City Council

COUNCIL CONFERENCE MEETING MINUTES FEBRUARY 10, 2009 CITY HALL – 5:00 PM A Conference Meeting of the City Council of the City of Trenton, New Jersey, was held on the above date at 5:20 p.m. in the Council Conference Room, City Hall. The meeting was called to order by Council President Paul M. Pintella. Council President announced that adequate public notice had been provided to the public specifying the time and place for this meeting in accordance with the Open Public Meeting Act. FY 2008-2009 annual notice was mailed to the Times and the Trentonian Newspapers, posted on the first floor bulletin board in City Hall, and filed in the City Clerk’s Office on June 19, 2008 by Resolution No. 08-341. The agenda for this meeting was mailed, posted and filed on February 6, 2009. ROLL CALL: PRESENT: Messrs. Bethea, Coston, Ms. Lartigue, Messrs. Melone, Segura, Ms. Staton, Mr. Pintella – 7. ABSENT: NONE PRESENTATION: Budget Introduction: Appearance: Honorable Mayor, Douglas H. Palmer Renee Haynes, Chief of Staff Dennis Gonzalez, Acting Business Administrator Honorable Mayor Douglas H. Palmer appeared in front of City Council and read the following statement. This evening, in the midst of an economic storm that is threatening cities - and working families - throughout the United States, I am here to present a difficult, but reasonable, responsible, and balanced City budget to this Council. Through hard work, focused priorities and painstaking decisions my administration has developed effective ways to achieve efficiencies - and preserve critical services to our citizens, despite the most severe economic conditions, not only of my tenure as your Mayor, but since the Great Depression. Our goals remain to continue refining techniques for working smarter - and to keep our attention fixed on improving the quality of life for our residents. This Fiscal Year 2009 budget requests expenditures of $198.8 million. This is an increase of $2.7 million over last year's adopted budget - a much smaller amount than the $16.2 million increase we had last year. In focusing this budget on the priority needs of this city, our residents, and our neighborhoods, we have worked hard to ensure that taxpayers have as little an increase as possible. In fact, as usual, the lion's share of the unavoidable increase we have is almost exclusively due to required negotiated union increases and employee pension and benefits costs, all of which are not directly in our control. City Council Conference: Minutes February 10, 2009 1  Like everyone else, we face the same sharp declines in state aid, even though we are far more injured by these reductions because so much of our otherwise taxable land is inhabited by the State of New Jersey. Our historically flat CMPTRA allocation from the State this year has been cut by $2.7 million. In addition, our Capital City State Aid has been reduced by $5.46 million. Even in this most challenging year, there is good news to share. It has been well acknowledged by the State that Trenton is one of the best managed cities in New Jersey, and that our real financial problem is not one based on poor management or residents who don't pay their taxes. Our financial problem is a structural one, based on the high number of tax-exempt properties we have. As I recently reported to you, the City's assessed valuation for 2008 rose by $3.9 million from last year, continuing the trend toward more ratable property in the city. The total increase in valuations since 2003 in Trenton has exceeded $115 million. Moreover, we are seeing continuing success in increasing the City's tax collection rate, which this past yea! rose to 98.54 percent, compared to the 2007 level of 97.85 percent. This year's tax collection rate is the highest ever recorded - and once again reduced our requirement to set aside reserves for uncollected taxes. This is a significant benefit to taxpayers. Especially in the midst of this national economic crises, our continued progress in increasing ratables and in improving tax collection rate are positive signs that other cities all over the nation are NOT able to show. An important development this year has been the ongoing effort of our City Departments to streamline their activities in ways that hold down costs, yet produce more efficient services, leading toward the results that we demand in our communities. We all can take. great comfort in knowing that while we have had to tighten belts to extraordinary measures, we still are