City Council

October 11, 2012 CITY OF SARATOGA SPRINGS Budget Workshop City Council Room 5:00 PM PRESENT: Scott Johnson, Mayor Michele Madigan, Commissioner of Finance John Franck, Commissioner of Accounts Anthony Scirocco, Commissioner of DPW Matthew Veitch, Supervisor Joanne Yepsen, Supervisor STAFF PRESENT: Shauna Sutton, Deputy Mayor Lynn Bachner, Deputy Commissioner, Finance Sharon Kellner-Chille, Deputy Commissioner, Accounts Tim Cogan, Deputy Commissioner, DPW Eileen Finneran, Deputy Commissioner, DPS EXCUSED: Christian Mathiesen, Commissioner of 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. BUDGET WORKSHOP Mayor Johnson opened the workshop at 5:03 p.m. Commissioner Madigan announced this is the first workshop for the 2013 comprehensive budget. She was looking to focus on the mayor’s budget, capital budget, the recreation budget, and then open the discussion up. She provided each Council member with a spreadsheet she will use to compile changes. Mayor Johnson stated the proposed comprehensive budget that includes the capital budget adopted by the Council last month with changes to it. He feels the procedure of changing the capital budget is flawed as he doesn’t believe the Finance Department has the authority under the City Charter to revise the capital budget for 2013. Procedure to make changes to the capital budget is set forth in the City Charter, requires a public hearing, and a 4/5 vote to change it. Procedurally it is bad process to make changes to make changes to the 2013 capital budget this way. The proposed project for ‘41 Jefferson Street’ is planned to be withdrawn as the negotiations have fallen through and he has no confidence we will be able to purchase that property. In order to do this it has to come back to the Council. The Music Hall air conditioning project was not only for comfort but it is believed to be a revenue based project. The Geyser Road Trail project was reduced from $200,000 to $150,000. This amount came from the architects as the amount that would be needed to do this project. The plan was to move this forward so that when funding opportunities were available, the trail would be ‘shovel’ ready. Budget Workshop 10/11/12 Commissioner Madigan stated she was very clear at the meeting where the vote was taken on the capital budget that finance would have final say overall these projects. The Commissioner of Finance cannot be expected to take all projects from a capital budget as she could be handed $10 million dollars in bonding. It is up to her to decide how much the City can afford to bond. We can discuss these projects and some may end up back in the budget. One of the reasons she reduced the amount for the Geyer Road Trail project is because there are still some funds left over from the Spring Run Trail project. There are probably enough funds left over in the Spring Run Trail to cover what would need to be expended on the Geyser Road Trail project. She is happy to hear the ’41 Jefferson Street’ project is being withdrawn although she feels more parking is needed there. The Music Hall air conditioning project needs more planning and she didn’t see a plan that went along with it. She left in a quite a few large pieces of equipment totaling $519,000, but we just can’t afford all our equipment needs right now. She has looked back at prior administrations and all Commissioners of Finance have removed things from the capital budget. Her reading of the Charter states the Commissioner of Finance has this role. Mayor Johnson stated he is not aware of any other administration other than Commissioner McCabe doing something unique when there was no capital budget in place for 2008. He doesn’t recall someone taking the action of changing the capital budget that had been approved by the Council. Today we are still disagreeing on the process. He is not against making changes to the capital budget for 2013 if that is what the Council wants; but this is not the route. Commissioner Madigan stated she does think the Commissioner of Finance has a role in looking at the recommended projects and perhaps coming forward with different recommendations. The Commissionerof Finance should have that role even if the Council voted unanimously on the capital budget. Mayor Johnson stated they won’t be able to resolve this tonight; but this Council is now bound by the vote they took last month for the 2013 capital budget. This is the improper process. Commissioner Scirocco stated it is his understanding that once the Council votes on a capital budget that’s the way it is. There could be changes, but what does that do to the majority of the Council that has the ultimate authority. Commissioner Madigan advised she would have had a completely different meeting is she did not feel strongly and state the Commissioner of Finance would have the final review of the capital budget. There was a public safety building in the budget under Commissioner Scirocco’s administration and was removed twice. She is not setting precedent here. Commissioner Franck stated he was here when Commissioner McCabe removed the building in 2007 from the 2008 budget. He would have to check the minutes to be sure but he believes Commissioner Ivins did the same type of thing; he is pretty sure this has happened twice before. Commissioner Madigan stated they addressed all the top priorities of the capital budget and Capital Budget Committee’s request. Two projects she felt weren’t quite ready at this time. There is still a lot of equipment in this budget which Commissioner Scirocco should be pleased with. Commissioner Scirocco stated the Capital Committee worked through the pieces of equipment and determined which pieces of equipment needed to be in the 2013 budget. According to the MS-4 regulations, the street sweepers have to be out. We have to report every street we sweep to the DEC. These are all worthwhile items and we are not bonding all this money. Commissioner Madigan stated we are bonding a significant amount of money. If there is something Commissioner Scirocco would like to see put back into the budget he can make that request. That is what this process is for. The street sweeper and the loader were very low on the list. We called your department and was told to remove the sweeper. Page 2 of 5 Budget Workshop 10/11/12 Commissioner Scirocco stated he would give up the sweeper to get the trammel screen. He also feels they could generate revenue in the Music Hall if we could get air conditioning. People would rent it if we had air conditioning up there. Commissioner Madigan stated she didn’t feel the revenue out weighs the expense at this time. She also can’t justify the cost without a project plan. Commissioner Scirocco stated again he would like to include the street sweeper back into the budget. Commissioner Madigan advised she has provided all departments with a form to be completed for any changes/additions