City Council – 05/11/2010

Meeting Agenda

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CITY OF WOBURN

MAY 11, 2010 – 6:30 P.M.

COUNCIL CHAMBERS, WOBURN CITY HALL

SPECIAL MEETING OF THE CITY COUNCIL

Roll Call

                                                                                       Denaro

_________________________

Pursuant to Title III, Section 12 of the Charter of the City of Woburn, His Honor the Mayor has called a Special Meeting of the City Council to be held in the City Council Chambers, Woburn City Hall, 10 Common Street, Woburn on Tuesday, May 11, 2010 at 6:30 p.m. for the purpose of receiving the FY2011 Municipal Budget and other financial matters.

______________________________

Mayor Galvin appeared and presented an Order with the proposed FY2011 Budget and the following five additional Orders. Motion made and 2^nd that the six Orders be received and made part of the record, all in favor, 9-0. Mayor Galvin appeared and summarized the following communication dated May 11, 2010 that was attached to the budget:

Dear President Denaro and Distinguished Members of the Woburn City Council,

I’m pleased to submit the Fiscal Year 2011 Budget to the City Council for review. The total Budget of $113,720,271.96 represents a 1.38-percent increase over the FY 2010 budget.  Increases in Special Education ($1.3 million) and Health insurance ($805,000) are the primary causes for the increase.

At the same time, the budget, as presented, is $2 million below the spending restrictions required by Proposition 2 ½.

As part of a larger effort by my administration to reduce escalating municipal expenses, the City is in the midst of transitioning its payroll services in-house—an operations change enhanced by technology that delivers an estimated $100,000 to $125,000 in annual savings.  Taking internal control of payroll services, expected to be completed by January 2011, instead of paying an outside payroll service provider creates new employee efficiencies, as well as recurring and measurable cost savings to the City.

Other new cost-savings measures include my directive to the Purchasing Agent to aggressively re-bid numerous vendor contracts aimed at saving the City an estimated $250,000 or more.  I have also named the Purchasing Agent director of a new pilot program, Woburn Citi Stat.  The new metrics-based data management initiative automates analysis of policies, procedures and spending patterns across City programs and services to create a dashboard of information aggregated in a way that reveals areas to improve operational efficiencies and reduce costs.

These are just a couple of initiatives with the goal of advancing City efforts to combat escalating municipal costs, including the rising cost of health insurance mentioned above.

For instance, Woburn experienced a 6.6-percent ($805,000) increase over FY 2010 in our healthinsurance premium.  The average MIIA increase for health insurance in FY 2011 is 9.8 percent.  These continued increases are not sustainable, and will most certainly result in layoffs of valuable municipal employees and increased property taxes if left unchecked.

In April, I conducted negotiations with a number of Union Representatives regarding changes to their health insurance plans. The changes in co-pays I presented to the Unions would have allowed the City to eliminate the entire $805,000 budgetary increase for FY 2011. Although Union officials acknowledged that health insurance costs are spiraling out of control, no agreement was consummated.

In order to control escalating health-insurance costs, I will continue to pursue reasonable changes to the health insurance plans offered to our municipal employees. In addition, I will be working with other Massachusetts Mayors and the Mass Municipal Association to pass a law currently in front of the State Legislature that will give Cities and Towns the exact same rights that the State has to reasonably change health insurance plan design and co-pays without getting the approval of every Union.

The School Department budget increased by 2.9 percent. This increase is attributable solely to increases in out-of-district Special Education and Transportation costs, coupled with the failure of the State to adequately fund the circuit breaker account.

Over the past few years, the City chose to cut the Special Education account, and fund the deficit with a subsequent free-cash appropriation. This budget seeks to end this poor fiscal habit by fully funding the initial Special Education budgetary request. In addition, the School Department has agreed to deposit any increase in circuit breaker reimbursement into a reserve account for future, unanticipated Special Education expenses.

I have also eliminated the expenditure of at least $75,000 by consolidating the Planning

Department, Woburn Redevelopment Authority (WRA) and Grant Writer into one office. The WRA will continue its revitalization efforts of Downtown Woburn; operating from City Hall with support from the Planning Department.

I will also move to increase revenue by conducting a personal property audit for FY 2011. This audit will identify those businesses that evade the requirement of reporting a detailed listing of their taxable personal property. The new growth revenue generated by this audit is expected to exceed $400,000 during FY 2011.