providing services, producing ratables and continuing rebuild our capital city. To continue improving our infrastructure, our Public Works Department in 2008 completed the sixth of its I5-year program to repair and repave every city street and alley in the city - and again broke its own records. While it has averaged 40 major street repair projects annually since 2002, this year Public Works completed 72 projects with steadily improving speed and quality. Our Department of Housing and Economic Development this past year coordinated the completion, startup, and planning of 1,149 new homes for working families - and continued additional efforts to rehabilitate beautiful housing stock, refurbish facades. and heighten the city's development and business activity. We have completed the Downtown Capital District Master Plan to carry out strategies for maximizing Trenton's assets as a center of business, culture, education and heritage. Across six sub-districts, this Master Plan will inform city stakeholders, investors, developers and decision makers on how we envision the continuing redevelopment of our downtown. We also have worked collaboratively with federal, state, community, and business partners to address the major issues of foreclosure and climate protection – through the creation of the Trenton Mortgage Foreclosure Mitigation Task Force and the Trenton Green initiative. And we have identified more than 30 projects "ready to go" as part of President Obama's reinvestment and recovery plan - with more than 5,200 jobs for Trenton area residents. These are just a few examples of the continuing good work and future growth of the City of Trenton. Despite these and many other promising developments, there is no escaping the unique, harsh reality of the Fiscal 2009 budget situation. City Council Conference: Minutes February 10, 2009 2  No city in America has dodged the devastating effects of the current economy. We are joined in this crisis by our neighbors in the townships next door, by our urban counterparts like Newark and Camden, who together this year will lay off hundreds of municipal employees, and by the State of New Jersey itself, where the Governor has enacted layoffs, and - most critically to us - reduced the already inadequate amount of state aid for cities like ours. With the state sitting on fully a third of our taxable property and after 20 years of dodging the inescapable fate that has been chasing us for so long - as I have said before -- there could be no Houdini-like escape this time. For years we have been working to avoid this reality, with innovative ideas like our plan to sell the outlying water infrastructure -- the pipes that are so costly to maintain - and in turn to become sellers of "the new gold," bulk – rate water - a plan that will not only stave off a need to raise an additional $20 million dollars in taxes for this year alone, but one that will produce income while reducing overhead for decades to come. But no matter the incredible and steadfast efforts of my administration, members of this council and others, reductions in state aids and other onetime revenue sources dictated that for the first time since I've been Mayor, layoffs would be required while a tax increase is unavoidable. This is why, beginning with briefings more than a year ago - and in many subsequent discussions, my administration revealed to our City Council, before the media and the public, that the budget this fiscal year would be more than tough and tight, as it usually is. This year we have an unprecedented crisis. Our approach was very direct. We began our analysis with three questions: 1) What are the services we should be providing? 2) How do they match up against the services we are providing? And, 3) How productive and cost effective are we in providing them? I gave my Cabinet Directors the freedom to examine these serious questions and required that every meaningful option be put on the table for consideration. In the end, no department, no office or entity was spared the pain of cuts. As I have repeatedly emphasized, we will continue to make critical investments aimed at our human infrastructure - with exemplary youth enrichment programs, health education and screening activities and community support for our seniors, 'but these services necessarily will have to operate in the most efficient manner that we can provide. Efficiency must be a growing part of how we are able to continue producing a balanced budget. Our challenge has