City Council, January 14, 2009
A special session of the Pawtucket City Council is held Wednesday, January 14, 2009, at 5:18 p.m., in the City Council Chambers, City Hall, 137 Roosevelt Avenue, Pawtucket, RI.
Present – President Kinch, Councilors Barros, Barry, Chadwick, Hodge, Moran, Tetreault, Vitali and Wildenhain.
Absent – 0.
President Kinch presides.
Also present at this meeting are Mayor James E. Doyle; Harvey E. Goulet, Jr., Director of Administration; Ronald L. Wunschel, Director of Finance; John E. Carney, Director of Public Works; Angel S. Garcia, Director of Personnel; Cheryl DiGiuseppe, Tax Collector; Edward Tetzner, Government Affairs Aide; August Venice, President, Local 1012; and Paul Martin, Union Steward, Local 1012.
THE CHAIR RECOGNIZES COUNCILOR HODGE.
Upon motion made by Councilor Hodge, seconded by Councilor Barry, Council Rule #1 to hold all special sessions of the City Council in the City Council Chambers is hereby suspended due to the Chambers being occupied by the Pawtucket Probate Court, which is still in session. The meeting is convened in the City Council Office, Room 303, on a unanimous voice vote.
The City Council takes up the following:
DISCUSSION – BUDGET STATUS UPDATE
Mayor Doyle states that the budget situation at the state house is changing daily regarding what budget articles the General Assembly will be entertaining.
Mr. Wunschel discusses the real and estimated cash follow and reserve situation and hands out a spreadsheet for review. He states that with the cuts proposed by the governor in his supplemental budget, the city is facing an almost $8.8 million shortfall in cash flow and just over a $6.5 million reserve balance short fall. This is caused by a school department deficit of about $5.2 million and almost $5 million in state aid cuts to the city.
This spreadsheet is READ AND ORDERED FILED.
Mayor Doyle submits three handouts for the Council to review.
Communication from Richard J. Goldstein, City Clerk, to Mayor James E. Doyle, the Honorable Members of the Pawtucket City Council, Harvey E. Goulet, Jr., Director of Administration, and Ronald L. Wunschel, Director of Finance. (State Supplemental Budget)
Rhode Island League of Cities and Towns Legislative Alert – Summary of Budget Articles to House Bill H-5019, FY2009 Supplemental Budget.
House Committee on Finance Meeting Notices for January 15, 21 and 22, 2009 to review the Governor’s FY2009 Revised Budget (09-H-5019)
These handouts are READ AND ORDERED FILED.
The Mayor reviews Mr. Goldstein’s analysis and discusses the articles. The Mayor requests that the Council pass a resolution to send to the Governor, the House and Senate Leadership, the Finance Committee, and the Pawtucket Delegation in opposition to the aid cuts and in favor of the articles.
Mayor Doyle states that if these cuts pass, the City could be bankrupt by April. The resolution should state this. Mayor Doyle states that he is also planning on meeting with the Pawtucket Delegation next week to discuss this proposal.
Councilor Kinch states that and article is needed to suspend Caroulo Actions.
Councilor Hodge states that there is a need to activate the community to oppose the cuts.
Councilor Vitali states that services cannot be cut anymore.
Councilor Barry states that taxpayers cannot afford a tax increase and he would not vote for an increase. He asks what we do if the cuts come through.
The Mayor states that they are looking at union concessions, furloughs, layoffs, 4-day work weeks, and health insurance co-pay increases.
Mr. Wunschel states that if the city was reduced to a four-day work week for five months it would only save $1.5 million, and if the co-pay for insurances was increased to 20%, that would only save $1.6 million.
Mayor Doyle states that the governor is making a public opinion plea to promote his plan. The City needs to do the same to oppose the cuts.
Councilor Kinch invites the Mayor to come to a council meeting to address the situation on TV.
Mayor Doyle states that he expects the School Committee to authorize a Caruolo Action.
Mr. Wunschel states that we are having problems even before the State cuts because of the schools.
Councilor Hodge states that the sleeper issue is Obama’s stimulus package and how it will help the cities.
Councilor Hodge states that the main issue is how to pay the bonds and the payroll come April.
Mayor Doyle states that all cities and towns are in the same situation.
Councilor Kinch wants to know how much elimination of mandates in the supplemental budget will save schools.
Mr. Wunschel will look into this.
Councilor Kinch asks that the resolution be prepared for Wednesday’s Council meeting.
Upon motion made by Councilor Wildenhain, seconded by Councilor Hodge, the meeting is adjourned at 6:41 p.m.