Mayor & Council Budget Meeting

MINUTES Mayor and Council Special Meeting Saturday, February 26, 2022 8:00 A.M. CALL TO ORDER – A Special Meeting of the Mayor and Council of the Borough of River Edge was held virtually via Zoom in the Council Chambers of the River Edge Borough Hall at 705 Kinderkamack Road, River Edge, NJ 07661. The meeting was called to order at 8:01 a.m. by Mayor Thomas Papaleo. SILENT PRAYER – FLAG SALUTE Mayor Papaleo asked for a moment of silence for those who live in Ukraine or have family in Ukraine as well as for the political leaders who are deciding the future and fate of the people of Ukraine and eastern Europe. He then led those present in a salute to the flag. STATEMENT – Mayor Papaleo read the Statement of Compliance into the record as follows: Statement of Compliance with Open Public Meeting Act: This meeting complies with the Open Public Meeting Act by notification via the February 17, 2022 Sunshine Notice containing the time, date and access information to the Town News and the Record and by posting of same on the municipal bulletin board and Borough Web Site and filing a notice of the same with the Municipal Clerk. ROLL CALL PRESENT: Councilwoman Busteed, Councilman Chinigo, Council President Kaufman, Councilwoman Kinsella, Councilwoman Malellari, Councilwoman Montisano- Koen and Mayor Papaleo. ABSENT: Claudia Calderon, Citizens Budget Committee Member ALSO PRESENT: Borough Administrator Lissette Aportela DPW Superintendent Jason Milito Fire Chief Gregg Cariddi Police Chief Michael Walker Recreation Superintendent Carolyn Baldanza Kenneth Krautheim, Citizens Budget Committee Member Albert Ruhlmann, Citizens Budget Committee Member (arrived at 8:15 a.m.) PUBLIC COMMENT Motion by Council President Kaufman, second by Councilwoman Busteed, and all members present voting in favor, to open the floor to the public. No one came forward. There being no public comments, on a motion by Councilman Chinigo, second by Councilwoman Montisano-Koen, to close to the public. 2022 BUDGET DISCUSSION Library Daragh O’Connor, Library Director, advised that the part time figure under Salary & Wages (S&W) needs to be adjusted from $200,000 to $224,088. As it is anticipated that hours will be expanded, he advised that there is a need to increase this budget line. He noted that his overall S&W figures are less than pre-COVID as three full-time employees retired and were replaced by employees with a lower salary. With respect to his capital requests, he advised that he is looking to replace his outdoor book drop for a total cost of $8,000 as well as five (5) workstations for a cost of $15,000. It was the consensus of the governing body to make the adjustment from $200,000 to $224,088 to the Library’s S&W line. Summary of Tax Impact CFO Battaglia reviewed the summary of the tax impact of the proposed 2022 budget, noting that the total taxable valuation increased by $2 million while the average residential assessment decreased. He explained that this decrease was due to an error discovered by Mayor Papaleo in the tax duplicate wherein a condo association was included as part of the residential value. He advised that surplus was left flat. With respect to American Resue Plan Act funding, he explained that $500,000 of the $1.2 million that was awarded is being used to recover lost revenue in 2022. He noted that the municipality has through 2024 to utilize these funds and it is anticipated that most of these funds will be used to offset the Capital Improvement Fund. He advised that the tax rate, prior to the $24,000 increase in the Library budget, was 0.981 with an annual increase to the average taxpayer of $69.39. Revenue Accounts With respect to revenues, CFO Battaglia advised that the amount of revenue is generally not anticipated in an amount greater than the amount received in the prior year as a higher amount requires justification to DLGS. He noted that the cable franchise fee is anticipated to be a little less than the prior year as the amount has been decreasing every year. Questions were raised regarding the amounts allocated to Chapter 159s, Grants, Cash Management Fund, and Uniform Construction Code Fees line items. In regard to the Grants line, CFO Battaglia explained that this line item does not typically get populated until just prior to budget introduction. With respect to Chapter 159s, he explained that this line is for grants that come in after the budget has been adopted and resolutions are adopted to amend the budget to account for the grant amount. He advised that the Cash Management Fund is the amount of anticipated interest. With respect to the Uniform Construction Code Fees, he explained that he does not like to increase this line as it is not guaranteed, advising that if more is received than anticipated, it goes into surplus. Borough Administrator Aportela added that these fees are scrutinized by the State as they are not supposed to be a revenue source. 