City Council

October 31, 2013 CITY OF SARATOGA SPRINGS Budget Workshop City Council Room 1:00 PM PRESENT: 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 (arrived at 1:37 p.m.) Lynn Bachner, Deputy Commissioner, Finance Sharon Kellner-Byrnes, Deputy Commissioner, Accounts Tim Cogan, Deputy Commissioner, DPW Eileen Finneran, Deputy Commissioner, DPS ABSENT: Scott Johnson, Mayor 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 Commissioner Madigan called the meeting to order at 1:12 p.m. BUDGET WORKSHOP Commissioner Madigan stated this is the sixth workshop for the 2014 comprehensive budget. She provided a summary of changes to the comprehensive budget and the recommendations for the proposed amended budget. The proposed amended budget does not include all requested changes. It is based upon available revenues, department priorities, tax cap, and a tax rate she would be willing to present. The proposed changes total $113,000 of which $92,500 is for the Finance Department for health care and contingency; and $20,500 for DPS for traffic control costs and contractually required EMT incentives. The revenues reviewed at the previous budget workshop included a $50,000 increase in sales tax and a $50,000 in building permits. The tax rate increases by 0.08% from the rate (0.68%) originally presented to bring it to a new percentage of 0.76%. Commissioner Madigan advised the mayor’s requested changes totaled $49,680. He asked for additional money for outside legal counsel, money for a part time grants clerk, money to increase the city attorney’s salary, money for a secretary to the Planning Board, and money for a part time clerk at the Visitor’s Center. Outside legal counsel will remain the same as budgeted for 2013; the city attorney’s salary, the part time clerk for the Visitor’s Center, and the secretary for the Planning Board will also remain at the amount budgeted for 2013; the part time grant clerk is a new title as the City already has a grant person. None of these requests have been included in the 2014 proposed amended budget. Commissioner Madigan advised the mayor expressed concern about contingency. As a result, she has increased contingency to $220,000 from $150,000. Budget Workshop 10/31/13 Commissioner Madigan advised Finance requested an increase of $92,500 and $70,000 has been added to increase contingency. Commissioner Madigan advised she received requests from DPW for $106,870, down from $156,000. These requests are for increased labor for the storm water carrier work; vehicle repairs; and a second pick- up truck. At Tuesday’s workshop, Commissioner Scirocco requested a full time account clerk as his top priority, of which 50% would come from the general fund, 25% would come from the water budget, and 25% would come from the sewer budget. She is concerned about the 4 expense lines he eliminated to make this request. She is not willing to increase their employee roster for an additional account clerk as she believes this can be revisited next year as a budget transfer. Commissioner Scirocco stated he is going to revise his request. He tried to be transparent, that is why he did what he did. They have an aging fleet and put in for 2 trucks in his original request and Commissioner Madigan gave him one. They have taken 8 trucks off the road this year. His first request would be for the pick-up truck. He has been turned down every year for vehicles. Commissioner Madigan stated that was not true. Commissioner Scirocco stated he has only been here 6 years and bought 3 or 4 vehicles in 6 years. Commissioner Madigan stated she has only been here for 2 years and put in for a vehicle last year and another one this year. She doesn’t want him to say he has been turned down every year. Commissioner Scirocco stated he asked for 2 this year and only got 1. He understands these vehicles are expensive and increase his budget enormously. The other part of the request is increasing the repair of vehicles; the total request would be the $46,870 plus the $10,000 for repair of vehicles. Commissioner Madigan stated as of yesterday he didn’t want this. Commissioner Scirocco stated the other thing can be done through a transfer if he decides to do it. His revised request would be the additional vehicle and the $10,000 for repairs and maintenance of vehicles. Commissioner Madigan advised last year he got 3 pick-up trucks and this year we are budgeting for 1; therefore on average it is 2 per year. Commissioner Scirocco stated there needs to be a replacement program in the capital or his budget. Commissioner Madigan advised these items don’t meet the requirements to be put in the capital budget. Commissioner Scirocco asked Commissioner Madigan if she is saying they don’t need the vehicles. Commissioner Madigan advised they have received 2 vehicles each year she has been here; 1 on 12/31/12, 1 on 7/25/13, 1 on 8/2/13, and 1 is in the budget for 2014. The budget will support 1 pick-up truck. Commissioner Scirocco stated they budgeted $135,000 this year and they are now at $154,000. This tells him there is something wrong with the way they are spending their money. They should be spending their money on new vehicles. He is asking for $46,870 to be put back into the budget for a new pick-up truck and an additional $10,000 for streets repair and maintenance of vehicles. Commissioner Madigan advised she takes offense to him saying this is a budget issue. It is a management issue. They do what the budget can support. Commissioner Scirocco asked how can the budget not support it. Commissioner Madigan advised she is not willing to increase taxes. Page 2 of 5 Budget Workshop 10/31/13 Commissioner Scirocco asked how that would increase taxes. Commissioner Madigan advised every expense that goes into the budget either has to be offset by revenue or by raising the tax rate. She stated she would like to know how many vehicles he got from the previous commissioner of finance. Commissioner Scirocco stated he didn’t get any because they went through a recession. What he got was lay offs. Commissioner Madigan