been to find new ways of keeping City costs under control ... so that our taxes do not get out of control. Every year, the cost of municipal services such as police and fire protection and garbage removal service is greater than it was the year before. But we have refused to take the easy way out and simply pass this cost on to taxpayers. Instead, we are working harder and smarter to do the City's business differently and to create new sources of revenue with the property tax payer being our absolute last resort for raising revenue. Acting Business Administrator, Dennis Gonzalez, will specify the ways that we are continuing to offset the lack of increase in state aid and reduce the financial impact on our taxpayers. This year, America has lost 3.6 million jobs in the past year - and the pace of these job losses is accelerating. As you know, our City layoffs related to the Fiscal 2009 budget initially were to be more than 60. We are estimating that by next week they will be fewer than 30, as a result of re-employments to new jobs due to retirements and the filling of necessary budgeted vacancies. It is important to note that although we have re-employed staff into new positions, our targeted savings through layoffs remains approximately the same. City Council Conference: Minutes February 10, 2009 3  Because we have taken these extraordinary fiscal steps with the 2009 budget, the City has been able to limit the tax increase that will be necessary this coming year to 9 cents. This new City tax rate is $2.54 per $100 of assessed valuation. For a resident with a house valued at $100,000, this means an annual $90 tax increase, or $22.50 per quarter ... $7.50 per month. I recognize no one wants to see a tax increase. However, we have worked long and hard to make across-the-board cuts to minimize this necessity - and we have been able to hold the increase to an even lower level than we had anticipated. In fact, when you look at the municipal tax increases across Mercer County over recent years, Trenton's have been among the lowest. Likewise, when you consider the increases in the total tax rate, Trenton's are among the lowest in the county. At this time, I will yield to the Council for questions and the additional budget review and details that my administration is prepared to provide. It is my hope that you will find this budget acceptable. Thank you. Detailed discussion followed: Councilwoman Lartigue – Asked where the new and additional revenue the Mayor mentioned was coming from. Mr. Dennis Gonzalez, Acting Business Administrator stated that the City was still working on projections with respect to the sale of the Water Infrastructure into the future. There is a saving from the sale of the Water Infrastructure of about $4 million annualized because the City will not have to maintain or repair pipes outside the City system. Additional saving as a result of the water sale the city will pay a debt of approximately $35.5 million. Paying this debt off will reduce the City debt service payment by $3.86 million for the next year budget. Councilwoman Staton – Asked about the thirty (30) new projects in Trenton and the employment opportunities they would provide. Honorable Mayor Palmer stated that a list of these projects would be provided and gave a breakdown on some of them: • Turning Route 29 into a boulevard - $125,000 million investment project. • Looking into retro-fitting public housing projects and home weatherization – Going Green • Retro-fitting roads, bridges, and school modernization Any money we get from the Stimulus has to go into making jobs it can not go into our budget. He also stated that the City unemployment rate is 16.1% up 4% from last year. Councilman Coston – Stated that it is important to trained people to paint but retro- fitting - Green Jobs are the job that will last decades are we ready to train people? City Council Conference: Minutes February 10, 2009 4  Honorable Mayor Palmer – Yes, there is no money on the Senate side for training. He asked City Council to send a Resolution to President Obama, the House, and Senate explaining how important these projects are. Councilman Coston – With the Water Sale and the 9 cents tax increase it seems like we will make things work this year and next year. Do you have suggestions for 2011, which looks like we will have a $28,000 million deficit, or even 2012 which looks like we will have a $31,000 million deficit budget? Honorable Mayor Palmer - He is going to set forth for the next