City Council

CITY OF BERLIN New Hampshire Minutes of Council Budget Session of 4/28/2025 City Council Chambers 6:30 pm Members: Mayor Cone Councilor Berthiaume Councilor Grenier Councilor Qualls Councilor Morency Councilor Korzen Councilor Theberge Councilor Higbee School Board Members: Ann Nolin Nathan Morin Mark Evans City Staff: Phillip Warren, Jr, City Manager Holly Larsen, Finance Director Julie King, Superintendent SAU 3 Tammy Fauteux, District Education Services Administrator Evan Arsenault, SAU3 Business Administrator Shelli Fortin, City Clerk Police Chief Daniel Buteau Deputy Chief Nathan Roy Public: Jamie Welch Gina Welch Roland Sanschagrin Jordan Shotts Lisa Connell, Berlin Daily Sun Other members of the public At 6:34 p.m. Mayor Cone opened the meeting. 1. FY2026 Budget – Board of Education City Manager Warren advised that between cuts in the budget and use of fund balance, the new estimated tax rate is an increase of $0.57 over the current rate. Mr. Warren advised that cuts were made in paving, public works, school, police, city owned property, solid waste, fire, and street lights, for a total of $925,000. Mr. Warren advised that any additional cuts would result in a decrease in personnel and curtailed services. Councilor Korzen asked about the union contract negotiations. City Manager Warren stated that placeholders are in the budget for the Public Works contract. He does not currently have estimates for fire or police, however it is reasonable to say there will be an increase once those numbers are added in. Councilor Korzen stated that although the $0.57 is reasonable, more needs to be done to decrease the budget. City Manager Warren advised that the Council will need to give him some direction. Councilor Grenier noted that all of the departments have helped to reduce the budget, however the State refuses to pay their fair share for education and retirement. Councilor Grenier noted that the State would rather spend millions fighting the municipalities over the funding. Councilor Grenier noted that the State has also removed laws for revenue sharing. Councilor Grenier noted that he wants his community to thrive, and is not going to accept putting 35 children in a classroom in public school, while the State pays for the wealthy to send their children to private schools. Councilor Grenier noted that if the City can reduce the budget, it is a big win, and shows that they can manage money. City Manager Warren noted that they have received a bid for the health insurance that will fall within the amount budgeted. Mr. Warren noted that although they also received a bid from Schoolcare, he is concerned as they are a risk pool. Councilor Theberge noted that they are working on the health insurance issue at the County level as well, trying to be sure there is no impact to the taxes for the towns. Councilor Berthiaume asked where the money came from to reduce the budget, and City Manager Warren advised they picked at several line items from each department. Councilor Berthiaume asked about City properties taken by tax deed that could be sold, and was advised they will not be available for sale until October of this year. Councilor Morency asked if any money would be returned to the City this year, and City Manager Warren noted that they anticipate $400,000 from the school and $110,000 from the Police Department. Mr. Warren noted that it is hard to project what that impact will be on the fund balance, as he does not know where they are with receivables. Mayor Cone asked if there was an estimate for the union contracts, and City Manager Warren advised it would be an unfair labor practice to discuss this, as they are still in negotiations. Mr. Warren stated that he should have a tentative agreement with Public Works for the Council next week. Councilor Grenier noted that the budget is not final until the third week in June, so they still have seven weeks to work on it. City Manager Warren noted that the bid is out for fuel oil and propane, and the budget can be adjusted if needed. Mr. Warren stated that he hopes it is status quo. Councilor Morency asked about the equalization rate being in the 70% range, and City Manager Warren advised that even if the values were adjusted, the only increase to value would be for new growth. Councilor Higbee asked what would be left in fund balance after using the $850,000, and City Manager Warren advised it would be $1.3 - $1.4 million, and that he would not be comfortable using more. Councilor Theberge asked about paving this year, and City Manager Warren advised they would not be doing any, only patching and repairs. Mr. Warren noted that this would give North Country Council time to work on their revised pavement maintenance plan. Councilor Korzen stated that the estimated tax rate looks good, however asked if they were comfortable that there would not be another surprise last minute. City Manager Warren stated that they have worked with the auditor to be sure the revenue numbers are correct, but noted that if any of the numbers on the estimate sheet were to change, that would change the estimated tax rate. Councilor Korzen asked about the SAFER grant and City Manager Warren advised they would be applying for it, and if they were to receive it, it would be unanticipated revenue. When asked about negotiations with Burgess BioPower, City Manager Warren stated that they would begin in about one month. The current agreement runs through July 1, 2027. When asked about Federal funds, City Manager Warren stated that they are unsure, however they have been told that that money that is committed will proceed as planned. Mr. Warren noted that grant funds are used for specific purposes, and if the money is not received the project would not be done. Councilor Berthiaume asked about the Main Street project, and Mr. Warren stated that so far it is good. Councilor Theberge stated that he felt that the elderly tax credit and veteran tax credit discussion should be delayed due to the current budget situation. Councilor Grenier disagreed, stating that they are the most vulnerable population. City Manager Warren suggested that they look at the credits as planned, however take a multi-year approach to implementing it. Councilor Morency asked about the loss of personnel, and City Manager Warren stated that in the proposed budget, nobody currently employed would be laid off. Some vacant positions may not be filled. Councilor Grenier suggested adding the $40,000 back into the Police Department budget with the agreement that it would cover any increase in the union contract cost items. City Manager Warren advised he would have the budget at the meeting next Monday for the Council to vote to publish it for the Public Hearing. Mayor Cone asked if there were any questions for the Board of Education, and there were not. Superintendent Julie King advised that with the proposed budget there is no effect on class size, and no loss of staffing. They did trim one paraprofessional position that they were adding to the budget. Councilor Korzen asked about grants, and Ms. King advised that most of the Title grants are safe, that they cannot spend the grant unless they have it, and if they do lose grant money they will need to do some shifting. When asked about the balance of $400,000 to return to the City, Ms. King advised it is early and that is just an estimate. They can make adjustments to this figure up until June 30. Mayor Cone asked if the Freshman Academy was included in the budget, and Ms. King advised that it is, and they will be able to get started. 2. Other 3. Adjourn A motion to adjourn was made by Councilor Higbee and seconded by Councilor Grenier. So moved, the motion passed. The meeting was adjourned at 7:07 pm. Respectfully submitted by Shelli Fortin, City Clerk Minutes are unofficial until they have been accepted by the City Council by motion.