Aldermen, Board of

SPECIAL BOARD OF ALDERMEN PUBLIC HEARING MAY 29, 2012 A Public Hearing was conducted by the Board of Aldermen on Tuesday, May 29, 2012 at 7:00 p.m. at the Nashua High School North Auditorium, 10 Chuck Druding Drive, Nashua, New Hampshire. President Brian S. McCarthy presided. City Clerk Paul R. Bergeron recorded. The roll call was taken with 14 members of the Board of Aldermen present; Alderman Dowd was recorded absent; Alderman Vitale arrived after roll call at 7:23 p.m. Her Honor Mayor Donnalee Lozeau was also in attendance. R-12-41 RELATIVE TO THE ADOPTION OF FISCAL YEAR 2013 PROPOSED BUDGET FOR THE CITY OF NASHUA GENERAL, ENTERPRISE, AND SPECIAL REVENUE FUNDS Chairman McCarthy This evening is the public hearing on the budget for FY13. The way we’re going to organize this is I ask first for comments in general on the budget. If anyone has comments to give, come forward to the microphone. Give your name and address and your comments. We will then go through the budget by divisions, and I’ll announce what division and what department we’re in and ask for comments in those departments. Again if you wish to comment under a department, please come and give your testimony with your name and address. At the beginning I would like to keep that to just general comments. If you have comments on specific departments, please hold them until that department comes up. So I will ask if there’s anyone here who wants to comment in general about the FY13 budget, please come forward and give us your name and address. GENERAL COMMENTS Stacie Laughton, 11 Cottage Ave., Apt. No. 2. My concern is just really in brief is that I sat in the meeting that was going to make the approval for the budget last year and the concerns were raised that certain departments would come back and ask for contingency funding. And the police department did that this year. They came back and asked for funding. Well, they really didn’t ask for it but they needed it and the city gave it to them. I just wanted to make sure that now that it’s that time of year this year that that does not happen again. We need to make sure that the police have enough officers on the streets. We need to make sure that the fire department has enough staff. We need to make sure education is properly funded, and we need to make sure that never again does the POP Unit ever come off the streets. We need to make sure that the school resource offices never get pulled out of the schools unless they absolutely have to for other reasons. Just bear in mind that the concerns that were brought during this process last year did come to light and we should not let that happen again. Robert Sullivan,12 Stonybrook Road. Thank you Alderman McCarthy for having a general question and comment section at the beginning of this meeting. I have several questions this evening just related to the general budget. I really won’t be partaking in the individual department questions. During the initial introduction of the budget by the Mayor and yourself, Alderman McCarthy, President of the Board of Aldermen, it was mentioned that the budget presented ensures a stable tax rate. Can you tell us what you mean by a “stable tax rate?” Special Board of Aldermen - 5/29/12 Public Hrg – R-12-41 Page 2 Mayor Lozeau As you’ve heard me say many times, Mr. Sullivan, I believe that people should expect a stable tax rate. From my definition that’s within the consumer price index range generally, but they shouldn’t I think see a tax increase of greater than one to two percent in the calendar. This budget as presented should be under three percent. Robert Sullivan Excuse me? Mayor Lozeau This budget as presented should be under three percent. Robert Sullivan Okay. Thank you. That was my next question. Thank you for the answer by the way. In the Union Leader it was mentioned that Alderman Cookson mentioned that the aldermen want to hear if residents are comfortable with the nearly three percent tax increase as proposed by the Mayor. It was mentioned in the Telegraph that the property tax bills will be below three percent or comfortably below three percent. I realize, Mayor, that the budget is as reflected in the present time based on the way it’s being presented to the Board of Aldermen so anything can change. Can you tell me when you say you’re comfortable that it will be below three percent, is that like 2.8 or 2.9 because you’ve mentioned similar statements in the past and that’s what it came out to be. Mayor Lozeau Actually the first budget I did came in at .08 percent. The second year was a re-evaluation year so 75 percent of the taxpayers paid the same or less. The third year it