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City Council Meeting
FY2008 Budget Adoption Minutes
June 25, 2007
City Council Chambers
A. Resolution fixing and determining the amount of money to be appropriated by the City of Concord for the fiscal year 2008 ending June 30, 2008. (6-11)
Action: Councilor St. Hilaire moved to place the amending resolution before Council. The motion was duly seconded and passed with no dissenting votes.
Mayor Donovan explained that the amending resolution is the budget resolution which incorporates all the of the tentative votes that Council has made over the period of the budget meetings as opposed to the original resolution published for a public hearing.
Mayor Donovan declared the hearings open for public hearings items A through G.
Five minute testimony
Rosemary Heard, CATCH, distributed to Council, a newsletter and success measures information which outlined the number of units developed over the years. Ms. Heard also distributed an overview of the rental properties and their values that CATCH brings to the city in partnership with the city. She noted her appreciation with the city’s support along with her the hope that Council will be supportive of CATCH again within the FY2008 budget year.
Charles Russell, Concord resident, referenced the North End TIF District and the funds generated by new construction explaining that this generates revenue that is dedicated toward paying the bonds and that the last time he looked into this the TIF district was generating more money than necessary to pay off the bonds. He noted that he feels that Council can revisit this and take a vote to adjust the amount of the TIF revenue that is retained by the TIF district and lower the amount to a level that may be more appropriate. Referencing the parking meter fund, Mr. Russell explained that in the early 1990’s Council voted to take out approximately $50,000 per year because General Services plows the parking meter spaces in the winter and cleans those areas with a streetsweeper in the spring. He noted that he is not sure whether this amount taken from the parking meter fund has been adjusted to reflect inflationary costs. Thirdly, Mr. Russell explained that Boston has sold off its last publicly owned parking garage because there is a significant enough market out there. He indicated that he feels that if the city sells the two parking garages, the city can free up capital that is tied up for allocation to other more essential priorities.
Mayor Donovan explained that two years ago, the former City Manager presented Council with a budget that transferred $400,000 out of the North End TIF into the budget. Referencing the parking meter fund, Mayor Donovan noted that this item has been on his list for a few years, including this year, and explained that the City Manager had indicated that until there is one year of operation of the Capital Commons garage and a pro forma for this, it is best not to do anything with the pro forma for the parking garages.
Councilor Black inquired whether it is felt that there is a market for garages. Mr. Russell responded that there was a market in Boston and suggested that the city put out an RFP to see if there is one in this area. He added that he feels that this is something that the city needs to look at long term.
Roy Schweiker, Concord resident, noted his concern with the property tax rate. He explained that he researched some information from the latest census which indicates that within the average household income of the 26 communities in Merrimack County, Concord is rated 23rd in average household income. He noted his concern with the city subsidizing human services for the county because many of the non-profits in the county are headquartered in Concord and the city does not collect taxes on their buildings. He further noted that many of the agencies come to the city and ask for money but don’t strictly serve the city, serving other communities in the county indicating that he feels that the city is paying more than their fair share.
Ann Dancy, Concord Public Library Foundation and Vice President of Lutheran Social Services of Northern New England, explained that the refugee program and the developmental service programs are the two programs in Concord that utilize the library and the services that the library has to offer. She introduced refugee Habi Manna who has been in the city for two months to describe what the library means to newcomers. Mr. Manna explained that he is a refugee in the city that entered the United States by New York from the Ivory Coast. He explained that the library has helped him to improve his English and that the library is the best place to begin successful integration into the United States.
Martha Cronin, 66 Dominique Drive, noted her support of the library. She indicated that the library is not just a place for the downtown community to go but that it is a shelter, an educational place, and a place in which people in the community are drawn. She pointed out that the library has educational, creative and responsive programs that are accessible to everyone in the city.
Trisha Foisey, 27 Dudley Drive, spoke in support of the library. She noted that she feels that the library provides resources and a safe place for people within the community.
Rick Watrous, Wilson Avenue, distributed information to Council for the public record. He spoke in favor of the library budget and restoring the cuts to the Social Service agencies. Mr. Watrous noted his concern with CCTV adding more staff while the city is eliminating staff. He explained that CCTV is receiving $581,000 in city dollars and indicated that he is in favor of public access television but feels that the public’s money has to be used responsibly. Mr. Watrous indicated that in the last three years, the city has provided CCTV with over $1 million and this coming year it is being suggested to fund CCTV at $234,000; $4,500 a week of city dollars. Referencing his handout, he pointed out CCTV’s programming schedules and tax returns over the past few years.
