Work Session
April 13, 2015
Present were: Mayor Grenier, Councilors Otis, Remillard, Gentili, Morgan Allain, Higbee, Rozek, Nelson, and Theberge
Others present: City Manager James Wheeler, School Superintendent Corinne Cascadden, Public Works Director Michael Perreault, Fire Chief Randall Trull, School Business Administrator Bryan Lamirande; Jarad Vartanian, CPA and Bob Vachon, CPA from Vachon, Clukay & Co.; School Board Member Donny Labrecque, Community Development Director Pamela Laflamme, Finance Director Patty Chase and Barbara Tetreault, Berlin Daily Sun
Mayor Grenier called the meeting to order at 630 p.m. Councilor Rozek moved to add Police Commissioner resignation to the agenda; Councilor Morgan Allain seconded and the motion carried.
FY2014 Audit Review
Bob Vachon and Jarad Vartanian presented a review of the City’s audited financial statements for the year ending June 30, 2014. Mr. Vartanian stated that the most important point is that the City received a clean audit. The auditing firm uses the risk based audit approach which emphasizes the evaluation of risk and fraud. Next year the City will be required to report its proportional share of the NHRS unfunded pension liability under GASB 68.
The City’s net position represents the balance available to finance ongoing operations and it has increased by $2.2 million from the prior year. This is what is available to finance projects. Mayor Grenier asked if this could hurt us in grant applications and Mr. Vachon clarified that the number is a positive thing for Berlin.
Mr. Vachon reported that the Airport Fund continues to lose money each year with a deficit Unassigned Fund Balance of $212,000 at year end. He recommended that activity of the Airport Authority Fund should be evaluated closely by city officials.
Enterprise Funds include the Sewer Fund, BIDPA, and the Cates Hill Landfill Fund. The Sewer Fund’s new equipment has full value now, however in the coming years that value will be depreciated. Cash flow does not factor in depreciation of assets. It will be crucial in the coming years to evaluate operating changes to determine whether sewer rates are set properly.
General Fund Revenues exceeded the budget estimates by $1.5 million and the GF actual expenditures were $26,000 less than budgeted. The Undesignated Fund Balance has gone up and down and this year it was at 9%. The DRA recommends anywhere from 8% to 17%.
Mr. Vartanian reported that the city received $7.9 million from the federal government most of which relates to the Sewer Fund. There were no deficiencies or findings in the grants. The prior year’s finding was corrected and resolved.
The auditors recommended monitoring the activities of the Water Works. Their debt obligations are backed by the faith and credit of the City.
Mr. Vachon stated that the City has done a great job with its own economic challenges. He added that the Finance Department has had an overall improvement in control and reconciliation processes.
Barbara Tetreault questioned $26,000 left in the general fund at year end and Mr. Vartanian noted that much of the remaining funds were carried over into the new year. Mr. Vachon closed by saying that any member of the Council or School Board can call his office with any questions. The auditors left the meeting at this time.
School Department Budget Follow Up
Corinne Cascadden updated the School Department’s budget request from an increase of $525,563 to a requested increase of $273,636. She explained that through attrition, there are six positions that are not being filled. Fuel expenses are the final number that will have an effect on the final budget. A major change is that 75 employees with no health insurance will have to be included on the “Bronze Plan”. Mayor Grenier noted that changes in cost items need to be appropriated by the third Monday in June to be funded.
Councilor Gentili asked if these budget cuts will have a negative effect on the students and Ms. Cascadden indicated that no programs are being cut. Mayor Grenier asked if there will be enough funding to finish the year and Ms. Cascadden stated that out of district placements have been volatile adding unpredictable costs and she is hoping to have enough to finish the year.
Ms. Cascadden took the opportunity to report that the schools are not prepared to deal with the heroin epidemic and with children who were born drug addicted. Funding from Project AWARE should help; it was approved by the Governor and Council. The North Country Health Consortium will be sponsoring a program with a speaker who was addicted and found his way to sobriety. Mayor Grenier asked if the program could be made available to others in the County.
Mayor Grenier asked about school revenue and Mr. Lamirande stated that it will be as anticipated.
Recreation Project Update
Mr. Perreault reported that funding from the sale of land to PSNH has resulted in some much needed improvements at Community Field and with a Recreation building on Gilbert Street. He stated that the project is a little behind schedule due to the rough winter. The roof is finally finished and the electrical and plumbing are roughed in. Insulation and sheetrock will be bid this week. The building trades students have prefabricated the interior walls for the building.
Community Field had to be rewired and the service is now located off of Hutchins Street. The focus will be on Community Field so that the restrooms can be used this year.
Councilor Remillard asked about the Recreation Center stairs and Mr. Perreault indicated he would discuss the options with the Recreation Director. Mr. Wheeler noted that there is $50,000 in this year’s budget for a Skate Park. Mr. Perreault reported that the project costs so far are $376,193.54 which includes the purchase of property on Gilbert St and landscaping adjustments at Community Field. He added that there will be fuel and electricity costs for a building that was not there before; however the improvements were needed.
Princess Theatre
Mr. Wheeler established that he received a written response from Mr. Martel, the present owner of the Princess Theater. He cautioned that the city could be at the same place next winter with the jersey barriers still blocking the sidewalk in front of the building. Chief Trull sent a letter in April of last year regarding the 155B process and he received a similar list in response. The options are: do nothing; go forward with the 155B process; or offer one more communication with very specific outcomes and deadline. Mr. Martel will have to secure the building which means he will need to repair the roof with all the necessary permits in place. Once the roof is repaired, the building can be mothballed until he is ready to go on with the project. If we don’t get the response we need, will have to go forward with155b.
Councilor Gentili made the point that the schedule produced by Mr. Martel has improvements slated for January through April. He asked if all of the items through this time in April have been completed and Chief Trull stated that they have not. Councilor Remillard asserted that the building has to be secure to remove the barriers. Councilor Nelson asked that the City Manager stay involved. Councilor Higbee confirmed that engineered plans are needed for the roof.
Councilor Theberge reiterated his concern for the people who go to the Holiday Center who have to deal with the barrier.
Budget Discussion
Mayor Grenier explained that this item was added to answer any questions about the budget so far. There were no questions from the Council.
Police Commission Resignation
Mayor Grenier distributed a letter of resignation from Police Commissioner Steve Griffin. He accepted the letter with regret saying that Commissioner Griffin served the City well for 15 years. Councilor Rozek moved to regretfully accept the resignation of Steve Griffin from the Police Commission; Councilor Higbee seconded and the motion carried.
Mayor Grenier stated that he contacted Marc Tremblay to fill the unexpired term. He is a former State Representative and also a former police officer. Councilor Rozek moved with a second from Councilor Theberge to appoint Marc Tremblay to fill the unexpired term on the Police Commission until 8/31/2016. So moved, the motion carried.
Non-Public Session
Councilor Theberge moved with a second from Councilor Morgan-Allain to enter into non-public session
Per RSA 91-A:3 (d) consideration of the acquisition, sale or lease of real or personal property … (e) Consideration or negotiation of pending claims or litigation which has bene threatened in writing or filed against the body or agency… So moved, the motion carried unanimously by roll call.
Councilor Rozek moved to seal the minutes until a purchase and sale is signed as releasing them would render the proposed action ineffective; Councilor Morgan Allain seconded and the motion carried unanimously by roll call.
Councilor Rozek moved with a second from Councilor Higbee to come out of non-public session. So moved, the motion carried unanimously by roll call.
Councilor Rozek moved to adjourn; Council Higbee seconded and the motion carried. The meeting ended at 8:25 p.m.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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