City Council

October 19, 2022 CITY OF SARATOGA SPRINGS Budget Workshop City Hall 474 Broadway 10:30 AM 10:30 AM CALL TO ORDER ROLL CALL SALUTE TO FLAG PUBLIC COMMENT PERIOD / 15 MINUTES PRESENTATIONS CONSENT AGENDA MAYOR’S DEPARTMENT ACCOUNTS DEPARTMENT FINANCE DEPARTMENT 1. Budget Overview 2. Discussion: 2023 Comprehensive Budget Workshop: Department of Public Safety PUBLIC WORKS DEPARTMENT PUBLIC SAFETY DEPARTMENT SUPERVISORS ADJOURN Budget Workshop 10/19/22 October 19, 2022 CITY OF SARATOGA SPRINGS Budget Workshop City Hall 10:30 AM PRESENT: Ron Kim, Mayor Minita Sanghvi, Commissioner of Finance Dillon Moran, Commissioner of Accounts Jason Golub, Commissioner of Department of Public Works (arrived @ 10:39 a.m.) James Montagnino, Commissioner of Department of Public Safety STAFF PRESENT: Heather Crocker, Deputy Commissioner, Finance Stacy Connors, Deputy Commissioner, Accounts Jason Tetu, Deputy Commissioner, Department of Public Safety EXCUSED: Angela Rella, Deputy Mayor Joe O’Neill, Deputy Commissioner, Department of Public Works 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 Kim called the meeting to order at 10:30 a.m. PUBLIC COMMENT Mayor Kim opened the public comment period at 10:31 a.m. Chris Mathiesen of Saratoga Springs stated the City has received the SAFER grant to add 16 firefighters. They worked hard to establish the third fire station and looked at running an engine with three firefighters rather than four. There are other municipalities with multiple stations operating with only three firefighters per engine. It is easier now to get four firefighters to a scene. It was felt having three stations was safer. Mayor Kim closed the public comment period at 10:33 a.m. Department of Public Safety Commissioner Sanghvi stated the first public hearing was held yesterday and the second public hearing is scheduled for November 1, 2022. Budget workshops will be held through November 28, 2022. Page 2 of 6 Budget Workshop 10/19/22 Commissioner Moran asked for confirmation that the budget currently on the table eliminates 11 employees from the Department of Public Works. Commissioner Shanghvi stated no positions have been eliminated from the Department of Public Works. She looked at current positions and made sure they were kept. An overall request was received for $68 million dollars for 2023; a 26% increase from 2022. The 2022 budget had seen a huge bump from 2021 because the City received $3.9 million dollars or 7% of the budget from one-time American Rescue Plan Act funds due to COVID. While our sales tax, mortgage tax and occupancy tax revenues have been strong in 2022, and while the City has some new revenues coming in the form of excise tax on cannabis and licenses, they are not strong enough to cover the American Rescue Plan Act funds hole and add another 26% to the 2023 estimated revenues. The City has also seen significant increases in healthcare costs, retirement benefits, and insurance costs, which are causing a considerable strain on the City’s expenses. Since September 15, 2022, there have been several meetings with each department to create a sustainable budget document. A critical priority when making this budget was to ensure the safety of our citizens by prioritizing budgeting for the third EMS/ Fire Station. Commissioner Sanghvi stated the Finance Department bonded $7.1 million in 2022 for the building of the third fire station and will bond an additional $1.4 million in 2023 for cost overages due to inflation and supply chain shortages. The Department of Public Safety secured a Federal SAFER Grant to hire 16 new firefighters for next year. The grant does not cover the day-to-day operations, uniforms, medical exams, and equipment needing help from the community. The City calls on our residents to play their part. Taxes will increase from $6.43 per 1,000 to $6.67 per thousand for the inside district and increase from $6.37 to $6.61 per 1,000 for the outside district, an average increase of 3.72%. Commissioner Sanghvi stated the Department of Public Safety accounts for 59% of the comprehensive budget. Staffing levels have been maintained in all departments including police and dispatch. There are 74 filled positions in the Police Department for 2022 and there are 74 positions for 2023. There are 16 new hires in the Fire Department for 2023 for the third fire station. Wages and benefits for these hires will be covered for 2023, 2023, and 2025 by the SAFER grant. Commissioner Sanghvi stated the 2022 adopted budget for the Department of Public Safety is $30.9 million dollars and the requested 2023 budget is 34% higher at $41.3 million