I.                   EXECUTIVE SESSION

The City Council of the City of East Providence will meet in Executive Session pursuant to RI General Laws § 42-46-5 (a)(2).

A.    Litigation

1.   Providence Superior Court Case and Commission for Human   Rights Matter regarding Kathleen T. Waterbury vs City of East Providence, Richard Kirby, Paul Lemont and Fire Chief Oscar Elmasian - Status Report

II.                CALL TO ORDER

III.             SALUTE TO THE FLAG

IV.             NEW BUSINESS

A.    City Managers Report  (by Acting City Manager Timothy Chapman)

1.      Introduction of Proposed 2017 Budget

Acting City Manager Tim Chapman reports out the votes from Executive Session.  He announces three votes were taken. One authorizing the attorney for the Trust to begin settlement discussions and this vote was approved 5-0.  One vote to seal the minutes and documents from Executive Session and this vote for approved 5-0.  One vote to return to Open Session and this vote was approved 5-0.

Acting City Manager Chapman stated since he started on August 22^nd, he has spent these 3 weeks meeting with all departments and following through on issues and preparing to address these issues and this budget.  He thanked Finance Director Malcolm Moore and Financial Advisor Paul Luba.  He highlights specific points in the budget and notes a marginal tax increase of .5% on the tax rate.  The priorities are there for public safety, capital editions and technological advances. He cut $3.1 million from the proposed budget of the former City Manager and notes he feels the City can run more with less dollars. He outlined in his address what City initiatives will be with the modest increase.  The School Department has requested more funds which would need a tax increase 1.6% but the schools are receiving 6% more than last year and have a $6.6 million surplus and an extra $2 million from the State.  Raises will cost approx $1.5 million more in 2017 than if they had followed the contract.  He understands how low the salaries are but City workers call for 0% and that is being followed.  The School Department is currently on a pay as you go regarding annual worker compensation which is $253,000 less than the proposed charge.  We need better data from the School Department to determine what the actual workers compensation is rather than go out to bid without knowing this.  The School Department is getting $2 million more from the State and has a current $6.6 million surplus and it is unrealistic to pay $1.6 million more in taxes.  Next year all the contracts for City and School employees are up.  Copies of the proposed City budget are located on the web and in the back of the room as well as in the City Clerk's Office.  

Councilman Conley asked when first budget hearing was scheduled. 

Acting City Manager Chapman stated they are set for a workshop on September 27^th.  

Assistant Mayor Cunha asked what the last increase in Schools was.

Finance Director Moore came to the podium and explained that in all the contracts, which were negotiated, the raises were CPI index with a max of 2 and teachers with a max of 3.  This year it is proposed to be zero.

Assistant Mayor Cunha asked if every year there was an increase under the contract.

Finance Director Moore stated that is correct 3.5-5 depending on what they are making.

Councilwoman Capobianco asked with the figures just given is the City still paying considerably less than the rest of the state.

Finance Director Moore stated that is what he was told that the City is paying at the very bottom step and at the very top step the lowest in the State.

Assistant Mayor Cunha asked what step 10 in East Providence was and if the salary was $70,000.

Mayor Rose stated this is one of the first questions for the workshop.

Finance Director Moore stated yes the School Department will answer that.

Councilman Conley asked if the School Department budget was in this budget book.

Acting City Manager Chapman stated it wasn’t and that the School Department will provide the Council the breakdown and he will get that to the Council tomorrow.

It is agreed upon that the Budget Workshop will be held on 9/27 at 6:30 and that the First Public Hearing on the Budget will be held as part of the Regular Council Meeting on 10/4 at 7:30PM.

V.                ADJOURNMENT

A motion to Adjourn at 7:19PM is made by Councilman Britto, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

Approved By Council:  October 18, 2016

Attest: _______________