Councilor Blanchard inquired as to what percentage the numbers in FY07 are of the total franchise fee from Comcast. She pointed out that none of the money is tax money but is all revenue from Comcast Cable Company. Mr. Watrous responded that he is aware of this and indicated that it had been pointed out that all of the revenue from the franchise money goes into the general fund and that thirty seven percent of it goes to support CCTV and the rest is used for all sorts of city purposes adding that if it wasn’t going to CCTV, it would be available for other city services. Councilor Blanchard asked if Mr. Watrous was aware that there are other municipalities that give the total amount of the franchise fee to their local television station. Mr. Watrous responded that he was aware of this.
Anthony Tenczar, Chair of the Board of Directors of CCTV, noted that he feels that CCTV has been the subject of misinformation for some time. He explained that CCTV brings in an excess of $10,000 with its Arts Telefest and that its development efforts have been ongoing. He added that the organization used to be funded at forty percent of the cable franchise fee and is currently paid at thirty seven percent. Mr. Tenczar explained that the over $500,000 Mr. Watrous refers to includes $350,000 from Comcast that is restricted and can only be used for equipment. In closing, he explained that the important thing to remember is that local channels are the only things that really differentiate cable television delivery with satellite services.
Three minute public testimony
Roy Schweiker noted that he feels that CCTV should be a subsidiary of the library so that the Library Director can be involved and better allocate funds among the city’s information media. He noted that instead of adding more officers to the Police Department, the city should see how many of the jobs in the department can be done by an employee such as a Community Service Aide. He asked that Council, while increasing the Police budget, encourage the management of the department to utilize other individuals who are not sworn officers.
Rick Watrous, referencing the IRS returns in the handouts distributed, noted that there are more fundraising expenses than there is money brought in by public support or through any special events. He noted that the net loss for fundraising in the past three years equals almost $53,000 indicating that this loss has occurred since a full time development position was created. He noted his concern that the funds benefit other than the residents of the city and referenced court documents of an individual from another community and the dollars spent on producing a video. In closing, Mr. Watrous indicated that he feels that $100,000 could be cut from CCTV’s budget.
Councilor St. Hilaire inquired as to where Mr. Watrous received the figure for the video produced on an individual from another community for the court. Mr. Watrous indicated that since CCTV won’t make their records public, he is unsure of the correct amount. Councilor St. Hilaire indicated that it may not have cost anything to make. Mr. Watrous responded that there would be staff time and editing time involved. Councilor St. Hilaire inquired whether volunteers are compensated. Mr. Watrous responded that they are not paid.
Charles Russell indicated that he was the individual who made the connection between the public defenders office and the executive director of CCTV explaining that the person mentioned by the previous speaker had to make a video to try and show his remorse and to also to help to educate the public. He noted that the individual did not live in Concord but that he felt that this was an opportunity and a resource that the community had in that a film could be made to educate residents.
Referencing the tax returns within the handouts, Councilor Lemieux indicated that 2003, 2004 and 2005 show large amounts within an item called fundraising and asked as to what this translates to. Mr. Russell responded that it is his understanding that several years ago the outreach and fundraising operations were combined.
Mike Eschenbach, School Street, spoke in support of CCTV. He noted that CCTV is a part of the community urging Council to keep supporting it.
There being no further public testimony, the Mayor declared the hearings closed.
B. Resolution amending the amount of money to be appropriated by the City of Concord for the fiscal year 2008 ending June 30, 2008. (6-12) (Not previously distributed)
Action: Public hearing items A through G taken together.
C. Resolution closing and completing certain capital projects; rescinding appropriations and returning funds to their sources; and transferring, reappropriating or otherwise making remaining balances available for future purposes; together with report from the Senior Accountant/City Internal Auditor. (6-13)
Action: Public hearing items A through G taken together.
D. Ordinance amending the Code of Ordinances, Title I, General Code; Chapter 1, Government Organization, by amending Schedule I of Article 1-5, Fees, Fines, and Penalties, sewer rates; together with report from General Services. (6-14)
Action: Public hearing items A through G taken together.
E. Resolution amending the FY2008 City of Concord budget and appropriating the sum $27,500 for New Hampshire Municipal Association dues. (6-15)
Action: Public hearing items A through G taken together.
