City Council

City of Saratoga Springs City Council Budget Workshop Meeting Minutes Tuesday, October 9, 2007 CITY OF SARATOGA SPRINGS CITY COUNCIL WORKSHOP MEETING CITY COUNCIL ROOM TUESDAY, OCTOBER 9, 2007 11:00 A.M. PRESENT: Valerie Keehn, Mayor Commissioner John Franck, Accounts Commissioner Ron Kim, DPS (arrived: 11:30 a.m. departed 12:00 p.m.) Commissioner Matthew McCabe, Finance Commissioner Thomas McTygue, DPW ABSENT: Supervisor Cheryl Keyrouze Supervisor Joanne Yepsen STAFF PRESENT: Lynn Bachner, Deputy Commissioner, Finance Michele Boxley, Deputy Commissioner, Accounts Frank Dudla, Deputy Commissioner, DPS Eileen Finneran, Deputy Mayor CALL TO ORDER Mayor Valerie Keehn called the workshop meeting to order at 11:10 a.m. 2008 COMPREHENSIVE BUDGET Commissioner Matthew McCabe said this was the first of several comprehensive budget workshops. He said there are a wide variety of topics to discuss. He reminded Council members that there is a form to be submitted to the Finance Department to request that changes be made to the proposed 2008 budget. Commissioner John Franck said he had a few requests for changes to the budget and he would complete the form and return it to the Finance Department. He said though that he would like an increase in the refund for prior taxes line. He had previously discussed this matter with Commissioner Matthew McCabe. He said that $45,000 was budgeted; however, he believed that number should be $80,000. Last year there was a large settlement with Quadgrahpics which used up a significant portion of this line. Now the line needs to be brought back to the previous budget levels. Commissioner Matthew McCabe said he would talk with Commissioner John Franck before Thursday on this line. Mayor Valerie Keehn asked what this line was used for. Commissioner John Franck said it is used to cover refunds to taxpayers. He said that in 2006 there was $100,000 budgeted. There are several open cases from 2004 and 2005 and there may need to be refunds made on those cases. It is up to the Council, however, he was recommending that the line be brought up to $80,000 Mayor Valerie Keehn read from the charter, noting that she believed the Commissioner of Finance was in violation of the charter by not submitting a comprehensive budget that included the capital budget. She said it is clear in the charter that the capital budget is part of the comprehensive budget. Commissioner Matthew McCabe said they could talk about this for quite some time; however, he believed that because there was no capital budget adopted, he was faced with the decision on including or not including the proposed capital budget. The City has a capital program in 2007, therefore, it exists. He said that Council members were well aware that the capital budget was not likely to pass as it was presented, so he reviewed the charter and presented the 2008 comprehensive budget according to his interpretation. He said there needs to be a discussion on the capital budget, the City’s priorities, how the projects will be funded, etc. The proposed 2008 comprehensive budget was the starting point. Mayor Valerie Keehn said there is a difference between the capital budget and the capital program. The capital budget is for the upcoming fiscal year and there is nothing included in the 2008 comprehensive budget. Commissioner Matthew McCabe again said that this is a difference of interpretation. He said it is the Mayor’s responsibility to bring forth a capital budget and there was no vote on a capital budget. Once he receives the capital budget, he still has the ability, as in past years, to 1 of 4 City of Saratoga Springs City Council Budget Workshop Meeting Minutes Tuesday, October 9, 2007 make modifications. He said it was his position that he could modify the budgets before presenting them to the Council. Mayor Valerie Keehn again said that the capital budget needs to be included. Commissioner Matthew McCabe said it was included – but with zeros. Mayor Valerie Keehn said the Council needs to talk about the capital budget. Commissioner Matthew McCabe agreed and said that could be done in these workshop meetings. It was agreed that the capital budget would be addressed at the next workshop meeting. He said though that the biggest sticking point is the public safety facility and there needs to be some discussion on size, location, dollar amount, etc. He said those discussions could be held on Thursday. Mayor Valerie Keehn asked why the Director of Public Works salary had been increased by 6.5 percent while other union contract positions had increased by 3.5. Commissioner Matthew McCabe said he would review that line item; however, it could be due to steps and longevity. Mayor Valerie Keehn said there did not seem to be any reason to have that not-for-profit organizations located with the Mayor’s Department budget. She believed that discussions for increases for these organizations should be made by the Council and not just her department. Commissioner Matthew McCabe said that historically, they have been included n the Mayor’s Department; however, he was open to discussions on moving them to the Finance Department. He said though that he believed they were appropriately placed within the Mayor’s budget because the Mayor already has the Office of Planning & Economic Development and these not-for-profits were closely related. Mayor Valerie Keehn again said she believed that the decision on increases for these not-for-profits should be made by the Council. Commissioner Matthew McCabe said they could be discussed at the Council table. Mayor Valerie Keehn said they have all asked for increases. Commissioner Matthew McCabe said he had rolled back many of those requests except for the Senior Citizens because they are in a City owned building. He said this is a philosophical discussion on whether these organizations should be funded, at what level and in whose budget. Mayor Valerie Keehn said she would like to hear from other Council members as to whether the dollar amounts for the not-for-profits should be increased. (Commissioner Ron Kim arrived.) Commissioner Thomas McTygue said