City Council

November 23, 2010 CITY OF SARATOGA SPRINGS City Council Meeting Agenda 6:00 PM CALL TO ORDER ROLL CALL SALUTE TO FLAG PUBLIC COMMENT PERIOD / 15 MINUTES PRESENTATION(S) None EXECUTIVE SESSION Discussion regarding proposed, pending or current litigation, collective negotiations. CONSENT AGENDA None MAYOR’S DEPARTMENT None ACCOUNTS DEPARTMENT None FINANCE DEPARTMENT None PUBLIC WORKS DEPARTMENT None PUBLIC SAFETY None SUPERVISORS ADJOURN City Council Meeting 11/23/10 November 23, 2010 CITY OF SARATOGA SPRINGS City Council Meeting City Council Room PRESENT: Scott Johnson, Mayor Ken Ivins, Commissioner of Finance John Franck, Commissioner of Accounts Anthony Scirocco, Commissioner of DPW Richard Wirth, Commissioner of DPS STAFF PRESENT: Shauna Sutton, Deputy Mayor Kate Jarosh, Deputy Commissioner, Finance Sharon Kellner-Chille, Deputy Commissioner, Accounts Tim Cogan, Deputy Commissioner, DPW Frank Dudla, Deputy Commissioner, DPS Joe Scala, City Attorney RECORDING OF PROCEEDING The proceedings of this meeting were taped for the benefit of the secretary. Because the minutes are not a verbatim record of the proceedings, the minutes are not a word-for-word transcript. WORKSHOP Commissioner Ivins passed out amendments requested from departments. Some expenses and revenues went up and some went down. The tax assessed value decreased with these requests to 8.26%. The Mayor’s Department requested nearly an even exchange in expenses; the Finance Department decreased expenses by $15,344.45; DPW expenses increased by $152,650 and had a decrease in revenue by $50,000 in the recreation area; DPS included $272,000 for the SAFER Grant; and the Recreation Department requested an additional $80,000. The big piece that is still missing from the budget numbers is health insurance. All health insurance lines will change after the conclusion of open enrollment. Also, 2010 projections have been updated and are in need of finalization by each department with his office. Commissioner Franck stated he would like to hear from the other departments first. He spoke with Commissioner Ivins regarding a notice NYS sent out on November 1st about a glitch in the NYS Real Property Service program. There were minor adjustments in our assessed value base. It did affect the taxable rate because the assessed value changed. It affected less than ¼% on average. The error has been corrected. Page 2 of 7 City Council Meeting 11/23/10 Commissioner Scirocco stated a big change was the $100,000 in the labor line. They had 4 people retire and 2 people resign this year. If that money didn’t get back in the budget they would lose an additional 4 people. The first budget they submitted to the Finance Department in August showed a reduction of $240,000 in expenses. Finance asked them to look at the budget again and they did reduce their budget by another $72,000. They are always looking at new ways to generate revenues. They are thinking of opening up the area on High Rock for rentals. They are thinking of selling compost by the bag at the transfer station. They have not established a fee for either of these ideas yet. He stated they need $16,000 in the garage supply line and $25,000 in the highway rubble line. Commissioner Wirth stated they expect to finish 2010 under budget. They are in the position to potentially reduce their 2011 budget request. DPS requested $20,697,000 and the comprehensive budget $19,413,482. The recommended cuts were $1.2 million dollars and they agreed to $843,000 with putting the dispatchers and the captain back in the budget. Mayor Johnson stated there were some minor changes from the previous proposal. They realized that to raise the fees to the amount requested would result in less participation. The initial proposal of fee increases was 6.5% over the 2010 fees. After review, they raised the fees a marginal amount to be a total fee increase of $10,000. The rest of the modifications are minor and involves shifting between the city attorney outside fee line to allow for an increase in compensation in salary of the administrative assistant position formed earlier this year. This position is the combination of 2 previous positions was meant to be done on a temporary and trial basis. This position has worked out well and there is a lot to be done by this individual. The pay scale of $30,000 for that position is unrealistic for the amount of work being done, the responsibility, and comparison to other salary structures already in place in City Hall. The proposal is to increase that person’s compensation to $34,000 per year and will be covered by the reduction in the city attorney outside fee budget item. Commissioner Scirocco stated he knows when they vote on the budget they will be voting on the water and sewer budget. They are still waiting for the 4th quarter numbers to come in. He is projecting that they will have an operating surplus. If they had any tax increase, which they