I.                   CALL TO ORDER

Mayor Rose calls the meeting to order at 5:48PM.

II.                SALUTE TO THE FLAG

III.             PUBLIC HEARING

ORDINANCE OF THE COUNCIL OF THE CITY OF EAST PROVIDENCE APPROPRIATING $178,257,356 FOR THE SUPPORT OF THE CITY GOVERNMENT FOR THE FISCAL YEAR ENDING OCTOBER 31, 2016

SECTION I. The general fund receipts for the fiscal year ending October 31, 2016 have been established to amount to $178,257,356 made up as follows:

SECTION II.  To defray the expenses of the City of East Providence for the fiscal year commencing November 1, 2015 and ending October 31, 2016, the sum of  money, or so much thereof as are authorized by law indicated in the accompanying  schedule, are hereby appropriated for the objects and purposes, and in the amounts  expressed therein, provided that payments thereunder shall be subject to the provisions of the City Charter of the City of East Providence and also subject to the provisions of said City Charter relative to the manner and form of expenditures of money set forth in said Charter from the City Treasury.

SECTION III.  All monies appropriated are to be expended by the various departments in the manner and form approved by the Director of Finance.

SECTION IV.  The payment to the School Fund of the following estimated receipts, included in the appropriation of $76,607,624 for the support of the public schools for the City of East Providence fiscal year 2015-2016, shall be increased or decreased to conform with the actual amounts received from such sources during the fiscal year 2015-2016 except the appropriation of property tax.

IV.              

SECTION V.  The purpose of this ordinance is to adopt the Budget for the fiscal year 2015-2016 which begins November 1, 2015 and ends October 31, 2016 as prepared and submitted by the City Manager, and to implement the recommendations as set forth in the City Manager's Budget Message by the approval of said recommendations as contained herein, or by other ordinances or resolutions of the Council of the City of East Providence; all in accordance with the provisions of said Article.

SECTION VI.  This ordinance shall take effect upon its passage and all ordinances and parts of ordinances inconsistent herewith are hereby repealed.

Advertised:  East Providence Post October 1, 2015

Mayor Rose discusses roads, buildings and schools stating that the level funding as the budget was proposed by the City Manager is not what was voted on by the Council and not sufficient.  The City Manager, the Mayor and one other council member met with the School Department and two members of the School Committee.  This was done due to the time constraint to try to bring the items the School Department needs into the budget. 

Councilwoman Capobianco stated that during the meeting the following was directed by the School Department regarding items they would need this budget: 5 custodians, fire alarms, window shades, one hour per day additional time for secretaries to elementary schools and Smart Boards for kindergartens.

Mayor Rose stated it was good to see what was needed. He elaborated on the work done on the City side with the various departments and locating areas such as the capping of solar farm project which brought in $250,000 and $97,000 per year for over 20 years.  The City is continuing this process with the Carousel which has been neglected for many years noting this is a 100 year old historic landmark.  The library was also allotted $125,000 for the learning center located in Kent Heights.  The City Hall will be receiving an emergency generator and the highway garage will receive upgrades.  Pierce Field is being allotted $40,000 for new restrooms.  Also, in speaking with Director Moore and Mr. Luba the City will be looking at a 1.3% tax increase which will put $806,000 in additional funds into the schools, $350,000 into software and Assistant Mayor Cunha’s interest in a paver for the City, with research, it was found to be a good idea.  It will get more roads paved and save money by doing it in house.  The City has the man power so it can start paving local streets right away.  The money is allocated for those reasons and he noted all of this is all pushing the City in the right direction.

Assistant Mayor Cunha agreed stating repairing our own roads is going to help quite a bit and our roads need a lot of work and this will speed up the process and save money by keeping it in house.

Councilman Conley stated when he first read the budget and the City Manager had called for a 0% tax increase what it really meant was that increase was going to be pushed on the Council because it really isn’t a 0% tax increase.  $800,000 for the schools is not the original thought which he had in mind but it’s a first step and he is encouraged by the partnership with the Council. People come to live in the City for the quality of the neighborhoods and the quality of the schools. The City needs to make an investment. The best way to get there is to appropriately fund the School Department.  The fact that the Council recognizes the City has underfunded our schools is a plus.  A tax increase is always painful but this is an investment in our future.  This serves as a good example of two elected bodies working together.  He congratulated all those involved.

