MINUTES OF THE CUMBERLAND TOWN COUNCIL

FIRST BUDGET HEARING FOR FISCAL YEAR 2008-2009

THURSDAY, MAY 29, 2008 AT 7:00 P.M.

CUMBERLAND PUBLIC LIBRARY, COMMUNITY ROOM

1464 DIAMOND HILL ROAD,

CUMBERLAND

 

The meeting was called to order at 7:06 p.m. by Council President James Higgins.

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

MEMBERS PRESENT:

 

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

 

Also present Mayor Daniel J. McKee, Thomas Bruce Finance Director; Pat Anderson, Assistant Finance Director; and Augusta Johnson, Deputy Town Clerk 

 

MEMBERS ABSENT:

 

Councilor Ackerman

 

ORDINANCES FOR PUBLIC HEARING:

 

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

 

Council President Higgins starts with the General Revenue which includes Property Taxes, Licenses, Permits & Fees, Rescue Revenue, Probate Fees, Municipal Court, Interest on Taxes, Investment Income, Miscellaneous, Water Fund Services, Sewer Fund Services, Close Out Bond Rebate Fund, State Triennial Reval Reimbursement, Inter Fund Tax Interest, Appropriation from Impact Fees.

 

Robert Thibodeau of 7 White Pine Drive speaks on property taxes and what is appropriated. He states he made his case to the Subcommittee meeting about bond issue, regarding the 39 cents. He believes there is not enough money in here to off set all the bricks and mortar that is being done, as far as the bond construction. He also made his case to the Property Committee that this number should be raised. He is not an advocate of raising taxes but he is an advocate of doing what is said. Just like the town received the 34 cents, one-third was reimbursement from the State. We said to the taxes payers that their taxes would increase by 39 cents a day, so for 12 thousand homes that is about $1.3 million that just happens to be what the school department is asking for. There is enough money for the bricks and mortar, but not enough money on the educational side.

 

Next is State Aid and Grants which includes: General Revenue Sharing, Telephone Tax, School Housing, Library Housing, and Motor Vehicle Phase Out.

 

Councilor President Higgins asked why the telephone tax went down.

 

Tom Bruce replies that the announcement comes every spring in March time frame for each community in the state. For the last four years running this amount has been declining. This amount is based on public utility tax; land-line telephones companies (which are losing business due to cell phones) per the Office of Municipal Affairs.

 

Councilor Morris references to Investment Income line, there is $24,000 coming in the last to months of the fiscal year and asks Tom Bruce to explain.

 

Mr. Bruce replies that the amount of funds that the Town has available for investment has dramatically decreased during the current fiscal year. In sink with the other constraints and fiscal pressure what have been talked about in council meetings and internal management meetings and some of the actions taking to alleviate some of the cash flow pressure that primarily are coming from the water fund. We have a close out process for the fiscal year that recoups a lot of interest. We expect it to be $30 thousand year end. We have lost a lot of ground in interest rates but mostly cash holdings.

 

School Receipts which includes: State Aid, Literacy Grant, Limited English Proficiency, Grants, and miscellaneous. 

Library Receipts

 

Expenses:

General Government which includes: Mayor’s Office, Town Clerk, Town Council, Town Solicitor, Municipal Court, Town Officers, Boards And Commissions, Probate Court, Boards Of Canvassers, Economic Development.

 

Community Development which includes: Planning and Zoning Board

 

Councilor Morris states that last year the Town started giving $1,250 out to the Planning and Zoning Boards for education for the board members. It has been increase to the Planning budget for $2,000 and not to the Zoning budget. She asks if they are expecting more than $2,500 in expenses for Planning Board members’ education.

 

Tom Bruce responds the Planning Director needed that increase for the board members; he did not compare it to the Zoning board members. He indicated that he need it and expects to incur that expense next year.

 

Councilor Morris response that she knows that to training all Town Council, Zoning and Planning Board members on land uses issues was a little under $2,500. Do we need the whole $2,000 just for the Planning Board members? A little cut.

 

Mr. Bruce states that he will get a response from the Planning Director and get back to her.

Councilor Morris asks, what is the planning board consulted? At $6,500 you would think that the applicant would pay for consulting issues.

 

Mayor McKee explains that part of this is Economical Development is rolled in there, along with Board Street Plan with the potential of bringing in consultants and the Planning Director. The Mayor asked John Aubin to level fund it so he did. Mayor McKee believes that Mr. Aubin plans to manage it in a similar way to what he has done this year. He came in at $205,000 in the education piece posting figures, if there are up or down this will reflect what we ask him to fund.

