MINUTES OF THE CUMBERLAND TOWN COUNCIL

SPECIAL MEETING OF THE CUMBERLAND TOWN COUNCIL

WEDNESDAY, JUNE 11, 2008 AT 7:30 P.M.

EDWARD J. HAYDEN PUBLIC LIBRARY, MEETING ROOM 1 & 2

1464 Diamond Hill Road, Cumberland

 

The meeting was called to order at 7:31 p.m. by Council President Higgins.       

 

The meeting opened with the pledge of allegiance to the flag.   

 

MEMBERS PRESENT:

 

Council President Higgins, Councilors Mutter, Ackerman, Lemois, Morris, Albuquerque and Kirkpatrick    

 

Also present Mayor Daniel J. McKee, Thomas Bruce, Finance Director, and Sandra M. Giovanelli, Town Clerk 

 

1.  #08-16 – An Ordinance Establishing the Operating Budget for the Town of Cumberland for the Fiscal Year 2008-2009 

 

MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR LEMOIS AND IT IS UNANIMOUSLY VOTED TO APPROVE BY A ROLL CALL VOTE.  VOTE 7/0.

 

2.  #08-17 – An Ordinance Establishing the Water Department Budget for the Fiscal Year 2008 – 2009 

 

Council President Higgins stated that they have had one public hearing so far but the Mayor would like to be heard at this time.

 

Mayor McKee explained that he wanted to take more time to look at this in depth because they know that the General Fund has been subsidizing the Water Fund at an exorbitant rate for too long and as a result it is depleting the general fund.  He added that they have subsidized somewhere in the area of $4 million out of the general fund which they want to reverse and they have a plan to do that.  He asked Alan Brodd, the Water Superintendent, to be present this evening to present the Council with a budget he has prepared, which is one part of their overall plan.   

 

Council President Higgins explained that it is the opinion of the Town Solicitor that this ordinance as well as the Sewer Department Budget ordinance is not subject to the requirements in the Charter.  He stated that it has been advertised for a public hearing.

 

Public Hearing opened 7:37 p.m. 

 

Alan Brodd, the Water Superintendent, explained that when he began working for the Town on a part time basis he tried to prepare a budget from scratch as opposed to adjusting last year’s budget.  He pointed out that he tends to be on the conservative side because he doesn’t want to project more water sales than he thinks they can accomplish.  He stated that there are two or three major factors that affect the Water Department’s ability to break even, or make money, or pay back the general fund is how much water they can produce, how much water they have to purchase from Pawtucket, and how efficiently they can operate.  He mentioned that in regards to the efficiency of the operation with the price of utilities, heating, and chemicals going up they have little control over it.  The Water Department can control how much water is produced and it has some ideas long term how to produce more water and purchase less from Pawtucket. Mr. Brodd’s from scratch budget contains considerably less revenue than in the budget initially presented but also considerably less expense.  Mr. Brodd mentioned that the only change from when it was prepared was at that time there was a discussion of how much of Mr. Brodd’s salary would come out of the water account; at the time prepared, it was $60,000, which may change.  Mr. Brodd explained that the town is currently on odd/even modified water ban to help with water quality issues, but it will also dampen revenues. It is difficult to predict how much water will be purchased from Pawtucket. 

 

Council President Higgins questioned revenue figures.

 

Mr. Brodd explained that the revenue figures are based on the new rate structure approved several months ago.   Hook-up fees are down – there is very little new construction.   Council President Higgins questioned why water usage revenues were reduced $1.5 million.

 

Mr. Brodd explained that this reduction is based on conservation effort and the poor economy and no growth. 

 

Councilor Albuquerque questioned why hydrant fees were reduced $100,000.

 

Mr. Brodd stated that wrong number was used; it has been carried over each year at the same amount. 

 

Councilor Morris questioned what exactly hydrant fees are.

 

Mr. Brodd explained that that they are paid by the fire districts.  It helps subsidize expenses due to supply water for fire protection.  There is no revenue from water used to fight a fire. The Water Department is paid by the fire districts for the cost of keeping water pressure and flow to the hydrants.

 

Council President Higgins questioned hook-up fees.

 

Mr. Brodd is projecting $50,000 instead of $61,000.  He explained that this is difficult to estimate as it is based on new construction. There is some new construction expected, but difficult to project how much will be received. 

 

Councilor Lemois questioned the line item for water supply – is this a one-time payment? 

Mr. Brodd explained that this represents an increase from the Pawtucket Water Board in the cost of water to us. The purpose of this entry is to try to apportion that portion of the operating expense related to increases from the Pawtucket Water Supply Board.

 

Councilor Albuquerque questioned the increase in service fees. 

 

Mr. Brodd explained that these represent the meter fees each customer pays regardless of the amount of water used.  The figure was based on the rate changes previously approved and increased 4% over the actual number of the previous year.  

 

Council President Higgins asked if this was Mr. Brodd’s final product.