to the budget. Commissioner Scirocco advised he has the form. Commissioner Madigan stated she won’t guarantee it will make it back into the budget. Mayor Johnson stated overall he didn’t have much concern over the minor revisions being proposed compared to what his department requested. He wanted to make the Council aware of a couple things; one being the cut in the professional service line in the city attorney’s office from $75,000 to $40,000. History dictates the necessity of this and they may have to come back for additional funds if the need arises. Also, there was a reduction in the amount they requested to institute and complete the comprehensive plan review required under the Charter has been cut by $20,000. The executive assistant for the city attorney was reduced from the requested $16,000 for the year to $10,000. They had to go to this amount to actually get someone into that position. He also asked for clarification of the amount for the human resource position. Commissioner Madigan advised one reason the legal line in the Mayor’s Department was cut is because she felt an awful lot of money was spent on outside legal counsel. She is concerned about negotiating contracts and a lot of money is being spent with the contracts being left un-negotiated. In regard to the amount for the comprehensive plan review, there was no money in that line originally so the amount sheput in is less than their request; however, it is an increase since there was no money there before. Last year there was $20,000 for the zoning review; which has now concluded, so the $20,000 for the comprehensive review is a ‘wash’. She will look at the mayor’s question regarding human resources as she did not budget for a new person. Until they have a job description and a salary line, she didn’t feel it was her role to start budgeting for that and tax the tax payer for that at this time. She asked the mayor to make the recommendation for the increase to the city attorney assistant so they can take another look at that line. Mayor Johnson asked for clarification of the amount for human resources as it says $85,640 in the supplemental materials and $75,000 in the budget line. Deputy Commissioner Bachner explained $85,640 is what is budgeted for the entire human resources sub- department. This includes $75,000 for outsourcing, $300 for office supplies, $250 for postage, $250 for printing, $1,000 for advertising, $7,165 for the employee assistance program and other miscellaneous. Mayor Johnson stated he was under the understanding the goal was to get a full time employee for human resources. Commissioner Madigan stated it is. Mayor Johnson asked if Commissioner Madigan had a timeframe for that. Commissioner Madigan stated there are many things to go through to fill that position such as a job description, test, etc. This could happen in 2013 or may happen in 3014. Commissioner Franck stated they have time before they take a vote on the budget for the mayor to decide what the number should be for the human resource position. Page 3 of 5 Budget Workshop 10/11/12 Mayor Johnson stated the Civil Service specs are done. The next exam will probably not be until October 2013. Commissioner Franck stated that will not prevent someone from being hired. Mayor Johnson someone can be hired on a provisional basis assuming they are willing to do so. That is something we can deal with. Commissioner Franck responded to the mayor’s comment regarding the Accounts Department legal fee line. His legal line went down 16.7% from $60,000 to $50,000. His appraisal fee went down as well; his 2012 budget was less than his 2011 budget, and his 2011 budget was less than his 2010 budget. He is pretty confident his 2013 budget will be less than his 2012 budget. Commissioner Madigan did agree that the Accounts Department does come in year after year with a reduced budget. Mayor Johnson stated he was just asking for clarification why one legal line was left intact and another was cut in half. John Hirliman from the Recreation Department stated he has concern about the recreation fees. There is a $10,700 difference from what they requested. They are confident with their revenues and only went up about $490 on the expense side. Commissioner Madigan asked how they are going to take care of marketing material. John Hirliman stated they will use Facebook and hand deliver brochures to different locations. They are also looking at ways to mail the information to their current members. Commissioner Scirocco stated they asked for $85,000 of equipment for the recreation department and received $22,500. The big item is building maintenance; this year they have spent $6,400 through June on the indoor recreation center. They asked for $5,000 for that line and received $4,000. Commissioner Madigan asked that this information be put on the form so they can continue to discuss the items. Commissioner Scirocco added that the overtime budget for the recreation budget is at $10,000 and they requested $15,000. Commissioner Madigan stated it sounds like Commissioner Scirocco is still reviewing his budget and offered for him to discuss the recreation budget when they discuss the DPW budget. Commissioner Scirocco went back to talk about the revenue of the trommel screen. The revenue projection put out there is $120,000 and that’s too high. The revenue was based upon have the trammel screen from day 1. The rental of the trommel screen was taken out and needs to stay in the operating budget. Commissioner Madigan confirmed he is saying he still needs the added expense even though they want to buy a trommel. Commissioner Scirocco stated that is correct because they need to rent the equipment to generate the $60,000 - $65,000 in revenue. Commissioner Madigan stated it sounds like DPW has a lot of change requests and she is happy to work with them. She asked if they could get the trommel by February. Page 4 of 5 Budget Workshop 10/11/12 Kathy Moran stated they have to call around to find out where a trommel screen is. It could take 4 – 5 months to get here; likely the summer. Commissioner Franck stated if any of the capital budget items are going to be added in, there should be a projection for a few years out to show what the principal and interest payment will be. Commissioner Madigan stated that is what she means by a project plan. Commissioner Scirocco stated they should keep in mind that all the rent collected from the Music Hall goes towards the debt service on the rink. Commissioner Franck took this opportunity to discuss that the date of the next City Council meeting falls on Election Day. If they continue to hold the meeting that day, he has to be out by 9 p.m. Mayor Johnson stated it will have to be a short meeting. They will have to check if there are public hearings. The workshop concluded at 6:12 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 11/5/12 Vote: 5 - 0 Page 5 of 5