City Council

November 30, 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 11/30/10 November 30, 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 7:04 p.m. PRESENTATION Commissioner Ivins stated the latest changes to the proposed 2011 budget have been provided to the Council and the public. Changes since yesterday are as follows:  Mayor’s Office decreased their budget by $19,700  DPW decreased their budget by $20,800  DPS decreased their budget by $34,300  Recreation Department decreased their budget by $20,000 The total amount of reductions totaled $94,900. The tax increase is now 4.45%; $6.06 per thousand for the inner district and $6.00 per thousand for the outer district. This would equate to a taxpayer with a Page 2 of 8 City Council Meeting 11/30/10 home in the inner district assessed at $200,000 paying an additional $51.69 per year; a taxpayer with a home in the inner district assessed at $300,000 would pay an additional $77.54 per year; and a taxpayer with a home in the inner district assessed at $400,000 would pay an additional $103.39 per year. These numbers do not include library, school, or county tax. We are still near a $2.3 million dollar operating deficit for this year. PUBLIC COMENT Mayor Johnson opened the public comment period at 7:09 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. Remijia Foy of 95 Oak Street stated a 4.45% increase is not acceptable. She knows the Council worked to pair down the increase, but it only decreased a half percent from last night. There are items in the budget that she is not sure should be there and need to be explained. She inquired what education awards are at $103,000. Commissioner Franck suggested writing all questions down and then the Council can answer them after the public comment period. Ms. Foy went on to ask if the animal control line can be reduced. How many animals do we control on a yearly basis? Have any arrangement been made with Skidmore College for public safety services? Do we really need the police captain position at this time? Are we collecting for false alarms and if so, how much have we collected to date? If we collect $17 million dollars in property tax, we are sending the county about $8 million dollars. In addition, we are receiving about $8.7 million in sales tax – that is 50% of the 3% that the City collects. Those numbers tell her the County is receiving another $8.7 million from the City sales tax. The County is receiving over $16 million in taxes from us – what are we receiving from the County for that $17 million dollars. She is disappointed that the Council is reluctant to pursue the transfer of the dispatch services to the County. We are paying for some services twice as we are sending $17 million to the County from Saratoga Springs. She was informed by Commissioner Scirocco that the County does not reimburse the City for accommodating that County service. Kyle York of 59 Railroad Place stated he has great concerns regarding union expenses. The average increase in expenses from 1963 to current is 1000%. The City budget has increased 1045% with salaries in some departments increasing 1,300%+. Unions get special treatment in this City. We made the case of going to one payer with multiple plans within that insurer and the unions rejected that. He questioned why the budget started with the union dispatchers and union police captain being cut and now they are all back in the budget. He gave examples of union bullying and asked if that attitude and behavior provoked special favors in the budget. We don’t need $.81 of every dollar going to the unions. Scott Prehn of 10 Pleasant Drive stated the last time he was here he complained about not being able to get a building permit. A day or two later he did receive his permit and tonight publicly thanked the Building Department for that. He believes the 4.5% increase is not bad and is willing to live with it. He likes the services and he likes being safe. He would like the Council to think of ways in which we can help those who have served our country as some of them can’t afford the 4.5%. Phil Diamond of 29 Waterview Drive stated the 4.5% increase represents an attempt to reduce the tax increase as far as the Council thinks they can. This increase is a trend that shows you can’t live within your means. This action reminds him of shopaholics who take credit cards and when the bill comes in they run to their daddies. We are not your daddy. You have to call unions in and tell them we are not going to stand for it. There are people here who can’t live with 4 – 5% raises each year. Page 3 of 8 City Council Meeting 11/30/10 Al Callucci of 9 Lexington Road stated comp time and the overflow of comp time have been discussed. What would make us believe the trend would change in a year. The more numbers we put down in revenues that may not occur, the more problems we are going to have next year. We may see money come back in February but it doesn’t do any good to the taxpayer. The taxpayers are underwriting the tax increase. He thanked everyone on the Council for their cooperation. Peter Tulin of 40 Sarazen Street stated the budget is problematic