| June 23, 2008 Meeting Minutes |
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City Council Meeting
FY2009 Budget Adoption Minutes
June 23, 2008
Non-public session in
accordance with RSA 91-A: 2, I (b) to discuss
collective bargaining and consultation with City Solicitor to discuss the City
of Concord’s current sign ordinance
to follow the meeting.
City Council Chambers
Action: Councilor Lemieux moved to adopt items 4, 5 and 6; approving items 4 and 5 and setting item 6 for a public hearing to be held on July 14, 2008. The motion was duly seconded and passed with no dissenting votes.
7. June 23, 2008 Public Hearings
A. Resolution fixing and determining the amount of money to be appropriated by the City of Concord for the fiscal year 2009 ending June 30, 2009. (6-12) (Public testimony from Donald & Sandra Morrison submitted)
Action: Councilor Bouchard moved to suspend the rules and hold the public hearings for items A through G together. The motion was duly seconded and passed with no dissenting votes.
Mayor Bouley opened the public hearings for items A through G.
Five Minute Public Testimony
Mark Boisvert, Concord resident, spoke in regards to the emergency medical services provided by the fire department. Referencing a chart presented at a previous budget meeting which broke down the number of EMS calls per year by four categories, he indicated that he had trouble grasping the numbers presented and broke it down by calls per day, per twenty four hour period. He indicated that it comes to approximately thirteen EMS calls per day: 2 calls per week are ALS 2; 4 calls per day are ALS 1; 5 calls per day are basic life support; and 4 calls per day requiring no life support, no treatment and no transport. He noted that there are approximately four calls per day on average that require the skill of a paramedic and pointed out that there are four firefighter paramedics and one firefighter lieutenant per shift for a total of ten paramedics per day currently handling four paramedic calls per 24 hour period. He noted that there may be more paramedics on duty than is needed to effectively handle the paramedic calls received and that they are being utilized to respond to all medical calls even those that do not require a paramedic and this is not what the paramedic program was intended for. In conclusion, he stated that for the number of advanced life support calls the fire department receives, he believes that two paramedics along with a paramedic lieutenant per shift could cover the number of paramedic calls that the city generates.
Alice Medley, Ward Three resident, spoke in regards of the hardship that many homeowners are facing and explained that when she had her driveway paved so that her son could get in and out of the house easier with his wheelchair her property taxes went up. She noted that she doesn’t know why that because the value of her home goes so do her property taxes explaining that homeowners are the ones who maintain their homes inquiring as to why the city, state and federal government should make a profit off of the homeowners hard work. She noted that her household budget contains items that are personal and the “wants” are extras and as the economy weakens this is how it is for others, the long term residents of the city. She indicated that this is how she wants Council to look at the budget before them and this is how she needs them to look at it. Ms. Medley noted that the taxpayers cannot afford increases in the tax rate, the money is not there and yet the Council speaks of allowing more development and building more roads when the city cannot afford to keep up the ones that already exist. She asked that Council separate the needs from the wants when looking at the budget and not to take away what the residents need to survive.
Paul Halvorsen, Concord resident and former Councilor, indicated that he believes that the Council places wants before needs in regards to the budget. He noted that he feels that the Council is losing its sight on basic core services and when these are subjugated to wants to non-required spending to answer the vocal needs of a small minority of the community, the whole community suffers. He indicated that Council needs to look at priority services when making decisions noting that he hasn’t seen this done in several years.
Referencing needs versus wants, Mayor Bouley asked where Mr. Halvorsen would put this in his scale in the interest of the taxpayer and how high Council can go with the tax rate. Mr. Halvorsen responded that if Council answers the priority tasks that a city has and Council puts in front of a population a budget that may increase or decrease based on those core tasks he feels that the vast majority of taxpayers would be willing to pay for core services. Mayor Bouley inquired whether Mr. Halvorsen feels that a half million dollar increase in the fire budget helps maintain those core services. He stated that this budget would increase the fire department’s budget by a half million dollars and further stated that the Council has continued to make a tremendous investment in public safety. Mr. Halvorsen agreed that investments have been made but pointed out that over the course of several years there has also been a reduction in services. He inquired whether part of vacancies within the police department are not going to be filled half of the upcoming fiscal year in order to save money. Mayor Bouley responded that of the four new officers that were appropriated, the city has been unable to fill the positions and that it had been explained that there are tests taken and it is difficult to fill these until certain times of the year. Mr. Halvorsen indicated that he feels that a state certified officer that has already been through police standards and training would be able to move laterally into one of these positions if the vacancies were funded and there was a viable candidate.