dollars. The Finance Department is proposing a $31,954,000 for the 2023 Department of Public Safety budget. Commissioner Montagnino stated the staffing levels Commissioner Sanghvi presented is for actual positions filled and not what was budgeted for 2022. Commissioner Sanghvi stated when the Department of Public Safety needs to hire police officers; the money in the right-sizing line can be used. Commissioner Montagnino stated the Charter is clear and states unless there is a different budget adopted, the comprehensive budget becomes the City’s budget. The comprehensive budget is slightly higher in total number than the 2022 budget despite the fact the Fire Department is increasing by 50%. The comprehensive budget presented defunds the police. Commissioner Sanghvi stated there is right-sizing money that can be used. Commissioner Montagnino stated Commissioner Sanghvi cut six cops and $200,000 is not enough to bring back six cops. At the end of 2021, there was $15,441,301 in unrestricted unassigned fund balance earmarked for nothing in particular. As of last year, there is 28.4 % of the budget in this fund. Commissioner Sanghvi advised the state mandates the City to have no less than 10% and no more than 25% in the unrestricted unassigned fund balance. Commissioner Montagnino stated everyone on the City Council knew the City was heading in the direction of a third fire station. No one thought to hire two additional firefighters per year to have fully trained Page 3 of 6 Budget Workshop 10/19/22 firefighters ready for when the third station comes. He asked why Commissioner Sanghvi’s budget is predicated on holding on to the maximum amount in the unrestricted unassigned fund balance when the City just had a record-breaking season in sales tax revenue and track attendance. Mayor Kim stated the Council should be talking about getting to the point where the departments get what they need with the constraints they have. It is terrible that their predecessors didn’t raise taxes knowing that everything goes up every year. To some extent, the Council is dealing with past problems. This Council believes they should fund the really important. Commissioner Sanghvi stated this budget was steep learning curve and they are trying their best to take care of all needs. They are not trying to take away services and as the Finance Commissioner, she sees the need of big picture. Commissioner Sanghvi agreed there should have been better planning. Some of the unrestricted unassigned fund balance has been used in this budget and are looking at every possible source of revenue. A budgeting and forecasting task force has been set up to work with the Department of Public Safety to keep the firefighters for the fourth and fifth years in the third fire station. Commissioner Montagnino stated Commissioner Sanghvi never mentioned the Department of Public Safety made their own cuts or gave any recognition to them cutting their own budget to bare minimum. Commissioner Sanghvi stated they don’t have that budget. Commissioner Moran stated each Council member was asked to provide a budget. He did not have access to the other Council members original budgets submitted as they were not shared. He had a meeting with the Finance Department where he was presented ‘wrong numbers’ and that is when the conversation about having to make cuts occurred. Commissioner Moran, along with staff, identified the numbers presented as the Accounts Department budget were not accurate nor were they the numbers provided to the Finance Department. A member of the Finance staff acknowledged they had the wrong numbers and will provide the correct numbers but never received them. The comprehensive budget cuts at least 10 people from the Department of Public Works staff, cuts the records retention officer, cuts six police officers, and doesn’t equip the new firefighters. Commissioner Moran stated he can’t accept leaving all that money in the bank and balancing the budget on the backs of the Departments of Public Safety and Public Works. The Council needs transparency and actual numbers so they can talk about the budget. He has been listening to the same story being told repeatedly and he doesn’t agree with the story, as it is not accurate. Commissioner Sanghvi stated the former budget director had issues with imputting the budget and mistakes were made. The Finance Department told the Council about that immediately and rectified the mistakes immediately. Commissioner Sanghvi stated again, she did not directly receive a budget from the Department of Public Safety. She believed there was an e-mail exchange between Deputy Tetu and