Councilwoman Capobianco stated they are and have been aware of the need to increase the dollars for the School Department and they all understand the need for the community.  The heated debates with ourselves and the School Committee, by our passion, we have the best interest of all residents, students, elderly and working residents.  If we didn't have these discussions then one could say from the outside that it isn’t being debated, so whether heated discussions or not it is the way to get this done.  This is the way it has to happen.  If you care about what you are doing, by asking questions, we are not doing anyone a disservice. In the last couple of weeks it’s been rough but in the end we will all see success form this.

Councilman Britto stated we all know the schools are underfunded but when he ran he made a promise not to increase taxes and for him, personally, it is not acceptable.  He feels the City needs to sharpen their pencils. He ran on a premise the City would not increase taxes, the sewer bills are high and people are being taxed too much and are leaving the City. This is something he cannot approve.

Councilwoman Capobianco stated that the City didn’t raise taxes last time but she sees the need this time.

Councilman Britto added the City needs to find long term solutions not short term and residents are being taxed to death. He never wants to vote on a tax increase and will not vote on a tax increase.  If he was at the meeting he would have stated this opinion.

Councilman Conley responded he respects that and it is a promise he made to the people of Ward 1.  However, his own promise was that he was going to increase the level of support for the schools.  He also was not at the meeting but is glad there was a conversation.  The no new taxes talk of Joe Larisa for years affected the City catastrophically.  Look at your own lives, your expenses increase, they only go up and by not increasing taxes the City is functioning at the lowest level funding in RI for schools.  The water system upgrades have to be paid for.  There has to be an investment in the community.  Unless you want to cut this budget even further, and he doesn’t think there is a lot of excess in this budget as it is running close to a bare bones.  The situation we were showed at the previous meeting, regarding the software, which arguably the City definitely needs, however if we want to think about it the cost is a $2 million number.

Mayor Rose stated the 0 percent tax increase the City Manager put forward does not even include items the Council voted on.  These items right now are not in there. Every percentage of the taxes is about $750,000.   He wanted to be at 0% too but it’s just the needs and necessities are there.  Joe Larisa was up here stating no tax and that is when all these things continued to fall apart.  Even the Budget Commission said there would be tax increases needed and we are at that point.

Councilman Britto responded that like a household budget there are things we want and things we need. Adding with our budget we can’t afford it.  We can't put it on a credit card either. We have to fall within x amount of dollars.   As far as a tax increase he is not in favor though he understands what the school is lacking and how there is a shortfall from the City.  There are things that have to be cut as there are not enough dollars to go around at this time.

Mayor Rose explains the meeting took place due to the time constraints and the quorum issue.

Councilwoman Capobianco stated what was discussed is not carved in stone and that is why it is being brought back tonight, to go over it, she would not assume this is what everyone would want.  She would not personally have a tax increase either but she also ran for this position because she wanted to do the right thing.  At this time, she doesn’t think a 0% tax is good and they are underfunding the schools.

Assistant Mayor Cunha stated thru the years it’s been called a moral hazard to spend other people’s money with no consequences.   Therefore in allocating money we have to get to the bottom of it and ask the questions because the buck stops here.  We are really blessed to have the Council here doing a fantastic job with the new City Manager and we are on the road to prosperity.  

Councilman Britto added he wants the Council to look at the whole picture not just the schools. There are other reasons why people live here also such as taxes.

Councilwoman Capobianco stated people say they want to move to Barrington for schools and their taxes are higher.

Councilman Britto added that is just one other variable which comes into play.

Councilman Conley added that is the problem, level funding the schools, it is not a wise stewarding of our resources and everything is kicked down the road, you just can't keep doing that.  Essentially things break and fall down.  Previous Council’s have kicked the can down the road for someone else to deal with and he is not doing that to his children.   At some point you have to increase taxes and hope that the new assessment will have an impact on the bottom line.

School Committee Member Tony Fereirra comes to the podium.  He states he is here regarding the condition of the schools.  In the past there was zero money left and it was a crisis management situation and things cannot be run that way.   There has to be some strategic planning.  The high school should have been thought about 10 years ago.

Councilman Britto stated there are other alternatives.  What about the rainy day fund?  Anything over the $10 million could be invested so the money is making a better return.  Right now it’s making less than 1/2 of a percent.  Then they could commit that excess money each year to the schools instead of raising taxes.  The budget process really should start in the spring.  Fund the pension and the arc first and then work forward.  With the time constraints there are so many meetings all at one time.  We should meet earlier.   Can the excess funds being set aside for the school be done by ordinance?

Director Moore comes to the podium and states the City Council can allocate the money over the $10 million for capital improvements, however if they go below the $10 million they have to pay it back.  The last audit showed $3 million above the $10 million rainy day fund.

