City Council

November 29, 2010 CITY OF SARATOGA SPRINGS City Council Meeting Agenda 7:00 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 1. Discussion and Vote: Adopt 2011 Budget PUBLIC WORKS DEPARTMENT None PUBLIC SAFETY None SUPERVISORS None ADJOURN City Council Meeting 11/29/10 November 29, 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 ABSENT: 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. CALL TO ORDER Mayor Johnson called the meeting to order at 7:03 p.m. Presentation 2011 Budget Commissioner Ivins presented an amended 2011 proposed budget dated 11/29/10. He highlighted the following amendments:  All $750,000 for the Lillian’s lot was put in the general fund for 2011.  Dispatchers and captain positions were put back in the budget.  Hospitalization pending rates were received although not the ‘official’ rates.  Sales tax revenue increased from $8.9 million to $9.1 million.  Reduced August traffic expense to 2010 level.  Added the SAFER grant for Public Safety. Page 2 of 8 City Council Meeting 11/29/10  Engineering technician is being re-funded up to $8,000 with the difference coming from the capital fund. The highway, rubble, blacktop, and stone line was budgeted for $50,000 in 2009 and $25,000 in 2010 and nothing was used either year. They left $10,000 there and will take that whole amount and moving that over.  Finance fees increased.  Adjusted for health insurance opt-outs.  Finance Department decreased labor by $15,000.  DPW decreased their revenue by $50,000 for their portion of the recreation budget. Commissioner Ivins presented a new tax rate increase of 4.95% which equates to $6.09 per thousand for the inside district and $6.03 per thousand for the outside district. He also explained the importance of the unappropriated/unreserved fund balance. Commissioner Scirocco stated he was glad to see the importance of Matt Zeno recognized. The highway rubble line wasn’t spent down because they have 2 lines and spend down one at a time. If they need the money they will come back to the Council and ask for it. He also confirmed the highway labor line was re- instated. Commissioner Ivins stated it was. Commissioner Franck asked Commissioner Scirocco if the numbers in his memo dated November 23rd is reflected in the budget now. Commissioner Scirocco stated they are. He is doing his share but everyone is trying to balance the budget on the back of DPW and they don’t have the biggest budget. They do as much if not more essential servicers than DPS. If they need to fix a road or do something he will come back and ask for the money. Mayor Johnson stated he understands his argument but they will address that if it comes to it. Commissioner Scirocco stated his argument is legitimate and it is a shell game. No one else is paying a price or giving anything up. The public needs to know what is going on behind the scenes. Commissioner Ivins said it is not behind the scenes; he is putting it right out front. Commissioner Scirocco stated he didn’t see it in the presentation. Commissioner Ivins reminded Commissioner Scirocco that he just said money was being moved from one line to another. Commissioner Scirocco stated he is talking about the other positions that were created in the amended budget. Commissioner Ivins stated a new position wasn’t created. Commissioner Scirocco asked Commissioner Franck if he combined positions and went to Civil Service to ask to combine positions. Commissioner Franck stated it was part of the comprehensive budget; he hasn’t added anyone on since then. Commissioner Ivins stated this is a reduction in staff and as a result of the early retirement incentive. Commissioner Scirocco stated he didn’t replace anyone who retired. He hired back the people that were laid off. Commissioner Ivins reminded Commissioner Scirocco that he is hiring 5 part time people. Page 3 of 8 City Council Meeting 11/29/10 Commissioner Scirocco stated there are some things they did that don’t make sense down the road. Everyone needs to take a look at their own budget and make some more cuts in the own budget and don’t do it on the backs of DPW. He requested 3 things and he doesn’t see those amendments in the budget – he asked for salt and sand. He asked Kathy Moran to explain as she does the budget for his department. Kathy Moran stated they asked for $10,000 for Matt Zeno, $25,000 to cover Johnson Control items, the labor money in the highways line, $15,000 in the highway rubble for a total of $25,000 in that line, $20,000 more for salt and sand, and all their recreation requests were covered. Commissioner Scirocco stated they are faced with some tough times. They provide essential services and it is important they keep a sufficient amount of people on their staff. Commissioner Wirth stated he understands what Commissioner Scirocco is saying and it’s on the record. If at any time an emergency occurs he can come back to the Council for them to address it. He appreciates the acknowledgment of the importance of the captain and dispatch positions. The dispatchers went out in the City and obtained 800 signatures in support of their positions. They educated the City about what they do. He thanked the dispatchers for what they do for the City. PUBLIC COMENT Mayor Johnson opened the public comment period at 7:35 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. John Krause of 227 Grand Avenue stated he came tonight with 2 sets of comments depending upon the percent of tax increase being proposed. The good news is there has been a reduction in the increase but the bad news is there is still an increase. The increase was nicely slipped in under 5%. The fundamental question is what is the budget process? We are still rambling about the budget at the 11th hour. The process needs to be improved. Al Callucci of 9 Lexington Road stated he sees a change in the proposed budget for DPW – it was reduced by $300,000. The reverse happened in DPW – their budget went up $600,000. Commissioner Ivins stated that increase was due to comp time. Al Callucci went on to say he can’t understand why the trash bags are still in the 2011 budget revenue at a higher