the surplus for the synchronization.
Mayor Briden stated right now two people are in the legal department and in terms of how the department runs he would like to hear from the Solicitor.
Solicitor Chapman stated he was stunned as they are at bare bones now. As it is, they pay out of pocket for the West Law books and pay the professional liability as well as everything outside of the office is paid by them and they have no dues or subscriptions, no travel and no temporary salaries. He added that he was stunned that one of the secretaries would be cut and noted that in prior years the budget was $470,000 now its $257,000 while on the school side it’s currently $400,000. If someone is out they can't have just anyone fill in the position as it is a legal secretary and a vital position. They have time sensitive and confidential jobs and it is specialized. They also handle all the APRA requests, litigation, boards and commissions and municipal court, all federal and state agencies, they are legal advisors to all departments and divisions and the City Council and City Manager. It is vital to have two people especially since the budget was slashed so much.
Assistant Mayor Rose spoke regarding streetlights and electricity and the savings from the streetlight program and if the projections were higher or lower than expected and where they go from here.
The City Manager discussed the legislation which was recently passed that will now enable the cities and towns to purchase the lights and the City will look at implementing this next year.
Discussion ensued regarding the cost of the part time clerk for the Buildings Division. The City Manager stated the cost was $20,000 per year and called Director Coutu to the podium.
Director Coutu explained there were always 2 full time positions in the office but over the past year in a half when one retired they have had only one and it has created a significant backlog with getting out violations, processing permits and zoning cases etc… there is presently one person, who is also answering phones and helping at the counter. If that person is out there is no one there. A grievance was filed and a settlement was given due to lack of help in the office.
Assistant Mayor Rose asked how much revenue the office generates and Finance Director Moore stated $400,000.
Assistant Mayor Rose stated if a department is bringing in revenue and there is a backlog then there is a need there.
The City Manager stated their fee structure was not as competitive as it could be and revenue could be increased but that they needed to match that in service. They want to be more productive but it’s hard to propose a new rate structure without the staff.
Mayor Briden asked if the position then would eventually pay for itself and the City Manager stated yes it would.
Discussion ensued regarding manning for police and fire and it was stated by Director Moore that if a situation arose they would be in a better position with the increase in the tax rate to .75%.
Councilwoman Capobianco asked why there was an increase in the salary for the Harbormaster.
Councilwoman Rossi stated the Harbormaster pays for his position plus.
The City Manager stated the salaries for Harbormaster and assistants were adjusted in the budget based on the recommendation from the EPPD who oversees and that during the budget discussions they looked at the revenue versus expenditures and if the City were to lose the Harbormaster and advertise to hire someone new the salary and benefits would have increased much more.
Assistant Mayor Rose stated in the future with the waterfront increase more revenue will be coming in from that department.
Councilman Cunha asked about the docks at Kettlepoint.
Director Boyle came to the podium and stated they would be refurbishing the existing peer and that CRMC said it was presently proposed as a public fishing pier but developers have discussed this with the City to include a dock for the Fire Department and Harbor Master and thought it would require only minor modifications to CRMC and that they would most likely be amendable to this.
A 5 minute recess is called.
Assistant Mayor Rose made a motion to include the 2% pay increase for non union employees to match those being given to union employees, Councilwoman Rossi seconded the motion and Councilman Cunha under discussion stated that based on the majority of phone calls he has received from residents he will be voting against the 2% increase, Assistant Mayor Rose stated the reason why he is making the motion is because the amount of the difference with the health care co pays to blue cross now and no pay increase over past 4 years, these workers would actually be facing a pay cut, Councilwoman Capobianco asked Fiscal Advisor Luba if he recommended the 2% increase and Mr. Luba stated yes he did the motion passes 3-2 with Mayor Briden and Councilman Cunha voting Nay.
Assistant Mayor Rose makes a motion to place the law department legal secretary position back in the budget, this is seconded by Councilman Cunha and on a roll call vote the motion passes 4-1 with Councilwoman Rossi voting Nay.
Assistant Mayor Rose makes a motion to fill the highway department position in the budget as the staff level was once 40 and is now 19 and this one position would certainly help especially regarding constituent affairs issues and one more person would make a lot of difference regarding help in labor with the department, seconded by Councilwoman Capobianco and on a roll call vote the motion passes 4-1 with Mayor Briden voting Nay.
Assistant Mayor Rose makes a motion to fill the part time position in the Buildings Department, seconded by Councilwoman Rossi and on roll call vote it is unanimous.
Assistant Mayor Rose makes a motion to fill a position for a plumber, seconded by Councilwoman Rossi and on a roll call vote the motion passes 3-2 with Mayor Briden and Councilman Cunha voting Nay.
Assistant Mayor Rose stated the plumber is a savings because of the outsourcing which the City and Schools have had to pay due to the fact they didn’t have a plumber on staff.
Councilman Cunha stated he is just not sure what this position will entail.
Assistant Mayor Rose stated the City is spending over $200,000 in outside services for plumbing between the City and the Schools and they used to have a plumber on staff which helps to prevent a lot of emergency repairs. The hope is to decrease the emergency repairs going forward and then the City can reevaluate going forward savings versus cost.
Councilman Cunha asked the City Manager if after this position is hired if the City would look again next year to see if there is a savings.
The City Manager stated they would and if working they would possibly reorganize the Facilities Department due to the importance of the function of facilities. The starting package for the plumber position is $83,500.
Councilwoman Rossi made a motion to accept the changes in the budget in total and then have the public hearing on October 15th and unless there are additional changes then this is what they pass, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.
Mayor Briden summarizes the process and states this is the result of a lot of hard work and is a great success for the Council and our City. He then reviews the schedule of the upcoming meetings.
At 9:15PM a motion to recess until October 15, 2013 is made by Assistant Mayor Rose, seconded by Councilwoman Rossi and on a roll call vote it is unanimous.
Approved by Council: December 17, 2013
Attest: _______________
City Clerk