Work Session
December 7, 2009
Present were: Mayor Bertrand, Councilors Landry, Remillard, Lafleur, McCue, Evans, and Poulin; absent were Councilors Goudreau and Cayer
Others Present included: Paul Grenier, Andre Caron, Corinne Cascadden, several students from Ms. Watson’s Civics Class, media and public
Mayor Bertrand called the meeting to order at 6:32 pm
Budget Goals
Mayor Bertrand relayed that the Council has attempted to establish budget goals to help the City Manager in preparation of the budget. Staff will begin to prepare for the next fiscal year in the coming months. Council has been given a format asking what percentage is acceptable for increase in the general fund.
Councilor McCue commented that previous discussions have suggested no property tax increase. Councilor Evans agreed that the goal should be no increase. He added that two departments that are not under the city manager did not respond to the request for zero increase. He encouraged the School Board and Police Commission to produce a budget that meets the goals.
Councilor Poulin stated that he would also like to see a zero increase and he does not know if it will be possible without concessions. He commented that he is trying to look at ways to avoid layoffs adding that it does not make sense to have increases within City government when the economics in the city are not growing equally. Councilor Landry warned that economists are predicting 6% inflation and he stressed that citizens can’t afford a tax increase.
Councilors asked how contracts could be renegotiated to avoid layoffs and Mr. MacQueen pointed out that contracts are in place and there is no obligation for employees to negotiate. If a flat budget requires layoffs, the union is free to negotiate something else. Councilor Poulin asked how furlough days work and Mr. MacQueen stated that contracts anticipate that employees would work all days with the exception of holidays. Most contracts likely don’t allow for furlough days and they would have to be negotiated.
Councilor Landry confirmed that most contracts are in place until 2011 with one expiring in 2010. Mayor Bertrand affirmed that the consensus of the Council is for a budget goal set at zero tax increase.
Mayor Bertrand indicated that this Council felt capital spending was less than it should be and saw fit to bond for capital improvements. The budget goal was 10%; the average in the previous years was 6%. Mr. MacQueen explained that the combination of school and city capital projects was 10% and when it was decided to bond, capital was brought down to 8.6%. He voiced that he could not recommend capital spending higher than 8.6% knowing how difficult the operating budget was going to be this year. Councilors discussed raising the goal to 10% however they came to the consensus of 8.6% acknowledging the difficulty of achieving a zero increase in the operational budget.
Undesignated fund balance was set at 5% last year and we will not know if that goal has been met until the City’s audit is complete. The consensus was to set a goal of 5% for the UFB. Councilor Landry specified that the City’s UFB is currently about $1 million.
Councilor Lafleur moved to direct staff to prepare a budget based on the goals discussed above; Councilor Evans seconded and the motion carried with all in favor.
Recommendation for Bartlett School
Mayor Bertrand explained that a request for proposals went out asking for development proposals for Bartlett School and proposals were received from the Binette family and from Mt. Madison Investments (Dana Willis & Jim Tamposi). Andre Caron commented that both came up with student housing as the best use for the building. In reviewing the proposals, it was felt that the Binette’s had a more comprehensive plan for future use.
Mr. Caron reported that it has been estimated that it would cost $20,000 per year to maintain the Bartlett School building. He said that the school is at 50 degrees, windows have been foamed to insulate and the roof will likely have to be shoveled periodically.
The Binette’s would be looking at a 2.5 year construction period and if they choose to pursue grant funding, the process could be delayed. Councilor Remillard was interested in seeing the purchase and sale agreement before acting on the matter. Mr. MacQueen noted that the city is free to place conditions on the sale with one being that if work is not complete in 2.5 years from closing, the property would revert back to the city. Councilor Landry asked if the reverter is the City’s only guarantee and Mr. MacQueen stated that further contingencies could deter financing options.