amount than what we sold this year. The same thing with the carousel – we are budgeting a higher amount in revenue for 2011 than we took in 2010. That is not a good budget. There are 2 things that creates Commissioner Scirocco’s dilemma – he has a good percentage of his staff that has 4 -5 weeks vacation per year. He also urged Commissioner Scirocco to look into his foreman to employee ratio. None of this falls in line with the trend line that has been developed within the course of the year. Phil Diamond of 29 Waterview Drive stated the process is flawed. You are not looking at who you are working for. He was talking to the DPW and DPS commissioners. He told them they are working for the taxpayers not the people in their departments. They are budgeting more than they need. He suggested holding reserves to a minimum. We need to cut more. The commissioner of DPW needs to manage his department better and the commissioner of DPS needs to realize we don’t need every position recommended. He likes his cops on the street, not sitting in an office. He is glad to see that there is no cop standing in the back of the room. It personally offends him although it may intimidate others. He reminded the Council they work for the citizens of Saratoga Springs. Kyle York of 59 Railroad Place stated he is here to speak to the process. He focused on the revenue for this budget. He brought up graduated parking fines, parking permits to exempt people from 2 hour spaces, Page 4 of 8 City Council Meeting 11/29/10 motorcycle fines, and cell phone usage. He did notice the union DPW was untouched, the union dispatchers are back in, and the union police captain is back in. Adding the sale of the Lillian’s lot is great, but that is one time revenue. He questioned if the union expenses justified? The City of Saratoga Springs budget has increased 2,178% from 1963. The per person cost of our City government increased 1,045%. The salaries of some of the union workers went up 1,300%; others went up 1,400% - well above the norm. The salaries are disproportionate. Elliott Masie of 46 Circular Road stated he knows the Council has worked hard on the budget. He suggested at looking at engaging the community and look out of the box in term of finance. There are no easy situations and we have obligations. He hopes we can be able to look at where we need to go in City and think creatively. Remijia Foy of 95 Oak Street stated she agrees with Elliott Masie, Kyle York and all who have followed the budget process. A study was released today showing public employees are earning 20% more than the private sector. The Councils have been more than fair and generous to the employees. She received a letter today from the Social Security Administration stating she was not entitled to any increases and she has not had an increase since 2008. Her Medicare costs have gone up so she will receive less in her Social Security check. The Council has to keep that in mind when adjusting the budget to keep the tax rate within reason. She would like to know what the total cost is to operate the Engineering Department besides salary and how many projects are lined up for 2011 to justify the expenses. Also, the commissioner mentioned they had to call in outside engineering services to consult; so what was the total cost for engineering services for last year. How many capital projects are going to require engineering services? If we have no projects, how do you justify the number? Commissioner Scirocco stated he will get the savings by having our own engineers oversee the projects. They write the proposals for the projects to go to bid. They also oversee the outside engineering firms. Ms. Foy went on to ask what the operating expenses are for the carousel. Years ago there were volunteers to run the carousel; that is something we should go back to. She asked if the City spent $96,000 on shirts, ties, pants, etc. last year. Is this contractual? How many employees have this benefit? Commissioner Wirth stated each employee who is eligible for this benefit gets around $700 each. Ms. Foy stated the allowance for clothing should be re-negotiated. She also questioned if the City could get some assistance from the County for dispatchers. We are a complete service city. The budget shouldn’t be so sensitive to employees as much as it should be focused on keeping people in their homes in Saratoga Springs. That is the Council’s fiduciary responsibility. Mayor Johnson closed the public comment period at 8:35 p.m. FINANCE DEPARTMENT Discussion and Vote: Adopt 2011 Budget Commissioner Ivins moved and Commissioner Wirth seconded to accept the 2011 budget as amended by the Council and presented today. Commissioner Ivins stated this motion includes the change for the engineering tech. Mayor Johnson asked if there is still a second with the clarification. Commissioner Wirth stated he still seconded the motion. Commissioner Scirocco asked if the $25,000 for Johnson Controls is in there. Page 5 of 8 City Council Meeting 11/29/10 Commissioner Ivins stated it is in the budget. He also stated he is not comfortable with the amount of the Lillian’s lot being in the budget. He will vote for this because he is not comfortable for the 8% increase and this increase is lower. Mayor Johnson stated he too is uncomfortable given the comments from the last budget workshop regarding the amounts that will not be spent for 2010. The figure now presented this evening is half of the estimate of what will be spent for 2010. That does cut into the unappropriated/unreserved fund. He asked if the latest figures have been discussed. Commissioner Ivins stated the amounts had been discussed. Commissioner Wirth stated his department will come in $300,000 under budget. Commissioner Scirocco stated his department will come in $400,000 under budget. Mayor Johnson stated he is seeing a difference of $250,000. He needs to rectify the difference in figures in his mind before he can vote on this budget. Commissioner Ivins stated he is not sure where Commissioner Scirocco and Commissioner Wirth are coming up with those figures. We won’t know the final figures until