Board of Aldermen |
FY2009 Budgetary Hearings |
Thursday, 10 April 2008 |
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Appropriations Committee |
Chairman Brodeur, Boisselle, Mortimer, Infurna, Tramontozzi, McAteer-Margolis, Seaboyer, Medeiros, Conn Absent: Forbes, Wright In attendance: City Auditor/CFO Patrick Dello Russo, Human Rights Co-Chairman Bonnie Cronin, Zoning Board of Appeals Chairman Steve Broadley, Executive Director Jack Beckley, Chairman of Pine Banks Board of Trustees Henry Kezer, Pine Banks Superintendent John Burgess, HR Director Marianne Long, City Treasurer/Collector Art Flavin
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Appropriations called to order by Chairman Brodeur at 7:40 p.m. Order No. 08-201, City of Melrose Operating Budget for Fiscal Year 2009 in the amount of $60,553,844.79. Chairman Brodeur says he would like to take up Department 911, Pension Weekly first. There is information on the Aldermen's desks and no one from the Retirement Board is available for tonight's hearing. President Conn says he would like to speak with a representative from the Retirement Board. He knows there has been a vote taken to extend the funding schedule by a few years but he'd like to discuss extending it out further. He knows the state allows it to be extended out to 2028. President Conn motions to place the budget on hold, 2nd by Alderman Mortimer. Chairman Brodeur to Mr. Dello Russo as a member of the Retirement Board says that President Conn mentioned a vote was taken to extend the schedule a few years and asks if there is no limit to the number of votes that may be taken on that question. Mr. Dello Russo says that is correct; he has tried on a number of occasions to extend the schedule to bring relief to the City but the motion was rejected. On the motion to hold, All in favor.
Ms. Cronin thanks the Board of Aldermen for its support of the Human Rights Commission. She says there was an incident where a male cheerleader was badly hurt and that the Commission was able to respond publicly to the community that that type of behavior is unacceptable; it is truly a hate crime. In addition to the MLK Dinner held in January, the Commission sponsors a number of programs throughout the year including hosting the Welcoming Reception for students in the ELL program. Over 100 people from 20 countries are represented. She says Melrose has a large Turkish community; the husbands are attending college and the professional women are at home. One of the commissioners, Dr. Suzy Grodin, is hosting a Friday afternoon conversation group for women to improve their English. On May 14 there will be a City-wide conversation on how to make Melrose a welcoming community. Chairman Brodeur says the budget is only $3100.00 for such a long list of events. Alderman Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle. All in favor.
Mr. Broadley says the budget is flat from last year. The Board has a very competent employee who is essential to keep. There is no professional drafter on staff. The Board of Aldermen recently voted on a new ZBA appointment and there is another one coming. At present there are three board members serving for more than 15 years. Chairman Brodeur says this is a volunteer board cranking out legal opinions without compensation. Alderman Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle. All in favor.
Mr. Beckley says the budget is basically level-funded except for slight increases in salaries and utilities. Alderman Boisselle says the HVAC maintenance is doubling and asks if he will be back for more funds. Mr. Beckley says that's possible; the system doesn't work well. Alderman Boisselle asks how old the system is; Mr. Beckley says it is 14 years old and it seems that it may not have been properly installed. He says it is a problem but he won't come back asking for a new system. Alderman Boisselle asks about the Building Repair line-item being zeroed out. Mr. Beckley says the Friends of the Beebe Estate help out with some things. Alderman Boisselle asks about the condition of the building; Mr. Beckley says it's in pretty good shape. He is looking to have the inside painted by the Sheriff's department. Alderman Boisselle asks about the condition of the roof; Mr. Beckley says it has leaked almost from day one but there are no major leaks; he thinks he shouldn't have to worry for five to ten years. Alderman Medeiros thanks Mr. Beckley for taking advantage of using available resources like the Sheriff's Department and the Vocational School. Alderman McAteer-Margolis says she would like to note that the Milano Senior Center is open once a month in the evening for the Melrose Arts and Cultural Association to hold art demonstrations and she thanks him for that. She asks if there is any donation being made for that use. Mr. Beckley says not at this point; it would be nice if people would be able to consider making donations for building repairs but this group can't. Alderman
Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle.
All in favor.
Mr. Kezer says he distributed a picture of Pine Banks Park. It's a Google satellite photograph; prominently displayed is the new ball filed. He says he prepared a budget showing appropriations of both the City of Melrose and the City of Malden with the consolidated numbers on page 7 of the Annual Report. Capital Outlay figures for the ballfields and the new Superintendent's vehicle are included as are the figures for the continuing treatment of the pond. Alderman Infurna thanks the gentlemen and says Pine Banks is one of the jewels of Ward 5. She asks if there is any thought to install spectator bleachers at the new field. Mr. Kezer says yes, on the back of the field toward the woods. Alderman
Mortimer motions to move the bottom-line, 2nd by Seaboyer. All in
favor.