2022 General Capital Ordinance Summary Police Department Chief Walker reviewed his capital requests which consisted of a server upgrade, handgun replacement, traffic signs/cones/devices, radio car computer replacement, ballistic vest replacement, body patrol vehicle replacement and communication center update. With respect to the handgun replacement, he noted that there is a resale value of approximately $250 for the existing handguns. He advised that the request for traffic signs/cones/devices can be reduced from $6,000 to $5,000, the communication center update (desk) should be kept TBD for 2023 as more research is needed to provide a firm number, and the patrol car replacement should be increased from $133,000 to $140,000. In reference to the increase for the patrol car replacement, he explained that a patrol car was lost in the storm and the insurance reimbursement and leftover capital funds will cover the cost to replace this car. Although two patrol cars are typically requested per year, he advised that, in addition to the patrol car, he is looking to replace two administrative vehicles. Chief Walker then moved to the two outdoor cameras which are to be installed at the Library and Memorial Park. He advised that a quote was obtained in the amount of $38,000 which would cover Memorial Park and the Library and allow these cameras to be monitored by the Police Department. He noted that this system would be a starting point and can be built upon in future years. He expressed his belief that $10,000 had previously been allocated between the two departments for this purpose which would mean an additional $28,000 would need to be allocated. He advised that, although the purchase of 4 additional flashing crosswalks was discussed last year, he recommended placing this purchase on hold as installation is still awaited for those that have already been purchased, the cost for which has increased from last year. Councilman Chinigo expressed his opinion that there are a lot of dangerous crossings in the municipality and commented that he would like to continue with this project. Borough Administrator Aportela explained that the bid for the flashing beacons needed to be pulled as there is not a generic beacon for every location and remarked that much more research is needed to ensure that the right type of beacon is purchased for each location. It was agreed to keep the amount allocated to the flashers at $30,000. As there is $17,480 that had been allocated in 2021 for Wi-Fi and there is uncertainty as to whether the $38,000 quote for the camera system includes the cost for Wi-Fi, Borough Administrator Aportela, CFO Battaglia, and Chief Walker are to determine the amount that should be allocated to this budget line. This issue will be listed for further discussion at the March 2nd Budget Meeting. It was the consensus of the governing body to make the recommended adjustments in the patrol vehicle replacement and traffic sign/cone/devices capital requests. The meeting was recessed at 9:23 a.m. and resumed at 9:28 a.m. Fire Department Chief Gregg Cariddi reviewed the Fire Department’s capital requests which included partial funding beginning in 2023 for the replacement of a 2003 ladder truck, turnout gear, hose, thermal imaging camera, SCBA facepiece protective covers, pagers, mobile radio replacement, and command vehicle replacement. He recommended that $125,000 be budgeted from 2023 through 2026 for the replacement of the ladder truck in 2028, advising that the replacement cost is estimated to be $1.3 million. With respect to turnout gear, he advised that the requested amount of $40,000 will allow 14 to 15 sets to be purchased, and beginning in 2023, the amount can be reduced to $30,000 with the hope that all gear will be replaced by 2025. He commented that his request for hose can be reduced from $10,000 to $5,000 if necessary. In regard to the thermal imaging camera, he noted that there is a $3,400 balance left from 2019 which will be used to make this purchase and it is for this reason that only $600 is being requested. The possibility of removing the request for the SCBA facepiece protective covers was discussed as Chief Cariddi indicated that it may be possible to purchase these items through other funding. It was decided to leave this amount in the budget for now and revisit if needed. It was further decided to move the $75,000 for the purchase of the command vehicle to 2023. Although it was initially agreed to reduce the hose request to $5,000 in 2022 and add $5,000 to 2024 for this purpose, it was decided to leave the amount as is as the DPW utilizes the old hose to pump out sewage. It was the consensus of the governing body to leave the remaining capital requests in place. Administration & Other Miscellaneous Equipment Borough Administrator Aportela discussed the capital appearing under Administration/Other which included document scanning, server upgrade and installation, computer and IT equipment, five (5) workstations for the Library, portable radios/radio upgrades and a passenger van for OEM, and funds for the Shade Tree Commission’s Tree Planting Program. She advised that the amount for document scanning, which includes digitizing of Building Department Records, inventorying and purging of records, and indexing of Police Department records, can be reduced from $55,000 to $45,000. She noted that the Library workstations were addressed earlier and advised that Stu Heinziner, OEM Coordinator, is requesting radio upgrades to be able to communicate with the Police and Fire Departments as part of the new trunking system. With respect to the request for the passenger van, she suggested that Mr. Heinzinger be requested to attend the March 2nd meeting to provide justification for this expenditure. It was decided to remove the request for the passenger van from this year’s Capital Budget for now and have Mr. Heinzinger attend the March 2nd Budget Meeting to provide justification for this purchase. Borough Administrator Aportela was requested to forward further information on the five (5) workstations being requested by the Library and this item will be discussed further on March 2nd. It was the consensus of the governing body to approve the remaining capital requests under Administration to include the reduction in document scanning