Assistant Mayor Cunha asked how much the City actually has liquid.

Director Moore stated at end of the year $10-$15 million. He then explained the TANS borrowing situation due to the end of the fiscal year and tax collections.   

Councilman Conley asked if the City needed the rainy day fund to carry it through April.

Director Moore stated yes.   

Councilman Britto added then it goes back to us aligning the fiscal year with the State.

Mayor Rose stated that the benefit to having a later fiscal year is the City can balance its budget after the State has decided what funding it will issue other communities don’t have this option.   

Tom Riley, 3620 Pawtucket Avenue (02915) came to the podium and noted his observation that if he were a teacher would be focusing on the safety concerns of the buildings. 

Assistant Mayor Cunha stated this Council is not kicking the can they are dealing with it.

Discussion ensued and Director Moore explained that due to the fiscal year constraints the City cannot make enough of an impact investing the money.

Mayor Rose stated that what they can do is ask the City Manager to look at these options for the future.

Paul Luba spoke regarding the status of syncing the City and State fiscal years.

School Committee Member Tony Ferierra came to the podium and asked about the paver.  He also stated that both elected bodies have to carry this weight.  They are all on the same team just play the game on different nights of the week. If you look at the cost of students per house and the taxes that each house pays each year you can see the numbers.  All he is asking is to please track the $800,000 so when someone asks they can let them know where it went.

Mayor Rose asked if there a motion to approve. 

Solicitor Chapman stated as a point of order the Council needs to state the increases individually.

Councilman Britto stated that on the original budget which was submitted by previous City Manager, the total was different than on tonight’s agenda and he asked for clarification of what number they are voting on.

Director Moore stated $179,364,537 which includes the proposed changes.

Mayor Rose stated that the other item to address is the capital and in that, is $806,000 to the school, $350,000 to software, $125,000 to the library, $100,000 to restoring the Carousel, $60,000 to the paver, $15 to continuing of the Kent Heights project.  He then asked for clarification that the City Hall Generator and a number of other items the City Manager was to have placed in the capital budget are in fact in there. 

After this discussion, it was stated that the $1.3 million increase in total is comprised of the following: $806,000 for Schools, $15,000 for continued project at Kent Heights, $100,000 for the restoration of the Carousel, $350,000 for computer software, $60,000 for the paver, $125,000 for the Library for the Learning Center.

Mr. Luba stated the computer software was not yet identified but in order to change, human resources needs about $350,000 on the City side and $200,000 on the School side which they have from the allocation from the City.

Councilman Conley stated he was under the impression the $806,000 was the source of the tax increase when it is actually a little more than that as you have an unidentified software package.  Where does the $350,000 come from?

Mr. Luba stated it hasn't been identified but we know we need it and we will identify it.

Councilman Conley asked what are you going to buy does the City have quotes now?

Director Moore stated when they went out to bid for software the first time the majority of bids were between $500,000-$550,000 to buy and install.  At the time, Sunguard was $200,000 this was for City and School, HR and Payroll. 

Councilman Conley stated a couple of weeks ago this quote referencing didn't exist anywhere in the presentation we were shown.

Mayor Rose stated what he understood was what was being budgeted this year for the schools for HR software was $200,000 and the Council had to add the city side $350,000.  He understands they are going to bid again.  It has to be corrected, no matter what the $350,000 area is where the City has to be to be in a decent product.

Mr. Luba stated the allocation is put there as a budgeting item for something that is needed that the City will go out to bid for.

The City Manager stated it is also an estimate that whatever changeover occurs.  The change- over could be as far out as 10 months from now.

Mayor Rose stated the City has to be able to budget for it just like the generator, we budget for it then go to bid, that is an estimated amount for an average cost of a package, $200,000 for School and $350,000 for City.

Councilman Conley asked if it was the Munis System which the IT Director said she doesn't want as that is what this dollar amount would indicate.

Mayor Rose stated no we are going back out to bid with this estimate.

Linda Dykman came to the podium and stated the Munis Company is better for the Schools not for the City.  For the Schools the product is called Infinite Visions and possibly the City could benefit from it but that is unclear at this point.

Councilman Conely added but the IT Director didn't want this correct?

Mayor Rose stated no but what is here is an allocation for $350,000 for a product not yet decided and ultimately it has to come back to us for a purchase in the future. It is going to be something the Council is going to have to do this budget year.

Councilman Conely stated he cannot support the tax increase with the $350,000 software allocation. 

