Budget Review Committee

BUDGET REVIEW COMMITTEE SEPTEMBER 19, 2011 A meeting of the Budget Review Committee was held Monday, September 19, 2011 at 7:02 p.m. in the Aldermanic Chamber. Alderman-at-Large David W. Deane, Chair presided. Members of Committee present: Alderman-at-Large Mark S. Cookson, Vice Chair Alderman Jeffrey T. Cox Alderman Mary Ann Melizzi-Golja Members not in Attendance: Alderman-at-Large Lori Wilshire Alderman Diane Sheehan Also in Attendance: Mayor Donnalee Lozeau Alderman-at-Large Barbara Pressly John Griffin, Chief Financial Officer/Comptroller Karen Smith, Business Manager, Nashua Police Department Chairman Deane Alderman Wilshire had stated at our last board meeting that she had a prior commitment. I haven’t heard from Alderman Sheehan although I did see her down here this afternoon so she may be on her way. PUBLIC COMMENT - None NEW BUSINESS – RESOLUTIONS R-11-140 Endorser: Mayor Donnalee Lozeau Alderman Jeffrey T. Cox AMENDING THE AGENT TO EXPEND ON THE FOUR EXPENDABLE TRUST FUNDS THAT ACCEPT CONTRIBUTIONS FOR SIDEWALK CONSTRUCTION BY QUADRANT • Also assigned to Personnel/Administrative Affairs Cmte; Tabled 9/8/11 MOTION BY ALDERMAN COX TO RECOMMEND FINAL PASSAGE ON THE QUESTION Chairman Deane Mayor would you like to come up? This is a piece of your legislation. Mayor Lozeau Thank you. Chairman Deane You are welcome. Mr. Griffin? Budget Review – 09/19/11 Page 2 Mayor Lozeau Thank you Mr. Chairman. Chairman Deane You are welcome. Mayor Lozeau Drafted this legislation because it came to my attention, when we were looking at another piece of legislation that you are going to take up tonight relative to the traffic mitigation funds, that the agent to expend the funds under the City Charter is actually the Board of Public Works and not the Board of Aldermen. I requested that Legal draft this legislation for your consideration tonight. Chairman Deane Under the analysis of this it doesn’t state that. It says: “the board of public works has the cognizance, direction and full control of the construction, alteration and repair of sidewalks.” It doesn’t say anything about money. That is under the City Charter on the back of the analysis. Mayor Lozeau The Legal Department has considered that the agent to expend. That is why when you look at the other piece of legislation where we are creating an additional mitigation fund, it has always been the Board of Public Works that has the right to expend those funds. These are similar funds they are just sidewalk related instead of street related. I believe that is what that analysis is supposed to be demonstrating. It was Legal that brought it to my …when I asked them why the streets were done that way for the corridors but not the sidewalk quadrants, the response was it should be the same for both and the agent to expend under the Charter should be the Board of Public Works. Chairman Deane But that is not what the Charter language says. Mayor Lozeau I think if you read that language I think it is hard not to include the dollars to do that work. Chairman Deane It is not stated in the language so it is really for me to understand. What is the problem with the Board of Aldermen’s oversight? The other night we just had a memo that we had to vote to approve the expenditure. That is the problem? Mayor Lozeau I don’t think that it should have to follow that process if that is not the process that is appropriate based on what the work is. The work is the Board of Public Works, seems to me that it should be consistent and stay that way. Budget Review – 09/19/11 Page 3 Chairman Deane Any other discussion on this? Alderman Pressly I just have a question. What makes this different and the reason it comes before the Board of Aldermen is because it is contributions? Mayor Lozeau No. The point that I’m trying to make Alderman Pressly is both the developer contributions that are in the funds for traffic mitigation, which is another piece of legislation tonight where we are creating another one, and the sidewalk contributions from developers, both should be the same agent to expend, and the proper agent to expend those funds, according to the Legal Department and based on my reading of the Charter, would be the Board of Public Works. I just brought this in to correct that inconsistency. Alderman Pressly Just a further question; it seems to me that this type of funding is a little bit different from what they ordinarily approve or disapprove. Mayor Lozeau It actually isn’t. As I said, they have been doing it that way for the streets for a very long time and Legal… Alderman Pressly It is in here to… Mayor Lozeau …I think it was just an error. I think when Legal put it together, for whatever reason they put in the Board of Aldermen and when I called it to their attention because the other legislation was drafted and I saw the difference, I just asked the question why is the one relative to the streets say the agent to expend is the Board of Public Works and the one for the sidewalks for the same funds is the Board of Aldermen, and which one is the right one. If they would have told me the right one was the Board of Aldermen then I would be bringing the other piece of legislation in changing it to the Board of Aldermen. I think it is the Board of Public Works. They have the responsibility for the streets and the sidewalks in this community. It doesn’t prevent the Board of Aldermen or the Mayor from not putting additional funds in the budget for these purposes, but these are funds from developers in areas of the City that the Planning Board designates amounts for that the city engineer does the calculations for and then those funds are deposited. Alderman Pressly Further question? Chairman Deane Budget Review – 09/19/11 Page 4 Please. Alderman Pressly I just see a slight difference because I think of the Board of Public Works that is the administration because you are the Chairman of that. I can understand where they would certainly disburse the appropriation, the funding that has been in the budget to appropriate, but it seems to me when it gets into a contribution it might be smart to have a check and balance and to have another arm of government just to take a look at it. Mayor Lozeau There is a check and balance. The check and balance is it comes here when we contract out that work. The Finance Committee, which I also Chair, approves those contracts or it doesn’t. I know that you are concerned about the Main Street sidewalk and things like that. Those are funds that are put in the City budget that say we’re going to put $100,000 on sidewalks or something like that… Alderman Pressly I hadn’t thought of that. You made an erroneous assumption… Mayor Lozeau No no, I’m just… Alderman Pressly …I hadn’t thought about the Main Street sidewalks. I know that this is a totally different funding. Mayor Lozeau I’m not saying that the assumption related to this, I’m just putting a distinguishing point in there for you because I know you are concerned, I don’t think that is erroneous… Alderman Pressly No, but I did not confuse it with the legislation before us. Mayor Lozeau I understand. I’m just using it for demonstrative purposes. There are funds that we put in the budget for sidewalks that are different than these contributions. Alderman Pressly Right. Budget Review – 09/19/11 Page 5 Mayor Lozeau I think the check and balance that you are looking for is there. I think the City Charter gives it to the Board of Public Works, much like the Broad Street Parkway. Alderman Pressly Well that troubles me. I feel like the Board of Aldermen has relinquished a lot of areas that they should be more involved in. Mayor Lozeau They didn’t relinquish it; it wasn’t theirs to begin with. It has always been the Board of Public Works. This board played a role in the Broad Street Parkway by authorizing that significant amount of money. Now the laying of the road and all of that… Alderman Pressly Maybe we could read the language. Does somebody have a copy? Chairman Deane “Nashua City Charter § 60 provides that the board of public works has the cognizance, direction and full control of the construction, alteration and repair of sidewalks.” That is what the Legal Department gave us on the back of the analysis. Alderman Pressly I thought you said there was another part of the Charter that was different than that. Chairman Deane No this is all that was… Alderman Pressly Did I mishear you? Chairman Deane Pardon me? Alderman Pressly Did I hear you incorrectly? Chairman Deane I read that. My only point was that it doesn’t say anything about financials. Budget Review – 09/19/11 Page 6 Alderman Pressly Right. I just feel that…I think it is a different type of funding than your normal budgetary allowances. That is my opinion. Chairman Deane Are you all set Alderman Pressly? Alderman Pressly Oh yes. I’m not a member of the committee. Chairman Deane Is there any other discussion? The motion by Alderman Cox is to recommend final passage. MOTION FAILED Chairman Deane Is there another motion? MOTION BY ALDERMAN DEANE TO SEND R-11-140 TO THE FULL BOARD WITH NO RECOMMENDATION MOTION CARRIED R-11-141 Endorsers: Mayor Donnalee Lozeau Alderman Mary Ann Melizzi-Golja ESTABLISHING AN EXPENDABLE TRUST FUND TO ACCEPT CONTRIBUTIONS FROM DEVELOPERS FOR TRANSPORTATION IMPROVEMENTS TO DANIEL WEBSTER HIGHWAY AND SPIT BROOK ROAD AND TRANSFERRING EXISTING DEVELOPER CONTRIBUTIONS INTO THE EXPENDABLE TRUST FUND MOTION BY ALDERMAN MELIZZI-GOLJA TO RECOMMEND FINAL PASSAGE ON THE QUESTION Chairman Deane This resolution also contains a transfer. It is being held in the capital account? Why do we have to transfer that out of that 772-3720 “CMAQ – D. W. Highway/Spit