 

President Higgins asks if all department heads will be present at the next meeting.

 

Financial Administration: Finance Office, Collections Department, Property Revaluation, and Tax Assessor.

After review the report, President Higgins notes that the reduction is primarily due to the revalues and the tax evaluation.

 

Public Safety which includes: Police, Telecommunication, Rescue Service, and Animal Control.

Public Works which includes: Inspection, Public Works, Highway, Town Hall, and Recreation.

 

Expenses

Other Departments: Library, Senior Citizens, Children & Learning, Transfer to Sewer

 

Jim McLaughlin of 15 Garden Street asks the administration to conserve on gas by turning off vehicles and carpooling to meetings to save on cost.

 

other Expenditures: Municipal Dues, Outside Agencies, Emergency Management, Mason Building, Contingencies, Capital Improvements, Computer System & Equipment, Network Mgmt Services, Software & Conversion, Information Technology, Information Technology Salary, Traffic Calming Plan, Veteran Services, Appropriation to CHS 2010, Stress, Adult Literacy Program.

 

Councilor Morris speaks on IT issues, salaries including software and other support material. She asks why there is additional service dedicated to network management services, software conversion, and nothing on information technology.

 

Mayor McKee speaks about the suggestion of having a salary for an IT Director. He points out that if they reverted back to the way it was in the past there would be a $15,000 maybe $18,000 in savings. It was put in the budget because of the suggestion when you look into the payroll tax, health benefits, and pension contribution care it’s probably a good idea. He asks to talk to council during this budget process to make some level of amendment. He states that does not quite answer the question, but he would like to put it on the table.

 

Council Morris responds that some of the salary comes out of the water and sewer budgets, which brings it to $86,000 but than you have these other line items $19,000, $3,000, and $11,500 which bring it up even more.

 

Tom Bruce responds that $10,000 of those (water and sewer) appropriations are devoted to salary and $62,000 off of the salary line is devoted to contract pay. The other three lines in the general fund salary ordinance line is not for contract pay but for software licensing, software installation for next year, hardware procurement basically replacing computers that are obsolete 5 or 6 years. License agreements are the most expense cost element. The network software runs everything from all the displays station in all the departments, application software, and accounting tax.  We do have outside help to the tune of $3,000 to assist the IT person with the network of computers that are outside of the office, which is now a lot less.

 

Councilor Morris states that the Town Network Expense on the water and sewer budget leaves another $14,000 and $11, 000 for produces and services. She also noted that there were several changes that were made to outside agencies.

 

Mayor McKee states that changes were made to areas that were budgeted but not distributed some of the funds because there were no requests. The net number for outside agencies went down by $500.

 

Councilor Morris asks if we are not giving the same amount to North Rhode Island Chambers, is that a dues or set amount that we need to pay or a donation.

 

Mayor McKee responds that this is dues (North Rhode Island Chamber). Any reduction is due to lack of response from these agencies. There were no requests this year, so it was reduced. The Cumberland Fest was reduced by $500 per year as they go forward because they do raise there own money. However, we do still contribute in other ways, such as service of the highway department to setup the facility, and trash removal.

 

President Higgins states that the question that came up last night was in term of contribution for Cumberland Colts and Cumberland Youth Baseball Leagues.

◦ Are there a certain amount requested to put in for certain amount of dollars?

◦ Is there any requirement to show a need for their funds?

 

Mayor McKee responds there is no requirement. This is a courtesy to the youth programs to help set off the cost and this varies. President Higgins, supporter these programs and being involved in some of these leagues, is aware that many leagues have thousand of dollars in reserve and wonders how much longer we can afford funding these programs.

 

President Higgins states that the other issue that came up last night was Capital Improvements. We were provided with a list of figures however, it does not match any of the other numbers. What we asked for was a breakdown of the proposed for this year and a list of the expected to be expended which is over budget, but this list does not reflect that.

 

Mayor McKee responds that they are capital expenditures that exceed that by a great deal, so they will be managing that and prioritize. What is need on the capital side is a reflection of consciously reducing and dismantling the municipal budget block by clock to fund the School Department.

 

President Higgins asks what contingencies are.

Mayor responds this is for unexpected issues like lawsuits against the Town.