stated she has been working to repair all that. Commissioner Franck suggested they do a depreciation schedule of all the vehicles based upon purchase date. It can be given to Commissioner Scirocco for him to bring forward. Commissioner Madigan advised they have $569,000 of equipment in this budget. Commissioner Scirocco stated he believes they made a good case for it. He worked for DPS for 30 years and they bought 7 or 8 cars every year. They don’t buy 7 or 8 vehicles. Commissioner Madigan confirmed that when she met with Commissioner Scirocco yesterday he said he has funds to buy an additional pick-up this year. Commissioner Scirocco stated he does. Commissioner Madigan stated he has funds right now to buy a pick-up, he had funds in his budget last year to buy an additional pick-up by the end of 2013 and he is still requesting another truck in 2014. Commissioner Scirocco stated he is going to ask for the $10,000 in addition to the $135,000, which they originally asked for; and the additional pick-up truck. Commissioner Mathiesen asked if there is a depreciation schedule for the vehicles we have now. Commissioner Franck stated we have everything listed. He would like to see the approximate number of years they can get out of each schedule and compare it to the number of years it is suppose to last. That way they can start to set up a reserve account. Commissioner Scirocco stated they have a list of all the vehicles they have and all the repairs on each vehicle. Commissioner Franck stated he would like to see a depreciation schedule. Commissioner Madigan advised DPS requested an increase of $20,500: $10,000 for EMT incentives which are required under contract, and $10,500 for traffic control. Commissioner Madigan stated we are seeing a 5% increase in sales tax over prior years so she is comfortable with increasing it from $10,450,000 to $10,500,000. The amount of building permits have been consistently under-budgeted, so she is raising it from $185,000 to $235,000. Commissioner Madigan advised there was an article in the paper today about the candidates for commissioner of accounts. Candidate John Arpei stated his number 1 concern is fund balance is declining and expenses are increasing. She made it clear the 2013 and 2014 budgets did not touch a penny from fund balance. Fund balance remains at the upper bound; 12.5% of the general operating budget. The only recommendations they have used in their budgets is fund balance excess; not fund balance. Our policy states the commissioner of finance must come forward in the event there is an excess or deficit (fall below 10%) to fund balance. This is factually incorrect and misleading. There has been no recommendation to use fund balance. Page 3 of 5 Budget Workshop 10/31/13 Commissioner Madigan explained equipment costs in the 2014 budget totals $583,667 of which $198,000 is being offset with fund balance excess. These purchases are a geographic information system for the Planning and Building Departments, city-wide computer replacement of obsolete equipment, a pick-up truck, laptop computers for police vehicles, and a special copier for the Recreation Department. She is comfortable with this recommendation. Commissioner Madigan stated the debt service budget reflects the cost of the capital budget program. She is recommending it use $100,000 of the fund balance excess from 2012. The reserve fund for payment of bond indebtedness can be used to pay down principal and interest on our bonds. She recommended this be funded with $175,000 from 2012 fund balance excess and $100,000 be used in the 2014 proposed budget. Commissioner Madigan stated the insurance reserve was established by Council at the 10/15 meeting and can be used to pay insurance deductibles and settle certain claims. The 2014 budget does not include amounts for insurance. She is recommending putting $130,000 in this fund with fund balance excess. Commissioner Madigan stated an additional recommendation for the fund balance excess is for the designation of cost, excluding legal fees, associated with the settlement of City employment contracts, including salaries, other negotiated contract terms, and NYS retirement expenses up to $575,576. The remainder will go to the reserve for bonded indebtedness. Given concerns if there is enough set aside to pay for these settlements; she is increasing the amount by $200,000. Commissioner Madigan advised she is also recommending increasing contingency to $220,000. Commissioner Scirocco stated the Comptroller’s Office only allows you to have so much, then after that it becomes hording of taxpayer’s money. Commissioner Madigan advised it is City policy that the Commissioner of Finance come forward with recommendations if the fund balance is over 12.5% or under 10%. This year the Council increased the upper percentage of fund balance to 15%. The recommendations are all about the excess. Commissioner Scirocco stated all he was asking for is 1 pick-up and Commissioner Madigan is talking about millions. It is not about management; it is about politics. Commissioner Franck stated Commissioner Scirocco stated in the paper today that 2010 was about politics and at that time there were 4 Republicans. Commissioner Scirocco stated there was a candidate going around saying Commissioner Madigan wasn’t going to give him anything. Commissioner Madigan apologized for the rumor being out there and she wished he would talk to her directly next time. She met with Commissioner Scirocco yesterday and offered him $10,000 in his street maintenance, vehicle line and he told her no. Commissioner Scirocco stated he is only asking for what his department needs. He doesn’t think it is up to the Commissioner of Finance to decide what a department needs. ADJOURNMENT Commissioner Madigan moved and Commissioner Mathiesen seconded to adjourn the meeting. Ayes – All There being no further business, Commissioner Madigan adjourned the meeting at 2:04 p.m. Page 4 of 5 Budget Workshop 10/31/13 Respectfully submitted, Lisa Ribis Clerk Approved: 12/3/13 Vote: 5 - 0 Page 5 of 5