Brook”? Mayor Lozeau The project that was set up was about a $2.5 million project, I’m sure you recall, on Daniel Webster Highway/Spit Brook Road, all of the changes that were made there; sidewalks, lane changes, new lights. It was CMAQ funding so it was in a capital expense. It would ordinarily then be transferred into the expendable trust fund that we have for the corridors as I was mentioning earlier. This corridor fund was never created. This legislation creates it and moves the funds in. Budget Review – 09/19/11 Page 7 Chairman Deane What was never created? Mayor Lozeau The Daniel Webster Highway/Spit Brook Road Expendable Trust Fund. So you have them for Amherst Street, Broad Street, West Hollis Street, and all of the different corridors that you established some time ago, but I think when they were being established and funds were coming in from the State for this, it just went into a capital account and nobody created that same account for that corridor. This legislation just does that and moves those funds into that account. Chairman Deane So that $107,000 can only be spent in that area? Mayor Lozeau Correct. Chairman Deane Wasn’t there other money spent on improvements there that was supposed to be provided by the developer, but they decided not to develop that area, and the City paid for all of that work down there? Isn’t somebody on the hook for that if they ever go to pull the permits and develop down there? Mayor Lozeau Right, I believe you are speaking about the Nashua Landing project? Chairman Deane Yes. Mayor Lozeau Yes they are for $380,000. Chairman Deane And when that happens, if that does happen, what happens to that $380,000? Mayor Lozeau I guess we would have to talk about it at that time. I think one of two things would happen; it would either go into this expendable trust fund or it would be used for paving in the City because the money for that project that had to be completed came from our paving dollars. That would be the options that we could consider at that time. Budget Review – 09/19/11 Page 8 Chairman Deane I find it interesting that it doesn’t use the same Charter language that we used in the earlier one for the sidewalk so there is no Charter language for streets? Mayor Lozeau There is Charter language for streets. It doesn’t use that because this legislation doesn’t change that language, this legislation merely creates the fund. It still has the same language in it. It didn’t need that in the analysis because there is no change being made there. Chairman Deane It just shows RSA 31:19-a, which requires the accounting of the activities of the trust. Mayor Lozeau Four lines down in the legislation, it speaks to: “the board of public works as the agent to expend under RSA 31:19-a.” You are saying because it doesn’t use the Charter you don’t think that the same… Chairman Deane It is kind of confusing because on the back it says: “RSA 31:19-a, I provides for an annual accounting and report of the activities of the trust.” It doesn’t go on to say that the Board of Public Works is the agent to expend it, on the analysis side that is all. Alderman Pressly It is in the Resolution… Mayor Lozeau Because they already are the agent to expend on all of those funds. Chairman Deane If I review RSA 31:19-a, I will find that the Board of Public Works is the agent to expend? Mayor Lozeau No. State law doesn’t make the Board of Public Works the agent to expend. The point I am making Alderman Deane is the last piece of legislation referred directly to that because what the legislation was doing was speaking to who the agent to expend was. This legislation isn’t about changing the agent to expend this legislation is about creating the fund. All of the like funds already have the correct agent to expend. Chairman Deane It is kind of confusing what you are saying because when you read the language it says Spit Brook Road and appoints the Board of Public Works as the agent to expend under RSA 31:19-a. And then when I Budget Review – 09/19/11 Page 9 ask about RSA 31:19-a on the back of the analysis it gives the RSA 31:19-a, “I provides for an annual accounting and report of the activities of the trust.” I don’t think the “I” should be there, but… Alderman Cookson It is 1. Chairman Deane Oh that is 1. I’m sorry 1 provides for an annual accounting and report of the activities of the trust. There must be an appointment process under the RSA. Mayor Lozeau No I think that is just how you are reading it. I would be very surprised to see RSA 31:19-a say that the Board of Public Works is the agent to expend. That is the RSA I believe that gives us the authority to create the developer fee funds so to speak. I believe that Alderman Cookson has looked it up, and is willing to share with the group. Alderman Cookson I would be happy to. RSA “31:19-a Trust Funds Created by Towns. – I. A town may at any annual or special meeting grant and vote such sums of money as it deems necessary to create trust funds for the maintenance and operation of the town; and any other public purpose that is not foreign to the town's institution or incompatible with the objects of its organization. The town may appoint agents to expend any funds in the trust for the purposes of the trust. An annual accounting and report of the activities of the trust shall be presented to the selectmen and published in the annual report.” Chairman Deane So part of the RSA does appoint someone to expend. Alderman Cookson The second sentence in the RSA says that the town may appoint agents to expend any funds in the trust for the purpose of the trust. It gives the towns the permission to identify who the agent… Mayor Lozeau Right. They don’t say the Board of Public Works, our Charter says that. Alderman Cox It just allows you to appoint. Chairman Deane Any further discussion on this? Budget Review – 09/19/11 Page 10 Alderman Cookson Do we also have expendable trust funds in each of the four quadrants? Mayor Lozeau We don’t do them by quadrants we do them by corridors for roads and quadrants for sidewalks. The corridors that we have, which you will find in your budget book, are Broad Street, Amherst Street, Searles Road, West Hollis Street, Northeastern Boulevard, Main Dunstable, Pine Hill and Charron Ave., Main Street, East Hollis Street, Whipple Street, and Lake Street. So we don’t have Daniel Webster Highway/Spit Brook Road, and I think it was just because those funds came in, they were a significant amount for that project, they went right into a capital account, and the work began. When they looked at the end of the year and said oh we have these funds left it was oh then we should put them in the same, and that is all I’m trying to do here. Alderman Cookson And now that the project capital or the capital project is closed, it is completed, there can be no money expended from the 772 account; therefore that is why it needs to be transferred to the expendable trust fund? Mayor Lozeau Right, that part of the project is done. Even though they never resolved the part next to Zimmerman’s, there is still something outstanding there, but the accounting requires us to move it into a fund. Alderman Cookson And the funds can only be used for infrastructure, roadway improvements on the Daniel Webster corridor and Spit Brook Road? Mayor Lozeau Transportation, traffic mitigation funds yes. Alderman Cookson And how far north on the Daniel Webster corridor does that extend? Is it … Mayor Lozeau To the Tyngsboro line. Alderman Cookson How far north? Budget Review – 09/19/11 Page 11 Mayor Lozeau North to where Daniel Webster Highway ends, which I believe is probably just before Hayward’s Ice Cream. Alderman Cookson Okay. Thank you. Mayor Lozeau You are welcome. Alderman Pressly Did I hear Alderman Cookson say at the end of what you read that there would be a yearly accounting to the Board of Aldermen? Did I hear that? Alderman Cookson The language in RSA “31:19-a I, the final sentence indicates that an annual accounting and report of the activities of the trust shall be presented to the selectmen or Board of Aldermen and published in the annual report. Alderman Pressly Okay. Mayor Lozeau And it is. The auditors do it; it is in our CAFR each year. Alderman Pressly I noticed the one for the police is that the Chief of Police will be the agent to expend. I’m just thinking so all of these expendable trust funds at the end of the, what the fiscal year, will come in with some sort of accounting that is due/ Mayor Lozeau Always. Every account that the City has is audited and reported on annually. Alderman Pressly Thank you. Mayor Lozeau You are welcome. Budget Review – 09/19/11 Page 12 Chairman Deane Are you all set? Alderman Pressly Yes. Chairman Deane Is there further discussion? MOTION CARRIED R-11-142 Endorser: Mayor Donnalee Lozeau RELATIVE TO THE ACCEPTANCE OF A CONFERENCE TABLE PURCHASED IN PART WITH DONATIONS IN THE AMOUNT OF $3,500 MOTION BY ALDERMAN MELIZZI-GOLJA TO RECOMMEND FINAL PASSAGE ON THE QUESTION Mayor Lozeau Thank you. As you know, I spoke quite a bit about the conference table that I tried to get for the Mayor’s Office. The goal in getting the conference table is to be able to have some furniture that might have some historic significance that could be around here long than whoever is the next Mayor or the next Mayor. When I came into office I was quite surprised by the state of the furniture here at City Hall in some of the offices. I was assuming that there would be things that had been here a long time. It took me quite a while to find some original chairs from City Hall that I went and gathered up, some of which you see in the waiting area in my office, and then others around a