well after the first of the year. This number might include encumbrances they put in. This is the best projection as of right now. Mayor Johnson suggested changing the numbers to what is a more reasonable unspent number for this year’s budget before they vote on the budget. If the money is unspent this year, he is looking for those departments to better project how it will be spent next year. If it is not spent this year why would it be spent next year? His understanding is the encumbrance deadline was 5 p.m. today so that figure should be obtainable in the morning to see what is being encumbered. Commissioner Franck stated he is not voting for this. We want to keep the rate as low as possible. When he ran for office, he said he wouldn’t vote for a budget that is in excess of the consumer price index. This budget one is well in excess of that. He is happy the rate has come down. He is concerned with sales tax and the sale of the Lillian’s lot. This could be year 3 of the ‘phantom’ revenue. Unions have no problem with the taxpayer paying a 4.9% tax increase but they don’t ever say they would take a 4.9% decrease. Even when they say they didn’t get an increase, they still get a step increase. Are they coming out and voluntarily deferring a year just so they don’t have to discuss losing the dispatchers. If the union did it, we wouldn’t have to make cuts to any of these departments. If the unions are willing to do it, that’s why there are layoffs. Unless we get rid of binding arbitration, we will lose every time. He believes the Council should go to various locations in the City to hold workshops; it will be different crowds. If we did it for the budget we wouldn’t start out for the 8% increases. It would stop before it starts. There are no contingencies in this budget if a contract goes through next year. He can’t support what he is currently seeing. Mayor Johnson stated surrounding towns and cities are dipping into reserve funds to keep their taxes low. Commissioner Franck stated we don’t have any reserves. Assessments are going down again next year for the second straight year. Mayor Johnson asked for suggestions to further lower the tax increase. Commissioner Ivins stated he is not sure what else we can do. He had made over $1 million dollars in cuts and they were restored. If they took money out of reserves we would only be building a larger tax increase for the following year. The only solution is lay offs –lay offs reduce services. Commissioner Franck stated another solution is a property cap tax / concessions from the unions. Page 6 of 8 City Council Meeting 11/29/10 Commissioner Wirth stated 3 contracts have been signed since 2005. He asked how much money would have to be taken out of reserves to bring the increase down. Commissioner Ivins stated the problem is the money just isn’t there. Commissioner Scirocco stated he is not sure he is ready to vote on this tonight. If we cut anything more it should be non-essential services. Commissioner Ivins stated there are no more non-essential services left to cut. Commissioner Scirocco stated he is not comfortable with 4.95% tonight. He thinks everyone can go back and look at doing something more. He gave up $1 million dollars last year and if he can do it everyone at the table can do it. Commissioner Ivins stated he is happy to pull the motion if they can come back tomorrow night with cuts; but Commissioner Scirocco just gave him grief for cutting him $10,000. Commissioner Scirocco stated they gave Commissioner Ivins $120,000 at the last meeting. Commissioner Ivins stated he just gave back $156,000 that he originally cut. Mayor Johnson stated he would like to know the results of the encumbrances that were due. Any one proposing a new position should come prepared to defend the position including the starting salary and how that is arrived at. Commissioner Franck stated we have been doing that all year with the hiring freeze and would have to re- instate that in January. Commissioner Ivins stated he has not created a new position. They are hiring someone to replace someone, giving them more hours, and cutting the salary by $15,000. This person will be replacing the health insurance administrator. Mayor Johnson stated he is not arguing about consolidating positions. His only question is what goes into the calculation of a starting salary of any department. Commissioner Franck stated he is upgrading a position and paying the start of the grade of a secretary salary. Commissioner Ivins stated his person is starting at the bottom of the grade. As a matter of fact they down graded it a little. Deputy Commissioner Kate Jarosh explained how the Finance Department came up with the salary and job duties of the position to replace the health insurance administrator. They took the principal account clerk minimal qualifications and job description from Civil Service and added duties. They kept the salary at step 1 of the grader per the union contract. Commissioner Scirocco asked if that position could be combined with the human resource position. Commissioner Ivins stated it could be combined if we had a human resource person. Deputy Commissioner Jarosh stated even if they took away the health insurance portion of the position, they would still need an accounts payable and tax collection person. Commissioner Scirocco stated there are people he needs to. He had to do more with less so if he has to do more with less so should others. Page 7 of 8 City Council Meeting 11/29/10 Mayor Johnson stated it is his intention that when they do hire someone as a human resource administrator, that person will handle the health insurance matters on behalf of the City. The Council determines the grade and step of a position. It is not Civil Service or the unions. Commissioner Ivins withdrew his motion. Mayor Johnson announced they will meet again tomorrow at 7 p.m. ADJOURNMENT Mayor Johnson moved and Commissioner Scirocco seconded to adjourn the meeting. Ayes – All There being no further business, Mayor Johnson adjourned the meeting at 9:25 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 12/21/10 Vote: 5 - 0 Page 8 of 8