was a 2.9 percent increase and the fourth year was a 2.8 percent increase. Until DRA does their work and until I see the year-end surplus, I think it’s most appropriate to say it will be under three percent. I can’t tell you exactly that number today. Robert Sullivan We always used to get the percentage when it was submitted by the Mayor to the Board of Aldermen. Mayor Lozeau I gave you one. Robert Sullivan Well below three, does that mean it’s like ½ of one percent below three percent or is it approximately close to three percent? When you say below three percent, it could be zero. Mayor Lozeau It could be, but I don’t see that happening. Robert Sullivan Okay, so can you be a little bit more specific than you are? Is it 2.8 or 2.9? I think it’s important. Mayor Lozeau Special Board of Aldermen - 5/29/12 Public Hrg – R-12-41 Page 3 It depends on the surplus. I understand it’s important, Mr. Sullivan. I do my budget this way every year. If it’s not a style that you appreciate, I can understand that. I give people what I anticipate to be the worse case scenario and generally I hit the target if not better. Robert Sullivan So I didn’t watch all the meetings, the budget meetings, but I did hear one meeting where $3.5 million of surplus was going to be utilized to subsidize or make up for a shortfall of revenues. Mayor Lozeau No. Robert Sullivan Did I misinterpret? Chairman McCarthy The surplus is either returned to the general fund balance or it is put in the general fund and that’s what is used to offset taxes in the next year. That’s just the way the budgeting process works. When we have money left over in one year, it generally goes to offset taxes in the next unless we decide to add it to the fund balance. Robert Sullivan So was it mentioned that $3.5 million of potential surplus would be put forth to this fiscal year 13? Chairman McCarthy There’s somewhere around $3 million in surplus. Robert Sullivan Three million? Chairman McCarthy I think that was the number. Mayor Lozeau Actually, Mr. Chairman, I said that this budget is predicated on a $3.5 million surplus. Robert Sullivan Okay, well that’s what basically I thought I was asking. If it’s predicated on a $3.5 million surplus what does that mean? Special Board of Aldermen - 5/29/12 Public Hrg – R-12-41 Page 4 Chairman McCarthy That doesn’t offset a revenue shortfall. The way the tax rate is calculated is to take the amount that is to be used to offset it and subtract it from the budget. The tax rate is calculated from that. There is by definition no revenue shortfall because the tax rate is set to collect the amount of money that has to be collected to meet the budget. Robert Sullivan I understand that, and thank you for that. But if your the projected property tax bill increase, which is really what citizens are concerned with. And I know a lot of work has been put forth towards this budget. I know Mayor you do a lot of work and I appreciate that and your staff and the Board of Aldermen but frankly people are more concerned with what’s going to happen to my property tax bill. What services are we going to see improvement in the quality and quantity of services provided to the citizens. In the past we’ve always had when the Mayor submits the budget to the Board of Aldermen, we’ve always had a indicator that based on this budget without any changes made to the Board of Aldermen, this is what the property tax bill looks like it will be like. It was much more specific than saying well it will be approximately three percent. So I was wondering if is it going and mayor and to the aldermen, the same words were used last year and we ended up with a 2.8 and a 2.9 percent increase when those words were used. I think it’s important that the citizens of Nashua understand as soon as possible what’s going to happen to their property tax bills. Don’t you? Mayor Lozeau I do. That’s why I give the information that I give and as I’ve said, I’ve always been within exactly where I said it would be. Robert Sullivan I don’t doubt that, Mayor. You’re absolutely correct. You said at the previous two years and it came almost to three percent. And I do realize that the Board of Aldermen can change that drastically one way or the other. I recognize that. So I’m going to assume that the FY13 comes into about where it was last year based on your comments. In FY11 I believe we had about 2.8 percent increase in our property tax bills. FY12 a 2.9 percent increase. If we have a 2.7 percent increase this year, and that’s our property tax bills, that’s what the citizens pay the city for the services provided. If you compound that over a three year period, that’s a ten percent