he had submitted a change of request form. He said though that the biggest issue was the DPS facility. The Council needs to get Commissioner Ron Kim to the table to have some discussions. He had requested a meeting with Commissioner Ron Kim, however, did not yet receive a response. He said he would like to get a meeting together in the next few days to have some healthy discussions on the DPS facility. He also asked for a copy of all of the reports on the proposed facility. Commissioner Ron Kim said there have been presentations at the Council table and material had been distributed. Commissioner Thomas McTygue said there needs to be some discussion and he hoped that Commissioner Ron Kim would sit down with Council members. Commissioner Matthew McCabe agreed. He said he would make himself available. Commissioner Ron Kim said he was not ready for any back room deals and he wanted everything discussed in public. There are many who support this project. He said the Council was ganging up on him to cut the facility by one third. No other capital project had been scrutinized to the extent that this one has. He said if the Council wanted to cut his project by one third, then every other capital budget project needed to be cut by one third. Commissioner Thomas McTygue said they were not trying to have any back room deals. He said taxpayers are saying they don’t want a $300 increase in their taxes. Council members are willing to talk about this but they need to sit down together. Commissioner Matthew McCabe said he met with Bill McTygue, Director of Public Works, last week and that department is willing to look at their capital budget projects again and perhaps cut some of them down. He said there are no backroom deals going on here. Commissioner Matthew McCabe asked Commissioner Ron Kim if he was willing to entertain any discussion on changing the location and/or size of the proposed DPS facility. He asked if he would be willing to look at the adjacent site or the site behind City Hall. He said the site behind City Hall could have a bridge connecting the two buildings – then a smaller facility could be constructed. The project could be phased. Commissioner Ron Kim said there was nothing to show that a bridge could be constructed between the buildings. The consultants have looked at this and they have expressed concerns with constructing a connector. He pointed out that the law library is under orders that when a book is brought in, one must leave because of the structural integrity of the building. Commissioner Matthew McCabe again asked if Commissioner Ron Kim was willing to entertain the idea. He said if Commissioner Ron Kim can show that it is impossible to construct behind City Hall or adjacent to City Hall then there needed to be other discussions. He said though the City can bond a project in 2 of 4 City of Saratoga Springs City Council Budget Workshop Meeting Minutes Tuesday, October 9, 2007 phases. DPS already has money for design and land acquisition. At this point, the quickest that this facility could be constructed was approximately two years. Commissioner Ron Kim said his conditions were that every other capital project must be cut by a third as well. He said if Commissioner Matthew McCabe was stating that the City could not afford to construct this facility, then we can’t, but if this was about cutting the project by one third, all others must be cut by one third. Mayor Valerie Keehn asked when the High Rock Avenue parking lot became the preferred location. Commissioner Thomas McTygue said it is simply part of the compromise discussions. There are two lines of thought – Plan A – the land adjacent to City Hall and Plan B – the parking lot behind City Hall. Commissioner John Franck said the City does not own the parking lot next to City Hall, but it could be a potential location. The existing space could be renovated, the courts would stay where they are and the cost would be less because the square footage would be reduced. He said that the second option is to construct a building behind City Hall which is his preference. The historical nature of this building would remain in tact. The $17 million would be reduced by going behind City Hall. He said there was also the thought that the recreation center facility could be reduced in size and the bonded money for that facility could be used to reduce that debt. He said there could also be some discussion on sales tax. If the City was to consider increasing the sales tax by perhaps one percent, a good amount of money could be realized. Commissioner Matthew McCabe said he believed that Saratoga County was one of only three counties remaining that still charge 7 percent. He said he would have to do some research on how to go about changing the sales tax, but it was his understanding that the County would need to support this initiative and it would need a legislative sponsor. He was not sure if the proceeds would need to be split with the County or not. Commissioner John Franck said if the amount was increased by one percent and it did not need to be split with the County, the City could realize $6 million per year. He said if the Council wanted to discuss this option, then as part of the discussions, there should be a sunset clause on this tax. He said this spreads out the cost over everyone, including tourists, and not just property owners. There also still needs to be some discussion on scaling the project back. Mayor Valerie Keehn clarified that there were only three counties/towns that have not yet gone to 8 percent. Commissioner Matthew McCabe said that was his recollection. He did not believe that Saratoga County had any interest in going to 8 percent. He agreed that if the City was to consider this, a sunset clause was a good idea. Commissioner Matthew McCabe said all of these ideas need to be part of the discussions. Commissioner John Franck said he would work with Commissioner John Franck on this idea. Commissioner John Franck said he was not amenable to bonding $17 million, however, if there could be some discussions on increasing revenues, scaling back the project, etc., he