small table in my office. But I couldn’t find anything of a lot of significance. One of the things that I found important and special at the State House was the Speaker’s desk in the House of Representatives has been through quite a bit of speakers all of whom have signed the center drawer in that desk. It has some significance there, it has been through something. All of the furniture that you find in many of the offices here, some of it is donated and I think that is fine for some things, and others are just purchased every few years after they need to be replaced. Primarily office type furniture, pressboard. We have fixed a few things with toothpicks and glue. I really wanted to find something that would be here for quite some time and would bring a lot of value. It took me three years to find a program and the benches that are down in the rotunda here at City Hall were made in a prison workshop. We got those benches for about $600. They are pretty heavy duty and I think they will be here for a very long time. The New Hampshire Furniture Masters’ Program some of you may be familiar with it; it is craftsmen that are nationally recognized. They fund a program with the prison for inmates who really show promise in the woodworking program. When I was introduced to this program through actually one of our neighbors, Ms. Sy Mahfuz, from Persian Rugs and Jack Tulley because they have done a lot of work with them, they came in, the furniture master came in, they looked at the room, we talked about what kind of table it could be and that type of thing, and in the end we have Budget Review – 09/19/11 Page 13 a beautiful, almost 9’ round table that is made of New England Cherry that has a value of more than $25,000 that cost the City taxpayers $1,500, which is equivalent to a conference table that you would buy from a Staples or an Office Max. The rest of the contribution came from the Rotary Club of Nashua and then 11 individual members of the Nashua Rotary group. When you look at the table, the underside of the table, the pedestal if you will is made like the rotary wheel in an effort to recognize their contribution. It has been a table that is serving us well and I think will serve this city well for years to come and will save us an awful lot of expense replacing the conference table every 5 or 6 years, which would be pretty typical. I would appreciate your support of this especially seeing the table is already in the office. But there is a provision as you know in the ordinance that has us report those kinds of gifts and accept them. Chairman Deane So any time someone wants to make a financial contribution to the City it has to be legislated. That is correct right? Mayor Lozeau It has to be accepted and recognized. It is a transparency provision is what I would call it. Chairman Deane But there is a require though. I mean if somebody was to give some monies to the City for some purpose… Mayor Lozeau We would have to accept it. Chairman Deane You would have to accept it through the legislative process. Alderman Pressly Is that also required so that they can take it as a tax deduction? Mayor Lozeau I don’t think the Rotary can take it as a tax deduction. Alderman Pressly No, but I think the 11 individual members can. Mayor Lozeau Oh they probably can, but I don’t think whether the legislation gets adopted or not would have an impact on that. Budget Review – 09/19/11 Page 14 Alderman Pressly You don’t? Mayor Lozeau I think the City could give them something recognizing that they made a contribution. They actually made the contribution to the Rotary. Alderman Pressly Oh I see. Mayor Lozeau And then the Rotary made the contribution to the City. So they are Rotarians. Alderman Pressly Are you inclined to honor the 11 and let us know who they are? Mayor Lozeau Off the top of my head; Mr. Tulley, Mr. Mahfuz, Mr. Beaulieu, Mr. Vear, Mr. Pastor, I think Dr. Phillis…I wrote them all notes and am trying to recall all of the names. I’m not certain that I could, but I would be happy to provide that to the committee if you would like to see. President Karen Keagan. Chairman Deane Is there any further discussion? Alderman Pressly I just have a comment. I think as a historian and someone who loves the history of the city I appreciate what you are doing and I think that is a great idea. I just have one question. I presume because of its size, it can never ever be removed from the room. Mayor Lozeau Well there is a secret way to remove it, but hopefully it will never happen. Alderman Pressly Well that is what I need to know, so there is a secret way to remove it… Mayor Lozeau There is. Budget Review – 09/19/11 Page 15 Alderman Pressly …because I’ve been trying to think what it reminded me of and it sort of reminded me of a ship in a bottle. Mayor Lozeau Perfect. Well things have a way of …when I was at the State House I was always amazed by how furniture would go from one end of the building to another, from one office to another, and then at some point you are like okay so where was that really nice oak desk, well I don’t know so and so had it. I think the City there is not really a good way of inventorying those things that we have. I would hate to think that table would end up somewhere where nobody would know where it is. Alderman Pressly I think it is too big to have that happen. Mayor Lozeau Right. And I tried very hard to make sure that it wasn’t a table that was more feminine or masculine, it is just a really nice solid round table. Alderman Pressly May I continue asking questions? Chairman Deane Please. Alderman Pressly If you were to want to use that room for another purpose, so you could, in your secret way you could remove it? Mayor Lozeau You could. Alderman Pressly That answers an important question that I had. Mayor Lozeau Anybody that looks close enough will figure it out; it is not that much of a secret. Alderman Pressly Okay. Budget Review – 09/19/11 Page 16 Chairman Deane There would probably have to have some dire circumstances Alderman Pressly to have that table removed. Alderman Pressly Okay, but that will happen. May I have a moment of personal privilege? Chairman Deane Please. Alderman Pressly It is really interesting that you are doing this. You know the piece of furniture that is in the hallway, on the stairway, I refinished that… Mayor Lozeau Oh the hutch. Alderman Pressly The hutch. When I first worked on the Historic District Commission we too looked for furniture, and we found that and it was in terrible condition and I refinished it in the basement of City Hall. I think it needs another touchup, but it is hard to find furniture. I feel a lot better now that I know you can move it to another room if you need to. Thank you for revealing that secret. Mayor Lozeau I was going to tell you that when they replaced the new windows we snuck it in through the window, put the window in…but that is not the truth. Alderman Cookson Thank you. I am glad you emphasized the fact that the pedestal or the base of the table is that of the rotary wheel, and I think it is important to know that the hundreds of Rotarians that partake in both Nashua rotaries; Nashua West as well as the Nashua Rotary over at the country club. I think it is important to emphasize the four way test and I don’t know if that has the possibility of making its way into the room, but the idea of is it the truth, is it fair to all concerned, will it build good will and better friendship, and will it be beneficial to all concerned, really emphasizes the role of the table that you have in that room now. Mayor Lozeau I would be happy to respond to that. We are making a lazy Susan that will go on the center of the table, because as you know a 9’ table, and you have been at that table so you understand, it is hard to reach a coffee of that type of thing, so that lazy Susan will actually have the four way test on it as a thank you. Budget Review – 09/19/11 Page 17 Alderman Pressly So you can put a cup of coffee on one side and sort of spin it around to a person on the other side? Mayor Lozeau What happens is when we have some pretty big meetings in there, which we have a lot, and you put a pot of coffee in the center of the table and a pitcher of water and that sort of thing, it is a bit disruptive to try to get to it. That way people could actually just move it around and have their coffee and not be disruptive. Alderman Pressly Okay a roulette wheel so to speak. Mayor Lozeau Oh no, I won’t say that. I won’t say that. Chairman Deane Are we done with table talk here? Alderman Cookson We appreciate the four way test. I think that is a great way to honor the Rotarians. Mayor Lozeau I agree. Chairman Deane The motion on the floor is to recommend final passage of R-11-142. Is there any further discussion? MOTION CARRIED R-11-148 Endorsers: Mayor Donnalee Lozeau Alderman-at-Large Mark S. Cookson Alderman Paul M. Chasse, Jr. Alderman Diane Sheehan Alderman Jeffrey T. Cox Alderman Mary Ann Melizzi-Golja Alderman Michael J. Tabacsko Alderman Arthur T. Craffey, Jr. ESTABLISHING AN EXPENDABLE TRUST FUND FOR DONATIONS FOR THE PURPOSE OF PRESERVATION AND MAINTENANCE OF THE LABYRINTH AND REFLECTION GARDEN LOCATED AT ROTARY COMMON MOTION BY ALDERMAN COX TO RECOMMEND FINAL PASSAGE Budget Review – 09/19/11 Page 18 ON THE QUESTION Chairman Deane Would you like to speak to this Mayor? Mayor Lozeau Certainly; I was approached by the committee that put together the funding for the labyrinth. They were interested in raising funds to help with the ongoing maintenance of it, concerned that if there was maintenance needed and the City couldn’t afford it that it might not happen. They have, as you know, people