Proposed City Budget Public Hearing
May 28, 2009
Mayor Bertrand opened the duly scheduled and advertised public hearing in the City Hall Auditorium at approximately 6:30 p.m. The Mayor introduced the City Council. Present were Councilors Remillard, Landry, McCue, Lafleur, Evans, Goudreau, Cayer and Poulin. Also present: City Manager MacQueen, Blandine Shallow, Police Department personnel, John Moulis, School Board Members, Angela Martin-Giroux, Denise Jensen, Mike Perreault, Andre Caron, several citizens and members of the press.
The Mayor thanked all for attending tonight and explained how the budget process works from the City Manager, Department Heads then down to the Council. This year Council had three goals: 1) Flat tax rate; 2) Increase Capital Improvements; 3) Increase undesignated fund balance from 3.8% to 5%. Mayor Bertrand proudly stated they achieved all three goals with this budget. For the second year in a row, there will be no tax increase and we are able to maintain services.
Mayor Bertrand opened the floor to Council Comments. There being no Council Comments at this time, Mayor Bertrand invited citizens and/or taxpayers to come forward with their comments. He asked that they speak only once for no more than five minutes and to keep to the subject at hand which is the budget.
Roland Leclerc, Sweden Street, applauded Council’s efforts in the number of services. Cuts only hurt people in the long run. He asked Council why they voted to pay $100,000 to fund an attorney to challenge industrial development. We have a hard enough time to attract industry to come to this area. He asked the Mayor and Council to reconsider keeping the $100,000 and use it to fund the budget where the money could be better spent. The City has been in legal battles before and they go on and on.
Mayor Bertrand anticipated this issue being brought up tonight since the newspaper skewed the information. The reality is we need to be prepared with legal counsel at hand to protect residents of Berlin from such things as dust, noise, etc., so the company is not free to do anything they want. It would be irresponsible to do anything less.
Councilor Goudreau maintained that the point is this is not a legal battle. We need experts in this field to represent the City’s best interests. Council has discussed placing restrictions on the money spent because $290 per hour goes quickly. Council may never spend that money but it needs to be budgeted just in case.
Councilor McCue concurred with Councilor Goudreau’s remarks and added that he is extremely skeptical that Laidlaw will follow through with the process but if it happens, we need to be prepared. The reason for choosing an attorney is to keep local control. We don’t want a state committee of seven to decide what goes on in Berlin.
Councilor Evans thanked Mr. Leclerc for his comments. He encouraged all to speak since not all Council agrees with the same approach.
Lorraine Leclerc, Western Avenue, thanked the Mayor and Council for their hard work and agrees they have a tough job. She does not agree with funding $100,000 for litigation. She asked how much money is actually in that fund?
Mayor Bertrand clarified that nobody is in litigation. They set aside a line item for $100,000 or $140,000 for legal expenses.
Lorraine would rather have taxes go up a little each year instead of all at once. She heard that Berlin people are going to Gorham for recreation programs.
Councilor McCue contends that Council has held the line for two years and their goal is to continue. It might be different this fall if there are changes due to the election. He thinks the key is to have property values come back. Council tried to keep expenses down but we need to increase revenues. We have to develop the recreation industry. There are many business opportunities in this area since most people living here own snowmachines, motorcycles or ATV’s and they need either parts or service for these items. The process depends on the new Mayor and City Council.
Lorraine wants to see growth and also wants businesses to come but we need new ideas. Although she personally is not against Norm Charest, she suggests taking his $25,000 salary to give it to the PWD. Since Norm is in Florida for five months. Would any businessman allow his top employee to be gone that long? Max Makaitis could help us with Economic Development like he did with the NDHS. Norm was not there but Max was. This is the fourth time Lorraine has persisted to ask the Mayor and Council to terminate Norm Charest’s contract. It makes no sense to keep him on board.
Councilor McCue agrees we need other business but we should not take just any business. Lots of companies go after depressed communities thinking they are desperate. He defended that many of Norm’s reports go through BIDPA and he is very active with BIDPA. Max is out there but he works for the NCIC and his territory is the entire Androscoggin Valley and not just Berlin. He does not report to the Mayor and Council.
Lorraine inquired if Councilor Donovan left a line open for this position while he was on Council?
According to Councilor McCue, there was a line item for an Economic Development Director but it is zero funded. He went on to say that we are actually getting a good deal through CAP paying only one third of Norm Charest’s salary.