don’t anticipate, it will be minimal. Commissioner Franck stated 8.2% they are at right now is unacceptable; he is not going to vote for it. He hoped when they came back there would have been some serious reductions. He does believe some departments have overstated their expenses for 2010. He had hoped for reductions but instead we had increases. He would rather not budget the one time money of $750,000. He would strongly suggest re- instituting the Connolly Amendment on bonds. If this Council is not willing to make the tough decisions to make the cuts, then he will take up the Chamber’s offer to bring in people. He believes they can do better and he urged the other departments to look harder at their budgets. Commissioner Ivins stated he put the comprehensive budget together based on projections the departments gave him. It looks like this budget is $400,000 better than when he first presented the budget but it is nowhere near where the public is talking about. If the projections are off and you are not going to be spending that, then you don’t need to spend it next year. He is not comfortable with one time money. Eventually we have to bite the bullet and make some solid cuts. Mayor Johnson confirmed the comment of not spending the projected amounts for this year is being directed to DPW and DPS. Commissioner Ivins stated that was correct. Mayor Johnson asked if each of those departments could explain where they are in terms of the most realistic projections. Commissioner Scirocco stated the $70,000 in recreation and $100,000 in highway that was taken out are bodies. DPW provides essential services and are operating at a bare bones budget. There are expenses in their budget such as utilities that they can’t cut. If they cut rubble, they can’t repair the streets. They are Page 3 of 7 City Council Meeting 11/23/10 at numbers from the 2005/2006 budget. He believes the 8.2% increase is unacceptable but what can be done about it. Commissioner Ivins stated the comprehensive budget was $300,000 more than where Commissioner Scirocco thought he was going to finish this year but Commissioner Scirocco requested an additional $151,000. It is going in the wrong direction. Commissioner Scirocco stated some of that $150,000 was a $50,000 position recommended by Johnson Controls. That increased his budget. Commissioner Ivins asked why he didn’t take the money from the $300,000 he said he would be saving this year. Commissioner Scirocco stated that was new money they had to put in. They had no control over that. Commissioner Ivins stated the original request was for $8.6 million; it was reduced to $8.4 million; and Commissioner Scirocco brought it back up to $8.6 million. Commissioner Scirocco stated Commissioner Ivins cut the labor line. He stated Commissioner Ivins needs to cut his department a little more. There are positions in Commissioner Ivins’ department that he doesn’t think is needed; the $44,000 position. Commissioner Ivins confirmed Commissioner Scirocco was referring to the position that is replacing the $60,000 position. Commissioner Scirocco stated that was the one. He believes a human resource position is needed. Commissioner Ivins stated a human resource position is in the budget in the Mayor’s Department. Commissioner Scirocco stated he didn’t see it in the budget. Commissioner Wirth stated he is managing his department well. They should be under budget by $600,000 for 2010. Commissioner Ivins asked if they project to not spend all expense money this year, why isn’t that number reflected in the 2011 budget. Commissioner Franck stated there is no inflation so there has to be money there they can cut. We can’t budget sales tax right now; it may not go through. Only 6 people took the early retirement incentive. The labor side isn’t going to move because they don’t have to. Most people came tonight thinking they were going to hear 3 – 4% and not be happy but would live with it. Commissioner Scirocco stated there haven’t been raises. Commissioner Ivins reminded all that there have been step increases which are 3 – 5%. Commissioner Franck reminded all that there may be back pay due. Commissioner Ivins agreed that was possible and that would be another reason to build up the unappropriated/unreserved fund. Mayor Johnson advised that one contract is in place with no retroactive pay. All wage increases will have to be negotiated. He pointed out there is a wide spread between the projected unspent sum for the 2010 projection from DPW & DPS versus what the Finance Department has in the amended budget; $414,000 as unspent. He is hearing DPS and DPW say they have $900,000 unspent between the 2 departments. Page 4 of 7 City Council Meeting 11/23/10 Commissioner Franck stated there is only 1 week left to pass the budget. They better get the numbers right because they can’t come back to reduce people’s taxes. Commissioner Ivins reminded everyone the key to projections is where they