every year. He agrees with Commissioner Foy that the City should be redefining its relationship with the County; and with Kyle regarding the amount that is going to the unions. We need to be careful when we talk about the employees as they are our neighbors, family, etc. He suggested once this budget process is through, the Council look at the whole budget process and plan out in the future. Abbey Temple of 16 Madeline Drive stated the budget is confusing to her. She is afraid if this amended budget doesn’t pass we will have the default budget in effect. The increase of 4.5% isn’t bad compared to an 8% increase. Mayor Johnson closed the public comment period at 7:43 p.m. Commissioner Wirth stated he will forward a response in writing to Ms. Foy regarding her questions. He stated the educational awards are contractual based upon degrees achieved in the Fire Department and Police Department. The state law requires they have an animal control officer. This person also acts as a parking enforcer when not acting as an animal control officer. False alarms are tracked and they do bill if they respond. It is intended to cut down on the amount of false alarm calls the officers respond to; it is not intended to be a revenue generator. Commissioner Ivins stated the memorandum of understanding approved by this Council called for a reduction in the amount of comp time that can be cashed in. The unappropriated/unreserved fund balance has been being spent down. If we use any of that money in the budget, we will be building in a tax increase for next year. Commissioner Scirocco stated DPW and DPS provide the essential services to the people in the City. He too lives in the City and doesn’t think a 4.5% tax increase is good. Employees are working their butts off to make the City look good to generate revenue down the road. He went back 5 years to look at the budget. His budget of $8.5 million is equivalent to a 2005 level. His process is to sit with the department heads, office manager, and deputy on a quarterly basis to review. That is how they are able to come in under budget. His department gave back $1 million dollars last year and $300,000 this year. The two departments (DPW & DPS) constantly get picked on. These are the 2 departments that actually provide the services to make the City run. Without DPS and DPW this City doesn’t run. We have to make the tough decisions and that’s what they get paid to do. At election time, if the public doesn’t like what we are doing; vote us out of office. Commissioner Wirth stated the originally 2011 DPW budget request was for $20.9 million. The Finance Department came back with a budget of $19.4 million. After review, public safety agreed to reductions of $840,000. Requests or replacement police cars were not fulfilled. The only reductions the Department of Public Safety questioned were the elimination of the dispatchers and the police captain. The amount not being spent in 2010 is $275,000. Mayor Johnson stated they looked at last year’s budget and kept requirement in mind to reduce the budget by 10% of the prior year’s budget. They went line item by line item and submitted their original 2011 budget with the requested 10% reduction. They made a judgment call to take the risk and cut as close to the bone as possible. As of this afternoon, they made additional cuts of $19,500. The balance being turned back into the 2010 budget is $200,000. He is not happy with the 4.5% tax increase; being a full service community does cost money. He has been negotiating with the unions over the past year and a half. He did try to bring in one health care provider with 2 options; it has been rejected and is in arbitration at this time. The minimum savings to go with one provider would be $800,000 per year. The savings would have covered the tax increase. Page 4 of 8 City Council Meeting 11/30/10 Commissioner Franck stated there are no material differences tonight from last night. He looked at every line item and he is nervous about some of the revenues. He asked the following questions of the other commissioners:  This year the planning board fees are projected to be $90,000 and next year they are projected to be $105,000. Commissioner Franck asked for an explanation of the 17% increase. Mayor Johnson stated they have seen more activity in the last quarter but they do think the 17% increase is achievable.  Commissioner Franck asked for an explanation of the increase for building permits going from $85,000 to $102,000. Mayor Johnson stated the reasoning is the same and they are trying to assess the impact of Global Foundries in terms of new development.  Finance is projecting $8.7 million in sales tax for this year and jumping 4.6% to $9.1 million. Commissioner Ivins stated we grew by that amount this year. Also, we have Global Foundries coming in and the price of gas is going up. Commissioner Franck stated he is nervous about this sales tax number.  The Lillian’s lot is showing $750,000; was there a down payment? Commissioner Ivins stated $75,000 is in an escrow account and has not been reported as revenue.  