 

Other Financial Expenses: Debt Service School, School Capital Improve/Leases, Fringe Benefits

School Department: Town Contribution, Town Contribution- Capital Improvement

 

Brian Kelly of Hayfield Lane discuses his views on town contribution and proposed level funding. He believes that if our elected leaders at the State level continue not to do their jobs, by not put a fair and predictable funding formal, then the Town must continue to level fund the school budget and prepare a plan for next year. Rhode Island is one of two States and soon to be the only state that will not to have a fair and predictable funding formal.  Referendum for the School Construction, he clearly understood that to pay for 39 cents per thousand that it would not be 39 cents on the tax rate taking out of current tax rate, that it would be an expenditure that the Town would take. For him, 39 cents on the dollar equates to $170 more on my tax rate. Mr. Kelly is not a proponent of raising tax but he also is not a proponent of letting our infrastructure decline. We talk about wanting the best schools unfortunately to get the best schools it costs money. The children are entitled to get the best education that we can provide them. In a communities like Cumberland we certainly can provide an education. He is all for competition but we have a responsibility to the kids in the school system. He states by increasing the education, it will increase the evaluation of your home as well, and that is the best investment we will every make.

 

Jim McLaughlin states that we need to look toward the future and if the State will not fund why not on the local side, Referendum Municipal Bond for 5 or 10 years to covers the cost of living and pay raises.

 

Lisa Beaulieu of 196 Hines Road and School Committee members, she notes that the children should not pay the price and asks the council to support the school proposed budget. She reads an article that was submitted to the Valley Breeze written by Dr. Rosemary Rielly-Chammat.

 

Cumberland Superintendent Donna Morelle, and also a resident of Staples Road, spoke about the passion and level of dedication that has been demonstrated by the public, Administrative Team, teachers and the School Improvement Team. She thanks the Finance Subcommittee for giving them the rare opportunity to be reflective about the goals that they have. The question everyone needs to ask themselves is “What is the worth of a public school education. Her responsibility as the CEO of the School Department is to be the chief advocate for public school’s education.

 

Dr. Morelle states that the overall required is 1.83 percent this is less than a 2 percent increase. This is equivalent to 34 teachers and reducing staff would cause reducing programs. The budget has been reduced already by 25 positions in addition to the 7.5 that was reduced last year. The total increase on this budget is $351,000. The contract negotiation moves our teachers to state average which is a fair wage. She states that the reduction in special education tuitions and therapy, which is a sufficient line item and amendment with the transport provider, is a $200,000 savings. Dr. Morelle states that she is here to work with council to resolve this problem.

 

President Higgins expresses his concern about the building of these new building and not being able provide the resources to fulfill the purpose. He would like some documentation on this. He questions the two pending salary arbitration cases and the dollar amount of $500,000.

Dr. Morelle responds it a little more than that and Joseph Rottella, Legal Council Director of Administration of Cumberland School Department elaborated more on that question.

 

Jackie Crawley, a resident and school teacher of this town, states that schools are under funded and class sizes are high in classroom numbers and can’t go any higher. She asks Council to support this budget.

 

Jeff Mutter states that he has gone to the state to ask for funding and they refused to look him in the face.

The question how did we get here” is that the people voted for CHS2010 at $30 million, and they know it was going to cost them x amount of dollars that was incorporated in the cap or if it wasn’t. At that time Mayor McKee was the only one talking about it and there were people on the School Committee that did not ask the questions and than the people in the community agreed on that. We need to know what we are funding.

 

Public Hearing Closed at 9:40 p.m.

 

Expenses

Mayor McKee asks council to consider having water and sewer budgets at a separate time, because a great deal of energy has been focused on other issues and he would like everyone’s full attention on this matter.

Councilor Mutter agrees that more time should be taken, this will be on Monday’s Agenda (June 9, 2008)

 

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

 

Water Department: Enterprise Fund Revenues, Expenditures

Public Hearing Opened at 9:43 p.m.

Public Hearing Closed at 9:44 p.m.

 

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

 

Sewer: Revenues, Expenses, Cont. From General Fund

Public Hearing Opened at 9:44 p.m.

Public Hearing Closed at 9:45 p.m.

 

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

 

Recreation Department: Enterprise Fund Revenue, Expenditures

Public Hearing Opened at 9:46 p.m.

Public Hearing Closed at 9:47 p.m.

 

ADJOURNMENT:

 

MOTION BY COUNCILOR MORRIS, SECONDED BY COUNCILOR LEMOIS AND IT IS UNANIMOUSLY VOTED TO ADJOURN AT 9:48 P.M.  VOTE 6/0.

 

           

 

                                                                              _______________________________________

                                                                                    Augusta Johnson, Deputy Town Clerk 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE DVD AND MINUTES OF THE ENTIRE MEETING IS AVAILABLE AT THE EDWARD J. HAYDEN LIBRARY