City Manager Tom Aspell indicated that there are eight positions open currently with three in the process of being hired. He explained that within the budget itself are positions in which the city is going to wait until March and positions in which the city will wait until August. Mr. Aspell indicated that he has told the chief that if he has viable candidates to bring forward, the city would hire them immediately. He stated that the reductions in the budget simply reflect the ability to bring individuals on as to when they are available. Mr. Halvorsen indicated that it is his understanding the police staffing has not changed much number wise in close to two decades. He inquired that if the city has become bigger within twenty years why isn’t the Police Department larger to meet the requirements and the demands. Mr. Aspell responded that it is due to a combination of technology and efficiency due to the help of the Legal Department. Mr. Halvorsen noted that he doesn’t feel that the current staffing is adequate and doesn’t agree that technological advances allows a service to work with static or decreasing per capita numbers because the need for personal interaction is still there.
Councilor Lemieux noted that the present budget is 1.65 percent higher than the estimated expenditure from the current budget. He pointed out that police salaries are increasing by 4.4 percent and police fringe benefits are increasing by 9.7 percent and that fire salaries are increasing by 4.3 percent and fire fringe benefits are increasing by 6.0 percent. He indicated that salary and benefits for the emergency services departments are going two to three times higher than the budget in general. Mr. Halvorsen responded that he feels that a budget that increases under the rate of inflation is actually being reduced.
Councilor Blanchard indicated that the bottom line of the budget is going up a small percentage but the impact is greater than that because revenues are down. Mr. Halvorsen responded that he understands that those numbers fluctuate on an annual basis but does not detract that there are certain core services that need to occur.
Councilor Coen indicated that there is more being appropriated this year for the fire and police departments than last year.
Lucy Comstack Gay, on behalf of the Public Library Trustees, thanked Council for restoring the funding of just over $20,000 to keep the main library open on Tuesday evenings as well as the Penacook branch open on Thursday mornings. She noted that she feels that libraries are core essential institutions and services in a community and that in keeping the downtown branch open three nights a week gives Concord children, adults, families and business people access to important services at little or no costs. She added that she is in favor of making plans now to taking steps to building a new library for the future.
Councilor Bouchard noted that Marilyn Fraser had contacted her and wanted her to relay her thanks in reinstating the library hours.
Judy Brickett, on behalf of seniors, thanked Council for putting money in the budget for the senior program.
Shaun LaFrance, Concord Public Library Foundation member, spoke in support of the funding to keep the hours at the Concord and Penacook libraries. He stressed that most residents work during the day and their ability to use the resources of the library is critical for use in the evening. He noted that the foundation strongly supports the decision to purchase land for future expansion of the library.
Councilor Black inquired whether it was felt that the library is a core service. Mr. Lafrance responded that he feels that it is a core service provided by the city.
Martin Ringo, Library Board of Trustees member, spoke in support of the funding and reinstating of the hours of the library. He indicated that the current library cannot provide the services that a modern library should provide because of the spacing needs. He added that Council will need to look at the ultimate vision of the community and decide whether it’s core, fundamental or a luxury.
Rick Watrous, Concord resident, indicated that he would like to find the money to avoid cuts to the library and cuts to public safety noting that he believes that there is money in the City Manager’s budget that can be distributed. He pointed out that the proposed grant to Concord Community TV is $227,320 for FY09 and noted that he feels that a portion of this money can be reallocated to city services that need funding. He explained that CONCORD TV is a private corporation with a full-time development person which according to the city contract, is suppose to generate operating funding. Referencing the FY07 CCTV tax return, he indicated that they raised zero public support and received a $573,000 contribution from the city. He noted that there are many non-profits in the city and that none of them except Concord TV rely on the city for all of their operational funding. He asked that Council consider this $227,320 and apportion it not for what is best for Concord TV but what is best for all the citizens of the city.
Councilor Blanchard indicated that the money appropriated for Concord TV comes from the cable franchise fee which is from the users of cable television and does not impact the property tax.
Councilor Keach indicated that Mr. Watrous’ unhappiness with Concord TV has been evident over the years and asked if it was, in his view, properly managed would he be satisfied with the appropriation. Mr. Watrous responded that he doesn’t feel that the city is getting what it is paying for. Councilor Keach repeated that if Mr. Watrous felt that it was properly managed in his view, would it be considered an unreasonable amount of money to provide this service. Mr. Watrous responded that with the current service, yes, it is.
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 2009 ending June 30, 2009. (6-13) (To be submitted following final budget modifications)
Action: Public hearing for this item taken with item A.