increase to the property tax bills. Can you talk to the improvements of the quality and quantity of services rendered with an increase such as that? Other than just the money, what is the qualitative and quantitative improvement of services that will be rendered to the citizens? Mayor Lozeau As you know, we’ve had an increase in the bond rates which I think is something is an improvement for our citizens. We had a significant loss in revenue and in spite of that had tax increases of less than three percent a year. You know Mr. Sullivan I‘m not a big fan of kicking the can down the street for somebody else to worry about. So when the cost of doing business goes up, it makes sense for us to make sure that we’re covering those costs and not putting it off for another day. Unlike most cities in this state, we have not had mass layoffs. I know you’re fond of mentioning Manchester and the way they budget there. I’m quite grateful that we’re not in a spot where we are looking at 160 layoffs in our schools. I think our infrastructure is improving and in spite of our losses, we’re on solid financial footing which has been demonstrated by all of our financial reporting agencies of which three of them this year have looked at the city and given us high marks both in financial management and delivery of services in the community. Robert Sullivan I think I mentioned the City of Manchester last year. Special Board of Aldermen - 5/29/12 Public Hrg – R-12-41 Page 5 Mayor Lozeau And this year. Robert Sullivan Did I mention it this year? Well when you get to my age, Mayor, the memory isn’t as good as it used to be. Well speaking of Manchester, I mean, they did get the budget done much earlier than we do. And they do tell the citizens what the projected property tax bill increase will be. And they also talk about the following years budget, what’s coming down the line. Speaking of which, can you tell us, you don’t have to answer these, the aldermen or Alderman McCarthy can answer these questions, also. What’s coming down the line the year after next? Is it much of the same? Chairman McCarthy We’re not ready to answer that question now. Robert Sullivan Didn’t you, wasn’t there talk to have a biennium budget for the City of Nashua a couple of years ago where you would project the budget for Nashua for two years? And if you did, how would you, if you can’t tell me what’s coming up the following year, there are two issues. Forget about the biennium, but how can you then the Board of Aldermen take a look at the current budget without knowing what’s coming ahead of it? Chairman McCarthy I’m not going to speculate on what the budget is for next year tonight. Robert Sullivan So do you think you should? You still have time to formulate what that might be because the Board of Aldermen, I think, you have about a month to take a the look budget. Don’t you think it’s important for the Board of Aldermen to understand what might be coming ahead a little longer terms so they can make decisions on the budget, the Fiscal Year 13 budget? Chairman McCarthy Yes. Robert Sullivan Okay, so will you try to provide that or will someone try to provide that to the Board of Aldermen so that they can make those decisions? Do you foresee that? Chairman McCarthy I’m not going to continue this debate, Mr. Sullivan. Tonight’s discussion is a hearing on the 2013 budget where we listen to comments that the public has about the budget, itself. I’m listening to your comments. I’m not going to engage in a debate about the 2015 budget in the middle of the hearing on the 2013 budget. Robert Sullivan Well it would be the 2014 budget, not the .. Chairman McCarthy Special Board of Aldermen - 5/29/12 Public Hrg – R-12-41 Page 6 You said next year and the year after. Robert Sullivan Okay, well I really meant 2014 and I am talking about the 2013 budget. My comment is that it’s very important that the Board of Aldermen understand what’s coming down the line not only in the 2013 budget but in the 2014 budget so that they can make the appropriate decisions for the 2013 budget because it’s very important to know what’s coming down the line. Are we going to get another, if revenues and everything else remains the same, are we going to see another three percent property tax bill increase which then compounded, assuming 2013 will be approximately three percent, now you’re talking about 12, 13 percent increase in our property tax bills over a four year period. So I think it is important. I’ve made my comment on that. If you don’t want to do it, that’s fine. That’s fine. I just have one more question. So, will there be utilization of the undesignated fund balance