Work Session
October 13, 2009
Present were Mayor Bertrand, Councilors Poulin, Remillard, Lafleur, McCue, Evans, and Cayer; absent were Councilors Goudreau and Landry
Others present included Norm Charest, Corinne Cascadden, Pat MacQueen, media and public
Proposed Bond Projects for Capital Improvements
Mr. MacQueen distributed an updated summary of what projects would be in the proposed bond issue. This is a mix of 2010 and 2011 capital projects to be bonded in this fiscal year. He went through the projects listed which total nearly $4.6 million. There still has to be money left in the CIP because there are projects that don’t go in a bond issue totaling $394,342.
A five year bond at 3% to 4% would mean a payment of 1.3 million per year. The projects listed come close to a realistic bond issue. The City will need to choose whether to go with the Municipal Bond Bank or a private bank. According the City’s bond counsel, David Barnes, the advantage of going with a private bank may be saving on fees.
Mayor Bertrand questioned whether money budgeted in this year such as the $75,000 for Public Works garage improvements, and not used until the second bond issue will result in surplus funds. Mr. MacQueen explained that the additional funds would lapse into unappropriated fund balance and would need to be re-budgeted at the time of the second bond.
Councilor Lafleur confirmed that changes to projects from the previous year come from discussions with department heads. Mr. MacQueen added that the numbers have also been modified to fit into a bond as was discussed by the Council. Councilor Lafleur established that there was building aid for the boiler and that does not seem to be included in the CIP. Mr. MacQueen assured the Council that we will use building aid to offset the expense to the extent that it can be done legally.
Councilor Remillard confirmed that the project to close in the salt shed at the Public Works garage has not been eliminated.
Councilor Evans asked what the City usually budgets for capital improvements, questioning whether it was a number similar to the bond pay back amount. Mr. MacQueen expressed his original concern with bonding the CIP as it having a balloon effect in year 7 when a bond payment will have to be made and there will still be capital improvements to fund.
Mayor Bertrand indicated that Mr. MacQueen will draft a resolution to move forward with the bond for first reading at the October 19, 2009 meeting. The resolution would have its second reading and public hearing at the November 2 meeting. The consensus of was to move forward.
2011-2016 Capital Improvements Program
Mr. MacQueen stated that in the message he asks that the council set goals as they did last year. The tax rate is being set tomorrow and we expect that it will be flat at $29.82. Once the tax rate is set, we will see if the goal of non-bonded capital spending of 10% was met and if the goal of unappropriated fund balance of 5% was met. He added that he would like to see the Council do the same exercise for next year for capital and for the upcoming operating budget. The more consistently the goals are set, the more departments understand the goals.
Councilor Evans asked about the fire alarm system upgrade and whether this is an antiquated system that could be abandoned. Mr. MacQueen explained that it is not only the street alarm boxes but the city wide electronic business alarms that are covered by the system. The Fire Chief is working on a more appropriate user fee that would help bring in revenue to keep the system up to date.
Councilor Evans asked if the boiler at Brown School was in the budget. Ms. Cascadden explained that it will cost more than anticipated because a steam boiler was replaced with a hot water system and there is new piping involved. Mayor Bertrand confirmed that a biomass system would replace the heating systems at Berlin High School and the Junior High; it would not involve Brown School.
Other
Update on 21/21
Mr. Charest reported that the word is out that the community is making a formal effort to change its image and it has caught the attention of outdoor sports enthusiasts. He noted that he has engaged the skills of Joe Rozek to design the composition as well as operating procedures for the 21/21 task force. If anyone is interested in serving on the Task Force, they should get in touch with Norm.
He met with Corinne Cascadden and the School Board discussed the issue of having a member of the student body on the task force. The intent is to have meetings on line rather than face to face to save on time and paperwork. KD Paine has offered to create a “ning” network where documents will be kept on file electronically. Mr. Charest stated that he will meet with Kathy Eneguess to see what level of participation the college wants to take.
Mayor Bertrand commented that there was a controversy of about our economic development person being part time; he asked what percentage of time is being spent on this work. Mr. Charest indicated that this is taking half of his time. The other half is spent with local businesses dealing with every day issues. Every three months he submits a time sheet and bills the city for ¼ of the year. He said that as of September, the time obligation of the contract has been met, and he has exceeded the hours by 234.
With regard to the revolving loan fund issue, Mr. Charest acknowledged that the City Attorney weighed in on the legal implications of the Constitution which forbids using tax dollars for businesses. He went on to say that he would argue that BIDPA money is not taxpayer money because it has been turned over so many times.
Mr. Charest noted that there are businesses on edge and the retail sector is hurting. He encouraged anyone with new ideas to contact him.
Mr. Charest reported that he will suggest to BIDPA who has been resisting loaning money at high risk to an entrepreneur who only needs a small amount of startup funding for a snack shack, that they could buy the building and lease it back to the entrepreneur. This will give him the operating money he needs to get started.
Mayor Bertrand suggested meeting with BIDPA to discuss the potential of what can and cannot be done with BIDPA funds. He suggested the second half of November.
Councilor McCue commented that municipalities have only the powers that are delegated to them by law; however if we cannot perform the function needed, the Council could support another entity to help.
Councilor Cayer expressed that we should go out and find examples of revolving loan funds that have been successful. There is also another economic development entity that says they are about job retention and job creation; it would be information to see what they are doing. Mayor Bertrand stated that Max could be asked to attend a meeting for an update of his work.
Councilor Cayer stated that changing people’s perception of Berlin is key. Berlin has never been a destination. Mr. Charest noted that 21/21 will attempt to make everyone who lives in Berlin an ambassador for the project.
Councilor Remillard reasoned that it is not all doom and gloom; there are large investors and new views with the transfer of ownership of several businesses. The ATV trails is what has the most interest. There is money out there but investors are moving cautiously.
Councilor Cayer emphasized that the city can make an effort not to put up barriers for businesses. There needs to be a positive attitude and a business friendly community.
Councilor Evans commented that we should step out of the way of business. He noted his concern that this is just an idea and not shared by those who work for the city. The path forward and action step would ask Norm for a list of obstructions that the City has caused and the Council could then review the list to see if there is anything that can be done. Councilor Lafleur agreed with the list stating that we have to know the problem before we can fix it.
Councilor Cayer commented that the clean- up around Hutchins Street Park looks really good.
Adjournment
Councilor McCue moved to adjourn; Councilor Evans seconded and the motion carried. The meeting ended at 8:25 p.m.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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