that have made commitments going forward for a couple of years, and it seemed the most appropriate place to hold these funds was in a fund designated specifically for that. I was happy to bring it in. Chairman Deane Where do these funds currently sit? Mayor Lozeau In the Labyrinth Committee fund that the group put together. Chairman Deane It is outside of city government is where the money is? Mayor Lozeau Currently. All of the money was raised outside of city government for that project, over $125,000. Chairman Deane But there was significant in-kind contributions made by the City of Nashua. Mayor Lozeau There certainly was. The City’s labor and time and some design work in prepping the site. There was. It is a great public/private partnership. Chairman Deane Is there further discussion on this? Alderman Cookson Thank you. I have been having this own philosophical debate about expendable trust funds and the purpose of them, and while I think they are good and we as a policy making body all we do is really establish the fund, but we have established so many expendable trust funds in the city that have Budget Review – 09/19/11 Page 19 absolutely no marketing or no promotion or no contribution. How do we overcome that issue where if we establish an expendable trust fund we know that it is going to be available and people are going to be aware of it so that they can make the contribution into it? How do we deal with that aspect of establishing the expendable trust fund? Mayor Lozeau I gave that some thought actually. At the State House we always called them designated funds. I looked at them. As a matter of fact Alderman Pressly and I were just talking about the one that she was interested in for the band shell and how I felt about that before. I was in particular concerned about what toll it might take on staff taking in lots of $10, $20, and $50 checks to build it up to the point where you could really have enough money to accomplish something. This fund comes with some funds that have not been spent yet so it makes it a little bit easier, but the same premise that you are asking about, how do people know so that they can donate to the fund, I think the onus has been in the past on those folks that have come and asked to establish it. For instance, in this circumstance it would be the Labyrinth Committee out there doing a fundraiser or having an event or whatever it might be. Although we have a lot of expendable trust funds, we don’t have as many as you might think that are set up for donation contributions. That is still about a handful of them. And I do think that it is probably worthwhile for us to do that. I would think we would start by putting them in the budget book, which is what I did, so that people are aware of them… Alderman Cookson We’ve got a fund for education and people can contribute… Mayor Lozeau It just got started; the foundation. Alderman Cookson I believe there was one even prior to that. Alderman Melizzi-Golja Yes there was something prior to that. Alderman Cookson And it is a shame because the thoughtfulness is there. We see the need for it and it is just a matter of how do we maintain the awareness to the public to say you have the opportunity, if you feel so strongly about this whether it be school sports or whether it be the labyrinth or whether it be the police historical artifacts, how do they maintain the awareness of that, and the onus is certainly like you said on that group, but what happens if that group doesn’t exist or doesn’t promote it? Then we have a fund that sits idle with no benefit to anybody. Budget Review – 09/19/11 Page 20 Mayor Lozeau I agree, and I think it is worth thing about; how do we promote that. I think as our website grows that we have an opportunity there to promote it as well. I think there is probably more that we can do, but to be quite frank, I have just not spent a lot of time thinking about it, on how that could be done differently. Alderman Cookson Thank you. Mayor Lozeau You are welcome. Chairman Deane Most of the trust funds aren’t really established under this premise; most of them are established under demands put on people by this government; by the Planning Board when they put stipulations on for contributions to infrastructure and things like that. These types of expendable trust funds are just something that people want to do something with. We set one up for the school district in 2006, which accepted gifts, contributions, and donations for the Nashua School District when people came forward and demanded that we tax everyone more and give more money, but we set that expendable trust fund up for those who had an interest in providing more of their dollars to the school district and put the Board of Education as the agent to expend. Has that been utilized, I have no idea. I know they got very little money in that, somewhere in the vicinity of around $2,500 I believe it was. These are all, they all have their own nature to them I guess. The motion is to recommend final passage. MOTION CARRIED R-11-149 Endorsers: Alderman-at-Large Lori Wilshire Alderman Diane Sheehan Alderman Mary Ann Melizzi-Golja Alderman Arthur T. Craffey, Jr. Alderman Kathy Vitale Alderman Michael J. Tabacsko Alderman Jeffrey T. Cox ESTABLISHING A NASHUA POLICE HISTORICAL EXPENDABLE TRUST FUND FOR DONATIONS FOR THE PURPOSE OF PRESERVATION AND RESTORATION OF HISTORICAL ARTIFACTS RELATED TO THE NASHUA POLICE DEPARTMENT Chairman Deane This is co-sponsored by Alderman-at-Large Wilshire who is not available. Usually what we do is we wait until such time as the main sponsor is here, but Karen Smith from the Police Department is here. What is the pleasure of the committee? Do you want to take it up? Do you want to table it? What does the committee want to do? It doesn’t matter to me. Budget Review – 09/19/11 Page 21 Alderman Cox I spoke to Alderman Wilshire and asked if there was anything specific that she wanted me to speak to and/or a motion that she would like me to make, and she said no. Chairman Deane So is she fine with us handling this in her absence? Alderman Cox The Police Department Representative…I believe yes. MOTION BY ALDERMAN COX TO RECOMMEND FINAL PASSAGE ON THE QUESTION Chairman Deane Ms. Smith would you like to come up and join us and give us the details of this endeavor that you are taking on I guess? Karen Smith Sure. This is pretty straightforward; just give us an opportunity to accept donations. Mostly what we are looking at right now is old pictures, to be able to frame and mount the pictures in the department. We do have, in our entry area, a nice, this old finished storage locker that we have moved up into the entry area right off the lobby. A couple of donations that people have already given us, about $300, that we have given over to the City and it is sitting in this account waiting for this resolution, and that is it. Are there any questions? Chairman Deane So you are looking for people in the community to donate artifacts to the Police Department that they may have that may at one time have been part of the police department or part of their careers? Karen Smith It could be that, but what we have found is people who have wanted to donate the funds, so that is what basically happened is we had the $300 available to us and we needed an ability to accept that and going forward any other contributions or certainly artifacts too. Alderman Cookson I guess my only question is this particular legislation appoints the Chief of Police as the agent to expend. Why not the Police Commissioners? Budget Review – 09/19/11 Page 22 Karen Smith On a day-to-day basis the Chief would be more readily available and involved. I think the Chief of Police would be the proper level. Alderman Cookson We have seen several pieces of legislation earlier that appoint a board or a committee to be the expending agent, but this one in particular is the Chief of Police. Karen Smith I didn’t put the language in, that came from Legal, but I would agree with it, I would think that the level would be fine. Chairman Deane Is there further discussion? MOTION CARRIED R-11-154 Endorser: Mayor Donnalee Lozeau RELATIVE TO THE TRANSFER OF $500,000 FROM ACCOUNT #308-91-6106 “PROPERTY AND CASUALTY UNALLOCATED INSURANCE FUND” INTO GENERAL FUND “UNDESIGNATED FUND BALANCE” MOTION BY ALDERMAN COX TO RECOMMEND FINAL PASSAGE ON THE QUESTION Chairman Deane Mayor would you like to speak to this? Mayor Lozeau Thank you Mr. Chairman. As you may recall last year when we used funds from Property & Casualty towards the tax rate and during the budget time this year we talked about what the right numbers were for our Property & Casualty lines. We had, in the past, in my last three years, increased the amount of money that we had in property & casualty liability. I was trying to get into a target of not dropping below $800,000 and trying to figure out what that upper level was. I’m recommending that we stay at about a million dollars. We feel, having talked to our consultants, our former CFO, and our current CFO, and our Risk Manager that is a reasonable number and that will protect the City. Rather than have those extra dollars in that account, it seemed most prudent to return it to the tax rate. Chairman Deane So this is last year’s money? Budget Review – 09/19/11 Page 23 Mayor Lozeau Yes. Chairman Deane This is the ’11 money right? Mayor Lozeau Correct. Chairman Deane And how much did we transfer of the ’10 money? Mayor Lozeau Last year we transferred $1.3 million. We had a high in that fund of $3 million. And keep in mind that we still have the reserve account that has almost $4.5 million in it. We think we are well protected. Chairman