plan to end the year. Commissioner Franck stated the departments should start the year with the number they ended with. Commissioner Scirocco stated they need new vehicles and didn’t put in for any. Budgeting in his department is not an exact science. Commissioner Ivins reminded Commissioner Scirocco that he stated he was working with a bare bones budget for 2010 and is still coming in under budget. Commissioner Scirocco stated you can not run his department on Commissioner Ivins’ comprehensive budget numbers. Commissioner Franck asked for the projected sales tax numbers again. Commissioner Ivins stated $8.7 million for 2010 and $8.9 million for 2011. Commissioner Franck asked if anything is being looked at in engineering as there are some high priced salaries there. Commissioner Scirocco stated he can look at that. They are working on a number of capital projects. Public Comment Peter Martin of 101 Bryan Street stated he shares the disappointment voiced by Commissioner Franck. He is not surprised given the process followed from the beginning. The Charter states the budget is to be created by input from the Council and the public. To have adequate input, all must have adequate information in a timely manner. The lack of detail provided in the materials is the reason why what is going on with expenses in DPW with expenses being overstated. The purpose of a budget is to get balanced and to be a road map to run the City by. Coming up with unrealistic estimates of revenue and unrealistically low expenses is not a good tool. Al Callucci of 9 Lexington Road stated the fee for the carousel was increased to $1 for 2010 and the revenue was $45,000. The revenue that was budgeted was $60,000 and the revenue budgeted for next year is also $60,000. Why would you budget $60,000 when the revenue was $45,000? Every time you raise prices, you lose participation. Trash bags are a good example; they went from $3 to $4. The budget is $250,000 and Commissioner Scirocco had $150,000 in revenue after the first 3 quarters of the year. If you run through the year at the same pace, you are looking at $200,000 in revenue. Commissioner Scirocco increased his budget because of the increase in the cost of the bags. You are not going to hit that budget and will be short $50,000 in revenue and next year they projected the same amount. You could see the same thing happen at the recreation center if the fees are increased. The overall budgets are being stated $400,000 under budget. In order for that to happen, DPW and DPS would have to spend 50% of the money they have spent in the first 9 months of the year in the last quarter. There has to be a way to control that. He doesn’t want to see a budget passed where we will find out in February we have $1 million dollars more and the tax increase is being used to go into the reserves and not the budget. Commissioner Ivins stated we lost less than we thought we would lose. We didn’t grow; the unappropriated/unreserved fund balance went down less than we thought last year. Mr. Callucci stated last year $1.5 million was overstated revenue in revenue. He doesn’t want to see that happen again. He is just trying to make sure we put together the best budget possible. Page 5 of 7 City Council Meeting 11/23/10 Sara Burger of 44 Stafford Bridge Road stated she also shares the same disappointment as Commissioner Franck in this budget. At the budget hearing on November 15th, Mayor Johnson spoke about consolidating the health carriers. She is under the understanding that negotiations with one union has broken down. The public is entitled to know what requests for proposals were sent to various insurance companies. In regards to the Police Department budget, the sergeant line salary has increased along with the police officers and lieutenants. What is the reason for that? Commissioner Ivins stated when the captain position was taken out, everything was bumped down. All the lines all the way down were adjusted. When the captain’s position was put back in they got adjusted accordingly back to where they were. Dennis Brunell of 3 Holly Drive thanked the Council as it is a tough job to work with the budget. He is here tonight for a personal reason – to ask for the dispatchers to be kept in the budget. He provided the history of his need to call 911. He couldn’t say enough about the service he received through the help of the City dispatchers. Kyle York of 59 Railroad Place stated the only way to cut the tax rate down was to cut union people. He doesn’t want to see this happen, but he hoped it would make the unions sit down and give back a little. This union does not seem to think they need to do that. We had our scare this year with horse racing. If horse racing doesn’t happen, everything goes to pieces. This week the state cut a deal to get 30,000 acres in return for a real push for a Native American casino in the Catskills. If NYRA dies, there is no one to run the