DPW is showing a 20% increase from $50,500 to $60,000. Commissioner Scirocco stated they are at $50,000 this year already. They bought a token booth this year and will generate more money due to the token booth. They hope people will buy 1 token for a ride and 1 token to take home.  The Casino revenue decreased. Commissioner Scirocco stated he blames the economy. They have lost some business due to the increase in rates.  The chair rentals are showing an increase; DPW is showing a 43% increase in rentals. Commissioner Franck asked if there is a decrease in people coming, how can there be an increase in chair rentals? Commissioner Scirocco stated it is up to the people to decide if they want to rent the chairs from us. A lot of the time the people go out and rent from another entity.  The transfer bag sales is projected to be $203,000 this year and $250,000 next year. Commissioner Scirocco explained the reason for that is the tipping fees are down; the expenditures are down as they are emptying the compactor less. If there is less expenditures that money switches over to revenues.  Commissioner Franck asked if we received payment from the school district for 2010. Commissioner Ivins stated we have not received payment to date from them. Mayor Johnson stated we were still under contract with them so he will pursue payment. Commissioner Franck stated he is not going to vote for the budget because he is scared about a lot of the revenues. He suggested that change be made tonight at the table. Commissioner Ivins stated that is part of the 2010 projection. Commissioner Franck stated he also had some questions on income. They are as follows:  He asked if any discussion occurred regarding the combining of the human resource position and the finance position for health benefits. Mayor Johnson stated it is his intention to include health benefits and retirement issues with the human resource position.  He suggested seriously looking at the administrator of planning and economic development and the assistant planner positions as we don’t have a lot of growth going on. The question is can we sustain this?  He stated we have $202,000 in contingency. Do we have any from the year before? Commissioner Ivins stated we start with a number at the beginning of the year. Commissioner Ivins approves a request for that money from a department for unexpected expenses and brings it to Council for approval of that expense. Once that expense is approved, the money is moved out of the contingency line and moved to that expense line. Commissioner Franck asked if we built in any contingency for the union contracts if we have to pay anything. Commissioner Ivins stated if we will have to pay anything is yet to be seen.  He has concern with the Engineering Department; $168,000 for the city engineer with benefits. Commissioner Scirocco stated that is a position the Charter requires the City to have. Page 5 of 8 City Council Meeting 11/30/10 Commissioner Franck stated we also have an assistant City engineer, intern, CAT tech, engineering tech, and outside engineering firms. He is not sure that the work is there.  Commissioner Franck advised $232,000 of the $300,000 Commissioner Scirocco claims to have cut is due to self insurance cases. Commissioner Scirocco stated that isn’t true. Commissioner Franck explained because of the way we have been able to manage cases through the City attorney or the risk and safety manager; we did not have to accrue. We were able to take winnings from other cases. Commissioner Scirocco stated there was $232,000 added to his budget from Commissioner Franck’s office. Commissioner Franck advised several years ago the money was broken down by where the lawsuits were.  Commissioner Franck asked what the $17,000 is in the equipment and vehicle rental line. Commissioner Scirocco stated he didn’t know; he would get back to Commissioner Franck on that. Kathy Moran stated that was for the rental of the screen or loader. Commissioner Franck asked why it was zero the year before. Kathy suggested they may have done without. Commissioner Franck asked why can’t we do without this year.  Commissioner Franck also inquired about the increase in the salt and sand line; there is a 500% increase. Commissioner Scirocco stated whatever it is they must have requested it. Deputy Commissioner Kate Jarosh stated the line being referred to is the one Commissioner Scirocco requested be reduced as he didn’t think he was going to use it all. Commissioner Franck stated he wants to be sure people understand we are probably going to start $600,000 - $700,000 in the hole next year.  Commissioner Franck asked if the repairs and maintenance increased in DPS because they didn’t get the newer vehicles. Deputy Commissioner Dudla stated that because they lost the 3 vehicles out of the budget, they increased the repair line to keep the older ones running.  Commissioner Franck asked about the expenses for horse care. Deputy Commissioner Dudla stated stabling is free. The money in the line item is for vet care and food.  