Alderman Boisselle asks Ms. Long what the dues and membership charges are for. Ms. Long says those funds have been stable over a number of years. The City belongs to the Massachusetts Municipal Association and her department belongs to NEHRA, both of which are very good resources for her department. Alderman Boisselle asks what the Physical line-item covers. Ms. Long says that is for pre-employment physical exams for the Police, Fire and Public Works departments. Alderman Boisselle asks if policemen and firefighters are required to be tested on occasion. Ms. Long says that they are required by the state to keep in good health. Alderman Boisselle asks about the Professional Services line-item being zeroed out. Ms. Long says that was a one-time transfer for a search for a police chief. The money was transferred out when Chief Lyle was sworn in. President Conn asks how much is needed for pre-employment physicals this year; he doesn't think the City will take on a huge number of new employees. Ms. Long says the physicals cost about $1,000 per new hire and this will cover only three new hires. If these funds aren't available she will likely have to come before the Board again. President Conn says advertising costs haven't hit $3,000 in recent years. Ms. Long says that as of this morning the balance in that line-item is $300; she will use up the balance when she places an ad tomorrow. Alderman Seaboyer asks why the Salary and Wages line-item is down. Ms. Long says 50% of the HR Administrator's salary will be paid through the Health Trust Fund under Chapter 23B sec. 53A. Alderman
Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle.
All in favor.
President Conn says only $316,200 has been expended out of a $495,000 budget. He understands there are some outstanding settlements and asks how much Ms. Long anticipates spending. Ms. Long says if one particular case settles and the City is able to transfer funds, she'll need additional funds in the unemployment budget. President Conn asks how many long-term cases there are. Ms. Long says there had been 14 and now there are 6. She expects that one will settle leaving 5 remaining. President Conn asks how that will affect the bottom-line. Ms. Long says the Benefit line-item is based on the number of claims but it's difficult to estimate the effect on the bottom-line. President Conn says there has been a great effort to deal with Worker's Comp cases by the City Solicitor and Ms. Long. President Conn motions to cut the Benefit line-item by $15,000 to $328,000, 2nd by Alderman Medeiros. All in favor. President Conn motions to move the amended bottom-line of $450,000, 2nd by Alderman Medeiros. All in favor.
Ms. Long says this line-item is split equally between the School Department and the City. President Conn asks if the cases are being handled in-house or if a private vendor is used. Ms. Long says the City hires a third party administrator and pays $1200 per year to attend hearings either with a City representative or for the City with very good results. Alderman Conn asks how many unemployment claims there are; Ms. Long says 36. Alderman Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle. All in favor.
Ms. Long says this represents a 12% increase in premiums for Blue Cross Blue Shield. This year the HMO Blue family plan costs $19,368; the City pays $15,882 and the employee pays $3,486; that's just for the HMO Blue plan. Chairman Brodeur asks if the City is still pursuing the GIC. Ms. Long says the Mayor is still talking with the unions; they're doing their homework and have hired a benefits analyst. April 28 is the next scheduled date to meet with them and perhaps begin negotiations. President Conn says in FY03 this line-item was $5 million; it has almost doubled. The $1.3 million increase this year sucks up almost 90% of local aid the City will receive from the state. He says this figure is not the figure the City will have to pay if the City joins the GIC. Ms. Long says that is correct; the City has to come to an agreement with the unions by October 2008 for enrollment in the GIC beginning July 1, 2010. President Conn says there is no alternative but to choke down this increase this year. Alderman Tramontozzi asks the amount the employee co-pays for a doctor's visit; Ms. Long says it's $10.00. Alderman Tramontozzi asks what it was in 2003; Ms. Long says it was $5.00. Alderman Tramontozzi asks why it's only $10.00 and asks if it's fair to say if the co-pay increased the cost to the City would decrease. Ms. Long says yes, it's fair to say that. If the unions vote not to go with the GIC the City will have to negotiate changes in benefits with BCBS. Alderman Tramontozzi asks if the City has informed the unions of that. Ms. Long says Mayor Dolan has been forthright with the unions and they understand. Alderman Tramontozzi something has to be done for the sake of the City. Alderman McAteer-Margolis asks if enrollment in the GIC would take effect in 2010 if the unions agree to join it; Ms. Long says yes. Alderman McAteer-Margolis says some communities offer other benefits if an employee opts out. Ms. Long says Melrose doesn't offer an incentive for opting out; its focus is on the GIC right now. Alderman McAteer-Margolis asks how many employees are covered by insurance; Ms. Long says about 700 out of 1100 employees. Alderman McAteer-Margolis asks if the retirees are also covered; Ms. Long says yes. Alderman Mortimer asks if 1100 includes retirees and how many active employees there are. Ms. Long says the 1100 does not include retirees; the 700 enrolled in BCBS include retirees and of that number there are roughly 400 active employees. Alderman
Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle.
All in favor.