 

Mr. Brodd stated that he felt that the only possible change would be regarding his salary.  Expenditures were then reviewed.  Mr. Brodd stated that other than his salary expense, which may change, he was very comfortable with the expenditures listed.  Mayor McKee explained that regarding Mr. Brodd’s salary, the entire amount will come out of the water budget, and as Mr. Brodd expends time regarding the sewer department, etc., he will keep an account and an adjustment will be made on each side.  Mr. Brodd explained that he keeps an Excel spreadsheet with this information. 

 

Councilor Mutter questioned two expenditures:  one was the cost of health insurance which doubled from last year, and the other was capital improvements. He would like to know which are not inside the infrastructure improvements ($47,000). 

 

Mr. Brodd could not readily explain the cost of insurance; he believed it represented an increase in those employees who took family coverage as opposed to single coverage.  He was unable to provide an additional explanation.  Regarding the capital improvements, Mr. Brodd explained that the $47,000 are small incidental improvements to the plants, above and beyond infrastructure improvements. 

 

Councilor Morin recalled that about 6 months ago they contracted with an engineering firm on a per-diem basis, and questioned where that project stood. 

 

Mr. Brodd explained that some improvements had been made, but some work was not complete, and he was negotiating with the engineer regarding this, and what the cost would be to the town. Their engineering services are still required at this point regarding the plant.

 

Councilor Mutter questioned the contingency reserve expense. 

 

Mr. Brodd confirmed that this is a contingency account in the event a water main breaks, for example, to repair the pavement, etc. , that are too large to repair with our own workers.

 

Council President Higgins suggested that ordinance be amended, salary adjustment be added, and then have a first vote., and then schedule a second hearing and further questions be answered, including Mr. Mutter’s questions, and then have another vote.  

 

Councilor Mutter disagrees because the budget presented by Mr. Bodd is substantially different and there is a need to continue public hearing He does not want to vote until he gets answer to the health insurance question and capital improvements question.  

 

Councilors Morris and Councilor Lemois stated their agreement. 

 

Councilor Higgins questioned whether this would need to be re-advertised.

 

Public Hearing recessed 8:07 p.m. 

 

MOTION BY COUNCILOR MUTTER TO AMEND #08-17 BY SUBSTITUING IN ITS PLACE THE BUDGET PROPOSED BY MR. BRODD AND LABELING IT AS #08-71A, SECONDED BY COUNCILOR ACKERMAN AND IT IS UNANIMOUSLY VOTED TO AMEND ORDINANCE.  VOTE 7/0.

 

MOTION BY COUNCILOR ALBUQUERQUE SECONDED BY COUNCILOR ACKERMAN TO CONTINUE IT FOR HEARING TUESDAY, JUNE 18, 2008.  VOTE 7/0.

 

3.  #08-18 – An Ordinance Establishing the Sewer Department Budget for the Fiscal Year 2008 – 2009

 

Public Hearing opened at 8:10 p.m.

 

Public Hearing closed at 8:11 p.m.

 

Councilor Mutter questioned how sewer assessments will increase this year if they have not in the past few years. 

 

Tom Bruce explained that it is scheduled; the town knows how much we are going to bill each year. 

 

Councilor Mutter also noted that based on the new budget just passed, the transfers to other accounts were taken out, leaving a $132,480 hole which must be filled before the Council passes this budget. 

 

President Higgins noted that he opened 08-17 instead of 08-18 and read the wrong numbers.  He then read the correct numbers and reopened the public hearing.

 

Public Hearing closed at 8:14 p.m.

 

Councilor Morris noted that because of the changes to the sewer assessments, the budget does not balance.  Tom Bruce noted that a budget amendment is needed to correct this imbalance. 

 

Councilor Mutter noted that sewer assessments are too low to pay down debt as required, and this matter must be addressed.  Bills do not go out until springtime so there is time to deal with these issues.

 

MOTION BY COUNCILOR MUTTER TO COMMIT THIS TO THE FINANCE SUB-COMMITTED, SECONDED BY COUNCILOR KIRPATRICK AND IT IS UNANIMOUSLY VOTED TO COMMIT.  VOTE 7/0.

 

MOTION BY COUNCILOR MUTTER, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO ADJOURN AT 8:22 PM.  VOTE 7/0.

 

It was realized that there had not been a vote by the Council on the Recreation Budget, and a second vote is required on that matter.

 

MOTION TO REOPEN MEETING BY COUNCILOR MORRIS, SECONDED BY COUNCILOR ACKERMAN.  VOTE 7/0.

 

Meeting reopened at 8:23 p.m.

 

4.  #08-19 – An Ordinance Establishing the Recreation Department Budget for the Fiscal Year 2008 – 2009

 

MOTION BY COUNCILOR LEMOIS, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO PASS ORDINANCE.  VOTE 7/0.

 

ADJOURNMENT

 

MOTION BY COUNCILOR LEMOIS, SECONDED BY COUNCILOR ACKERMAN AND IT IS UNANIMOUSLY VOTED TO ADJOURN AT 8:24PM.  VOTE 7/0.