Lorraine will not change her mind and is not in favor of the Economic Development Director we currently have.
Councilor Goudreau asserted that there is no way this budget will have a negative impact on future tax rates. For years, Capital Improvements have been on a pay as you go system. Usually the first thing to go in a budget is Capital Improvements and you can tell if you look at our streets and infrastructure. Council this year has decided to borrow money to fund ongoing Capital Improvements. If taxes would go up it would be due to a new Mayor and Council. He went on to say that although they appreciate employees, the Mayor and Council can no longer afford to give 3% raises. He moved to fund a full time Economic Development Director who works exclusively for Berlin and is willing to pay an extra twenty-five cents in taxes to fund this position. Jobs in the area benefit citizens but do not help the city
tax rate. We must get businesses in Berlin. He does not support a regional economic development director.
Dave Morin, 54 Whittemore Avenue, is apprehensive about no tax increases and deferring taxes is inevitable. Realistically, the cost of living increases each year. Lots of sweat equity has gone into developing the high school running tract. Funding in the Recreation and Parks Department budget is important for upkeep for the track and also for the city parks as well. Mr. Morin emphasized that kids are a community asset and it is important they have a place to play or get a meal at lunchtime. Capital improvement ideas are important but our kids are important too.
Councilor McCue maintained that Council’s goal was for a 7.5% budget reduction. It was up to the individual departments to decide where to make those cuts. There are agencies that could potentially pick up the slack and help wherever needed. The Recreation Department does lots to help the Main Street Program with events and he doesn’t want to foot the bill for the kind of set up they provide. In the community there are businesses that have resources to help. It might be time they step up to the plate.
Mitch Couture, Fourth Avenue, School Board Chair is concerned about the Recreation Department budget cuts. He informed Council that the center of the field is destroyed and most likely will not recover this year. He also asked who will stripe all the fields this Fall? He applauded Council for trying to keep taxes at a flat rate but thinks they are missing the point on the smaller items. We should be trying to make Berlin look better even if that means raising the taxes by twenty-five cents. It will be a lean School Department Budget and any cut will be a problem. He asked Council to reconsider the budget and reminded them it is not necessary to go completely flat.
Councilor McCue stressed that they are talking about the budget that begins July 1. There should be funds to currently cover field maintenance in this years’ budget. It is not a budget issue but a maintenance issue.
Mitch reminded Council that the track is a major source of pride to the City of Berlin and it was built with surplus money.
Tom Pickford, Church Street, teacher for 37 years and a Recreation and Parks Commissioner stressed how much we need the summer programs for our kids and what a great job the seasonal employees do on the fields. We can’t keep going to the people for help. We need to fund the summer programs.
Councilor McCue, prior to this meeting, had asked the City Manager what effect it would have on the tax rate if we were to level fund the Recreation/Health to last year. They are currently working on and looking into those facts.
Rita Gagnon, Health Department Nurse, confirmed that the Health Department is understaffed. Working with these conditions affects their patients who will suffer if they don’t get the care they need.
Councilor McCue is acutely aware of what is happening and will see what can be done.
Lorraine Leclerc reiterated that the $25,000from CAP would help the Recreation Department. She also read that Max Makaitis offered to form a committee instead of having the city hire an attorney for $100,000. She likes the idea of volunteers helping.
Dave Morin, 54 Whittemore Avenue, was pleased to hear the positive comments about the Health Department. They provide an important service to our community and are also a money generator. He asked Council to fund them at an adequate level because it is a cost effective and valuable department.
There being no further comments from the public, Mayor Bertrand summarized what he heard from the citizens tonight. There is a concern over the $100,000 for legal expenses. Heard input about Max Makaitis and Norm Charest and will consider those options. Concern about the Recreation and Health Department budgets. Jeannette Fortier called the Mayor to talk to him about the importance of the Health Department. It is incumbent upon the Mayor and Council to take the comments into consideration and they have until June 15 to make a decision. People are willing to accept a small tax increase to keep services and that should have due consideration. The Mayor concluded that he appreciates all who came out tonight to comment. He reminded people to call the Mayor and City Council with their concerns anytime.
Councilor Lafleur moved with a second by Councilor Poulin to adjourn the public hearing at this time. So moved, Mayor Bertrand adjourned the proposed budget public hearing at approximately 8:03 p.m.
A True Record, Attest:
Debra A. Patrick, CMC
City Clerk
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