F. Resolution amending the FY2008 City of Concord budget and appropriating the sum of $50,000 for Concord 2020 Grant Project. (6-16)
Action: Public hearing items A through G taken together.
G. Resolution amending the FY2008 City of Concord budget and appropriating the sum of $1,400 for Concord Chamber of Commerce dues. (6-17)
Action: Public hearing items A through G taken together.
June 25, 2007 Public Hearing Action
5. Resolution fixing and determining the amount of money to be appropriated by the City of Concord for the fiscal year 2008 ending June 30, 2008. (6-11)
6. Resolution amending the amount of money to be appropriated by the City of Concord for the fiscal year 2008 ending June 30, 2008. (6-12) (Not previously distributed)
Action: Councilor Bouley moved approval. The motion was duly seconded.
Councilor Bouley moved to amend the motion by amending page three under the federal and state share revenue detail, under the tab entitled “general fund revenue” on the sixth line down “state fire service aid” and across to the 2008 fiscal year in which there is a figure for $81,380 and moved to amend this amount by increasing to $125,000, an increase of $43,620. The motion was duly seconded.
Councilor Bouley moved to amend the title of this line item to Concord Fire and Municipal Services.
Councilor Bouley’s amendment passed with no dissenting votes.
Councilor Bennett moved to restore the Social Services funding to the FY07 level, $359,470 and also include the money for the YMCA, $5,000, and the money for Families in Transitions, $7,000. The motion was duly seconded.
Councilor Bouley clarified that by restoring these to the fiscal year 2007 levels, Council is not restoring the $8,400 of HelpLine. Mayor Donovan indicated that to be correct.
Mayor Donovan indicated that based on Councilor Bennett’s motion the revised budget figure would be $358,930 because there is no money appropriated for the HelpLine which was $12,540 but there is $5,000 for the YMCA and $7,000 for Families in Transition.
Councilor Bennett noted that in times of need individuals rely on these programs and services and if they are not available then individuals will need to go to the city’s Human Services which in turn will cost more money.
Councilor Nyhan pointed out that he takes issue with the amendment solely over one of the organizations, the Visiting Nurses Association. He explained that in 2004, 2005, and 2006 the Visiting Nurses Association recognized revenues of $1.4 million which over three years equals approximately $4.2 million. He pointed out that over that three year period, the city gave the Visiting Nurses Association $230,000. He indicated that in fiscal year ending 2007, the Visiting Nurses Association projects excess revenue of $952,000 and the city is giving them $38,000 and in the budget year 2008 in which the city is giving them an additional $38,000 they are projecting revenues of $768,000. He noted that he finds it very difficult in a budget year such as the city’s, that the city is going to give money to an organization that clearly does not need it. He noted his support of every organization on the list, but indicated that he cannot support the amendment as is because he feels that the city is giving money to an organization that does not have any financial need for it.
Councilor Blanchard noted her agreement with Councilor Bennett. She indicated that she had taken issue with the Visiting Nurses Association also but noted that at this point she is going to support the motion.
Mayor Donovan noted that these agencies are non-profits and explained that there are many non-profits that when they have a surplus will reinvest in capital projects. He explained that the VNA has built the hospice house and indicated that he suspects that a lot of the profits were reinvested in that project.
Councilor Nyhan moved to amend the motion by $38,370 to eliminate the Visiting Nurses Association funding. The motion was duly seconded.
Councilor Lemieux explained that he seconded the motion because he has not heard any rebuttal and asked that if anyone was present to offer any explanation as to why this thinking is wrong he will vote against it. Otherwise, if it stands as it is, he will be inclined to vote for it.
Councilor Coen noted that his understanding of non-profits is that they are supposed to be there not to make money or have loss and to be supported as subsidized by charitable gifts. He indicated that if they are run properly, they generate a surplus and that surplus is then used to fund their mission.
Councilor Nyhan indicated that he had gone to the VNA’s website to look at their 2006 Annual Report and explained that the total contribution from municipalities, as a whole, is one percent of the entire operating budget. He noted that if the city took out the $38,370 they would still be looking at excess of revenues.
Councilor Blanchard pointed out that prior to 2007, going back three years, the city provided them with approximately $76,740 in funding noting that the VNA accepted a fifty percent cut in those funds. She noted that she feels that at this point and since all of the other social services agencies had been level funded for years with no cuts, except for the VNA she feels that in all fairness, the city should fund them this year.