Deane And this is a companion piece to the next piece I guess, R-11-155? Mayor Lozeau Yes it is. Chairman Deane So if we are not well protected we can always fall back on the reserves that we have if there is a problem. Mayor Lozeau Correct. It hasn’t been necessary so far. Chairman Deane Any discussion on this? MOTION CARRIED R-11-155 Endorser: Mayor Donnalee Lozeau ESTABLISHING THE USE OF FUND BALANCE FOR TAX RATE MOTION BY ALDERMAN COX TO RECOMMEND FINAL PASSAGE Budget Review – 09/19/11 Page 24 ON THE QUESTION Chairman Deane The motion is to recommend final passage of R-11-155. Mayor Lozeau Mr. Chairman, we have some handouts if you would like; similar handouts that we gave last year to the committee. One is the adjustment to the attachment of my letter. As you know I pointed out on September 1st when I sent that letter that I was estimating… Chairman Deane This one here dated August 31st? Mayor Lozeau That is correct. It has attached to it our worksheet that was an estimate. This new one coming around is also an estimate subject to our final audit, but you will see on this document coming around that the $30 million number has gone up… Chairman Deane Wait a minute. Let me take your cover letter off. Does everyone have the old one? Mayor Lozeau I can tell them what the number on the old one… Alderman Cox Thirty million five seventy three? Mayor Lozeau Right. Alderman Cox I do have that. Chairman Deane You can share it. Do you have it Mark? Alderman Cookson I do have it and I have the original. Budget Review – 09/19/11 Page 25 Mayor Lozeau You will see much like last year that number has gone up a little bit. It has gone up… Chairman Deane So the projected fund balance that is undesignated fund balance is $30,573,822 that was what was projected on 31 August and as of 9-16 it is $30,886,037. Mayor Lozeau Correct, so it has gone up by $313,000. That is again subject to change depending on the audit and closing our books. Chairman Deane How could the audit change that? Mayor Lozeau Because we are still closing the year end books and the year end books aren’t closed until the audit is complete. Chairman Deane But what could change it though? Mayor Lozeau More surplus, less surplus when they reconcile accounts. Chairman Deane How close are they to reconciling the accounts Mr. Griffin? John Griffin They started today. Today was their first day. Chairman Deane Oh they just started today? John Griffin That is correct. Mayor Lozeau The auditors are in-house. Budget Review – 09/19/11 Page 26 Chairman Deane So then the next line, that hasn’t changed, that is $500,000, then your next line that hasn’t changed, that is $4.3 million. The $500,000 was a transfer, and applied to the tax rate is $4.3 million. That brings the adjusted undesignated fund balance of adjusted balance you have a date of 6-30-11, the $27,086,037, but that date would change too right? John Griffin That actually is the as of date so 6-30-11 is the fiscal year so we always talk in terms of that balance trued up as of the end of the fiscal year. Chairman Deane Okay. Mayor Lozeau You will see that leaves us with 11.9% in the undesignated fund balance. The ordinance requires 10%. Chairman Deane There is nothing wrong with that. The more the merrier right? Mayor Lozeau I’m just providing the information. And that… Chairman Deane I would like to know, if we didn’t pass this, what would the tax rate be? Mayor Lozeau If you didn’t pass this what would the tax rate be? Well every $1.7 million is 1% on the tax rate so it would probably increase by another 3% or 4%? John Griffin Two and a half percent. Mayor Lozeau Two and a half percent. So then you would end up with a tax rate of just under 6%. Chairman Deane I thought during the budget process we were told that the budget as it stood was a 3% increase. Budget Review – 09/19/11 Page 27 Mayor Lozeau No. What you were told is that the budget I presented and with what I planned on for the year end, the budget would not increase more than 3%. It should be just under. Our calculations have it around 2.98%. Chairman Deane So we are going to use $4.3 million so the tax rate, if we did nothing the tax rate would be what 5.5%? Mayor Lozeau Yes. Chairman Deane And by using money in undesignated fund balance, which is cash on hand, now it is going to be what? Mayor Lozeau Which is actually surplus as you know Alderman Deane. It is not just undesignated fund balance, it is surplus that we received and undesignated fund balance. Chairman Deane How much is surplus? Mayor Lozeau Surplus is about $2.5 million. Chairman Deane And surplus came from what? Mayor Lozeau The surplus came from different accounts within the City that… Chairman Deane It was unexpended appropriations that were gathered through taxes. Mayor Lozeau Well yes, but… Chairman Deane Okay so… Budget Review – 09/19/11 Page 28 Mayor Lozeau …I mean we’re… Chairman Deane …I’m just… Mayor Lozeau …okay… Chairman Deane …Let’s tell it like it is. It is money that people have paid for whatever and it wasn’t expended and it is being returned to them. Mayor Lozeau Correct. Chairman Deane We would be looking at; this is 2.5% right so it would be 2.5% is what this is going to reduce the tax rate by. With the budget the way it passed it was 5.5% increase in the tax rate, but by using these funds it is going to reduce it by 2.5% so the tax rate is going to be about 3%? Mayor Lozeau Although I guess I just wouldn’t characterize it the same way you have done. I knew when I passed the budget and brought the budget to you that I would be using surplus and undesignated fund balance as I have every year, as you always have every year that the budget happens. I believed at that time that the budget I presented with what I anticipated I would have in surplus or undesignated fund balance would bring that budget in with a tax rate that would not exceed 3%. That is what you have. The budget was not a 5.5%... Chairman Deane No I understand that Mayor, that just wasn’t shared with us during that process of how much money we were going to use out of this area. Mayor Lozeau Because I wasn’t certain at that time. I… Chairman Deane Well you were pretty certain because you are telling us now that you were so… Budget Review – 09/19/11 Page 29 Mayor Lozeau Well no but at that time I told you that I knew that I would be using some of the undesignated fund balance and surplus, that is what we always do. This year we did a really good job on watching our pennies, watching overtime, watching heating and lights and all kinds of things. We had a surplus of over $5 million this year. That is pretty remarkable. The staff really worked hard. And if we wouldn’t have lost so much in revenue it would be a very different discussion. This is good news about what we have been able to do. Chairman Deane Well I think everyone knew that we couldn’t …the State could not continue to pass along revenues that they didn’t have any longer. That is where we lost the majority of it correct? Mayor Lozeau Over the last three year a majority of it has been partially due to the State, but actually this year our big losses are in interest income… Chairman Deane Automobile registrations… Mayor Lozeau …well the first pretty big one is interest income. There was a time when this City was recognizing $4 million a year in interest income and we are down to $400,000. That is a big loss. Motor vehicle registration is another one. Pension costs are another. There has been a lot of things. As I told you in that presentation I did before I presented the budget, $16 million in three years, that is a lot, and we certainly haven’t raised people’s taxes enough to cover that. We have really done a combination of things. The staff taking the extra initiative to really watch things has made a pretty significant difference. If we wouldn’t have had the retirements that we had this year, which were unprecedented, which Mr. Griffin pointed out in the letter when he sent that last month’s retirement payout and pointed out for the year what had happened. We spent a significant amount of money that we haven’t seen spent in many many years. That is primarily driven by the changes that the State is making; police, fire leaving. They made up the majority of those leaving the City and taking retirement or severance. That was quite a bit. That would be a very different discussion too. Chairman Deane Does anyone have any questions on this first handout? Alderman Cookson Thank you. I just had a question about the percent of undesignated fund balance. I know that it has decreased over the last several years to get down to this point of 11.9%. How much has it decreased? Budget Review – 09/19/11 Page 30 Mayor Lozeau It hasn’t decreased. Alderman Cookson We have always had 11%? Mayor Lozeau When I came in as Mayor there was a requirement that 8% be kept. We changed it in my first year. I believe you and Alderman Deane co-sponsored it with me to 10%. Alderman Cookson I remember that, but I thought it was earlier than that. Mayor Lozeau No. Alderman Cookson Okay. Mayor Lozeau It wasn’t. It was during my first year in office. Alderman Cookson Okay. Mayor Lozeau We changed it to 10%. Every budget I have brought in has kept us between 11% and 12%. Alderman Cookson Okay. I thought it was closer to 13% at one point in time, but okay. Mayor Lozeau Not that I’m aware of. Alderman Cookson Thank you. Budget Review – 09/19/11 Page 31 Chairman Deane What do the auditors think of that policy Mr. Griffin? Have you ever talked to them? Is that Melanson & Heath? John Griffin Melanson, Heath & Company. Chairman Deane What do they think of that fund balance policy? John Griffin I have never had any discussions