City Council

October 22, 2020 CITY OF SARATOGA SPRINGS Budget Workshop City Hall 474 Broadway 6:00 PM 6:00 PM CALL TO ORDER ROLL CALL SALUTE TO FLAG PUBLIC COMMENT PERIOD / 15 MINUTES PRESENTATIONS CONSENT AGENDA MAYOR’S DEPARTMENT ACCOUNTS DEPARTMENT FINANCE DEPARTMENT 1. Discussion: 2021 City Budget PUBLIC WORKS DEPARTMENT PUBLIC SAFETY DEPARTMENT SUPERVISORS ADJOURN Budget Workshop 10/22/20 October 22, 2020 CITY OF SARATOGA SPRINGS Budget Workshop City Hall 6:00 PM PRESENT: Meg Kelly, Mayor Michele Madigan, Commissioner of Finance John Franck, Commissioner of Accounts Anthony Scirocco, Commissioner of DPW Robin Dalton, commissioner of DPS STAFF PRESENT: Lisa Shields, Deputy Mayor Deirdre Ladd, Deputy Commissioner, Finance Maire Masterson, Deputy Commissioner, Accounts Joe O’Neill, Deputy Commissioner, DPW Eileen Finneran, Deputy Commissioner, DPS Vincent DeLeonardis EXCUSED: Matthew Veitch, Supervisor Tara Gaston, Supervisor 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 Kelly called the meeting to order at 6:00 p.m. PUBLIC COMMENT Mayor Kelly said the public comment period is limited to a total of 15 minutes and individuals are limited to two minutes. Mayor Kelly opened the public comment period at 6:01 p.m. Charlie Samuels of Saratoga Springs stated they had a good meeting last night regarding the construction of the skate park. He asked the Council to be optimistic about what we are going to do after COVID. Sam Brewer of Saratoga Springs stated the 2021 revenues may be lower than what is projected now. He encouraged looking at rolling furloughs or a promissory note. Page 2 of 4 Budget Workshop 10/22/20 Erik stated he is excited to hear of the allocation for the skate park but now hears its money is being reallocated. Mayor Kelly closed the public comment period at 6:10 p.m. Commissioner Madigan advised the Council broke the assignment of those funds because the City needed the money. FINANCE DEPARTMENT Discussion: 2021 City Budget Commissioner Madigan stated this is the first budget workshop of 2020. She outlined the budget process from the call letter going out, to individual department meetings, to the presentation of the proposed budget, to final vote. This year the budget has a property tax increase and a 10% reduction across salary lines. Even if the unions don’t accept this reduction, they are not getting any more money in the salary lines. This is what the City can afford to spend right now. There is an additional 15% reduction in personnel lines for police and fire and a 25% reduction in personnel lines for DPW. There are sharp reductions in the recreation budget. COVID has crippled 2020 revenue stream and expected to do the same in 2021. Revenue projection is $12 million less than the adopted 2020 budget. Sales tax is on the decline and to date there is no information regarding next year’s racing, SPAC, or other activities that bring in revenue to the City. The 2021 estimates are at a 15% reduction from 2020. The City’s housing market has remained firm and the mortgage tax collection may meet amounts budgeted for 2020. Mortgage tax for 2021 represents a small decrease from 2020. The state is holding back 20% of state revenue sharing. The 2021 proposed budget includes a 6% property tax increase and will generate $949,000. We’ve used a lot of fund balance (rainy day fund) in 2020 and are using some to manage the 2021 budget. General operating use of restricted fund balance in 2021 is $495,000 of which $200,000 is coming from the retirement reserve and $295,000 is a loan from the Spring Run Trail and Parking Structure Capital Reserve. This loan must be paid back within 5 years. The 2021 budget includes the use of $800,000 in unassigned fund balance, leaving the unassigned fund balance well below the amount required per our Finance Policy and the recommended amount of the State Comptroller’s Office. There is enough money set aside so that if all who are eligible to retire do decide to retire, can be paid their comp time, vacation time, and sick time. Finance Department Budget Commissioner Madigan advised the proposed 2021 finance budget is $2,864,654, which is $466,000 less than 2019. All wages are being reduced 10% based upon 2020 wages rather than 2021 wages. One of the 2 computer support technician positions was eliminated and replaces by an IT network security specialist for a net increase on the budget of approximately $6,057. The IT budget has an overall reduction of 18%. Accounts Department Commissioner Madigan stated the Accounts Department is the smallest City department. The department’s total 2021 comprehensive budget is $1,234,870, which is $27,800 less than 2020. There will be adjustments to the salary lines to be sure the reduction is taken from the 2020 amount rather than the 2021 salary amount. She hasn’t budgeted for Article 7 tax certiorari cases but is looking to add funds for this assignment. Commissioner Franck stated he has nothing to add at this time. Page 3 of 4 Budget Workshop 10/22/20 Capital Budget Commissioner Madigan advised the 2021 capital budget includes 6 projects - 3 governmental projects and 3 water/sewer projects. The total amount budgeted for these capital projects is $11,194,660. Of this amount, three projects totaling $9,119,660 requires bonding and 2 projects totaling $2,075,000 are funded by the water/sewer funds. There is $6.7 million budgeted for the third fire station; $670,000 budget for the tub grinder; and $1.75 million budgeted for Loughberry Lake Dam. A bond resolution will not be presented unless it’s clear the City is ready to expend the funds and/or are able to cover them. Bonded items will impact the 2022 budget. ADJOURNMENT There being no further business, Mayor Kelly adjourned the meeting at 6:38 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 11/2/2020 Vote: 5 - 0 Page 4 of 4