CITY COUNCIL WORK SESSION
Monday, August 18, 2008
Present at the meeting were: Mayor Bertrand, Councilors McCue, Poulin, Remillard, Donovan, Goudreau, Cayer, Lafleur and Evans. Others present included: Bob Vachon, Norm Charest, Blandine Shallow, Mary Jo Landry. Marion Huntley, Laura Viger, John Moulis, Pamela Laflamme, Nancy Bell, Mitch Couture, Martha Laflamme, Sue Small, Lorraine Leclerc, Patrick MacQueen, media and public.
Preliminary Audit Discussion - Bob Vachon
Bob Vachon was at the meeting for a pre-audit conference which is a new procedure to get the governing board involved in the audit. He explained the procedure stating that any account of $50,000 or more is looked at automatically; others are tested at random. Auditors are responsible for finding material fraud. New this year is a walk through where one transaction is followed all through the system. Documentation of internal controls has been in place for some time. Councilor Goudreau asked how a random sampling is done and found that a risk assessment helps to determine the sampling.
Taxes are collected, uncollected or abated. Registrations are strong this year, likely due to being on the State system. The auditors test payroll and whether all payroll has been reported to the IRS. Trust funds are tested as well as major funds and non-major funds such as sewer and airport. The audit is a two week project and if Councilors have questions, they may be asked at any time. Mr. Vachon noted that the final report is likely to be delayed due to the Water Works audit.
Success Discussion - Nancy Bell, Conservation Fund
Mayor Bertrand introduced Nancy Bell representing the Conservation Fund who was present to talk about Success. Ms. Bell explained that she and the Conservation Fund first came to the area when Shelburne asked the Conservation Fund to help with the Philbrook Farm Inn property. The mission of the Fund is community sustainability for economic health.
While in the area, the opportunity came to work with the Dillon's and a phased option on the Success property was worked out. There is no agenda to go into the area to conserve land. The goal is to work with local government and the public to form partnerships and then find the funding. The upper 4700 acres of the Success property is more appropriate for recreation and identified in the Save NH Wildlife Habitat Plan. The Conservation Fund does not buy and keep land; they have to generate the funding and to do that, they look for public support. There is a request before Congress to fund the upper 4700 acres from the Land and Conservation Fund where the land would then be managed by the White Mountain National Forest.
Councilor Donovan commented that the economy of Coos County has changed. He asked what is the next new economy and where do the lands play a role in the new economy? There needs to be a balance so that easements are kept for recreation. Councilor Lafleur asked, with WMNF as the guardian, will motorized vehicles be allowed on the property? Ms. Bell responded that the issue will be subject to the public process.
Councilor McCue suggested that Ms. Bell make contact with the Success Pond Camp Owner's Association.
Norm Charest asked if the Mayor and Council decide to become actively involved, what would be the chance of securing funding for Success through proper negotiations. Ms. Bell responded that it's all process, politics and public desire. Councilor Lafleur made the point that conservation is wise use and preservation is no use.
Ms. Bell noted that she can be available for meetings, can provide maps, and information to any interested parties. The Conservation Fund would entertain any use.
Mayor Bertrand asked if the wheels are in motion for the 4700 acres which he sees as Phase I and if Phase I is a prerequisite for Phase II which is the 15,000 acres of Success. Ms. Bell reported that Phase I is a prerequisite to Phase II and the Fund has gone through the Federal process for the 4700 acres but there has been no appropriation of money yet.
Norm Charest questioned whether there is an example of a governing body taking the lead for such an endeavor. Ms. Bell stated that there may be communities in Vermont that have done it. Ms. Bell indicated that it needs to be known that there is consensus and broad support for a combined recreation, economic outcome; however there is not a particular way to do this.
School Surplus Resolution Discussion
Mayor Bertrand established that if the City Council is going to appropriate additional funds to the schools, then a full resolution and 2/3 vote will be needed.
Mr. MacQueen clarified that if there is additional money being appropriated and spent, then a full resolution with public hearing is necessary to appropriate the funding from undesignated fund balance. If an appropriation is made from UFB to the revenue side of the budget and there are no new expenses, such as to reduce taxes, then it could be done by motion because there are no additional expenses other than those that have already been reported to the public in the budget process.
Councilor Goudreau moved to apply $225,000 from undesignated fund balance to be used as a revenue source in this year's budget to reduce taxes; Councilor Lafleur seconded the motion and it passed with all in favor
Councilor McCue questioned the cost of fuel oil and Mr. MacQueen noted that prices have been coming down and the oil will be re-bid next month; there is not a good estimate until it is re-bid
The Council was presented with the format of a resolution for an additional school appropriation which had been the subject of discussion at several meetings. The amount to be appropriated was left blank and at the discretion of the Council, the resolution could move forward or not.
Councilor McCue moved to draft a resolution increasing the school appropriation by $200,000 from the Undesignated Fund Balance; Councilor Cayer seconded. Discussion followed with Councilor Goudreau expressing that it is irresponsible to appropriate money on the basis of an agreement rather than need. The schools spent $14.8 million last year and their budget is $16 million this year; that is an increase of $1.2 million. He urged the Council to vote against. Councilor Donovan agreed with Councilor Goudreau. Councilor McCue voiced that he is also concerned about the amount of surplus but cautioned that we don't want to discourage any department from running a surplus.
In the vote that followed, the motion to increase the school appropriation by $200,000 was defeated on a 5/4 vote. Councilors McCue, Lafleur, Cayer and Mayor Bertrand voted for and the remaining Councilors voted against.
Segregated Funds Resolution Discussion
Mr. MacQueen explained that two years ago the City Council passed a resolution adopting a policy limiting Segregated Funds to unspent capital items from the previous year's budget. Departments have made their requests to carry over funds that were not spent but still have a need to be spent for that purpose in the future. This year's requests are all capital items with the exception of the Police Department's anticipated severance account and the Rotary Park work that was authorized from Council Contingency. The Police Department indicated that they began segregating the Anticipated Severance before the policy was initiated. The Rotary Park work has been authorized and can be paid for from this year's Contingency account.
Mr. MacQueen acknowledged that some of these accounts have been around for some time such as retaining walls and sidewalk replacement. These accounts are carried until the capital item is completed.
Councilor Donovan favored appropriating the severance funding to the Police Department since there are six police officers getting close to retirement. He maintained that the Rotary Park project is not a capital item.
Councilor Goudreau questioned the small amounts in the capital request. He also questioned items that have not been spent for several years and whether they are really needed. When asked if this had to be acted on, Mr. MacQueen indicated that there are several projects such as the ongoing brick work at city buildings, Fire Department Floor and Western Avenue Paving that anticipate funding from this resolution. The resolution will be read for the first time and additional information will be provided to the Council.
City Equipment Use
Laura Viger reported that, based on a request from the Council, she put together a meeting of all departments to talk about available equipment. In the process of the meeting a summary of services provided to the schools that are not reimbursed was developed. It was found that departments work well together, maximizing needs and equipment use. Mayor Bertrand clarified that, in the context of snow removal, he wanted to make sure that all departments were cooperating and getting the most use out of everything.
Labor Day Meeting
It was the consensus of the Council to meet Tuesday, September 2, for a Regular Council meeting.
There being no further business for the Work Session, the meeting moved on to the Regular Session.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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