Mayor and Council where we are and what we need to do on a whole host of areas. The biggest thing we are going to need is to develop these parking lots and bring ratables in. Councilman Coston – Do you think if we develop all the potential land we will be able to overcome the structure deficit? Honorable Mayor Palmer – No, but it will enable us to raise our tax base and the number of people that live here. Councilman Melone – This year’s budget, as far as new revenue, have any new projects started paying full taxes? Honorable Mayor Palmer – Tax ratable increased by $3 million this year. Councilman Segura – Have you come up with a formula on how the Stimulus Funds can be used to help the small business owners? Honorable Mayor Palmer – Treasury Secretary is working on how to get small business owners credit. He said that he would come back when he had more information for input as well as a plan to help these small business owners. Councilman Segura – Have you thought about putting together a task force for the small business owners, and can a business owner be part of that? Honorable Mayor Palmer – If you know pf anyone interested in this task force, give me their name and phone number and we will put them on it. Councilman Bethea – There is a Federal mandate for the City to cover the Reservoir. Will the City be able to do that with some of the budget money? Honorable Mayor Palmer – We put that in as part of the Stimulus. Councilman Bethea – What is the time line to cover the reservoir? Honorable Mayor Palmer – 2011. Councilman Bethea – Were there any significant cuts in the Police and Fire Department? City Council Conference: Minutes February 10, 2009 5  Honorable Mayor Palmer – We looked to reduce overtime and vacancies. Councilwoman Lartigue – Mayor you have done a great job with the MOET program. President Obama has pledged not to issue any additional mandates for municipalities. I asked for training through the MOET to make houses and buildings healthy. You have committed to come before Council and have some conversation and received some input. When you come in I would like, from your perspective, what you view as our strengths, weaknesses, opportunities and threats relative to our FISCAL condition. Council President Pintella – Asked for an explanation on the challenges that held up this Budget. Honorable Mayor Palmer – The negotiation of salaries settlements, health benefits and the fact that the state cut our budget in the middle of this year an additional $3.56 million. Dennis Gonzalez, Acting Business Administrator made a comment about Councilman Coston’s statement regarding the structural deficit. To fix the structural deficit the state government should pay the municipalities the same way everyone else that owns property in the City does. Mr. Gonzalez gave a summary of the FY 2009 Budget highlights. Mr. Gonzalez also stated that the nine (9) cents tax increase on a $100,000 house would equal $90.00 per year. Councilwoman Staton – Asked about the Water sale being incorporated in the budget. If the Water Sale was not incorporated in the budget what would the tax rate be? Mr. Gonzalez stated that if the City had to raise $20 million the City tax rate would be $3.54 instead of $2.54. That would mean that on a property assessed at $100,000 the taxes would increase by $1,090.00 per year. Honorable Mayor Palmer stated if taxes went up by $1,090.00 people would not be able to pay their taxes. There would be more foreclosures. Councilwoman Lartigue – Asked for an explanation on the Sewer Operating surplus reduction. Mr. Joseph McIntyre, General Superintendent, Water and Sewer – Stated that the reduction was from increases on fixed costs for the Sewer Utility, salaries, and operational costs for the treatment plant. Council President Pintella - Asked about employees that get paid through a Grant. City Council Conference: Minutes February 10, 2009 6  Councilman Melone – Asked if the debt service percentage would be lower once the portion of the water sale was applied. Mr. Gonzalez notified City Council that they provided four resolutions two for the insertions of items into the budget. The other two were prepare by the Department of Finance for emergency temporary budgets for the next few months. The budget will be presented to the Division of Local Government Services for review and changes. Councilman Coston – Asked about the Capital Budget Councilwoman Lartigue – Made a request to have further discussion on the budget. ADOPTION OF