from $55,000 to $45,000. The meeting was recessed at 10:22 a.m. and resumed at 10:29 a.m. Mayor Papaleo announced that the Recreation Department’s budget presentation will be moved to the March 2nd Budget Meeting. Department of Public Works DPW Superintendent Milito reviewed his department’s capital requests which include various items relating to vehicles and equipment, roads, sidewalks and curbs, facilities, and sewer improvements. He noted that, in terms of equipment, he is requesting two vehicles as well as the replacement of 15 radios and a dispatch unit for the office with two portable radios. He advised that this Radio Replacement Program is being done in two phases. It was the consensus of the governing body to move forward with the vehicles and equipment as requested. With respect to road improvements, DPW Superintendent Milito expressed concern that the price of oil may impact the number of roads that can be paved this year. He advised that he is not able to project the funding that will be needed for 2026 at this point in time as he is uncertain which roads will need to be addressed. Borough Administrator Aportela pointed out that any roads which are specifically mentioned are ones for which grants were solicited as they met the required conditions for eligibility. It was agreed to approve the $483,230 that has been proposed for the 2022 Road Program and put $500,000 as a ballpark figure for the Road Program for the next 10-15 years. DPW Superintendent Milito is to meet with the Finance Committee in the next few months to further discuss funding for the Road Program in future years. DPW Superintendent Milito reviewed the proposed budgeted amounts for the Roads/Sidewalks/Curbs portion of his budget. These projects include the ADA Ramp/Sidewalk Replacement Program in the amount $173,500, Bogert Road Section 7 soft costs in the amount of $42,400, the next section of the Continental Avenue Improvement project in the amount of $200,000, Fire Company #1 and #2 parking lots in the amount of $222,662, flashers in the amount of $30,000, Voorhis Drainage project in the amount of $1,353,530 and Reservoir in the amount of $147,400 for which a Community Development Block Grant in the amount of $75,000 was received. It was the consensus of the governing body to move forward with the proposed amounts for the projects outlined in the Roads/Sidewalks/Curbs portion of the DPW Capital Budget. The possibility of placing flashers by Fire Company #1 was raised as part of the paving that will take place and it was agreed that this issue would be referred to Traffic and Safety for review and recommendation. DPW Superintendent Milito then reviewed his capital requests for Facilities Improvements which include replacement of windows at Fire Company #1, the Emergency Repair Program, DPW Salt Shed/Mechanics’ Bays and Borough Hall Digital Sign. With respect to the Emergency Repair Program, CFO Battaglia advised that the balance is currently $25,000 and recommended that it be brought to the full $75,000 in 2022 to allow leeway. He noted that this amount is a placeholder in the event that it is needed and the direct cost is simply the 5% down payment. DPW Superintendent Milito described the issues that are present in the Salt Shed and commented that it can be supported for another year if necessary. He advised that it is planned for the work to this facility to take place in two phases. There was discussion about reducing the proposed amount for the Salt Shed/Mechanics’ Bays. Borough Administrator Aportela noted that this amount is also being used as a placeholder for repairs to Borough Hall and recommended that the amount be left as is to eliminate the need to do a supplemental bond ordinance should any unforeseen issues arise. It was decided to follow the recommendation of the Borough Administrator to leave the amount as is. It was further decided to categorize this line as DPW Salt Shed/Mechanics’ Bays/Borough Hall to allow flexibility in how these funds are utilized. The amount will be left as TBD for future years to note that this line will be earmarked for future expenditures. It was further agreed to move the funding for the Borough Hall Digital Sign from 2022 to 2023 for consideration. Borough Administrator Aportela advised that the remaining capital item pertains to sewer emergency repairs and recommended that it be maintained at $165,000. It was the consensus of the governing body to move forward with the recommended amount of $165,000 for this line. Salary & Wage Requests DPW Superintendent Milito advised that there has been an increase in reporting requirements and reconciliation of invoices for his administrative staff. He requested that the Assistant Office Clerk be changed from part to full time to handle these extra responsibilities with a salary of $39,000. There was discussion about the added cost of pension and health benefits should this employee be made full time and whether it would be more beneficial to hire an additional part-time employee. As this request has already been built into the budget that has been presented, it was the consensus of the governing body to move forward with including this full-time position with a salary of $39,000 in the DPW budget. The request for the promotion of a DPW Operator will be addressed during the March 2nd Budget Meeting. ADJOURNMENT – There being no further business to come before the Mayor and Council, on a motion by Councilman Chinigo, second by Councilwoman Busteed, and unanimously carried, to adjourn this meeting. The meeting was adjourned at 12:03 p.m. Respectfully submitted, Anne Dodd, RMC Borough Clerk