City Council

~AD HOC REPORT~ Budget Ad Hoc: Government II Thursday, April 4, 2024 Chair Andrea Gartner called the meeting to order at 5:06p.m. on Thursday, April 4, 2024. Present were Committee Members & Councilmen: Shaun Ratchford, Michael Coelho and Dennis Perkins (arrived at 5:37pm), Absent was William McAllister. From the City were Dan Garrick, Finance Director; Kara Prunty, Assistant Finance Director (Budgets & Grants); Scott Ferguson, Tax Collector; Donna Murphy, Tax Assessor; Frank Gentile, IT Manager; Chick Volpe, Purchasing Agent; Virginia Alosco-Werner, Human Resources Director; and Dan Jowdy, City Treasurer (arrived at 5:25pm). From the City were Roberto Alves, Mayor; Taylor O’Brien, Chief of Staff, Mayor’s Office; Francesca Capodilupo, Government Affairs & Communications Advisor, Mayor’s Office; Farley Santos, Community Relations & Constituent Services Advisor, Mayor’s Office; Joanne Stark, Assistant Finance Director (Operations); Les Pinter, Deputy Corporation Counsel; Elisa Etcheto, Legislative Assistant. Ex Officio Members present were: Frank Salvatore, Paul Rotello, Duane Perkins, Ben Chianese, Peter Buzaid. Present from the public were Tom Brown and Michael Flanagan. Chair Gartner identified the department request and the Mayor’s proposed budget for each line item. Member Coelho asked about the proposed increase in the Finance Department’s budget. Mr. Garrick noted additional staffing and the restructuring of the department staff. Member Ratchford asked for open positions, Mr. Garrick identified one open position that will remain vacant. Mr. Gentile identified the increase to the Information Technology budget for insourcing staffing and software maintenance. Mr. Chianese asked about equipment upgrades and upkeep costs. Mr. Gentile discussed the scope of equipment replacement in 3C, Caucus Room and the Council Chambers, all funded by ARPA funds. He noted an estimated upkeep cost of $20,000 per year. Mr. Salvatore asked about salary allocation in two budgets (IT and Finance); Ms. O’Brien discussed a title update at no additional cost. Member Ratchford asked about the life expectancy of the new equipment; Mr. Gentile estimated 5 years. Mr. Duane Perkins asked if the budget included security and back-up needs; Mr. Gentile confirmed it did. Mr. Chianese asked about an increase to Professional Services; Ms. Murphy identified the need to perform personal property audits which have not been done since 2014. He asked if Tax Collector salary increases were contractual; Mr. Garrick noted negotiations that have taken place, and Mayor Alves clarified that the current amended budget is reflected in the proposed budget. Mr. Ferguson noted a Clerk position that will remain vacant. Chair Gartner asked about increases to Human Resources; Ms. Werner noted increased vendor costs and an increase in new hires that require more services. Chair Gartner asked about an increase to Labor Negotiations; Mayor Alves noted two upcoming contract negotiations and an increase to prevent the need to ask for additional funds from the Council during the year. Chair Gartner asked Mr. Garrick about the changes to General Government Employee Benefits and FICA; he noted changes from salary negotiations that are reflected in these line items. Member Ratchford asked about future expectations of Pension Expenses; Mr. Garrick noted that it is not expected to continue to spike but is not expected to decrease in the near future. Mr. Chianese asked about thirty-year expectations. Mayor Alves identified an increase in Employee Service Benefits for negotiated salary increases. Mr. Chianese asked about the State Employment Compensation; Mr. Garrick confirmed that the City pays as claims come in and that this amount is a projection. Mr. Rotello asked for a count of employees that the Employee Health & Life Insurance pertains to; Mr. Garrick identified an estimated 550 employees and 550 retirees. Mr. Chianese asked about a negotiated rate; Mr. Garrick explained that the insurance company negotiates the rates based on projections. Chair Gartner asked about the increase to Union Welfare; Mr. Garrick identified the Teamster Unions’ contract that pays an hourly rate for members. Mr. Duane Perkins inquired about a rollover to the City’s large debts in the Interest on Debt line item; Mr. Garrick noted the effect of large debts that will be coming including The Academies. Member Ratchford asked about the projected expectations of the Interest on Debt for Schools; Mr. Garrick explained that the debt will be affected by project completion and notes; Mr. Chianese asked for an explanation of converting notes to bond monies. Chair Gartner asked for clarification regarding Contingency; Mr. Garrick explained that any changes will require Council approval; Mayor Alves explained the importance of having additional funds available for unexpected needs to Mr. Chianese. Mr. Garrick discussed Capital Improvement projects that affected the Other Financing Uses line item; Member Coelho asked for a list of projects that are not being funded. He asked about the increase to Pension Expense (line item 016.8002 - Defined Benefits); Mr. Garrick identified the effect of salary increases. Mr. Chianese asked for the reason behind the increase to Employee Health & Life Insurance (016.8006) line item; Mr. Garrick noted that this is the retiree portion and identified OPEB as a factor. Member Coelho asked about the increase to active employee health benefits (014.8006); Mr. Garrick noted that the change came from health insurance trends. Mr. Rotello asked for clarification regarding the revenue that is funding line items within sections 014, 015 and 016. Chair Gartner and Member Ratchford thanked the staff for their hard work. A motion made by Member Ratchford, and seconded by Member Dennis Perkins, to recommend that the City Council adopt the Government II Budget as presented by the Mayor for the Fiscal Year 2024-2025. The motion carried unanimously. A motion made by Member Dennis Perkins, and seconded by Member Ratchford, to adjourn. The motion carried unanimously. The meeting adjourned at 6p.m. Respectfully submitted, Andrea Gartner, Chair Shaun Ratchford Dennis Perkins Michael Coelho