Councilor Nyhan’s motion to eliminate $38,370 from the Visiting Nurses Association funding failed 5 to 9 on a roll call vote with Councilors Nyhan, Rowe, Stetson, Lemieux, and McClure voting yes. Councilors Rogers, St. Hilaire, Werner, Bennett, Black, Blanchard, Bouley, Coen, and Mayor Donovan voted no.
There being no further discussion, Councilor Bennett’s motion to restore fiscal year 2007 level of funding to the Social Services Agencies with deletion of the HelpLine and the addition of $5,000 for the YMCA and $7,000 for Families in Transition passed on a voice vote.
Councilor Blanchard indicated that she would like to make an amendment in regards to Langley Parkway.
Mayor Donovan indicated that the project is located on page 23 of the Capital Improvement Program and that Council amended this and the number is $1,030,000.
Councilor Blanchard moved to not provide additional funding for the Langley Parkway project. The motion was duly seconded.
Mayor Donovan noted that he would interpret the amendment as deleting the $1,030,000 for CIP 40 from the budget.
Councilor Blanchard indicated that she has consistently voted against any additional appropriations to Langley Parkway since she has been on the Council.
Councilor Blanchard’s motion to remove funding for Langley Parkway from the FY2008 budget failed 5 to 9 on a show of hands vote.
Mayor Donovan indicated that they had talked about resolving the Liberty Street sidewalk which is tied up in the $200,000 that is in CIP 479 and noted that he feels that the consensus had been on a non-binding vote that Council would like to spend this on a new sidewalk on Liberty Street from Franklin Street to Centre Street. He asked if the appropriate motion would be to appropriate it to a new sidewalk on Liberty Street and leave the details to a subsequent discussion on July 9th. City Manager Tom Aspell noted his agreement.
Councilor Rogers moved to amend the budget to include funding for a new sidewalk on Liberty Street. The motion was duly seconded.
Mayor Donovan explained that these are state highway department funds that had been proposed for another project that Council felt could wait a year so that the money would go towards a new sidewalk between Centre Street and Franklin Street which could be built in conjunction with the roundabout that Council has approved. He added that this sidewalk was the next major new sidewalk in the city’s program.
Councilor Rogers motion passed with no dissenting votes.
Councilor Lemieux indicated that he would like to remove $90,000 from the CAT Public Transportation budget. He explained that he was going to propose transferring some of this money to the senior transportation and special transit portion of the CAT budget but this is no longer necessary since it was restored to the 2007 amount but indicated that still remaining to be done is to take care of the transportation or the transit needs of transit dependent people who are neither elderly or handicap. He explained that to do so he proposes to put $15,000 into the welfare aid budget to be used for this purposes.
Referencing page 40-6, CAT Public Transportation Budget, Councilor Lemieux moved to reduce this amount by $90,000 and on page 35-1, adding $15,000 to the welfare aid budget. The motion was duly seconded.
Councilor Lemieux explained that many people do not realize that the CAT buses use between four and seven times as much fuel as a passenger car with just one occupant in it and uses thirteen times as much fuel as a Toyota Prius with just one occupant. He added that a CAT bus gets just 3.6 passenger miles per gallon and a diesel bus uses more than nineteen times as much nitrogen oxide as a typical passenger car; CAT buses cost 17 ½ times as much to operate as a passenger car; on a passenger mile basis a typically loaded CAT bus costs more than twelve times as much as a car with just a driver; it cost CAT $22 to move one passenger between downtown Concord and Penacook and a taxi cab fare is $12.50. He indicated that according to CAT, the average number of passengers on a CAT bus is less than one. He noted that he feels that this has been an ongoing experiment and that the people in Concord have proven that they are not going to ride the bus no matter how cheap it is further indicating that there are no benefits to off set the costs to the city for funding it.
Councilor Blanchard noted her opposition to this motion but indicated that she feels that public transportation system needs to be addressed in the near future and whether the city is prepared to continue to subsidize public transportation.
Councilor Rogers noted her opposition to this amendment noting her concerns with her constituents and their need to use the bus to get around town.
Councilor Lemieux clarified that he is not proposing removing the need for transportation services for the elderly, handicap, or others who can’t afford it.
