City Council

MINUTES Vol. 27, Page 376 CITY COUNCIL BOARD OF FINANCE SPECIAL MEETING LOCATION: ZOOM June 21, 2024 A SPECIAL JOINT MEETING of the City Council and the Board of Finance was held on Friday, June 21, 2024. Attendance was by Zoom. Present were Mayor Elinor Carbone, Corporation Counsel Michael Magistrali, Treasurer Dan Farley, Councilors Paul Cavagnero, Molly Spino, Stephen Ivain, and Drake Waldron, and Board of Finance Members James Wright, Deborah Iannacito, Wendy Traub, Christopher Anderson, Laurene Pesce, and Chris Beyus. Councilor Anne Ruwet joined via telephone. Councilor David Oliver was absent. Mayor Carbone called the meeting to order at 11:39 a.m. DISCUSSION Mayor Carbone told the Boards that this is a follow-up meeting from Monday. She walked the Board through the resolution resulting from the meeting held on Monday. Mayor Carbone said this is in response to the Board of Education (BOE) withholding $1.94 million in insurance premiums (last installment) and payroll deductions (from March 2024). She said that this resolution outlines the expectations of the BOE to pay the insurance costs, if they do not pay by June 25, 2024, then the BOE will have until September 30, 2024, to find medical and health care benefits for its employees through other sources. In the resolution are specific instructions for the BOE to meet to keep the benefits for its employees during the transition period if they do not pay the City by June 25th. Once the benefits from the Internal Service Fund (ISF) are terminated then the Mayor will ask the Comptroller to prepare a report to determine, the portion of the ISF that should be set aside for health care claims that have been incurred but not reported, and the portion of the ISF “reserve” is attributable to the Board after adjustment for the monthly contribution and employee payroll deductions for premium cost shares that have been withheld for the fiscal year 2023-2024; and/or during the transition period covered in FY 2025. Mayor Carbone said that once the Comptroller’s calculation is finalized, they will prepare and present a report of the distribution to a joint meeting between the City Council and the Board of Finance, at which time the Boards will direct the Comptroller to transfer the resulting amount due to the BOE. Mrs. Iannacito asked how much time would be allowed for the calculations, and Mr. Anderson suggested 90 days. Atty. Magistrali made note of the timeframe for the Comptroller to prepare the report. Councilor Cavagnero said that the document is well done, however, his concern is that there aren’t any next steps for the BOE to follow, and what happens if they don’t do what they are supposed to, Mayor Carbone said that this resolution memorializes what the BOE must do. Mr. Beyus agreed to have the next steps clear for the BOE’s intentions, as the City wants to ensure the BOE staff is insured. Mayor Carbone reminded the Boards that the BOE is contractually obligated to provide healthcare for its employees. Atty. Magistrali suggested they add that the BOE shall report to the Council and Board of Finance, what their plan is for healthcare. Mrs. Traub cautioned the Boards not to get too wordy because the BOE is bound by contract to provide healthcare for its employees. She asked if this document stating the City’s position would open a discussion with the BOE. Mr. Beyus said the document makes it clear to the BOE to make premium payments and allows them to come to the City for discussion. Mrs. Pesce asked how the BOE would pay for new health insurance, Mayor Carbone explained to the Boards that the BOE has a budgeted line item with $14 million in it for healthcare benefits. They would be able to take those funds and purchase other insurance. Mr. Beyus said the BOE would have higher deductibles and premiums for teachers and a higher cost to the taxpayers with a new insurance policy. Mr. Anderson shared that checks cut and stored in a desk drawer are an auditor's nightmare. Atty. Magistrali went over the proposed revisions to the resolution, based on the suggestions of the Boards. Councilor Ivain said that a new insurance policy could be a dramatic increase for the BOE, and Mayor Carbone said that any reserves determined from the ISF could be used to offset the higher costs. Councilor Ivain is disappointed, he would like to retain the insurance for everyone because this change would affect everyone’s budget. He said this appears to be a misunderstanding to be able to negotiate under threat of non-payment. He would like to see this resolved for the City to maintain cost savings, and if a committee with the BOE is made he would like to be on it. Mr. Beyus said the City is running out of time, they have tried multiple times over the years to work with the BOE but their hands are tied. At this point, the City must act. On a motion by Mr. Beyus, seconded by Councilor Cavagnero, the Boards voted unanimously to take a 10- minute recess at 12:38 p.m. Mayor Carbone opened the meeting at 12:48 p.m., explaining to the Boards the changes that were made to the resolution were highlighted. Mr. Wright asked why the Boards are putting in timeframes, they can only request that the BOE does these things, they cannot compel them to. Mrs. Pesce would like to see no time limits to ensure the employees have something else in place for healthcare. Mayor Carbone said there won’t be any lapse in coverage, the employees will be covered until September 20, 2024. Atty. Magistrali explained that the trigger date will be June 25, 2024, if there is a non-payment by the BOE then that will start the timeline for the rest of the dates in the resolution. Atty. Magistrali suggested putting August 1, 2024, as a date for the BOE to come up with a plan for healthcare coverage to be conveyed to the Council and Board of Finance. The Boards agreed. *See addendum* MINUTES Vol. 27, Page 377 CITY COUNCIL BOARD OF FINANCE SPECIAL MEETING LOCATION: ZOOM June 21, 2024 VOTE On a motion by Councilor Spino, seconded by Councilor Cavagnero, the City Council voted to approve the resolution* as modified. Councilor Ivain abstained. *Resolution is #143-250* VOTE On a motion by Mr. Wright, seconded by Mr. Beyus, the Board of Finance voted unanimously to approve the resolution as modified. ADJOURNMENT On a motion by Mr. Anderson, seconded by Mr. Wright, the Boards voted unanimously to adjourn at 1:03 p.m. Respectfully submitted by ATTEST: Heather Abraham, Asst. City Clerk CAROL L. ANDERSON, CITY CLERK *Addendum* MINUTES Vol. 27, Page 378 CITY COUNCIL BOARD OF FINANCE SPECIAL MEETING LOCATION: ZOOM June 21, 2024 MINUTES Vol. 27, Page 379 CITY COUNCIL BOARD OF FINANCE SPECIAL MEETING LOCATION: ZOOM June 21, 2024