RESOLUTION Acting City Clerk, Mrs. Juanita M. Joyner read the following resolutions for the record. Motion was made by Councilman Coston, seconded by Councilwoman Staton, to adopt the following resolutions by vote of City Council: Ayes: Mr. Bethea, Mr. Coston, Ms. Lartigue, Mr. Melone, Mr. Segura, Ms. Staton and Mr. Pintella Nays: None 1. RESOLUTION NO. 09-58 - RESOLUTION REQUESTING THE DIRECTOR OF THE DIVISION OF LOCAL GOVERNMENT SERVICES TO APPROVE SPECIAL ITEM OF REVENUE IN THE FY 2009 BUDGET (Sponsored by Mr. Coston) Motion was made by Councilman Coston, seconded by Councilman Pintella, to adopt the following resolutions by vote of City Council: Ayes: Mr. Bethea, Mr. Coston, Ms. Lartigue, Mr. Melone, Mr. Segura, Ms. Staton and Mr. Pintella Nays: None 2. RESOLUTION NO. 09-59 - RESOLUTION REQUESTING THE DIRECTOR OF THE DIVISION OF LOCAL GOVERNMENT SERVICES TO APPROVE SPECIAL ITEM OF REVENUE IN THE FY 2009 BUDGET (Sponsored by Mr. Coston) City Council Conference: Minutes February 10, 2009 7  Motion was made by Councilman Melone, seconded by Councilman Pintella, to adopt the following resolutions by vote of City Council: Ayes: Mr. Bethea, Mr. Coston, Ms. Lartigue, Mr. Melone, Mr. Segura, Ms. Staton and Mr. Pintella Nays: None 3. RESOLUTION NO. 09-56 - RESOLUTION TO PROVIDE EMERGENCY APPROPRIATIONS TO THE SFY 2009 TEMPORARY BUDGET OF THE CITY OF TRENTON (Sponsored by Mr. Melone) Motion was made by Councilman Melone, seconded by Councilwoman Staton, to adopt the following resolutions by vote of City Council: Ayes: Mr. Bethea, Mr. Coston, Ms. Lartigue, Mr. Melone, Mr. Segura, Ms. Staton and Mr. Pintella Nays: None 4. RESOLUTION NO. 09-57 - RESOLUTION TO PROVIDE EMERGENCY APPROPRIATIONS TO THE SFY 2009 TEMPORARY BUDGET OF THE CITY OF TRENTON CURRENT FUND (Sponsored by Mr. Melone) Motion was made by Councilman Melone, seconded by Councilwoman Staton, to adopt the following resolutions by vote of City Council: Ayes: Mr. Bethea, Mr. Coston, Ms. Lartigue, Mr. Melone, Mr. Segura, Ms. Staton and Mr. Pintella Nays: None 5. RESOLUTION NO. 09-55 - RESOLUTION FOR THE INTRODUCTION OF THE CITY OF TRENTON, COUNTY OF MERCER, STATE OF NEW JERSEY FISCAL YEAR 2009 BUDGET. Sponsored by Mr. Melone) Councilwoman Lartigue – Gave an update on the Residency Committee and stated that she had a copy of the original residency document and a hearing would be scheduled in the near future with Councilmen Segura and Bethea. PUBLIC COMMENTS: Mary Jordan, 32 Vine Street – Complained about her neighbors throwing acid on her porch. Captain Fred Reister, Trenton Police Department, stated that he would start an investigation of the problem. Beatrice Morris, 93 Vine Street – Complained about her neighbors (noise). City Council Conference: Minutes February 10, 2009 8  Mr. Irving Bradley, Police Director stated that he was working on the problem personally. Adolph Jordan, 32 Vine Street – Complained about his neighbors damaging his car. James Fouse, 13 Cavell Street – Complained that not enough copies of the budget presentation were provided; something has to be done about the slum landlords. Dion Clark, 323 Walnut Avenue – Complained about the abandoned properties on Walnut Avenue; stated that there are 1,200 abandoned properties in the City of Trenton; asked if it was a conflict of interest for City Housing Inspectors or Council members to own rental property in the City; property values on Walnut Avenue are going down and taxes are going up; asked what happened with Dr. Lytle appearing before Council; thanked the Police Director, Mr. Bradley for the good job he has done on Walnut Avenue. CIVIC MATTERS: Councilwoman Lartigue – Asked Ms. Kelsey if she had given her appropriate notice about an e-mail she had sent Council. Councilwoman Lartigue moved a motion for Ms. Kelsey to receive salary increases when local union 2286 received increases, Seconded by Councilman Bethea. Councilwoman Lartigue withdrew her motion and made another motion for Ms. Kelsey to be afforded the cost of living and retro pay in line with local 2286 beginning the next pay, Seconded by Councilman Bethea and carried by the following vote of City Council: Roll Call: Ayes: Mr. Bethea, Mr. Coston, Ms. Lartigue, Mr. Melone, Mr. Segura, Ms. Staton and Mr. Pintella Nays: None The meeting adjourned at 7:20 p.m. Respectfully submitted ___________________________ __________________________ PAUL M. PINTELLA JUANITA M. JOYNER CITY COUNCIL PRESIDENT ACTING CITY CLERK City Council Conference: Minutes February 10, 2009 9