Councilor Landry asked if any jobs will be created as a result of the project and Mr. Caron indicated that there will be construction jobs, then an onsite manager when the project is complete. The indirect impact is that the college would benefit. Councilor McCue pointed out that putting college housing in a neighborhood may concern some people. Mr. Caron reasoned that an empty deteriorating building in the neighborhood would not do anything good for property values.
Councilor Poulin reported that he is excited to see this proposal and added that the City doesn’t need another vacant building. The project may not bring jobs initially but may keep people employed. Mayor Bertrand encouraged the Council to have the first reading of the resolution selling the property to the Binette’s so that it can have a public hearing and more input.
Councilor Remillard expressed her concern that the Binette’s would eventually sell the building to an outside investor and the City would then have another unattended building. Mr. MacQueen suggested that the agreement could stipulate that as long as the building is used for residential housing, there must be an on-site manager.
Councilor McCue established that too many contingencies could harm the project. Councilor Remillard stated that the Binette’s are routed in the community and would maintain the property; her fear is who it would be transferred to. Councilor Evans did not advocate for any more contingencies. He added that the project will help the economy and is something we should be wholeheartedly supporting.
Traffic Safety Recommendation
Mayor Bertrand explained that the Traffic Safety Committee recommended fencing improvements that would add 20 parking spaces to Community Field. Councilor Evans noted that the Committee has tried to eliminate street parking on the west side of Hutchins Street and felt that they should have an alternative parking area before removing parking. The tennis court area and a portion of the skateboard park would become parking. Mayor Bertrand asked if the skateboard park and tennis court would be eliminated. Councilor Lafleur stated that different venues to relocate the skateboard park are being considered and those who use the park are being asked to help with the location. Councilor Remillard reported her understanding of the plan is that it would eliminate the tennis courts; however the skateboard park
would not be lost. The plan would create 20 or more spaces.
In response to the Mayor’s question about where the money would come from, Councilor Remillard noted that it should not wait until the next budget cycle because it is a safety issue.
Councilor Remillard moved to direct staff to submit a resolution to allow the Recreation Department to spend $5,500 from Unappropriated Fund Balance for Community Field Parking; Councilor Poulin seconded and the motion carried.
Councilor McCue asked where the Traffic Safety Committee is with regard to “no parking” on Hutchins Street. Councilor Evans indicated that it has been difficult to get agreement to remove parking without replacing that parking and this lot in Community Field should help toward that end. Councilor Evans did express concern about using Unappropriated Fund Balance to pay for the parking area.
City Letterhead/Seal
The City Clerk prepared a memo that outlined costs associated with moving forward and using the new city seal that amounted conservatively to $8,333.92. Councilor Remillard commented that many people have taken offence to the change saying that they are concerned about the cost and concerned that the City appears to be ashamed of its heritage. She went on to say that she is aware that the new Council will try to go back to the original seal. She asked if the item could be tabled until the new Council takes office.
Councilor Poulin disagreed and noted that pollution should not be the City’s image. The Council is not trying to hide from the City’s heritage but is trying to sell Berlin in a different light. He went on to say that Councilors felt it was important at the time and the vote is being undermined. Councilor McCue agreed that the Council had the discussion about changing the seal and made the decision. It was well reasoned and he wants to stick with it. Councilor Poulin concluded the discussion by saying and he cannot support anything but moving forward with the new seal.
Appropriation of 8.5 million to sewer fund.
Mr. MacQueen explained that there is a resolution to appropriate the funds so that they can be spent on the waste water project.
Councilor McCue noted that someone will come to the Council meeting next week to speak further on the NH Grand proposal to change the region’s designation from Great North Woods to NH Grand.
Mr. MacQueen asked that a new resolution be added to the agenda as the City Attorney felt it was necessary to get authority to sign a deed for Clean Power to purchase property from the City. It was the consensus of the Council to add the item as 4a on the agenda.
Mayor Bertrand indicated that Clean Power has asked for support of pending legislation regarding the ability for a renewable energy facility to sell behind the fence. This would provide direct benefits to local areas. Councilors wanted to review the legislation.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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