Mayor & Council Budget Meeting

MINUTES Mayor and Council Special Meeting Monday, March 18, 2024 6:00 P.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 6:00 p.m. by Mayor Thomas Papaleo. SILENT PRAYER – FLAG SALUTE Mayor Papaleo asked for a moment of silence for those towns, councils and professionals who are working to create a budget that is fair and reasonable. 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, 2024 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 Website and filing a notice of the same with the Municipal Clerk. ROLL CALL PRESENT: Councilwoman Kaufman, Council President Montisano-Koen, Councilwoman Kinsella, Councilwoman Malellari, Councilman Benson, Councilman Glass and Mayor Papaleo. ABSENT: None ALSO PRESENT: Borough Administrator Lissette Aportela Chief Financial Officer Chris Battaglia Kenneth Krautheim, Citizens Budget Committee Member Albert Ruhlmann, Citizens Budget Committee Member Donna Sanders, Citizens Budget Committee Member Liz Stewart, Chair, Shade Tree Commission Jennifer Dougherty, Member, Shade Tree Commission PUBLIC COMMENT Motion by Councilwoman Kaufman, second by Councilman Benson, and all members present voting in favor, to open the floor to the public. No one came forward. Motion by Councilwoman Kaufman, second by Councilman Benson, and all members present voting in favor, to close to the public. 2024 OPERATING BUDGET DISCUSSION Budget Summary Chris Battaglia, CFO, noted that, just like last year, the Local Finance Board adopted a set of regulations for cap exceptions due to many municipalities experiencing cap issues. He advised that the budget as it currently stands represents an increase of 5.1% or approximately $228 on the average household which he noted resulted from approximately an additional $787,000 that needs to be raised through taxation. He advised that this year is the last that American Rescue Plan Act (ARPA) funds can be anticipated which he noted is approximately $103,000 less than the previous year. With respect to appropriations, he detailed the largest drivers of the budget increase which he noted are mostly out of the Borough’s control. He advised that there was a reduction in the Construction Official operating account of $37,500 which helped to slightly offset the increases. He explained the 5% down payment that is required to be included in the budget when authorizing debt and detailed how this amount was determined. He advised that, although more surplus is being utilized this year to help offset some of the increases in the budget, the fund balance is very healthy and expressed confidence that the amount that is being utilized will be replenished this year. Revenue As $60,000 has already been earned, it was the consensus of the governing body that line item 4-01-08-113- 030 Interest – Cash Management Fund is to be increased from $80,000 to $110,000. All other revenue lines were kept at the proposed amounts. Administration Historic Preservation Commission It was decided that line item 4-01-20-175-187 Historical Commission is to be kept flat. As such, the budgeted amount is to be reduced from $7,450 to $4,750. All other line items within the Administration portion of the budget were kept at the proposed budgeted amounts. Borough Clerk It was questioned whether adjustments were needed to the line items pertaining to non-emergency notifications, TV meetings, and honors and badges. After some discussion, it was decided to keep these and all other line items within this portion of the budget at the currently budgeted amounts. Finance Department The increase in the salary and wage portion of the Finance Department’s budget was questioned. CFO Battaglia explained that it was decided to convert a part-time position to full time due to both turnover in the position and lack of candidates for the part-time position. Borough Administrator Aportela added that this employee also assists the Borough Clerk which eliminated the need for another full-time position in that department. Questions arose on the line items pertaining to overtime, computer maintenance, and professional services and costs. After discussion, it was decided to keep these line items as well as the other line items in this portion of the budget at the proposed budgeted amounts. Shade Tree Liz Stewart and Jen Doherty, Shade Tree Commission members, were present for this discussion. A question arose as to the $40,000 request for tree planting. Ms. Dougherty explained that this request is to plant 100 street trees. CFO Battaglia advised that, should these trees be permanent and not decorative, this amount can, instead, be included in the Capital Budget. There was discussion regarding the need for $5,000 to be included for a seasonal employee to water the trees. It was agreed to include $5,000 in the Operating Budget for this employee. Borough Administrator Aportela, CFO Battaglia, Ms. Stewart and Ms. Dougherty are to have