track. The press release by Genting is terrifying. Genting made their whole business model public and was unaware that New Jersey, Pennsylvania, and Connecticut had green lighted new facilities closer to them. Their business plan is unreal and Genting isn’t going to deliver. Phil Diamond of 29 Waterview Drive stated the Council members all have the best interest of the City at heart. They don’t have the best interest of the taxpayers at heart and they are the City. There is fat in the budget. To put money in reserves will only decrease the value. To make people suffer to increase reserve is ridiculous. Remijia Foy of 95 Oak Street commended the Council for taking action and dropping the maintenance of the recreation fields. The school district fee that was paid didn’t cover one DPW salary. This Council in good conscience shouldn’t entertain a tax increase of 8+%. How much could be saved by turning off every other light? What prevents the firemen from purchasing groceries before they go to work so they don’t take the fire truck to Price Chopper? They need to look from the top down – engineers are at a high salary and still engineering services are contracted out. Have we approached Skidmore and not-for-profits to contribute to public safety costs? In 1989 and 1990, employees worked a 4 day work week and saved money. The director of finance should be management confidential and she hasn’t appeared at any of these budget meetings. Why aren’t we utilizing this experience? She should be able to make the projections of 2011, 2012, and 2013. The public isn’t getting answers. Commissioner Franck asked the reporter from the Saratogian to publish the 8.2% tax increase in the biggest font possible to bring this to the public’s attention. He also asked that his cell phone number be published and asked each of the other Council members to do the same. This would give the rest of the public an opportunity to let the Council know how they really feel. Ms. Foy reminded the Council that they represent the tax payer. The unions are their employees and it is time for them to give back. Commissioner Wirth stated his department has engaged in conversation with Skidmore. He is also concerned because they do provide a service. They are putting together a computation of the number of calls and talk with the Council. John Krause of 227 Grand Avenue stated he expected a different result. He applauded Commissioner Franck for stepping up and stating the City should be made aware of the tax increase. He is shocked to hear 8.26%. How can you allow this to happen? The health insurance rates bother him. He is troubled by the 2010 year end spending and why we don’t known what it is. There is no process here. Next year the Page 6 of 7 City Council Meeting 11/23/10 budget process should be more intense so that they are not working at the 11th hour. He feels public comments go unlistened. Another 8% increase is unacceptable and they only have 1 week to figure it out. Commissioner Ivins stated projections of where we are going are part of the process. Encumbrances are something he can’t control. Last year a pick up truck was encumbered; uniforms are encumbered. All numbers are run by the director of finance. We have to address our budget issues. We may have to look at reducing labor again. He announced the next meeting is November 29th. Mayor Johnson asked the Council to keep their calendars open for the 29th and 30th for budget issues and meetings. CALL TO ORDER Mayor Johnson called the meeting to order at 8:20 p.m. PUBLIC COMENT Mayor Johnson opened the public comment period at 8:21 p.m. Mayor Johnson said the public comment period is limited to a total of 15 minutes and individuals are limited to two minutes each according to the rules approved in February of 2004 by the City Council. Al Callucci of 9 Lexington Road stated the message he is hearing is people are willing to accept less services but are not willing to pay more for less services. He believes we can come up with better numbers. The retirement fund of NYS should have a forensic audit called for by the NYS Conference of Mayors. Kyle York of 59 Railroad Place stated he wishes to see union leaders go to the table and make concessions. Mayor Johnson closed the public comment period at 8:27 p.m. EXECUTIVE SESSION Mayor Johnson moved and Commissioner Wirth seconded to move to executive session for discussion involving pending litigation of the DEC matter at 8:27 p.m. Ayes – All Council returned from executive session at 9:05 p.m. Mayor Johnson stated nothing was resolved during executive session; therefore there is nothing to report to the public. ADJOURNMENT Mayor Johnson moved and Commissioner Ivins seconded to adjourn the meeting. Ayes – All There being no further business, Mayor Johnson adjourned the meeting at 9:06 p.m. Respectfully submitted, Page 7 of 7 City Council Meeting 11/23/10 Lisa Ribis Clerk Approved: 12/21/10 Vote: 5 - 0 Page 8 of 7