City Council

October 8, 2012 CITY OF SARATOGA SPRINGS Budget Workshop City Council Room 1:00 PM PRESENT: Scott Johnson, Mayor Michele Madigan, Commissioner of Finance John Franck, Commissioner of Accounts Anthony Scirocco, Commissioner of DPW Christian Mathiesen, Commissioner of DPS STAFF PRESENT: Shauna Sutton, Deputy Mayor Lynn Bachner, Deputy Commissioner, Finance Sharon Kellner-Byrnes, Deputy Commissioner, Accounts Eileen Finneran, Deputy Commissioner, DPS EXCUSED: Tim Cogan, Deputy Commissioner, DPW 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 1:08 p.m. PUBLIC COMMENT Mayor Johnson opened the pubic comment period at 1:09 p.m. No one spoke. Mayor Johnson closed the public comment period at 1:09 p.m. BUDGET WORKSHOP Mayor Johnson stated the only reason for today’s meeting is the budget workshop. Commissioner Madigan advised this is the first budget workshop for the 2014 comprehensive budget. They will be discussing the Mayor’s and Recreation Departments budgets. She will be creating a spreadsheet of requested changes. She asked the Council to use the budget change request forms if they would like to make a change to their budget. Mayor’s Department Mayor Johnson stated he doesn’t have an overall objection to the Mayor’s Department budget; it is in line with what they asked for. A significant difference he sees is in the line for outside legal counsel; they requested $20,000 more than what they were given. They requested $75,000 and Commissioner Madigan is proposing $55,000. His concern is what will happen to the amount in the 2013 line for that service if not spent by year end. From looking at previous years, he does not believe $55,000 will be sufficient. Budget Workshop 10/8/13 Commissioner Madigan stated this is what they did last year; budgeted $55,000 with anticipation that funds would be encumbered from the previous year. She understands that this is important to the negotiation of the labor contracts. If the mayor knows he will not be encumbering into next year, then maybe they should have a change request. Mayor Johnson stated a number of dates have been scheduled from now until the end of the year for negotiations. They will be expending funds this year by year end and spending the line down. The other item reduced is the city attorney salary. They asked for an increase of $12,000 to have more of a distinction between the assistant city attorney and the city attorney. The increase is also for someone to be able to fill the position by making it more attractive. Because it is an appointed position, it is hard to find someone who will do it for 2 years. Commissioner Madigan stated she felt since it is a 30 hour per week position and there is an assistant city attorney at 20 hours per week; she felt it was difficult to increase this position. She understands the value of the city attorney; but we have also spent close to $300,000 in outside legal services fees and have dedicated another $55,000 in 2014 for legal services fees. Mayor Johnson stated it is stated as a 30 hour per week position but it is rare that the city attorney only puts in 30 hours per week. He is raising it as an issue as it is something he is not taking lightly asking for an additional increase. This is the first time he has asked for an increase in this position since he has been in office. Commissioner Madigan asked she would like to see an overall review of the positions for the city attorney and the assistant city attorney. Mayor Johnson asked Commissioner Madigan how much if any does she see of contingency being available to go toward the cost of newly settled labor contracts. It appears after transfers done this year, the amount remaining in contingency is $222,000. Commissioner Madigan stated we will have used about $400,000 for settlement of back contracts. At this point, if other contracts do not settle; that will leave an additional amount of about $150,000 in contingency. If we don’t use this money, it will roll to a surplus. Mayor Johnson stated of the number of labor contracts involved; 4 are the largest contracts. He doesn’t want too much expressly designated as a budget item to settle contracts because the unions know about it and use the figure at times to develop their demands. They feel the money is set aside for that purpose. It is a delicate balance. If all the contracts do settle, is there enough set aside to pay what we can realistically project as wage increases. Commissioner Madigan stated they have done cost outs. Two of the most expensive contracts that haven’t settled and go back to 2008 are the chiefs’ contracts. She has a fair estimate in mind of what they may settle at. She feels contingency should be healthier; however; over the past couple years; she set aside a healthy amount of contingency. Because the state of the contracts are unknown, she didn’t feel comfortable with setting aside such a health contingency for contracts. She believes between the $375,000 out of fund balance excess set aside and the $150,000 in contingency, we are looking at a sizable number. The message is the contracts need to be settled. We must have money set aside for the contract settlements. Mayor Johnson stated since he has been here, he has tried to make the contracts more affordable. That takes longer to settle them. He wants to be fair with labor but also make sure the City can afford the contracts. His concern is the contingency enough; $525,000. Commissioner Madigan stated we still have a health fund balance. She understands the mayor’s logical in how he proceeds in settling the contracts, but we saw the budget jump $500,000 with the settlement of 2 contracts. When we do allow the contracts to go so unsettled for so long, it jumps the budget significantly that it makes it difficult to do the other things we might want to do in a given budget year. Just having the Page 2 of 3 Budget Workshop 10/8/13 set aside and the contingency is the best we can do. It will help to use this year’s funds to settle these contracts. Mayor Johnson stated we didn’t have the expenditures in the prior years the contracts remained unsettled. It is a balancing equation and a mathematic equation. Commissioner Madigan stated the problem is the tax rate hasn’t been able to keep up with the large jump and we are in our 3rd year of the tax cap. We still need to maintain the increases in wages and benefits as we move forward and settle the other contracts. Mayor Johnson stated we have to take into account the savings in health care for the City with the consolidation of plans. We need to ask ourselves what would happen if we didn’t have the health care savings. Recreation Department Commissioner Madigan advised she left this budget as requested. John Hirliman of the Recreation Department stated he has no overall objections to the budget. They increased revenue by $10,300 and decreased their expenses by $29,500. Their main focus this year was to increase revenue in the Recreation Center and looking at increasing technologies for tracking purposes for participation and reporting. They are also looking at increasing marketing and outreach in the community. Instead of doing ID badges for their volunteer coaches, they are buying all of them t-shirts so they are easily recognized on the fields. Mayor Johnson stated he thought the Recreation Department budget was well put together. Commissioner Madigan advised there is a sub-department in recreation for $11,795 for the Waterfront Park. Is this amount sufficient at this point in time? We don’t have any details other than the renderings provided at the last City Council meeting. Mayor Johnson stated he will be presenting figures for the Council of the best estimated cost for Phase 1 which they would like to begin now and completed early 2015. He doesn’t want to lose the money from New York State. He will look to have DPW involved as the in-kind component. Commissioner Madigan stated she is very interested in seeing that. She is concerned about the cost and hopes that information will be coming forward soon as we are doing the budget now. ADJOURNMENT Mayor Johnson moved and Commissioner Mathiesen seconded to adjourn the meeting. Ayes – All There being no further business, Mayor Johnson adjourned the meeting at 1:42 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 11/4/13 Vote: 5 - 0 Page 3 of 3