Mayor & Council Budget Meeting

MINUTES Mayor and Council Special Meeting Saturday, March 25, 2023 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. The meeting was called to order at 8:00 a.m. by Mayor Thomas Papaleo. SILENT PRAYER – FLAG SALUTE Mayor Papaleo asked for a moment of silence for all municipalities that are struggling with the mass financial bind that they are currently facing and asked for the financial wisdom to make the right decisions. 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 March 1, 2023 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: Councilman Chinigo, Council President Kaufman, Councilwoman Montisano- Koen, Councilwoman Kinsella, Councilwoman Malellari, Councilman Benson and Mayor Papaleo. ABSENT: None ALSO PRESENT: Borough Administrator Lissette Aportela DPW Superintendent Jason Milito Fire Chief Gregg Cariddi Police Chief Michael Walker OEM Coordinator William Sanders Kenneth Krautheim, Citizens Budget Committee Member Albert Ruhlmann, Citizens Budget Committee Member Donna Sanders, Citizens Budget Committee Member PUBLIC COMMENT Motion by Council President Kaufman, second by Councilwoman Montisano-Koen, 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 Council President Kaufman, second by Councilman Benson, to close to the public. 2023 CAPITAL BUDGET DISCUSSION Council President Kaufman, Chair of the Finance Committee, noted that this year is very difficult for local budgets in New Jersey due to inflation especially in healthcare costs and insurance which are expected to increase 25% and 19% respectively. She advised that more attractive terms for healthcare were unable to be secured due to the Borough’s small size and added that even municipalities which are self-insured are seeing large increases. She commented that these items are mandatory and are placing a substantial burden on the budget this year. She commented that the Borough is doing its best to prepare now for anticipated increases in the garbage contract which goes out to bid next year, noting that municipalities have seen increases anywhere from 70% to 180%. In addition to increases within the Operating Budget, she explained that debt was authorized last year for a number of emergency infrastructure repairs which included Valley Road, Voorhis Avenue, and Borough Hall. As the amount of debt will be increasingly significantly over the next few years, she advised that both the Capital and Operating Budgets will be reduced as much as possible today in order to reduce the taxpayer burden both this year and in future years. Mayor Papaleo added that items will be reviewed to determine if they can be spread over a few years or put off for a few years. He commented that all municipalities are facing the same constraints and the governing body will do its best to minimize the effect on the taxpayers. Shade Tree Commission Jen Dougherty, Shade Tree Commission (STC), explained that $19,000 is being requested from the Open Space Trust. She reviewed the type and amount of the funding that the commission has received over the past few years and noted that they would stay within the guidelines for use of these funds. Liz Stewart, STC Chair, detailed the planned use for this funding which included watering, hiring for the parks, and maintenance of the Arboretum in addition to tree planting in the parks. Borough Administrator Aportela noted that there is currently a balance of approximately $7,000 from a prior authorization in the STC budget. She explained the statutorily permitted uses of Open Space funds and noted that the ballot question specified that the funds would be leveraged for grants. She advised that the Borough was cited for issues that must be addressed in the parks and commented that every penny of the trust funds must be used to match grants for those projects to avoid incurring further debt. Ms. Stewart explained that the $7,000 balance has been earmarked for tables for the Arboretum. There was discussion regarding the salary for the person who is hired to water the trees. Ms. Stewart commented that, as the STC is not a department, this salary comes out of the DPW budget and the DPW Superintendent does the hiring. DPW Superintendent Milito confirmed that Open Space has been utilized in the past for this position and he did not budget for this position within the DPW budget. While members of the governing body expressed their support for the Shade Tree Commission and what they do for the community, they noted that this year is difficult financially. Due to the issues that need to be addressed in the parks, it was the consensus of the governing body to remove the $19,000 request from the budget. As it was agreed that funds are needed for the employee to do the watering, it was decided that the HPC budget request will be reduced by $2,500 to $4,750 and the STC training line will be reduced by $2,500 and $5,000 will be placed into the DPW Part-Time Salary & Wage line to fund this salary. Office of Emergency Management William Sanders, OEM Coordinator, advised that he has no issue with reducing his Capital Budget requests to remove the sign board and vehicle, noting that a sign board can be borrowed from the County and a police vehicle could perhaps be used for dual purposes. He explained that the $12,000 being requested for radios would allow the purchase of 2 portable radios and 4 lower scale radios for events. As Mr. Sanders needed to leave the meeting to respond to a call, it was decided to remove the requests for the sign board and vehicle from the budget. The request for the radios will be revisited when Mr. Sanders returns to the meeting. Fire Department The decisions that were made at the March 18th Budget Meeting regarding the Fire Department’s Capital