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. (6-14)
Action: Public hearing for this item taken with item A.
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. (6-15)
Action: Public hearing for this item taken with item A.
E. Resolution amending the Fiscal 2009 City of Concord budget and appropriating the sum of $29,520 for New Hampshire Municipal Association dues. (6-16)
Action: Public hearing for this item taken with item A.
F. Resolution amending the Fiscal 2009 City of Concord budget and appropriating the sum of $1,400 for Concord Chamber of Commerce dues. (6-17)
Action: Public hearing for this item taken with item A.
G. Resolution amending the Fiscal 2009 City of Concord budget and appropriating the sum of $296,100 for Retiree Health Benefits. (6-18)
Action: Public hearing for this item taken with item A.
June 23, 2008 Public Hearing Action
8. Resolution fixing and determining the amount of money to be appropriated by the City of Concord for the fiscal year 2009 ending June 30, 2009. (6-12)
Action: Councilor Nyhan moved approval. The motion was duly seconded.
Mayor Bouley inquired of the City Manager whether that the amounts to be raised from property taxes is $29,338,188. Mr. Aspell indicated that to be correct.
The motion to approve passed on a voice vote.
9. Resolution amending the amount of money to be appropriated by the City of Concord for the fiscal year 2009 ending June 30, 2009. (6-13) (To be submitted following final budget modifications)
Action: Councilor Bennett moved approval. The motion was duly seconded.
Mayor Bouley asked for the dollar amount. Mr. Aspell indicated that the amount is $47,175,089.
Referencing the discussions regarding core services, Councilor Bennett indicated that the $29 million raised in property taxes is distributed between three departments: Police, Fire and General Services.
Councilor Coen noted that he feels that the library is an important core and resource for the city but indicated he feels that the city is rushing into this endeavor at this time.
Councilor Coen made the motion to move the $1.9 million in the capital budget for library property acquisition from FY2009 to FY2010 giving the city the opportunity to look at the approach on the library and the library site. The motion was duly seconded.
Councilor Blanchard noted her support for planning ahead and leaving the $1.9 million dollars in the budget as it currently is.
Councilor Werner noted that he feels that putting the money in the budget for this fiscal year is critical to ensure that this project moves forward. He indicated that it is an economic development leverage and feels strongly that the money be kept in this year in order to maintain the city’s position moving forward in the future.
Councilor St. Hilaire indicated that the CIP includes money appropriated for FY09 for land acquisition noting that bonds are not expended until 2011 for design. He asked for comment in regards to this two year window. Mr. Aspell, referencing the individual project itself, explained that there is a large amount of dollars to be sought for and received by the private sector noting that the thought is that it’s going to take approximately one to two years for dollars to come in to move forward. He indicated that where staff is with the process is that there have been successful negotiations with one landowner; three are in process, one unsuccessful. He added that there is another level of environmental site analysis that needs to take place explaining that there is a lot of planning that has to go on and a lot of work that needs to be done.
Councilor Coen indicated that his concern is the economic times and that it’s a tight budget year and he is not comfortable with appropriating the money for this year. He added that he feels that this is a great project but feels that the timing is not appropriate for it.
Councilor Nyhan noted that he has been trying to explain to his constituents how the property acquisition is to be funded whether it be operating revenues or capital improvement revenues and how this ties to the tax rate. He asked that staff provide a brief overview of where these dollars come from and the reality of this money not affecting the tax rate for this year. Mr. Aspell responded that because this is an acquisition, general obligation bonds would be used to purchase the property explaining that the principal interest payments would not be budgeted until FY2010.
Councilor Stetson noted the concerns of his constituents in regards to how the city can afford to spend money on a library site when the roads are not being maintained. He noted his agreement with Councilor Coen’s motion.
Councilor Bouchard inquired whether pushing this back a year would still show Council’s commitment to the library and building a library. Mayor Bouley indicated that by keeping it within the capital budget, it still remains a priority. Councilor Bouchard noted her agreement with Councilor Coen’s motion and that her concern comes from Council’s struggle just to fund the operating costs this year for the library.
Councilor Blanchard inquired as to how critical is moving this money in regards to the project. Mr. Aspell responded that at a minimum, it would delay everything for a year and staff would have to look at whether or not this is moved to 2010 whether this would give enough time to do the work that needs to be done. Councilor Blanchard noted her concern with lumping the phases of the project too close together which would be a greater impact.
Councilor Black noted that his concern in postponing the project is that the cost of everything will go up and if the project moves forward sooner it will be more economical in the long run.