Councilwoman Capobianco stated the City does need it and we would have to wait another year if we don't allocate it now before going out to bid and the School Department needs it as well.

Councilman Conley stated he cannot spend $350,000 that the IT Director didn't list and she is not here to weigh in on the merits of it.

Mayor Rose stated that it is just like the funds they are allocating for a generator which has not yet gone out to bid.

Councilman Conley asked what if the IT Director doesn't agree?

Mr. Luba stated that it doesn’t have to be expended or the City can use it for anything they want but you are assuming you are going to have to use it.

Assistant Mayor Cunha asked if they can lock it in for software and if it is not used roll it into the next budget for that purpose.

Mr. Luba stated yes they can.

Director Moore stated he met with the City Manager and Mr. Luba and it was not in the first budget but it was decided it may be a good idea to put in the final budget.  The Council can line item vote on each item for example if they don't want the paver then they can line item vote it out.

Solicitor Chapman stated the Council can vote on each one of them.

A 5 minute break is called.

Mayor Rose stated as we go forward with this the Council will vote on each item.  As far as the software, the item was never tabled it was something that the City has continued to look at.  The vote as far as putting an additional $806,000 in the Schools would be minus the $250,000 already being taken from the City’s Capital Improvement Funds in the budget. 

Solicitor Chapman suggests line item votes on the additional items.  

Councilman Britto asked if the actual tax increase is 1.3% with these approvals.

Finance Director Moore confirms it is 1.3% with the $250,000 being moved from the Capital to the Schools.  The tax increase happens July 1^st.  The exact figure the Council will be voting on for the budget is $179,364,537.

Mayor Rose let the Council members know at this time they can still cut from the budget until the last meeting but after today they cannot add to it due to City Charter advertising constraints.

A motion to approve $806,000 to the School Department is made by Assistant Mayor Cunha, seconded by Councilwoman Capobianco and on a roll call vote the motion passes 4-1 with Councilman Britto voting Nay. 

 A motion to take $250,000 out of the Capital Budget and allocate that to the School Department is made by Assistant Mayor Cunha, seconded by Councilwoman Capobianco and on a roll call vote the motion passes 4-1 with Councilman Britto voting Nay.

A motion to approve $350,000 to be allocated for software is made by Assistant Mayor Cunha, seconded by Councilwoman Capobianco and on a roll call vote the motion passes 3-2 with Councilman Britto and Councilman Conley voting Nay.

A motion to approve $125,000 for the Library Learning Center is made by Councilman Conley, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

Councilman Britto asks if this vote would be part of the tax increase and this is confirmed.  Councilman Britto asks to rescind his vote due to this being included in the tax increase.

A motion to reconsider the vote for $125,000 for the Library Learning Center is made by Councilman Britto, seconded by Councilwoman Capobianco and on a roll call vote the motion passes 4-1 with Councilman Britto voting Nay.

Under discussion Mr. Luba explains the Budget Commission had set tax increases in place for the 5 year plan.   For example, last year there was due to be a .75% tax increase however, there was a 0% tax increase.  Eventually an increase occurs as every year there are fixed expenses and salaries are adjusted via cost of living and union contract negotiations. 

Director Moore adds when a budget is completed and all sides are a little unhappy that works out to be the fairest budget in the spirit of cooperation and a step in the right direction.  This is a fair budget with very little tax increases over the years.

A motion to approve $100,000 to be allocated for restoration for the Crescent Park Carousel is made by Councilman Conley, seconded by Councilwoman Capobianco and on a roll call vote the motion passes 4-1 with Councilman Britto voting Nay.

A motion to approve a Paver in the amount of $60,000 is made by Assistant Mayor Cunha, seconded by Councilwoman Capobianco and on a roll call vote the motion passes 4-1 with Councilman Britto voting Nay.

A motion to approve $15,000 to continue the Kent Heights Project is made by Assistant Mayor Cunha, seconded by Councilman Conley and on a roll call vote the motion passes 4-1 with Councilman Britto voting Nay.  

A motion to continue the Budget Hearing and defer the Budget Ordinance until October 23, 2015 at 5:30PM is made by Councilwoman Capobianco, seconded by Councilman Britto and on a roll call vote it is unanimous.  

V.                ADJOURNMENT

A motion to Adjourn is made at 8:11PM by Assistant Mayor Rose, seconded by Councilman Britto and on a roll call vote it is unanimous. 

Approved By Council:  November 17, 2015

Attest:  _______________

                City Clerk