Deputy Crocker but nothing was send to herself or the interim budget director. Commissioner Montagnino advised he has an e-mail dated September 22, 2022 from Deputy Tetu to Deputy Crocker requesting a budget amendment. Mayor Kim stated they now have a basis to work with. The comprehensive budget is the starting point of a negotiation. Commissioner Montagnino asked for another workshop for the Department of Public Safety since the Finance Department was not aware of the budget they proposed. Commissioner Sanghvi suggested the Department of Public Safety present what they want so they have a focus. The cuts have already been done; they are trying to figure out what they need to added back. Chief Joe Dolan presented the needs of the Fire Department for the current stations and station three. He provided the impact to the Fire Department if the comprehensive budget does into place. Things must be adjusted as they impact the third fire station. The proposed comprehensive budget creates shortfalls in payroll for code enforcement, overtime for current contractual payouts, equipment, education requirements, Page 4 of 6 Budget Workshop 10/19/22 repairs and maintenance on vehicles, phones, and securing of unsafe buildings. To maintain current staffing levels in the Fire Department, in addition to the 16 for the third fire station, they are short $18,500 for captain salaries, they are short for clothing allowance, special event pay, and benefits for a total of $1.49 million dollars to keep what they have and add 16 firefighters. Training and gear is a requirement of the SAFER grant of which they are short $13,500 each firefighter. Operations as it stands right now is short $184,000. Promotions of lieutenants are required to meet the requirements of the third fire station. With the addition of a second ambulance, there has been a major jump in revenues. Chief Dolan presented is getting a third fire station operational and showing improved services. Hiring of firefighters for the third station will happen sometime in the first quarter so they can be sent to school in March. Commissioner Montagnino stated he doesn’t feel it would serve any purpose to go into detail of the Police Department. Commissioner Sanghvi stated Deputy Crocker advised her the Department of Public Safety’s budget has been accounted for and the cuts requested have been made. Commissioner Montagnino stated one of the things he ran on in 2021 was that he would not defund the police. The comprehensive budget defunds the police. Commissioner Sanghvi stated she is not laying off any police. Commissioner Montagnino stated Commissioner Sanghvi is cutting the budget with $15 million dollars in the bank. He will not sign off on that budget. Mayor Kim suggested the Council to agree to positions funded in 2022 remain in place and negotiate from there. Commissioner Sanghvi stated then they will see either layoffs or cuts to benefits. Mayor Kim confirmed if everything that was funded in 2022 continues to be funded in 2023 that will drain the fund balance. Commissioner Sanghvi advised it would, as there are 40 new positions in 2022 which have to be funded in 2023 and the $3.9 million dollar American Rescue Plan Act (ARPA) funds are gone. In addition, funding 16 new firefighters and every vacant position that was there, puts the City close to the position of $68 million dollars. The City doesn’t have the money. Commissioner Montagnino stated the positions funded for 2022 that have not been filled should have that money in the bank plus the $15 million dollars. Where is that money? Commissioner Sanghvi stated when a position is not filled the money is used by departments for budget transfers to cover other expenses. She will be sure the money is available when new police officers are hired from the right sizing assignment. Commissioner Sanghvi mentions that the revenues need to match the expenses. Chief Dolan has requested an additional $2.8 million in the budget and has offered an increase of only $300,000 in revenues. Commissioner Montagnino requested another workshop to review what was submitted September 22 nd. Mayor Kim suggested adding this to the meeting on November 24th. The City Council agreed to meet again on Friday, October 28th at 3 p.m. Page 5 of 6 Budget Workshop 10/19/22 ADJOURNMENT Commissioner Montagnino moved and Commissioner Sanghvi seconded to adjourn the meeting at 12:14 p.m. Ayes – All (Commissioner Moran, Commissioner Sanghvi, Commissioner Golub, Commissioner Montagnino, and Mayor Kim) Nays - 0 Respectfully submitted, Lisa Ribis Secretary to the City Council Approved: 3/21/2023 Vote: 5 – 0 Page 6 of 6