would be more than willing to entertain the ideas. Commissioner Ron Kim made it clear that he was not authorizing anyone on this Council to develop an RFP for a public safety facility. He said the charter is clear on whose purview this is under and it is within his purview. He said DPS is his responsibility. He said we all love the commission form of government, so we must all work with it. Commissioner Ron Kim then departed at 12:00 p.m. Commissioner Thomas McTygue said that Commissioner Ron Kim needs to stay at meetings so there can be discussions. Commissioner Matthew McCabe opened the meeting to comments from the audience. John Kraus, 227 Grand Avenue, said six weeks ago, he could have envisioned what just happened. The Council needs to have some brainstorming sessions so that they are not subject to open meetings laws. He said all Council members need to participate. The idea of increasing the sales tax is an interesting concept. At Thursday meeting there needs to be a facilitator. He suggested that the revenues be restated and recalculated and the tax rate could be dropped from $5.20 to $4.14. He said there seems to be extra revenues buried within him 2008 budget. He couldn’t understand what happened to the extra $1.1 million from the 2007 budget. He believed the projections for the 2008 VLT money was low. He suggested that the Council consider splitting the $1.4 million in half for the DPS facility with the taxpayers by finding $700,000 in the budget and then asking the taxpayers to pay the other $700,000. He reminded everyone that the $1.4 million yearly payment also included a garage with 500 parking spaces. He said if the taxpayers were to pay the $700,000 it would add another 20 cents per thousand. By splitting this with the taxpayers, also allows other projects to be funded through the capital program to the tune of about $5 million which would add another 10 to 12 cents to the tax 3 of 4 City of Saratoga Springs City Council Budget Workshop Meeting Minutes Tuesday, October 9, 2007 rate. The tax rate would then hover somewhere around $5.50 per thousand. He believed the taxpayers would be willing to absorb this Mayor Valerie Keehn asked how the City could pursue increasing the sales tax. Commissioner Matthew McCabe said a state legislator needs to sponsor the proposal. He said that this idea need some thought and discussion. The left over money from 2007 which is not $1.1million will go towards the unaappropriated, unreserved fund balance. Remigia Foy thanked Commissioner Matthew McCabe for the budget presentation. He said she was glad to hear the suggestions from Commissioner John Franck. She said there needs to be more discussion on the use of City Hall. She suggested that the Council approve a motion today which would allow the City to pursue an RFP for the utilization of the adjacent lot or the parking lot behind City Hall. She said it was time to move forward. It was also distressing to see a Commissioner walk away from the table. There needs to be a spirit of cooperation. The Council meetings lately have been stacked with individuals who support the public safety facility. She said, though, that there is a good number of residents who do not support this proposal because they don’t want their taxes to go up. Linda Terricola said it was her understanding that the bonded money for the recreation center can only be used for the recreation center. She said her Board members are concerned because of recent comments by Commissioners on the use of that money. Commissioner John Franck said the bonded money for the recreation center can only be used for the recreation center and related recreation expenses. However, the Council could reduce the scope of that project, place the remaining unused funds from that project in an interest bearing account and then pay off the bond in ten years. He said that would free up some capital money for other projects. He said that Recreation Board member Derrick Legall stated at a previous meeting that he would be willing to forego the needs of the community for the recreation center for the public safety facility. Linda Terricola said that he did say that but further elaborated on that comment. She said that he does believe that the public safety facility is a priority. Mayor Valerie Keehn said that the City’s bond counsel did not recommend using that money to earn interest. Commissioner Matthew McCabe said the City could scale back the project and place the money in an interest bearing account, however, it sets a bad precedent and bond counsel did not recommend that process. Commissioner John Franck said that according to bond counsel using arbitrage does not impact the City’s bond rating. Commissioner Matthew McCabe said that he would need to discuss the idea of increasing the sales tax with the County. Commissioner John Franck said these were all ideas that needed to be discussed. He said if the Council chooses to not go with any of the ideas, that is their prerogative, however, there needs to be a compromise. He said he would not support a $17 million project. Bonnie Sellers, 69 Hyde Street, said the City would get more for their money by rehabilitating the existing space rather than constructing a new building. She did not agree with the lease buy back option saying that generally speaking, people want to own what they are paying for. She said the taxpayers have not clearly spoken on this matter. She commended the three Council members who were trying to find a reasonable solution. Commissioner John Franck clarified that in the 2007 budget the VLT money was budgeted at $2.7 million even though the state said that it could be as high as $3.8million. Commissioner Matthew McCabe said yes. He said the state recommended that the City budget $2.7 million, however, they noted that the actual money received could be as high as $3.8 million. In the 2008 budget, he has projected $3.8 million. John Kraus said that the City could get between $4.3 and $4.5 million. ADJOURNMENT There being no further business, Mayor Valerie adjourned the workshop at 12:25 p.m. Respectfully submitted, Kathy Moran 4 of 4