with them regarding that. Those discussions are more germane with the financial advisors of the City. Chairman Deane The bond agencies? Mayor Lozeau The fact that we got a Triple A rating last year. In these times, we are one of the few cities that happened to. During the economic times we are in it speaks very well of the strength of the community and our funds and choices and investments that we have made. Chairman Deane There is nothing wrong with having some money set aside. Eventually it does pay dividends, hopefully in the long run. Does anyone have any other questions on this? I would like to go over this sheet. Mayor Lozeau The second sheet that Alderman Deane… Chairman Deane This one is entitled “City of Nashua Estimated Tax Rate Analysis”, and my first question is how are the properties, the assessments on the properties, is anything being changed on that? Mayor Lozeau We’re between $8.4 billion and $8.6 billion in assessed value in the community. Chairman Deane Okay so the assessment… Budget Review – 09/19/11 Page 32 Mayor Lozeau There is no revaluation. Chairman Deane There is no revaluation. And we have put aside how much for overlay $3.3 million we’re going to have in there? Mayor Lozeau $1.8 million we put aside this year. Chairman Deane $1.8 million for this year right? Mayor Lozeau Right. Chairman Deane And what is overlay used for? Mayor Lozeau Overlay is used for people that request abatements on their taxes. Chairman Deane Okay. I just wanted the general public to understand when you say overlay, overlay what – well if you feel as though your property is taxed too high, not taxed too high, but if it’s assessed value is too high then you can contact the Assessing Department and they can go out and… Mayor Lozeau So we have $1.5 million in prior year and then the $1.8 million this year so it is a total of $3.3 million, which I believe was the question that you asked Alderman Deane. Chairman Deane Right, and what do we have in-house now for current…what is in the pipeline for abatements? Mayor Lozeau Well there are significant ones. Some are perennial… Budget Review – 09/19/11 Page 33 Chairman Deane Pheasant Lane Mall is… Mayor Lozeau Perennial. Chairman Deane That one is every year. It is like Christmas, comes every year. Mayor Lozeau We have the hospital, Dartmouth, Southern New Hampshire Medical… Chairman Deane St. Joe’s? Alderman Melizzi-Golja Flatley? Mayor Lozeau I don’t think we have Flatley. Alderman Melizzi-Golja Oh I thought there was… Mayor Lozeau Maybe. Could be. Chairman Deane Is St. Joe’s? Mayor Lozeau No. But there are some pretty big ones. People are relatively confident, but how confident can you really be in the final analysis, especially when it goes all the way through the whole process to the court. So we are prepared and we have accounted for those, which is one of the reasons that we have increased overlay. Budget Review – 09/19/11 Page 34 Chairman Deane Do you want to walk through this Mr. Griffin? Does everybody have this page here? Obviously your general fund, your solid waste appropriations… John Griffin That is correct. The line item solid waste appropriation page by general fund that is what was put in the respective budgets for the City’s contribution to that particular enterprise fund. Chairman Deane And that dropped because we are paying down the debt. Is that what that drop is? John Griffin That is the amount needed to fund the differential between the estimated revenues and the expenses. Chairman Deane But the drop from $3.928 million last year to $3.543 million this year is because we are paying down the debt over there? Mayor Lozeau That is not the only reason. That is one piece of it. The other is the efficiencies that they have realized in some of the operating costs. I believe Director Fauteux provided you with a list of items of efficiencies that they have realized. It is a combination of the two. Chairman Deane I’m going to ask her for that again, if you don’t mind. Mayor Lozeau No. Chairman Deane Would she provide that? Mayor Lozeau Of course. Chairman Deane Okay. Then your next line, your overlay we just discussed that, $1.8 million. Budget Review – 09/19/11 Page 35 John Griffin That is correct. Chairman Deane And that is remaining flat right? John Griffin Flat from FY11, yes. Chairman Deane The County tax? John Griffin In this particular analysis we have estimated a 1% increase in the County tax from FY11. Chairman Deane And your veterans’ credits are flat. John Griffin That is the total uses of funds. Then the next set of line items are the sources of funds. Estimated revenues from the general fund; we have seen a projected decrease in FY11. Still budgeting conservatively on the revenue side. State Education Tax Applied to the School Budget; is the calculation needed to fund state education. Undesignated Fund Balance Used Against the Tax Rate; we just discussed the $4.3 million that compares to the $4.7 million in FY10 and the $4.9 million in FY11. Chairman Deane But that $19,636,751 that we gave the school district is in their operating budget, this is a return to the City? John Griffin This is the amount we need to raise to fund that particular portion. Chairman Deane Okay. We discussed the undesignated fund balance of $4.3 million. John Griffin So that is the total sources of funds. Differential is the amount to be raised in taxes or the tax levy of $157,729,083, which you would expect to be an increase from the prior year’s amount to be raised in Budget Review – 09/19/11 Page 36 taxes. That particular number divided by the total value on a per thousand value basis, the entire city of $8.47 billion develops the $18.62 rate … Chairman Deane Per thousand. John Griffin Per thousand. As the utilities do not fund in this particular way, the education tax that particular target number, $19.6 million, is divided by the value of the City minus the value of the utilities so the value of the remaining properties non-utility is $8.233 billion to get another $2.39 rate. Those two numbers added together equal $21.01 per thousand or a 2.98% increase over FY11’s tax rate. Mayor Lozeau And again that is an estimate. Chairman Deane So in 2010 we were at $19.82 and 2011 we were at $20.40 and at 2012 we are at $21.01 per thousand. John Griffin That is correct and as the Mayor just stated that FY12 number is an estimate. We are in the process of compiling all of our MS forms that we will take to the State for certification in the next month. Chairman Deane Does anyone have any questions in this area? Last but not least is your general fund departmental expenditures summary report. Everyone has that. Mayor Lozeau It really isn’t for discussion purposes. If you have questions we might be able to answer them, but the point of that is I know you are interested in seeing where that surplus revenue was, where the bigger numbers were on this, and so I thought that you would like to be able to see that. I would mention that if it wasn’t for retirement expenses, you would see $245,000 on the police line, an additional $245,000 and you would see an additional $210,000 on the fire line. Those dollars were actually used towards our retirement costs. You will also see a pretty big number there for the schools. Chairman Deane Three hundred thirty two thousand, six hundred and eighteen dollars, the encumbrance? Mayor Lozeau Over $700,000 in surplus in the schools. Budget Review – 09/19/11 Page 37 Alderman Cox Seven hundred sixty three thousand six hundred fourteen dollars. Chairman Deane They encumbered $332,618 and they returned $763,614? Is that what they returned? Mayor Lozeau Their total surplus was $763,000. That is primarily made up of some payroll dollars, a significant amount of heating fuel, some professional services. They also had a loss of revenue that they didn’t anticipate in Medicaid and in catastrophic aid of about $400,000. Chairman Deane In your 507 Pensions, your $914,966, that money rolled into the undesignated fund balance? Mayor Lozeau Yes. Chairman Deane What do we have in the pension trust account right now? Do you happen to know Mr. Griffin? Mayor Lozeau We ended up putting in a little bit more than last year. Chairman Deane This is a trust account right? Chairman Deane Right. Mayor Lozeau Pension account. Chairman Deane We have transferred about $1.8 million out of it right? John Griffin I’m not clear on what particular account you are talking about. Budget Review – 09/19/11 Page 38 Chairman Deane We had a trust account set up for pensions, expendable trust. I think to date, in the last few years there has been about $1.8 million transferred out of it. Would you happen to know what the current balance of that account is by any chance? If you don’t that is alright too, I can somehow get that. Mayor Lozeau I can give it to you. School has $600,000 in it and the City is whatever we appropriated this year. John Griffin Is he referring to retirement of pension? Mayor Lozeau Are you referring to retirement or pension, because there are two different things? Chairman Deane Pension not retirement. Mayor Lozeau Meaning what we put in… Chairman Deane We had an expendable trust fund set up for pension. Mayor Lozeau I think sometimes people use the words interchangeably, that is why we are asking. Chairman Deane That is fine. I don’t want to take up any more of your time. I can send you a question and hopefully you can send me an answer. I don’t want to spend any more time tonight doing it. I just had an interest in that. Mayor Lozeau It is in your book in the back in the Aldermanic Chambers. Chairman Deane While he was sitting here I thought maybe he might know, but obviously… Budget Review – 09/19/11 Page 39 John Griffin We have the City retirement expendable trust fund, which is zero because we used all of the funds to pay the retirements. Mayor Lozeau That is why I said it is what we appropriated this year. Chairman Deane Does anyone else have any questions? Alderman Cox Just want to make a quick point; the last one, which is a pretty big number that wasn’t brought up was welfare costs, 545, returned $579,209. Chairman Deane It is over funded. I think we discussed that at the Budget Review Committee. Alderman Cox Just reiterating the fact. Chairman Deane Been like that for the last number of years. Is there further discussion on R-11-155? MOTION CARRIED NEW BUSINESS – ORDINANCES – None Mayor Lozeau Mr. Chairman, before I head out could I just point out that if we find the number that you are looking for before your meeting is done, I will come back in and let you know. Chairman Deane It is not a big deal Mayor, Mr. Griffin can send it to me via the e-mail if he would like. I won’t take up any more of your time then, although I do appreciate your effort. Thank you. Chairman Deane Tabled in committee we have R-10-60. I believe the Personnel/Administrative Affairs Committee indefinitely postponed that did they not? Budget Review – 09/19/11 Page 40 Alderman Cookson That is what the notes say. Chairman Deane Pardon me? Alderman Cox That is what they recommended. Alderman Cookson That is what the notes say. Chairman Deane I believe the action was taken by the changes that were made. I’m not going to spend any time reviewing this. MOTION BY ALDERMAN COX TO TAKE FROM THE TABLE R-10-60 MOTION CARRIED R-10-60 Endorsers: Mayor Donnalee Lozeau Alderman-at-Large David W. Deane Alderman-at-Large Mark S. Cookson Alderman Richard P. Flynn Alderman Mary Ann Melizzi-Golja Alderman Kathy Vitale PROVIDING FOR A REVIEW AND UPDATE OF THE MERIT PLAN • Also assigned to Personnel/Administrative Affairs Cmte; Indefinitely Postponed Rec. 7/14/11 • Tabled at Jt. Mtg. - 12/2/10 MOTION BY ALDERMAN DEANE TO RECOMMEND INDEFINITE POSTPONEMENT MOTION CARRIED Chairman Deane R-10-66, which is transferring $92,000 from account 591-86005 “FY2012 General Contingency” into account 577-11 “Code Enforcement…this was tabled on the 10th day of January 2011. This is Alderman Sheehan. She is not here. I saw her here earlier, but I don’t know why she is not here tonight. I’m not going to take that from the table, she is not here. MOTION BY ALDERMAN COOKSON TO TAKE FROM THE TABLE R-11-111 MOTION CARRIED Budget Review – 09/19/11 Page 41 R-11-111 Endorsers: Alderman-at-Large Mark S. Cookson Alderman-at-Large Barbara Pressly Alderman Arthur T. Craffey, Jr. REQUIRING BACKGROUND CHECKS FOR DIRECTORS AND INTERIM OFFICERS SELECTED TO MANAGE PENNICHUCK CORPORATION • Also assigned to Personnel/Administrative Affairs Committee; Final Passage Rec. 9/8/11 • Tabled 7/21/11 MOTION BY ALDERMAN COOKSON TO RECOMMEND FINAL PASSAGE ON THE QUESTION Alderman Cookson Thank you. I know that it has been before this committee before, but it did go before the Personnel/Administrative Affairs Committee, and it received a favorable recommendation coming out of that committee. We did have a lengthy discussion about it and the merits of it. Everybody thought it was a good idea that we should do this. In fact, seeing that we’re going to be potentially owning a water utility, it is important that we have the best and most qualified candidates; both the interim CEO position as well as the board of directors. And again, Personnel thought it was a good idea and I think it is a good idea that we make sure that we do the appropriate background checks on these individuals before the closing of the deal. Thank you. Chairman Deane Is there further discussion on this? MOTION CARRIED Chairman Deane R-11-115, is there a motion to take this from the table? I would like to speak briefly on this. This is the legislation I had some discussion with the Mayor the other night. The request I had put back in on the 30th of June asked for nothing more than spreadsheets, the calculations, and the dollar amounts that were used for the unaffiliated, the merit and the union contracts, which I believe there are 17,which is a total dollar figure of $1.6 million. I just wanted to know how that was broken down. The other issue is this board, when the merit folks made their contribution, this board turned around and took those cost savings and passed a piece of legislation that transferred their cost savings not back into their departmental budgets for their use, but back into capital improvements for City Hall. That is what was done with their money. Nobody wants to talk about this this evening. I just wanted to explain my position on it. O-10-23; now we are getting back into the stone age, Alderman Pressly. This is establishing an Ombudsman for the City of Nashua and Authorizing the Transfer of $60,000 From Account 591-86005 “FY2012 General Contingency” Into account 501-53 “Mayor’s Office – Professional Services”. Would you like this taken from the table Alderman Pressly? Budget Review – 09/19/11 Page 42 Alderman Pressly Not necessarily. You are welcome to remove it from the agenda if you like. It is something I need to work on and with luck I will present it in the next term and have a chance to fine tune the concept. Chairman Deane I guess I will ask…a cleaner way is to indefinitely postpone it, but … Alderman Pressly Leaving it on the table… Chairman Deane Okay. Alderman Pressly And just leaving it off the agenda is fine. Chairman Deane I will tell her not to waste the printer cartridge ink. TABLED IN COMMITTEE R-10-66 Endorser: Alderman Diane Sheehan RELATIVE TO THE TRANSFER OF $92,000 FROM ACCOUNT 591-86005 “FY2012 GENERAL CONTINGENCY” INTO ACCOUNT 577-11 “CODE ENFORCEMENT, PAYROLL – FULL TIME” • Tabled 1/10/11 • Withdrawn from Cmte, Amended & Re-Referred – 8/9/11 R-11-115 Endorsers: Mayor Donnalee Lozeau Alderman-at-Large Brian S. McCarthy Alderman Kathryn D. Vitale Alderman Richard LaRose Alderman Arthur T. Craffey, Jr. Alderman Mary Ann Melizzi-Golja Alderman Jeffrey T. Cox AGREEMENT TO TRANSFER FUNDS BACK TO DEPARTMENTS BASED ON HEALTH CARE CONCESSIONS • Tabled 5/23/11 Budget Review – 09/19/11 Page 43 O-10-23 Endorser: Alderman-at-Large Barbara Pressly ESTABLISHING AN OMBUDSMAN FOR THE CITY OF NASHUA AND AUTHORIZING THE TRANSFER OF $60,000 FROM ACCOUNT 591-86005 “FY2012 GENERAL CONTINGENCY” INTO ACCOUNT 501-53 “MAYOR’S OFFICE – PROFESSIONAL SERVICES” • Tabled 8/5/10 • Also assigned to the Personnel/Administrative Affairs Committee; Tabled 8/12/10 • Withdrawn from Cmte, Amended & Re-Referred – 8/9/11 GENERAL DISCUSSION - None PUBLIC COMMENT - None REMARKS BY THE ALDERMEN Alderman Cookson Next Sunday, the 25th is when we are going to celebrate Dick Flynn. I know that we have missed Dick a lot in this committee, and I think it is appropriate recognition of at least a small token of the contributions that he has made to the City. I will be there on Sunday. I hope I see many of you there. Alderman Cox Seeing there are four of us here, there will be an Infrastructure Committee meeting immediately following the two meetings; the Finance Committee and then the Special Board of Aldermen meeting on Wednesday evening. There is just one piece to take up; it is a time sensitive piece for the 4,000 sq. ft. being purchased from the railroad, and that is it. That is the only piece that we will be discussing that evening. Chairman Deane Okay. Alderman Cox Seeing four are here currently I thought I would let them know. Alderman Melizzi-Golja This evening as we were going over all of the handouts we received related to end of year finances, is there a way we can possibly figure out how to have these available on the screen so people who are watching our meetings can look at these? Chairman Deane I guess I could ask that if there are any handouts that we know ahead of time. It would be nice to have the handouts prior to the meeting so we are not constantly getting things to try to digest during meetings, but I have given up on that. Budget Review – 09/19/11 Page 44 Alderman Melizzi-Golja On those occasions when we don’t have them ahead of time, but we know there are going to be handouts, if they just come and they are projected so at least the cameraman can focus on them. I just think sometimes we have discussions and we’re all over the page and… Chairman Deane We are all over the page? What do you mean? Alderman Melizzi-Golja We are moving all over this page and we know where we are going and we know what the column headings are, but people who are listening to us don’t have this big picture view. Chairman Deane I agree. Alderman Melizzi-Golja I just think that would make it a lot easier to understand it. Chairman Deane I will look into that and respectfully request that if there are any handouts that they be made part of the agenda and that we can get the projector and the laptop from IT and have that set up. Alderman Melizzi-Golja Thank you. Alderman Deane I will ask that that be done. I just wanted to add that I did call Mr. Conrad from the School Department, the School Superintendent, and I did let Mr. Conrad know that he had an opportunity of choice; that he could have chosen this evening to come and speak to the custodian’s Collective Bargaining Agreement as well as the unaffiliated legislation that Alderman Cox had brought both of those pieces in, either this evening or on the 26th. He said, around his schedule, the 26th would be a better day for him to come in here. I said okay, I won’t put it on the agenda for this evening. That is why you don’t see it there. I did call him. It was his call. That is what he wanted to do. At