Mayor & Council Budget Meeting

MINUTES Mayor and Council Special Meeting Saturday, March 23, 2024 9:00 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 9:00 a.m. by Mayor Thomas Papaleo. SILENT PRAYER – FLAG SALUTE Mayor Papaleo asked for a moment of silence for those who died due to a terrorist attack at a concert in Russia. 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 Web Site 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 DPW Superintendent Jason Milito Fire Chief Robert Schlossberg Police Chief Michael Walker Recreation Superintendent Joseph Ricca Kenneth Krautheim, Citizens Budget Committee Member Albert Ruhlmann, Citizens Budget Committee Member Donna Sanders, Citizens Budget Committee Member PUBLIC COMMENT Motion by Council President Montisano-Koen, second by Councilwoman Kaufman, 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 Councilwoman Kinsella, second by Councilman Benson, to close to the public. 2024 OPERATING & CAPITAL BUDGET DISCUSSION Mayor Papaleo noted that the Borough’s portion of the tax bill is approximately 25% and he detailed the various services that this portion of the tax bill provides. CFO Battaglia advised that $40,000 has been moved out of the Shade Tree Operating Budget and moved into Capital. He further advised that $30,000 was added in revenue for interest on investments and appropriations were reduced by approximately $1,300. As such, he stated that the tax impact is currently 4.71% or $212.63 increase to the average homeowner. Fire Department Operating Budget Robert Schlossberg, Fire Chief, introduced himself as a new Department Head and detailed his involvement in the community. He acknowledged the efforts of the volunteers in the town, especially the Volunteer Fire Department. He noted that the department has operated within the same budget for the past four years with the exception of unexpected vehicle repairs. He commented on the savings that resulted from a reduction in the active fire apparatus and remarked that this budget is lean and reflects only the current needs. It was the consensus of the governing body that line item 4-01-25-255-013 relating to the uniform allowance be increased from $70,000 to $75,000. Chief Schlossberg recommended that the hourly wage of the Fire Department Secretary, who also assists the OEM Coordinator and Fire Prevention, be increased from $26.83 per hour to $30.00 per hour. He noted that this hourly rate is in line with the hourly rate of employees in similar roles within other municipalities. The governing body was in agreement with this recommendation. It was also decided to increase line item 4- 01-25-255-184 pertaining to motor vehicle repairs from $35,000 to $50,000. There were no changes made to the remaining line items contained in this portion of the budget. Fire Department Capital Budget Chief Schlossberg reviewed his Capital Budget requests which included turnout gear, programming of portable radios, upgrading of base stations, pagers, replacement of the command vehicle, a ladder truck, and a vehicle to tow boats. With respect to the request for turnout gear, he commented that the department will be getting several new volunteers over the next few months. As the Borough has been notified of a grant award in the amount of $23,462 for this purpose, Chief Schlossberg advised that the $30,000 request can be reduced to $20,000. He further advised that the $30,000 request for the base stations can be reduced to $0. CFO Battaglia explained that, because the grant award letter for the turnout gear has not yet been received, this amount is not able to be included in the bond ordinance. Once this letter is received, the budget will be amended to appropriate the grant. He explained that, depending on the timing of this purchase, there will be an aggregate of $43,462 available. He recommended that the Borough draw down from the grant funding first so reimbursement can be received and anything remaining can be carried over into future years or can be canceled if it is no longer needed. After some discussion, it was agreed that the amount for turnout gear be reduced from $30,000 to $20,000 and the requests for the base stations and ladder truck both be reduced to $0. The possibility of including $85,000 for the ladder truck in the Operating Budget next year was discussed. All other Capital Budget requests were kept at the amount requested. At the request of Jason Milito, DPW Superintendent, it was agreed to review all Capital Budget requests prior to discussing the Operating Budget. Police Department Capital Budget Michael Walker, Police Chief, reviewed his Capital Budget requests which included vehicle replacements, ballistic vests, radio car toughbooks, traffic equipment to include traffic signs, cones, and devices, and the last phase of the communication desk renovation. He noted that the need for some of these items is due to the traffic details which have generated approximately $250,000 in revenue. Councilwoman Kaufman advised that the vehicle replacement cost will be completely covered by the Outside Duty Trust and $50,000 of the communication center update can also be covered by this trust. The Capital Budget requests were kept at the amounts requested. It was agreed that $50,000 from the Outside Duty Trust would be used for the updates to the communication desk. Administration Capital Budget Borough Administrator Aportela explained that the IT Consultant has recommended that the balance for computers and IT equipment be kept at $12,000. As there is currently a balance of $9,500, she has requested $2,500 to bring the balance up to the recommended amount. It was agreed to include the $2,500 request for computers and IT equipment in the Capital Budget. Recreation Capital Budget Joseph Ricca, Recreation