Mr. Dello Russo says that outside of the Salary and Wages line-item, the budget and benefits have been funded at the original FY08 amounts. The ultimate change is to have a full-time veterans' agent. The current agent will work on a stipend basis to organize the parades and celebrations. Alderman Seaboyer says when an employee is reactivated it is the City's policy to bridge the gap between the service pay and the City's pay; he asks if those funds come out of this budget. Ms. Long says no, it comes out of the individual's department's budget. Alderman Seaboyer asks about the benefits line-item. Mr. Dello Russo says that on a budgetary basis, $25,000 is appropriated to cover the City's monthly obligations. Chairman Brodeur says this budget is not for active military folks but for veterans and those servicemen and women returning home from active duty. Alderman Tramontozzi asks if state regulations require a full-time agent; Ms. Long says yes. Alderman Tramontozzi asks if the position is appointed by the Mayor; Ms. Long says it is a mayoral hire; the anticipated start date is June 30, at the beginning of the next fiscal year. Alderman Tramontozzi asks what the requirements are for the position. Ms. Long says the state worked closely with her in developing the job description which is outlined on the City's website. The requirements include being an honorably discharged veteran with preferred knowledge of pertinent laws and regulations, administrative experience, and advanced computer skills. She says it is very likely that the qualified person in this position will recover enough reimbursement money to pay for the salary. Chairman Brodeur asks if the City receives 75% reimbursement. Mr. Dello Russo says yes but it takes the process takes time. Alderman McAteer-Margolis asks what is reimbursed. Mr. Dello Russo says if 100% of the $25,000 benefit line-item is eligible, the City would receive 75% reimbursement. It is sent on page one of the Cherry Sheet and the amount is outlined in the first section of the budget book. Alderman Boisselle asks the grade and step of the position. Ms. Long says it is Level 11, Step 1 in the non-union schedule. Alderman
Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle.
All in favor
Mr. Dello Russo says this is level-funded from last year. Alderman Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle. All in favor.
Mr. Flavin says this budget is basically level-funded except for an additional $1000 in the postage line-item for the forthcoming penny increase. He also asked for the tax title fees to be restored as the City is being very aggressive in that area. Three properties are being foreclosed upon to protect the City's interests. Alderman Seaboyer asks if the 2008 projected Salary and Wages line-item is a typo -- $563,477.89. Mr. Flavin says it is a bad number. Chairman Brodeur asks if it was generated by the software; Mr. Flavin says yes. Alderman Boisselle asks about the programmer's position. Mr. Flavin says those duties will be light due to the conversion to a new MUNIS system. A big project being worked on is to distribute payroll responsibilities to the various departments. Alderman Boisselle asks if his department is trying to increase the number of payments received via the internet. Mr. Flavin says yes and that the how-to information is printed on the bills. Alderman Boisselle asks if more people are paying on-line; Mr. Flavin says yes, since it's been advertised. President Conn asks if the Surety bond is up to $2200. Mr. Flavin says there is another bill coming in. President Conn says it looks like only $1000 was spent in 2007 and only $655 to date. Mr. Flavin says it could probably be reduced by $1000. President Conn motions to cut line-item 544100 by $1000 to $1,220.00, 2nd by Alderman Seaboyer. On discussion Alderman Medeiros says she thinks they should be a little cautious due to the market because the fee could go up. On the motion, 3 opposed, motion carries. President Conn motions to move the bottom-line of $396,183.40, 2nd
by Alderman Boisselle. All in
favor.
Mr. Flavin says this number is pretty much inflexible; it's the interest being paid on the principle of existing debt. President Conn asks if there is an exempt category; Mr. Flavin says the Middle School. Alderman Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle. All in favor.
Flavin says this includes the $6 million drainage project and the White Board project at the High School. He is in the process of bonding. The practice is to start the project and bond in the temporary market; it's about 30% cheaper to do it this way and it allows the City to time when it goes to bond; he expects that to happen a year from November. Sometimes the City is able to make money on it as a result. Historically anticipation interest was used at 4%; it's currently at 3%. Alderman Mortimer motions to move the bottom-line, 2nd by Alderman Boisselle. All in favor.
Mr. Flavin says this has been a federal requirement since 1986. The City matches half of every dollar each employee pays and it increases every year. When police and fire retroactive pay in awarded, this gets a hit. He thinks the 2008 number is on target. Alderman Mortimer asks if this includes the School Department portion; Mr. Flavin says yes. Alderman Medeiros asks if the new teacher contract was taken into consideration; Mr. Flavin says no. Alderman Mortimer motions to move the bottom-line, 2nd by Alderman McAteer-Margolis. All in favor.
Alderman Mortimer moves to place the Conservation Commission budget on hold, 2nd by Alderman Boisselle. All in favor. Alderman Mortimer motions to adjourn, 2nd by Alderman Boisselle. All in favor. Appropriations adjourns at 9:05 p.m. Maribeth
Harrington
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