City Council

October 26, 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 10/26/20 October 26, 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 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. No one spoke. Mayor Kelly closed the public comment period at 6:01 p.m. FINANCE DEPARTMENT Discussion: 2021 City Budget Commissioner Madigan stated this is the second budget workshop of 2020. Tonight’s workshop is for the Mayor’s Office and the Recreation Department. She corrected a statement previously made about no Page 2 of 4 Budget Workshop 10/26/20 former Council member receiving lifetime benefits. There are 3 previous members and one spouse taking this benefit at $350 per month per person for a total of $16,800 per year. Commissioner Madigan reviewed the budget process. The budget process, outlined in the City Charter, starts the end of June each year and is completed no later than November 30 each year. There 8 budgets in total including the general operating budget and the capital budget. Commissioner Madigan reviewed the City’s current revenue situation. COVID has crippled the 2020 revenue stream and expects it to do the same in 2021. Revenue projection is $12 million less than the adopted 2020 budget. Revenues for 2021 are estimated to be $6.8 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. There is a 6% property tax increase that will generate $949,000 for 2021. We’ve used a lot of fund balance (rainy day fund) in 2020, we are using some to manage the 2021 operating budget and have approximately $1.5 million remaining. We had $8.4 million dollars in the fund balance at the beginning of 2020. Federal aid from Washington is our best remaining option. Commissioner Madigan read a letter she wrote regarding recreation clarifying the City’s position. Recreation Department Commissioner Madigan advised the Recreation Department’s budget is $1.15 million for 2021. This amount will cover the director, one part time employee and 50% of the costs for fields and buildings. John Hirliman, director of recreation, presented what they are and what they do versus what DPW does for recreation. They always follow the adopted budget and never go over. When COVID hit, they developed protocols per New York State regulations with the help of Risk & Safety and DPS. They were able to open Camp Saradac this summer and programs when the staff returned. The Recreation Center will open within the next week for rentals. The budget for 2021 will provide some of the services but not enough to keep all of their facilities and current programs going. They are asking for an additional $801,000. If they receive this amount, they can produce $1 million in revenue. It will allow them to keep all fields, ice rinks, and recreation center going as well as all of their programming. Commissioner Madigan asked other than asking the Council for $801,000 is there a plan of how to obtain that amount or bridge that gap. Commissioner Franck clarified that with the $801,000 the Recreation Department will be able to bring in additional revenue. The plan as it is doesn’t generate revenue. They need to add this money to obtain $1 million in revenue. John Hirliman advised that is correct. Commissioner Scirocco asked if additional revenues will get the Recreation level back to where it is now. It would help DPW. In 2020, the budget they had allowed for 12 laborers. DPW requested 9 laborers in the 2021 budget and were cut to 4 laborers. This will not allow the operation of nights and weekends. The Council needs to consider full funding of recreation. Commissioner Dalton stated she can’t fully say yes to fully funding the rec until she makes sure essential services are covered. Commissioner Madigan asked if the calculations include DPW increases. John Hirliman advised it does. Page 3 of 4 Budget Workshop 10/26/20 Commissioner Madigan stated she believes the Council would be willing to float funds if they are going to be covered on the other side. Mayor’s Department Commissioner Madigan stated the Mayor’s Department is budgeted at $2,543,329 for 2021, which is $328,000 less than requested, and $373,000 less than 2020. The salaries are being reduced 10% from the 2020 salary amount. All non-profits are reduced by 60% except for the Senior Center, which has been reduced by 50%. The city historian has been reduced to zero. Lisa Shields, deputy mayor, presented for the Mayor’s Department. She advised COVID slowed incoming applications in 2020 but things didn’t stop completely. The number of days an application sit in queue for 18 days before an inspector picks it up to review and then it takes 3 weeks to issue. They have approximately $36 million construction value is sitting in queue waiting for permits. Lisa Shields advised they focused on reducing general expenses when putting together their requested 2021 budget. A 10% payroll cut will equate to 3 – 4 employees. They are focused on saving these jobs. There are approximately $196,000 of City funds allocated for agreement with outside agencies. They feel they should look at the outside agency agreements and non-profits expenses. They recommend revising the agency agreements and eliminate the allocations. Non-profits can be re-direct to the CDBG program rather than using City funds. This should save 3 jobs. They are looking to increase land use boards and building fees to increase their revenues. Commissioner Madigan asked if there is an agency agreement that is an expense to the City. Vince DeLeonardis, city attorney, advised the Visitor Center is an expense to the City. Mayor Kelly stated she received a letter from the Builder’s Association today because they are getting behind. They must keep the Building Department intact as a lot of home improvements are being done. Commissioner Madigan stated a public hearing was held on October 20, 2020. The second public hearing is scheduled for November 2, 2020. The next workshop is Wednesday for DPS and Civil Service. ADJOURNMENT There being no further business, Mayor Kelly adjourned the meeting at 7:17 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 11/2/2020 Vote: 5 - 0 Page 4 of 4