Councilor St. Hilaire noted that when Council adopts this budget it will begin July 1st and indicated that with the City Manager’s earlier comments it didn’t sound like the city would be able to acquire all of the parcels within the next few weeks. He indicated that given this assessment it seems that it would be fair to say that with or without the money it is going to take some time to do this and if there wasn’t any money appropriated staff could still draft legal documents and a purchase and sales agreement to take effect on July 1, 2009. He inquired as to the minimum dollar amount needed to effectuate a purchase and sale on this time and to do the environmental assessments. Assistant for Special Projects Matt Walsh indicated that there are five property owners that staff is talking with at the moment with four of the property owners being cooperative and one not. He explained that there is a purchase and sales agreement on one the four properties. He indicated that the city has all the money it needs currently to get through the purchase and sale and environment due diligence phase. Mr. Walsh indicated that the city is using the rest of the $80,000 appropriation that the Council appropriated as part of the FY08 for a needs assessment. He explained that if the project remains within the budget, he anticipated coming to the Council before the end of this year for the five properties to look for a vote on the appropriation if not, staff would go to the property owners and tell them that the city is going to wait.
Mayor Bouley clarified that the agreements that staff is writing is not like the city is automatically purchasing the properties and keeping them on the tax rolls and that every agreement is contingent upon a City Council public hearing, a public debate, and a public vote as to whether Council wants to do this or not. Mr. Walsh indicated that to be correct.
Councilor St. Hilaire indicated that the constituents that he has heard from support the library but feel that the economic times are hard. He noted that given the fact that things are not ready to go July 1st even if the money were appropriated that he feels that pushing this back until 2010 is not a year delay but a half year delay in his estimation and therefore, it is good wisdom to delay this by a few months and delay this until 2010.
Councilor Lemieux inquired as what the net effect is of delaying this expenditure for a year asking that if this is left in the budget for 2009, is the city obligated to spend it in 2009. He inquired as to why it couldn’t be left in 2009, proceed with all the caution that everyone wants to proceed with and if Council is ready to make a decision at the end of FY2009, they are in a position to do so if Council is not ready by then, the dollars can be rolled over to FY2010.
Councilor Blanchard added that the project may be out there for awhile and that it may be awhile before it is bonded.
Councilor Keach noted his agreement with Councilor St. Hilaire indicating that in these economic times, Council needs to proceed conservatively and need to demonstrate to the taxpayers that Council takes this stuff very seriously. He noted that he feels that the most compelling testimony that he heard this evening was from the second person during the public testimony who speaks for a lot of people who don’t come before Council very often. He indicated that quite often Council hears from individuals that have a lot and it is easier for those individuals to say that the library is important. He noted that he feels that the library is important but it is also important to listen to the people that are not often heard from. He added that he is fully supportive of the library but that it is important that Council proceed cautiously and demonstrate that they take these tough economic times seriously.
Councilor Shurtleff commended Councilor Coen for bringing forth this amendment noting that it isn’t an easy amendment to make. He explained that Council knows the dire need for a new library building but that Council needs to sacrifice and put this project off for a year to reduce the spending for this year.
Mayor Bouley noted that he has been a strong advocate for a new library and that it can be a strong economic engine. In terms of economic development and investing in downtown, the Mayor explained that a new library can be vital to growing the city’s tax base. He indicated that the current library is tired and old and doesn’t meet the needs within the community. He noted that he would be reluctantly supporting Councilor Coen’s motion explaining that he believes that the economy is soft and doesn’t think that there will be a large change in real estate prices and any real spike in terms of cost of what the city will need to pay. He added that he feels that the article printed within the Concord Monitor changed the debate. He indicated that it is important to note that this does not affect the tax rate and will not change what the increase is this particular year.
Following additional Council discussion, Councilor Coen’s motion to move the $1.9 million in the capital budget for library property acquisition from FY2009 to FY2010 passed on a voice vote.
Councilor Patten asked how the new Fire Chief feels about the cut to an engine during the nighttime. Chief Andrus indicated that he and acting Chief McGinley had been in dialogue since April 25th on this issue and have been reviewing all these impacts. He indicated that Mr. McGinley has brought forth information looking at new and different ways at looking at this particular service level impact. He noted that this is something that they are closely examining the impact both in Engine One’s district to the other areas of the city and to the department and community’s overall fire defenses and emergency services delivery.
Councilor Stetson asked Chief Andrus to provide Council with a report monthly or bi-monthly as to the nature of calls received and what the impact of reducing the hours of Engine One are. Chief Andrus responded that he will be collecting that information and taking a very careful look at how this change in service levels is impacting the community.