Superintendent, reviewed his Capital Budget requests which entailed pickleball courts and a batting cage at KBG Field and improvements to Memorial Park. He detailed the various improvements that would undertaken and noted that there is grant funding that was received. As there had been prior discussion about potentially pushing the pickleball courts and batting cage to next year so that grant funding can be sought, it was suggested that the 2024 request for KBG be reduced to $0. Borough Administrator Aportela reviewed the timeline to apply for grant funding and expressed her hope that the Borough will be awarded 50% of the construction costs to either help offset the amount that would need to be utilized through the Open Space Trust or debt that would need to be incurred. It was agreed that the amount included for the pickleball courts and a batting cage at KBG Field be reduced to $0 for this year. The amount included for Memorial Park will be kept at the requested amount. With respect to the $54,000 request for tree planting, Liz Stewart and Jennifer Dougherty of the Shade Tree Commission were present to speak to this request. Ms. Dougherty explained that $40,000 would be dedicated to planting 100 street trees and the remaining $14,000 would be for planting in the parks. Ms. Stewart advised that several large trees were lost in Memorial Park and the Arboretum and it is planned to plant 6 trees in the Arboretum and 24 trees in Memorial Park. Due to the construction being planned in the parks, Borough Administrator Aportela recommended that the request be reduced to eliminate the planting in Memorial Park. She noted that tree replacement can be included as part of the grant funding and overall budget. She also recommended holding off on planting trees in KBG due to the proposed construction at this location. As such, she suggested that the tree planting be solely focus on the Arboretum. It was agreed that the tree planting request be reduced from $54,000 to $48,000. Department of Public Works Capital Budget DPW Superintendent Milito began with the vehicles and equipment portion of his Capital Budget requests which included a garbage truck, ride-on blower and an industrial lawnmower. There were no changes recommended to the requested amounts included in this portion of the budget. DPW Superintendent Milito then moved to his requests relating to roads, ADA ramps, sidewalks and curbs. He explained that they are looking to coordinate paving with PSE&G and are currently awaiting information from them so that plans can be finalized. He noted that the amount requested will cover Howland to Manning Avenue. With respect to ADA ramps, sidewalks and curbs, he explained that the requests pertain to streets between Manning and Continental which will be paved by PSE&G and are not included in a NJ DOT grant. He noted that the curbs and sidewalks are also being addressed so that the Borough is in compliance with JIF requirements. In regard to the $25,000 request for NJ DOT grant preliminary expenses, Borough Administrator Aportela explained that this amount is included in the Capital Budget every year and would cover engineering costs to prepare grant applications for both Bogert Road Section 9 and Continental Avenue. CFO Battaglia added that, if an award letter is received for these grants this year, an ordinance can be adopted before the end of the year. By doing so, he explained that funding will be in place to allow paving to take place as soon as weather permits the following year. It was agreed to keep the Capital Budget requests at the proposed amounts. DPW Superintendent Milito reviewed the portion of his Capital Budget relating to facility improvements which includes emergency repairs to equipment with a life expectancy of at least 5 years, the design phase of the DPW Salt Shed Improvements, painting of Fire Company No. 2 and installation of a new gas vapor valve, swivels and adaptors to the 2,000-gallon oil tank in order to meet DEP requirements. He also reviewed the requests relating to sewer improvements and sewer improvements – storm drain/line replacement. As there was a recent sewer emergency on Manchester, he requested that the amount for sewer improvements be increased from $140,000 to $190,000. It was agreed to increase this line from $140,000 to $190,000. All other items will be kept at the requested amount. With the changes that were agreed upon, CFO Battaglia advised that the total Capital Budget amount is $2,929,681which he advised is a $526,000 reduction in appropriations and the total debt authorized is now $2,290,600 which is a $498,400 reduction. The meeting recessed at 11:00 a.m, and resumed at 11:15 a.m. DPW Operating Budget Although it appears that there was an increase in the salary and wage line, DPW Superintendent Milito explained that, with the exception of Recycling, all salary and wage lines were consolidated within the DPW budget. He further explained that Recycling was kept separate due to the Tonnage Grant. A question arose as to the increase in the Recycling salaries and wages. DPW Superintendent Milito advised that he requested $34,000 for a part-time employee to oversee the Recycling Center which will prevent illegal dumping and ensure that only River Edge residents gain access. It was agreed to increase line item 4-01-31-510-100 relating to stormwater sewer supplies from $0 to $3,000. All other line items will be kept at the budgeted amounts. Recreation Operating Budget There were no changes made to the proposed budgeted amounts included in the Recreation Department’s portion of the Operating Budget. Police Operating Budget As there has been difficulty attracting applicants, Chief Walker advised that he is looking to increase the starting hourly rate for Crossing Guards