The Recreation Department has $30,000 for the recreation director. Is this because it is part time? Mayor Johnson stated the plan is to bring the retired recreation director back on a part time basis. Commissioner Franck stated his department has had additional cuts too. Marilyn Rivers hasn’t had a raise in 3 years although she has saved the City $600,000. He is concerned about the Lillian’s lot. He is wondering if there could be a 1 time rebate to the homeowner’s should we find we have more money than expected. Commissioner Ivins stated there is some mechanism for doing that – Clifton Park did that. Commissioner Franck stated when this process is over; we need to look at our debt limit. He would like to go back to the Connolly Amendment. He can’t support this budget as there are too many unknowns. Commissioner Ivins stated 4.5% is too high. He will vote in favor because 8.5% is way too high. He tries to put his budgets together with the future in mind. We have made 48 full time position cuts; that is a long term benefit to the City. It was a short term hurt as we had to pay unemployment. He commended the mayor for sticking to his guns and not giving in to the unions and settling contracts – long range planning for the City. He looks forward to public meetings in the various neighborhoods as they discussed. FINANCE DEPARTMENT Discussion and Vote: Adopt 2011 Budget Commissioner Ivins moved and Commissioner Wirth seconded to put forward the proposed amended budget in front of the Council with the water and sewer and the complete comprehensive including the City Center. Page 6 of 8 City Council Meeting 11/30/10 Commissioner Scirocco stated this budget does provide enough money to provide the services they need to the people in the City. He still believes the insurance piece should go to the human resource position. He doesn’t believe the City can go without a human resource person. Commissioner Ivins stated insurance is only a portion of that position. He has expanded duties to take on more finance duties such as collection of taxes, collection of water bills, etc. Someone has to be in the position immediately. The human resource position was made for only 10 months as the mayor has had problems filling that position. Commissioner Scirocco asked Commissioner Ivins if he has a part time person filling in. Commissioner Ivins stated his part time position has been eliminated. Commissioner Scirocco stated it is a new position with new duties. Commissioner Ivins stated it is not a new position. It is the same position they redesigned to save the City money. Commissioner Scirocco stated it is a $44,000 position and he is hiring a new person. The opportunity is on the table for the City to save another $44,000. Commissioner Ivins told Commissioner Scirocco that he is hiring 5 new part time people coming on for $53,000 a year. Commissioner Scirocco stated they are part time with no benefits or contractual increases. We can hire them for 2 weeks and let them go. Commissioner Ivins stated that is truly 5 new positions. He is only replacing someone. Commissioner Scirocco asked how they came with the $44,000 for the position. Deputy Commissioner Kate Jarosh explained they determined what they needed was a principle account clerk and added duties to arrive at $44,000. Commissioner Ivins stated that is what is in the union contract. Commissioner Scirocco asked if it has to be a principle account. Is there another one in the City? Deputy Jarosh stated there are no others. This is a grade 13 step 1. Commissioner Scirocco thought this would be an opportunity for Commissioner Ivins to step up to the plate and say he could do more with less. If he needed at some point during the year, he would still have the position and he could come to the Council to fund it. Mayor Johnson stated we have a human resource administrator scheduled to be filled next year. If that position is not filled in the first 3 months of the year, what does the Finance Department do to address the needs of the department for insurance issues that will ultimately be transferred to the human resource administrator? He has concern over funding a $44,000 position when they know the duties will be changing during the course of the year. When that happens, it will be back to the Council to defund the position in some manner as he doesn’t want to pay someone $44,000 per year that is not working full duties to earn it. He doesn’t know how to address that in terms of a temporary measure. Commissioner Ivins stated there are a lot of other things that goes into this position. What exactly is the time frame for the human resource position; could we go another whole year before that position is filled. Page 7 of 8 City Council Meeting 11/30/10 Commissioner Scirocco asked if the retiree would fill in for the next 2 or 3 months. Commissioner Ivins stated he hasn’t had that discussion or figured the cost associated with that. Mayor Johnson stated he does expect to be able to fill the human resource position as the salary has been increased. Roll Call: Commissioner Franck – Nay Commissioner Ivins – Aye Commissioner Scirocco – Aye Commissioner Wirth – Aye Mayor Johnson - Aye 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 9:17 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 12/21/10 Vote: 5 - 0 Page 8 of 8