our next meeting those are the only two items. I was not aware that Alderman Wilshire had spoken to Sue Lovering before I had talked to Mr. Conrad about the 26th. It is going to immediately follow the Human Affairs Committee meeting, but I guess Alderman Wilshire said that the two pieces of legislation should take no more than 20 minutes. I called Mr. Conrad back and let him know that as well. He will be here with whomever; maybe Mr. Hallowell or whoever was involved with the negotiations of that contract as well as that unaffiliated piece. Budget Review – 09/19/11 Page 45 I believe we all get copies of their meeting agendas. I don’t know whether there are handouts. When you get your packet Alderman Cox there is more than just a coversheet for an agenda is there not? Informational portions with most of the agendas? Alderman Cox Usually yes. Chairman Deane We get the agendas from Ms. Miles of Mr. Conrad’s office, she will e-mail that out, and there is nothing there. It will say discussion about unaffiliated salaries. I would imagine there is probably more information associated with that topic than just what is on the cover sheet, but it is never scanned in as part of the agenda. Alderman Cox So you would like to see all of that? Chairman Cox When you open it, you look at a coversheet and it just says well we are going to talk about this, but you know that they are presenting something for discussion purposes, I would imagine. Maybe I’m wrong, but it just seems like any time we get those we get a coversheet of whatever the committee is and no other pertinent information with it. It would just be nice if she could… Alderman Cox Just that particular piece I don’t think there is anything additional with it, but I will go over that with her. Chairman Deane We got five agendas today in that one e-mail that she sent. Alderman Cox Right. Chairman Deane Maybe there isn’t anything with all five of them. I would be kind of shocked if there wasn’t, but I don’t know. Budget Review – 09/19/11 Page 46 ADJOURNMENT MOTION BY ALDERMAN COX TO ADJOURN MOTION CARRIED The meeting was declared closed at 8:26 p.m. Alderman-at-Large David W. Deane Chairman, Budget Review Committee Mayor's Surplus Use and Overlay Notification ADJUSTED ON 9-16-11 SUBJECT TO FINAL AUDIT Undesignated Fund Balance: Projected Balance 06/30/2011 S 30,886,037 Transfer from Property & Casualty Insurance Fund $ 500,000 Apply to Tax Rate $ (4,300,000) Adjusted Balance 06/30/2011 $ 27,086,037 Total General Fund Appropriations $ 227,212,971 % Undesignated Fund Balance 11.9% (10% minimum per NRO 5-135) FY2011 Overlay Prior Year $ 1.500.000 in Reserve for Abatements/Prior Year Overlay Current Year $ 1,800.000 in Tax Rate calculations $ 3,300,000 «  City of Nashua Estimated Tax Rate Analysis Mayor's FY12 Proposed Budget % % Change Change FY10 FY11 FYI2 Uses of Funds Proposed Budget - General Fund $ 217,886,342 $ 223,396,153 2.5% $ 227,212,971 1.7% Solid Waste Appropriation Paid by General Fund 3,985,092 3,928,190 -1.4% 3,543,251 -9.8% Overlay 1,978,467 1,800,000 -9.0% 1,800,000 0.0% County Tax 9,367,968 9,416,623 0.5% 9,510,789 1.0% Veteran's Credits 1,735,000 1,712,500 -1.3% 1,712,500 0.0% Total Uses of Funds $ 234,952,869 $ 240,253,466 2.3% $ 243,779,511 1.5% Sources of Funds Estimated Revenues - General Fund $ 64,494,735 $ 63,698,491 -1.2% $ 62,113,677 -2.5% State Education Tax Applied to School Budget 19,801,062 19,531,639 -1.4% 19,636,751 0.5% Undesignated Fund Balance Used Against Tax Rate 4,700,000 4,900,000 4.3% 4,300,000 -12.2% Total Sources of Funds $ 88,995,797 $ 88,130,130 -1.0% $ 86,050,428 -2.4% Amount to Be Raised in Taxes (Tax Levy) $ 145,957,072 $ 152,123,336 4.2% $ 157,729,083 3.7% Estimated Taxable Assessed Valuation per $1,000 (TAV) 8,388,736 8,442,078 0.6% 8,470,000 0.3% City/School/County Tax (Taxes to Be Raised Divided by TAV) $ 17.40 $ 18.02 3.6% $ 18.62 3.3% Amount to Be Raised for State Education Tax $ 19,801,062 $ 19,531,639 -1.4% $ 19,636,751 0.5% Estimated Taxable Assessed Valuation per $1,000 (TAV Less Utilities) 8,174,235 8,208,122 0.4% 8,233,000 0.3% State Education Tax (Taxes to Be Raised Divided by TAV) $ 2.42 $ 238 -1.8% $ 239 0.2% Combined City and State Education Tax Rate $ 19.82 $ 20.40 2.91% $ 21.01 2.98%  9/19/2011 6.07:05PM Poge 3 o f 4 CITY OF NASHUA GENERAL FUND - DEPARTMENTAL EXPENDITURE SUMMARY REPORT FISCAL YEAR 2011 JULY 1,2010 THROUGH JUNE 30,2011 ADOPTED AVAILABLE ESCROWED EXPENDED AMOUNT % BUDGET BUDGET ENCUMBERED TO FY 2911 TO DATE REMAINING USED DEPARTMENTAL APPROPRIATIONS^ 501 MAYOR'S OFFICE 316,175 316,175 615 297,757 t7,803 94% 502 LEGAL DEPARTMENT 406.512 406,512 397,143 9,369 98% 503 B O A R D O F ALDERMEN 175,065 175,065 174.991 74 100% 505 CIVIC & COMM. ACTIVITIES 1,195.370 1.195.370 7,000 1,175,497 12,873 99% 506 TELECOMMUNICATIONS 155.000 155.000 147,900 7,100 95% 507 PENSIONS 19,646,327 19,559.327 18,644J6I 914,966 95% 508 INSURANCE-EMPLOYEE BENEFITS 26.196,890 26.196,890 26,059,228 137,662 99% 511 CITI-STAT 112,534 112,534 103,516 9,018 92% 512 FINANCIAL SERVICES 1.489,730 1,536,306 8,500 1,480.781 47,025 97% 513 CITY CLERK'S OFFICE 386,398 386,398 379,180 7,218 98% 514 INSURANCE-PROPERTY & C A S U A L T Y 3,400,153 3,400,153 3,400,153 100% 515 HUMAN RESOURCES 245,758 276,709 9,500 190,830 76,380 72% 516 PURCHASING DEPARTMENT 320,928 320,928 288,270 32,659 90% 517 BUILDING MAINT - CITY ADMIN 378,569 378,569 1,619 376,459 491 100% 519 ASSFSSORS 528,043 528,043 1.000 501,409 25,634 95% 520 H U N T BUILDING 32,661 32.661 - 30,547 2.114 94% 522 INFORMATION TECHNOLOGY 1,482,007 1,482,007 7,714 1,310,081 164,213 89% 523 GIS 112,857 112,857 8,174 101.603 3.080 97% 524 COMPUTERS - CITYWIDE 120.000 120,000 - - 119,822 178 100% 531 POLICE DEPARTMENT 17.947.915 18,261,211 7,717 106,297 18,081,940 65.256 100% 532 FIRE DEPARTMENT 14,353.391 14,792,269 27,215 - 14,763,234 1.820 100% 533 WATER SUPPLY (PUBLIC HYDRANTS) 2,337,189 2,473.189 2,471,096 2.093 100% 534 STREET LIGHTING 703,286 790,286 - - 788,381 1,905 100% 535 EMERGENCY M A N A G E M E N T 88,700 88.700 - 6,218 82,482 7% 536 CITYWIDE COMMUNICATIONS 299,697 299,697 1,000 - 289,648 9,049 97% 541 COMMUNITY SERVICES DIVISION 197,540 228,333 - • 193,637 34,696 85% 542 COMMUNITY HEALTH 373,433 373,433 14,010 - 342,565 16,858 95% 543 ENVIRONMENTAL HEALTH DEPT. 350,831 350,831 12,550 315,433 22,848 93% 544 WELFARE ADMINISTRATION 344,001 344,001 ' - - 335,809 8,192 98% 545 WELFARE COSTS 1,272,500 1,272,500 - 693,291 579,209 54% 551 PUBLIC WORKS D I V & ENGINEERING 774,116 774,116 1,695 52,000 711,908 8,513 99% 552 PARKS AND RECREATION 2,798,567 2,798,567 808 43,168 2,745,447 9,144 100% 553 STREET DEPARTMENT 5,522,257 5,589,230 93,663 48,996 5,441,144 5,426 100% 555 TRAFFIC DEPARTMENT 739,628 739,628 - 736.126 3,502 100% 557 PARKING LOTS 237,278 237,278 - 219.547 17,731 93% 559 SOLID WASTE - 3,928,190 - 3.928.190 - 100% 561 E D G E W O O D CEMETERY 231,728 231,728 - 225,166 6,562 97% 562 SUBURBAN CEMETERIES 30.638 30,638 28,188 2,450 92% 563 WOODLAWN CEMETERY 190,613 190,613 - 190,613 - 100% 571 COMMUNITY DEVELOPMENT 157,225 157,225 470 155,389 1.366 99% 572 PLANNING DEPARTMENT 514,368 514,368 - 507,569 6,799 99% 573 ECONOMIC DEVELOPMENT 126,434 126,434 9,800 114.073 2,561 98% 575 PUBLIC LIBRARIES 2,301,083 2,345,620 2,818 2,257,342 85,460 96% 576 BUILDING DEPARTMENT 506,027 506,027 - 495,498 10,529 98% 577 C O D E ENFORCEMENT 181,002 181,002 165,894 15,108 92% 581 SCHOOL DEPARTMENT 93,425,591 93,425.591 332.618 - 92.329359 763,614 99% T O T A L D E P A R T M E N T A L APPROPRIATIONS: S202.706.015 S207.742408 $531,687 $267,261 $203,712,229 $3,231,032 98.4 % OTHER APPROPRIA TIONS: | 590 PRIOR YEAR OBLIGATIONS 1,320,501 107,567 68,218 1,069,103 75,614 94% 591 CONTINGENCY-GENERAL 300,000 94,000 - • - 94,000 0% 592 B O N D E D DEBT SERVICE 17,834.362 17,834.362 - - 17,168.136 666,226 96% 593 CAPITAL RESERVE FUND 500,000 - - 100% 594 HILLSBOROUGH C O U N T Y T A X • 9.416.623 - • 9,416.623 100% 595 OVERLAY 1.806,601 187,252 - 561,695 1,057,654 41% 596 CONTINGENCY - RETIREMENTS 500,000 500,000 - • 500,000 100% 597 CONTINGENCY - NEGOTIATIONS 55,776 - - - - 100% '\citj«B\cryJttlrcports\Fmanriil ReportingVFiraiKial RepoitsVFINANCE ON THE WEB MONTHLY REPORTSWA-GENERAL FUND- FINAL YEAR END REVENUE & EXPENSE SUMMARY-  91I9/2011 6:07:05PM Page 4 o r 4 CITY OF NASHUA GENERAL FUND - DEPARTMENTAL EXPENDITURE SUMMARY REPORT FISCAL YEAR 2011 JULY 1,2010 THROUGH JUNE 30,2011 ADOPTED AVAILABLE ESCROWED EXPENDED AMOUNT •A BUDGET BUDGET ENCUMBERED T O FY Mil TO DATE REMAINING USED OTHER APPROPRIATIONS: - 1 599 "CERF" - EQUIPMENT PURC1IASES - 1,324,2)2 122,650 1,144,062 57,500 96% T O T A L OTHER APPROPRIATIONS: $19,190,138 $32J96,299 $417,470 $68,218 $29359,619 $1,950,993 94.0 % CAPITAL IMPROVEMENTS: | 617 CAP IMP - BUILDING MA1NT 1,007,104 50,294 956,809 I 100% 622 CAP IMP - INFORMATION TECH 3.780 3,780 • 100% 632 CAP IMP - FIRE 50,000 227,739 33,842 97,720 96,177 100% 651 CAP IMP - PWD A ENGINEERS 25.000 250 24,000 750 100% 652 CAP IMP • PARK & RF.C - 90,715 848 29,412 60,456 100% 653 CAP IMP - STREET DEPT 1,100.000 2.723.672 1.178,643 60,190 1,484,838 1 100% 655 CAP IMP-TRAFFIC - 25,381 3,717 21,665 100% 675 CAP IMP • PUBLIC LIBRARIES 163,500 87,250 - 750 75,500 54% 681 CAP IMP-SCHOOL 350.000 480,382 295,700 79,455 105.227 100% 699 OTHER EXPENSES 584,211 - - 513,598 70,614 88% TOTAL CAPITAL IMPROVEMENTS: SI ¿00,000 $5,331,485 $1,654,324 $290,778 $3,240,268 $146,115 97-3 % TOTAL EXPENDITURE 5223,396,153 $245,369,992 $2,603,480 $626,256 $236,812,116 $5,328,140 97.8% X\eiiyjsisyiysHitrcpOrts\FiiiaiKial Rrponi«g\Financial Reports .FINANCE ON THE WEB MONTHLY REFORTSWA-GENERAL FlIND- FINAL YEAR END REVENUE & EXPENSE SUMMARY