a discussion to determine whether the $40,000 for tree planting should be moved to Capital. This budget will then be further discussed at the March 23rd Budget Meeting. Office of Emergency Management There were no changes to the proposed budgeted amounts included in this portion of the budget. Fire Prevention It was decided to reduce line item 4-01-25-265-033 Publications from $400 to $200. It was also decided to increase line item 4-01-25-265-036 Office Supplies from $400 to $600. All other line items included in this portion of the budget were kept at the proposed budgeted amounts. Land Use It was agreed that line item 4-01-21-180-021 Legal Advertising is to be reduced from $2,000 to $1,000 and 4-01-21-180-044 Memberships, Dues, Subscriptions from $500 to $100. All other line items included in this portion of the budget were kept at the proposed budgeted amounts. Construction/Code Enforcement There were no changes made to this portion of the budget. Health Department As there were many line items that have not been utilized in a number of years, Borough Administrator Aportela is to reach out to this department to ask for justification to keep the line items at current levels. If no justification is provided for a line item, she is to advise that these line items will either be reduced or zeroed out. This budget will be revisited at the March 23rd Budget Meeting. Municipal Court Although several line items were questioned due to lack of activity for a number of years, Borough Administrator Aportela explained that the Judiciary is very tricky and there is not much latitude when it comes to their budget. As such, no changes were made to this portion of the budget, Insurance Councilwoman Kaufman detailed the significant increases to this portion of the budget which she noted are non-negotiable items and are significantly impacting the tax rate. It was questioned whether the budget transfer in the amount of $70,000 to line item 4-01-23-225-100 Unemployment Insurance was a typo. CFO Battaglia explained that this transfer resulted from unemployment claims having been on hold due to COVID. He advised that these claims are now being processed and it is for this reason that the transfer was necessary. It was decided to reduce line item 4-01-23-210-178 Yealy Additions from $4,000 to $2,500. All other line items within this portion of the budget were kept at the proposed budgeted amounts. Utilities It was noted that, although line item 4-01-31-440-168 Telephone/Long Distance – Verizon has been budgeted for $6,000, the most that has been charged to this line in the past five years has been approximately $1,000. It was questioned whether this line can be consolidated with 4-01-31-440-170 and only $1,000 of the $6,000 be transferred to this line. As the phone lines fall under the Police Department and many of the utility accounts fall under DPW, it was agreed that this portion of the budget is to be reviewed at the March 23rd Budget Meeting when the Police Chief and DPW Superintendent will be present. Contingent There were no changes made to this portion of the budget. Debt service Councilwoman Kaufman reviewed a spreadsheet detailing the Borough’s debt projection through 2036. She noted that the numbers that were included in the Capital Budget requests were used to project the Borough’s debt from 2024 through 2028. CFO Battaglia reviewed a list of the debt authorizations that the Borough has had since bonds were sold in 2020 and commented that some of this debt will be funded through grants. He advised that the Borough is at the point where money will need to be borrowed, explaining that between now and 2030 they will most likely look to stay in short term notes. He advised that over the course of the next 10 years, the Borough will see increases from $150,000 to $200,000 in debt service so that principal and interest can be paid. He explained how he derived the numbers that were included in the spreadsheet, noting that they will hit a peak in debt service in 2034 and this number will continue to come down from there. He added that these numbers are in compliance with the Borough’s debt policy which is much stricter than the State’s mandate. Mayor Papaleo reviewed the budget schedule going forward which included another budget meeting on March 23rd. introduction on April 8th and adoption on May 13th. As the Borough is not self-exam this year, CFO Battaglia advised that adoption may need to be delayed depending on whether they have received State approval to adopt by this date. He confirmed that the public hearing will take place on May 13th even if adoption needs to be delayed. ADJOURNMENT – There being no further business to come before the Mayor and Council, on a motion by Councilman Benson, second by Councilwoman Kaufman, and unanimously carried, to adjourn this meeting. The meeting was adjourned at 8:59 p.m. Respectfully submitted, Anne Dodd, RMC Borough Clerk