to $20 per hour. After some discussion, it was decided to increase line item 4-01-25-240-007 to $252,600 to account for the increase in the hourly rate as well as the additional posts that were added last year. There were no other changes to the proposed amounts included in this portion of the budget. Library Operating Budget Daragh O’Connor, Library Director, Maxine Rumsby, Board President, as well as Library Board Trustees, Juliet Forte and Lucy DiMaulo were present for this discussion. Director O’Connor read the following statement on behalf of the Library Board of Trustees: “Last Thursday at a meeting attended by the Borough CFO, Administrator, Library Director, and Library Board President, we learned that the Library had overspent in its salary line in 2023 to the tune of $25,000. The Board feels blindsided by this news as there was no indication during 2023 that we were spending more than we should have been spending. Some context is needed here. In 2022, we had significant overage in our salary line of approximately $23,000. This was due to the retirement of three full-time employees with their replacements starting on lower salaries. Also, our Adult Services Librarian position remained vacant for much of the year due to lack of interest in the labor market. As we emerged from the pandemic and our construction program, the demand for longer hours of operation and more programs increased and the Library Board felt it was important to be responsive to the community’s needs by offering more service. It was then decided that we needed to fill all vacant part-time positions and increase the hours of operation from 50 to 58 per week. The Library Director began a conversation with the Borough about our plans to improve hours and add programs in early 2022. He mentioned during the year that the Library would have unspent funds in the salary line at the end of the year and this was confirmed during the year. Towards the end of 2022, the Board also discussed salary adjustments in order to offer the staff competitive rates. The Board was told that the Mayor and Council would approve any salary changes so long as the Board stayed within the 2022 budget. This week, the Board learned the unspent salary funds from 2022 were not carried over to 2023 contrary to our understanding. It is imperative that the Library Board offer competitive rates of pay in order to retain and attract talented staff. The staff is the most important asset that the Library has and it is a very tight labor market. The Board needs to be proactive in this area. In 2023 while many area libraries struggled to remain open on evenings and weekends, the River Edge Public Library offered 58 hours per week, staying open until 9 pm Monday through Thursday and all day Saturday. During the Thursday meeting this week, we were informed that the $25,000 salary overage would be deducted from our line for operating expenses going forward and that our budget for operating expenses would also be cut an additional $15,000. We are looking at an effective cut of $40,000 therefore to our operating budget. Since the Library does a lot with a very little, $40,000 would result in very significant cuts to service. The Director has not had time to draft a plan but has assured the Board that cuts to service would include shorter hours of operation, a reduction of programming and possibly cancellation of services provided to the community. Our newly approved Strategic Plan which you have been provided with indicates a strong community interest in adding more hours of services not fewer. Another word on Library funding and we are almost done. The Mayor and Council have often been justifiably proud of the fact that they fund the Library at more than the bare minimum level required by law. Very few libraries can provide these library services one bare minimum funding in the Board’s view. We hope that the Mayor and Council will restore our budget for salaries and wages as well as increase our Operating Budget so that we can give the community what it needs.” It was confirmed that the Borough has given on average $190,000 more than the minimum over the past four years. It was also confirmed that, if funds are not spent in one year, they do not carry over to the next year and it is the Library’s obligation to spend within their budget. It was noted that salary increases of 2% were considered in this budget and the approximately 8% increase in the cost of health benefits are being covered by the Borough. After some discussion, it was decided that the salary line be reduced from $552,100 to $490, 614. It was further decided that line item 4-01-29-390-100 be reduced from $153,610 to $138,610. Line item 4-01-29- 390-101 pertaining to HVAC maintenance will be kept at the requested amount. Ms. Rumsby asked the governing body to recognize that cuts to services will need to be discussed which will impact the public. OLD BUSINESS – Shade Tree It was agreed that $5,000 will be added to line item 4-01-26-302-012 pertaining to part-time salary and wages and that line item 4-01-26-302-167 be relating to tree planting be reduced from $40,000 to $0. Health Department It was agreed that line item 4-01-27-330-036 relating to office supplies be reduced from $800 to $700, line item 4-01-27-330-093 be reduced from $2,350 to $500, and line item 4-01-27-330-176 be brought back to the requested amount of $3,000. All other line items within this portion of the budget were kept at the proposed budgeted amounts. ADJOURNMENT – There being no further business to come before the Mayor and Council, on a motion by Councilman Benson, second by Councilman Glass, and unanimously carried, to adjourn this meeting. The meeting was adjourned at 1:21 p.m. Respectfully submitted, Anne Dodd, RMC Borough Clerk