Referencing Mr. Boisvert’s public testimony in regards to appropriate staffing levels this evening; Mayor Bouley added that it would be helpful to look at his testimony and to evaluate his recommendations as well.
Referencing Councilor Stetson’s request, City Manager Tom Aspell explained that this will be best to do when the reduction actually takes effect in terms of service explaining that this will require some reorganization and will be an implementation process. Councilor Stetson indicated that he would like Council to receive a report when Engine One is out of service as to whether there is a significant event that this engine would have responded to and as to the impact that this has. Mr. Aspell asked if he wanted this information by month or by event. Councilor Stetson responded that he would like this information by event once every three months.
Councilor Nyhan explained that last Monday evening he had made a proposal to add $900 to the veteran’s council budget and had indicated that he would get in touch with Mike Geary from this organization with a letter explaining how this money would be spent. He explained that he was not able to get the letter but did get the opportunity to speak to him receiving information that the money, in large part, would be used to replace worn and unserviceable flags within the community.
Councilor Nyhan moved to add $900 back into the budget specifically to the Concord Veteran Council line item. The motion was duly seconded and passed with no dissenting votes.
Mayor Bouley reviewed the motion which is for money to be appropriated in the amount of $47,175,989.
The motion passed on a voice vote with two dissentions.
10. 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. (6-14)
Action: Councilor Nyhan moved approval. The motion was duly seconded and passed with no dissenting votes.
11. 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. (6-15)
Action: Councilor Nyhan moved approval. The motion was duly seconded and passed with no dissenting votes.
12. Resolution amending the Fiscal 2009 City of Concord budget and appropriating the sum of $29,520 for New Hampshire Municipal Association dues. (6-16)
Action: Councilor Werner moved approval. The motion was duly seconded.
Councilor Bennett took Rule Six.
The motion to approve passed on a voice vote with one dissention.
13. Resolution amending the Fiscal 2009 City of Concord budget and appropriating the sum of $1,400 for Concord Chamber of Commerce dues. (6-17)
Action: Councilor Nyhan moved approval. The motion was duly seconded.
Councilors Coen and Keach took Rule Six.
The motion to approve passed on a voice vote with one dissention.
14. Resolution amending the Fiscal 2009 City of Concord budget and appropriating the sum of $296,100 for Retiree Health Benefits. (6-18)
Action: Councilor Nyhan moved approval. The motion was duly seconded and passed with no dissenting votes.
Comments, Requests by Mayor, City Councilors
Councilor Patten thanked Department Heads, the Mayor and City Manager for all the help he received while seeking information on this budget process.
Mayor Bouley thanked Tom Aspell and Jim Howard for all their hard work on this budget. He also thanked staff members who worked hard on the budget to help bring forth a reasonable balanced budget and meeting the tax rate target. Mayor Bouley explained that before the tax rate target was set, the city was looking at 18 percent increases from year to year and this evening Council passed a budget that increases the municipal tax rate by 5.4 percent which represents approximately $84 to a typical homeowner and approximately $52 to a typical condominium owner. He indicated that there is no question that there will be some reductions in service and feels that this is a prudent and responsible budget brought forth to the taxpayers of Concord. He indicated that the budget has been increased by .07 percent or a $320,000 increase over last year’s dollars which considering the additional costs in energy, health insurance, GASB 45, and road paving costs the city has done very well at keeping control of the costs. He explained that most of the changes are due to a loss in revenues being down over 5 percent. He noted that he does not see any of these costs going down next year and that the city will meet the challenges next year.
Adjournment
The time being 8:45 p.m., Councilor Nyhan moved to enter into non-public session in accordance with RSA 91-A: 2, I (b) to discuss collective bargaining and consultation with City Solicitor to discuss the City of Concord’s current sign ordinance. The motion was duly seconded and passed on a roll call vote with Councilors Bennett, Black, Bouchard, Mayor Bouley, Councilors Coen, Keach, Lemieux, Nyhan, Patten, St. Hilaire, Shurtleff and Werner voting yes. Councilors Blanchard and Stetson voted no.
At 9:45 p.m. Councilor Bennett moved to come out of non-public session. The motion was duly seconded by Councilor Lemieux and was unanimously approved.
Councilor Bennett moved to seal the minutes. The motion was duly seconded by Councilor St. Hilaire and was unanimously approved.
Councilor Nyhan moved to approve the Concord Police Supervisors agreement as discussed. The motion was duly seconded and was unanimously approved.
There being no further Council business, Councilor Bennett moved to adjourn the meeting at 9:47 p.m.
A true copy; I attest:
Michelle Tiffany
Deputy City Clerk