this year to put towards, I know you don’t like to hear this, the revenue stream as was done the previous year? I know it’s not called the undesignated fund balance now. Mayor Lozeau It actually is called the undesignated fund balance. The reference I made to it is that in the comprehensive annual finance report the auditors refer to it as unassigned, but it’s still the undesignated fund balance. As you know because you pay close attention, it’s 11.2 percent right now is in the undesignated fund balance. Our requirement is 10 percent. I don’t intend to use any of it this year if I have the surplus dollars that I’m anticipating using for this budget. Robert Sullivan Okay. Thank you, Mayor. Mayor Lozeau You’re welcome. Robert Sullivan And my final comment is I think it’s important that the citizens of Nashua know as soon as possible what the impact to their property tax bills because then again that’s what this is all about. The citizens receive a bill for the services provided by the city, and they should know what that figure is as soon as possible even if there is some probability of error. At least you’re coming out forthright when you’re saying this is what we think it is at this particular time. I want to thank everyone for their hard work, and I appreciate the work that’s coming down the line by the Board of Aldermen and the Board of Education and everyone else that works on it, and also the city staff. Thank you very much. Cheryl Arch, 60 Lochmere Lane, Nashua. Thank you for the opportunity. I saw in today’s Union Leader that you were inviting residents to come and talk about their comfort level with the three percent. I’d just like to speak. I live at Kessler Farms. We have about 496 units up there. I would just like to remind all the aldermen we have dozens of unemployed residents, including myself, and many more dozens that are on a fixed income, retired. Every three percent hurts. The taxes go up, the condo fees goes up. Everything goes up, up and up, and our incomes are either staying the same or going down. It is a hardship. I realize that we need essential service: the fire, the police and things like that. But it bothers me when I read about frivolous expenditures like an antique home that’s unsellable that the city wants to purchase for $400,000 and studies of train services and hundreds of thousands here and hundreds of thousands there that to the struggling taxpayer seem very frivolous. So I would encourage everybody to really consider the budget and the expenditures and Special Board of Aldermen - 5/29/12 Public Hrg – R-12-41 Page 7 see if any cuts could be made and to really keep it down to the essential services and essential requirements. Thank you very much. Chairman McCarthy If there are no further general comments on the budget, we’ll move on to the division reviews. Chairman McCarthy announced each department and division and page numbers containing revenue and / or appropriations as well as the enterprise funds, special revenue funds, supplemental information and other funding sources contained in the proposed FY13 budget. Comments were offered on the following item only. Civic and Community Activities 505 – Page 64 Daniel Gleneck, 34 Tampa Street. I am the Nashua Ward 4 Clerk. I’m here to lend my support to Access Nashua Community Television. During the last election, I was able to utilize Access Nashua Resources to produce a public service announcement to inform the public about the fact that the Nashua Ward 4 Election Polling Place has been moved from Ledge Street to Milette Manor which allowed the public to be informed about this information. For the next election, Ward 4 polling place hopefully we’ll be moving back to Ledge Street School. And I again plan on continuing to produce another public service announcement with the resources available to me at Access Nashua to inform the public of the reverse move. Also with the resources of available to me as a citizen of Nashua at the Access Nashua Television Community Studios, I produce shows to aid and assist non-profit organizations in Nashua. So part of the money that’s going towards Access Nashua indirectly will also go towards other general non profits in the City of Nashua. So I ask the Board to continue to support Access Nashua for all the citizens of Nashua to give them another type of outlet that they can broadcast on community television. Thank you. The public hearing was declared closed at 7:37 p.m. ADJOURNMENT MOTION BY ALDERMAN DEANE THAT THE MAY 29, 2012 SPECIAL MEETING OF THE BOARD OF ALDERMEN BE ADJOURNED MOTION CARRIED The meeting was declared adjourned at 7:37 p.m. Attest: Paul R. Bergeron, City Clerk