Councilor Lemieux’s motion failed 5 to 9 on a roll call vote with Councilors Lemieux, Nyhan, Rowe, Black, and Coen voting yes. Councilors McClure, Rogers, St. Hilaire, Stetson, Werner, Bennett, Blanchard, Bouley, and Mayor Donovan voted no.
Councilor Lemieux moved to add $1,500 to the budget to reopen the skate house at White Park by adding $400 to compensation on page 34-4; add $600 to outside services for fuel on page 34-4; and increase revenues by $500. The motion was duly seconded.
Mayor Donovan inquired whether this was going to be off set by revenues from the Friends of White Park. City Manager Aspell responded that the total cost is $1,500 and if this is done, $500 would be generated from revenue.
Councilor McClure inquired as to what the revenue amount was for this year. Mr. Aspell responded that the revenues were $408.
Councilor Lemieux’s motion passed with no dissenting votes.
The budget, as amended this evening, passed on a voice vote.
7. Resolution closing and completing certain capital projects; rescinding appropriations and returning funds to their sources; and transferring, reappropriating or otherwise making remaining balances available for future purposes; together with report from the Senior Accountant/City Internal Auditor. (6-13)
Action: Councilor St. Hilaire moved approval. The motion was duly seconded and passed with no dissenting votes.
8. Ordinance amending the Code of Ordinances, Title I, General Code; Chapter 1, Government Organization, by amending Schedule I of Article 1-5, Fees, Fines, and Penalties, sewer rates; together with report from General Services. (6-14)
Action: Councilor Bouley moved approval. The motion was duly seconded.
Mayor Donovan explained that this would increase sewer rates five percent with no increase in water rates this year.
The motion to approve passed with no dissenting votes.
9. Resolution amending the FY2008 City of Concord budget and appropriating the sum $27,500 for New Hampshire Municipal Association dues. (6-15)
Action: Councilor St. Hilaire moved approval. The motion was duly seconded. Councilor Bennett took rule six. The motion to approve passed on a voice vote.
10. Resolution amending the FY2008 City of Concord budget and appropriating the sum of $50,000 for Concord 2020 Grant Project. (6-16)
Action: Councilor Bouley moved approval. The motion was duly seconded. Councilor Black took rule six. The motion to approve passed with no dissenting votes.
11. Resolution amending the FY2008 City of Concord budget and appropriating the sum of $1,400 for Concord Chamber of Commerce dues. (6-17)
Action: Councilor Bouley moved approval. The motion was duly seconded. Councilor Coen took rule six. The motion to approve passed with no dissenting votes.
Comments, Requests by Mayor, City Councilors
Mayor Donovan thanked the City Manager, Deputy City Manager – Finance, and Department Heads for all of their hard work in preparing the proposed budget and for bringing Council a budget proposal that met the guidelines for a four percent municipal tax increase doing so in a responsible well thought out way that met the city’s priorities as the City Manager and his staff see them. He thanked Councilors for doing a good job in reviewing and amending the budget noting that everyone was well informed, the debates were good and view points were exchanged. The challenges faced this year were several: the state mandated retirement system increases had an impact of $400,000 on the general fund budget this alone causing an equivalent of a 1.5 percent increase in the municipal tax rate; health insurance benefits city share of increase is $440,000 a 1.7 percent increase on the municipal tax rate; debt service for Capital Commons project and pavement catch up bond totaled $527,000 with a combined impact of 2 percent on the municipal tax rate. These impacts alone impacted the tax rate 5.2 percent but to the credit of the City Manager, the Deputy City Manager – Finance, and City Council the city was able to adopt a budget and absorb these increases yet give a budget to the taxpayers that only increases the municipal tax rate 4.6 percent. He explained that what the Council did in reviewing the City Manager’s budget was made several policy statements which are reflected within the budget: provided for four new police officers to increase public safety; restored funds to the library budget; restored the $58,000 for snow plowing; reduced the amount for compensation adjustment by 20 percent total; restored the social services agency to the amount that was level funded for years. He noted that this FY2008 budget review was a good and responsible process indicating that he feels that the community has a budget which will continue to provide a high level of services that the people of the community expect.
Councilor Blanchard asked that a round of applause be given to Administration and the Department heads.
Adjournment
The time being 8:45 p.m., Councilor Bennett moved to adjourn the meeting. The motion was duly seconded and passed with no dissenting votes.
A true copy; I attest:
Michelle
Tiffany
Deputy City Clerk