Budget were reviewed. Chief Cariddi advised that the request for the purchase of iPads can be reduced to $3,000 and the request for the ventilation saw can be waived for this year and moved to next year. As there was discussion at the last meeting regarding the age of the ventilation saws and the amount that has been spent in repairs, it was decided to place $3,000 into the Capital Budget for this purpose. Although the possibility of reducing the request for turnout gear to $38,000 was discussed, it was decided to keep the request at $40,000 to allow leeway. It was also agreed to include $3,000 for the purchase of tablets. Due to the difficult budget year, it was decided that funding towards the purchase of a new Ladder Truck would be deferred to 2025. The meeting recessed at 9:05 a.m. and resumed at 9:11 a.m. CFO Battaglia was requested to review the tax impact on the average household with the changes that have been made thus far. He advised that, although the reductions in the Capital Budget will have an impact on future budgets, it doesn’t impact the taxes in 2023. He explained that the reason he is not reducing the Capital in the current budget is to prevent future increases from being higher. He advised that he is, instead, reducing the reserve that is being utilized. He shared that State Aid has been recalculated and the Borough received an additional $7,000 resulting in a slight change in the budget impact from $238 to $236. Police Department Chief Walker advised that the Police Department lost another vehicle this week. He noted that significant revenue has been generated from traffic details which he anticipates will be the case again this year. There was discussion regarding removing funding for the Communication Center Update line and placing $70,000 in the Patrol Vehicle Replacement line. Concerns were raised by some members of the governing body over the age of the communication desk. It was questioned whether funds from the Outside Duty Trust can be used toward the Communication Center Update. CFO Battaglia confirmed that it would be possible to do so and explained how it could be handled. It was the consensus of the governing body to include $150,000 in funding for the Communication Desk with $50,000 being utilized from the Outside Duty Trust for this project. It was further agreed to include $70,000 in the Patrol Vehicle Replacement line. Department of Public Works Jason Milito, DPW Superintendent, advised that, as the Oak Ditch area which covers Concord Drive and encompasses 120 feet of sidewalks and 30 slabs including ADA ramps is not a part of the PSE&G work area, the Sidewalks & Curbs line can be reduced to $170,000. He further advised that the Emergency Repairs line under Facilities Improvements can be reduced to $25,000 and the Sewer Emergency Repairs can be reduced to $100,000. He requested that all other items be included in the Capital Budget in the originally requested amounts. It was the consensus of the governing body to proceed as outlined. OEM (continued) With respect to the request for radios in the amount of $12,000, Chief Walker advised that he has 2 radios that he can offer, explaining that they would simply require reprogramming. Mr. Sanders agreed that the $12,000 can be put off for now, noting that he is applying for 2 grants that could potentially be earmarked for this purpose. It was agreed to remove the $12,000 request from the Capital budget. It was noted that $12,000 is available from last year which can be used to reprogram the police radios if necessary. Administration It was the consensus of the governing keep the request in the amount of $7,500 for Computers & IT Equipment in the Capital Budget. The meeting recessed at 10:22 a.m. and resumed at 10:27 a.m. CFO Battaglia summarized the changes that have been authorized thus far, noting that the Capital Budget is currently at $5,301,992. He noted that this amount will be reduced by grants, Open Space funding, and funding from the Outside Duty Trust, leaving a $215,000 requirement in the Capital Improvement Fund and $4,335,205 that will be authorized in debt. 2023 OPERATING BUDGET DISCUSSION Administration As there will be a need to solicit for the position of Borough Attorney next year, Borough Administrator Aportela suggested that the Professional Services line under Legal Expenses be reduced from $12,000 to $10,000 and $2,000 be reappropriated to the Borough Attorney Other line. It was the consensus of the governing body to proceed as recommended. It was also agreed that the P.D. Labor Attorney and DPW Labor Attorney lines both be reduced from $8,500 to $7,500 and Labor Relations Attorney line be reduced from $31,000 to $30,000 and this additional $3,000 be reappropriated to the Borough Attorney Other line. As such, the Borough Attorney Other line will increase from $35,000 to $40,000. Although Borough Administrator Aportela advised that she included $20,000 to solicit for a Grant Consultant, she noted that it can be held off to a future year if needed. Due to the benefits that retaining this professional would provide, it was agreed to include this amount in the budget. It was proposed that the Other Group Line under Engineering Services be reduced from $62,500 to $60,000. Although Councilman Chinigo and Councilwoman Kinsella expressed their belief that this line should not be reduced, it was the consensus of the majority of the governing body to reduce this line as proposed to $60,000. As agreed during the Shade Tree Commission portion of the Capital Budget discussion, it was confirmed that Historic Preservation Commission budget will be reduced from $7,250 to $4,750 and the Training line in the Shade Tree Commission budget will be reduced to $2,500. Borough Clerk It