City Council Work Session
May 12, 2014
Present were: Mayor Grenier, Councilors Otis, Benski, Morgan-Allain, Nelson, Higbee, Rozek, Theberge and Remillard.
Others present: City Manager James Wheeler, Finance Director Patty Chase, School Superintendent Corinne Cascadden, Police Chief Pete Morency, Barbara Tetreault Berlin Daily Sun
Councilor Rozek moved to remove the audit recommendation from the agenda; Councilor Morgan-Allain seconded and the motion carried unanimously.
Council Decision to Publish the Budget
Mayor Grenier thanked the City Manager and Finance Director as well as School Superintendent and Police Chief for their work on the budget. He explained that if the Council does not present a budget, the City Manager’s budget would become the default.
Mr. Wheeler reported that most of the changes to the City Manager’s budget had to do with insurance renewals that came in at less than budgeted for. He distributed copies of the Revenues and Expenses with the changes highlighted.
Revenue
Revenue changes were made with the most updated information.
Health Department revenues were increased due to expected additional Medicare reimbursement.
The Police Department’s outside revenue was also increased taking into consideration that there will be construction going on through the summer and an officer will likely be needed.
He added that the increases to the projected revenues are conservative and he is comfortable that they can be achieved.
Expenses
Most reductions throughout the budget were due to renewal changes in health insurance; however dental went up slightly.
Going through the expenses, changes were mentioned. A salary line item in Code Enforcement was reduced due to receiving a CDBG grant that will pay some of the expense.
The Police Department was able to change insurance carrier for the salaried employees, thereby achieving a savings of about $15,000.
Councilor Higbee asked about the substantial adjustment to the public works budget and Mr. Wheeler noted that some people were moved around and that accounts for the differences.
Under School Capital Improvements $27,000 will need to be added.
The reductions to Capital Improvement are modest.
Tax Rate
In the City Manager’s budget the tax rate would be $35.81; this proposed budget has a tax rate of $33.89 which is an increase of .89 to current rate.
In the City Manager’s budget $1 million of unappropriated fund balance was used to temper the tax rate. After further review that amount is increased to $1.15 million to bring the rate to $33.89. That will leave between $1.7 and $2 million.
Councilor Benski asked how much would have to be trimmed to reduce .89 increase to 0 and Mayor Grenier estimated $387,000. Every .23 is 100,000. He added that there is still 6 weeks before the budget is passed.
Councilor Benski asked about $700 for cleaning the carpet at the library. Mayor Grenier commented that additional changes can be made prior to the budget being passed the third week in June
Councilor Rozek commented that 50% of citizens are at poverty level or below and he cannot support an .89 increase; he hopes more savings can be found.
Councilor Benski commented that the number of polling places should be looked at again since it would save money.
Mayor Grenier asked if the Council is comfortable with bringing this document to the public hearing. After hearing comments from the public, final changes to the budget can be made.
The public hearing is Wednesday May 28 and the first reading of the budget resolution will be the first Monday in June which is June 2; the resolution will be tabled for final passage the third Monday in June, June 16.
Councilor Remillard moved with a second from Councilor Higbee to present this budget totaling $38,018,966 at the public hearing. So moved, the motion carried.
Councilor Higbee commented that .89 is a 2.7% increase; however a .40 increase would be 1.2% which is close to the rate of inflation.
Non-Public Session
Councilor Rozek moved with a second from Councilor Morgan-Allain to go into non-public session per RSA 91-A:3II(d) Consideration of the acquisition, sale or lease of real or personal property. So moved, the motion carried unanimously by roll call.
Councilor Rozek moved with a second from Councilor Benski to seal the minutes until there is a transaction on the property as releasing them would render the proposed action ineffectual. So moved, the motion carried unanimously by roll call
Councilor Rozek moved with a second from Councilor Nelson to come out of non-public session. So moved, the motion carried unanimously by roll call.
At 7:30, the meeting concluded and Council members held a non-meeting per RSA 91-A:2,I(b) Collective Bargaining
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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