was agreed that the Social Media Other line under the Public Information portion of the Clerk budget be reduced from $1,500 to $1,250. Questions arose regarding the new request in the amount of $12,500 for Printing also under the Public Information portion of budget. Borough Administrator Aportela explained that this cost would be to reimplement the newsletter program which was discussed by Council President Kaufman and Councilwoman Montisano-Koen. Although the benefits of reinstating this program were discussed, it was noted that there are other avenues to communicate with the residents. It was the consensus of the governing body to remove $12,500 from this line. Finance It was proposed that the Printing line under the Revenue Administration portion of the Finance budget be reduced. CFO Battaglia advised that, although he would not be opposed to a small reduction in this line, he would not recommend that it be reduced too much. It was the consensus of the governing body that this line be reduced by $2,000. It was also decided that Printing line under the Finance Administration portion of the Finance budget be reduced to $5,000. Borough Administrator Aportela advised that the Salary Adjustment Account accounts for a 3% increase for the non-represented employees. She noted that this increase will need to be confirmed by the whole governing body. It was the consensus of the governing body to keep this line at $65,000 as proposed. DPW DPW Superintendent Milito advised that Borough Building Generators line under Public Works Maintenance & Repairs portion of the DPW budget will need to be increased to $10,000. It was the consensus of the governing body to increase this line as recommended. He noted that his request in the amount of $3,300 for the Street Signs line does not appear to be budgeted and explained the purpose of this line. It was agreed to fund this line for the amount that had been requested. Police There were no changes to the Police Department budget requests. DPW Personnel Request Borough Administrator Aportela explained that the Personnel Committee discussed a request to hire a Laborer to replace an employee who retired at the end of 2022 and to promote an employee to Operator. She noted that, although the Operator position was included in last year’s budget, it was not filled due to the labor shortage within the department. She commented that the need for this position still exists and confirmed that both requests are included in the budget. Superintendent Milito advised that he would like the new Laborer to start on October 1st to coincide with leaf season. It was the consensus of the governing body to authorize Superintendent Milito to proceed as requested. Fire Department Although it was noted that $18,000 was requested for the Clothing Tax Allowance Adj. line, this amount has not been budgeted. CFO Battaglia explained that this amount is included in the Salary and Wage portion of the Fire Department budget. OEM There were no changes to the OEM budget requests. Recreation Department It was proposed that funding for the Part Time line within Salary & Wages for Recreation be removed. Borough Administrator Aportela explained that this line also funds the employee who cleans the parks. It was agreed to reduce this line to $12,000 to cover this employee’s compensation. Municipal Court Borough Administrator Aportela explained that the Part Time line within the Municipal Court has been increased due to increased activity as well as to comply with a State mandate that coverage be provided 7 days per week. She advised that the Salary Adjustment Account portion of the budget also includes a minor merit increase to bring the Court Administrator’s salary in line with other Court Administrators throughout the County. The meeting recessed at 12:03 p.m. and resumed at 12:08 p.m. Utilities DPW Superintendent Milito and Borough Administrator Aportela reviewed the large increases that the Borough is facing with respect to utilities and detailed the reasons for these increases. Due to garbage being added as an exception to the cap this year, Council President Kaufman proposed that an additional $100,000 be added to this line. It was the consensus of the governing body to move forward as proposed. Operating Budget Recap & Next Steps CFO Battaglia reviewed the changes that have been made, noting that there has been a reduction of $43,150 from the Operating Budget. He advised that these changes will be forwarded to the Auditor to have the State document updated and provided to the Clerk for distribution to the governing body for Monday’s meeting. Mayor Papaleo recognized the members of the Citizens Budget Committee and thanked them for serving on this committee. Ms. Sanders, Mr. Krautheim, and Mr. Ruhlman commended the Mayor and Council for their hard work. Mayor Papaleo recognized the members of the Finance Committee and noted that they have put in so many hours to prepare this budget. He also thanked Borough Administrator Aportela and CFO Battaglia for their guidance. Members of the governing body noted the hard work that goes on behind the scenes and thanked everyone who was involved in the budget process. Borough Administrator Aportela recognized the Department Heads and employees who have done their best to be conservative in their budget requests. She noted that the official budget season starts in late September and commented that there is constant evaluation throughout the year. ADJOURNMENT – There being no further business to come before the Mayor and Council, on a motion by Councilman Chinigo, second by Councilwoman Malellari, and unanimously carried, to adjourn this meeting. The meeting was adjourned at 12:54 p.m. Respectfully submitted, Anne Dodd, RMC Borough Clerk