On April 23, 2010, Moody’s recalibrated our bond rating, lifting us from Aa3 to Aa2. In an attempt to further lift our bond rating, which would reduce future borrowing costs, I am requesting the City Council fund the assistant auditor and senior appraiser positions to strengthen our fiscal management team.

The Police Department budget does not include funding for the State’s 50-percent share of the Quinn Bill, totaling $370,000.  As you know, the State cut this amount in its FY 2011 local-aide appropriation. The City will continue to fund its 50-percent share of the Quinn Bill as contractually obligated, and this amount is included in the FY 2011 budget.

I have met with representatives from the Patrolman’s and Superior Officer’s unions to discuss having the City of Woburn fund the State’s 50-percent share of the Quinn Bill. A mutually acceptable agreement has not been reached at this time, however, I will continue negotiations with both unions.

The FY 2011 Budget includes salary increases of 2.5 percent for FY 2010 and 2 percent for FY

2011 for the City Auditor, City Clerk, Human Resources Director, and Woburn Public Library Director. The City Solicitor is scheduled to receive a 2-percent salary increase for FY 2011. These are the same salary increases received by most other city employees. The increases total $17,112.00.

In FY 2011, I will work to implement a policy that rewards increases in Department Head salaries base on a merit-based evaluation system and availability of funding.

Sincerely, s/Scott D. Galvin, Mayor

ORDERED     That for the purpose of defrating expenses for the fiscal year July 1, 2010/June 30, 2011 the following sums of money be and they are respectfully appropriated to the accounts and for the objects and purpose herein after stated and explained:

CITY OF

                  WOBURN                                                            FISCAL 2011  BUDGET

ORDERED: that for the purpose of defraying expenses for the fiscal year  July 1,2010 / June 30, 2011 the following sums of money be and they are respectfully appropriated to the accounts and for objects and purpose herein after stated and explained:

Dept Code

Page           Department               #                                             Summary            Total

Community

3. Services           0122     Maintenance    32,000.00         32,000.00
4. Auditor 0134     Salary 253,307.40

Maintenance               113,700.00                                                                           367,007.40

3. Purchasing       0136     Salary 148,889.22

Maintenance                   2,700.00                                                                           151,589.22

3. Assessor          0137     Salary 436,837.94

Maintenance               127,000.00                                                                           563,837.94

Treasurer /

3. Collector           0138     Salary 370,767.32

Maintenance               185,000.00                                                                           555,767.32

3. Law       0151     Salary 126,990.00

Maintenance                 77,500.00                                                                           204,490.00

Data

3. Processing       0154     Salary 12,000.00

Maintenance               233,300.00                                                                           245,300.00

3. City Clerk         0161     Salary 252,145.70

Maintenance                   7,000.00

Outlays                                  0.00                                                                       259,145.70

3. Election & Reg 0162     Salary 65,662.84 Maintenance            25,650.00

Outlays                                  0.00 91,312.84

License

3. Commission     0164     Salary 12,000.00

Maintenance                          0.00 12,000.00

Human

3. Resources        0170     Salary 131,720.73

Maintenance                   6,900.00                                                                           138,620.73

3. Conservation    0171     Salary 89,662.66 Maintenance            6,400.00

Outlays                           8,000.00                                                                       104,062.66

Planning Bd/

3. Comm Devel     0172     Salary 216,221.41

Maintenance                 30,525.00                                                                           246,746.41

Board of

3. Appeals            0173     Salary 22,000.00

Maintenance                          0.00 22,000.00

3. Sundry Boards 0174     Maintenance    39,600.00         39,600.00

18-21        Police                       0210         Salary                       7,445,557.72

22. Maintenance    647,575.00
23. Outlays            0.00      8,093,132.72

Dept Code

Page           Department               #                 Summary                      

24-25        Fire                           0220         Salary                       5,644,473.54

26. Maintenance    304,450.00
27. Outlays            0.00      5,948,923.54

Inspection

26. Services          0251     Salary 452,913.97

Maintenance                 10,800.00

Outlays                                  0.00                                                                       463,713.97

Sealer of

26. Weights           0254     Salary 15,848.56

Maintenance                      650.00 16,498.56

26. Civil Defense   0291     Salary 37,718.83

Maintenance                   2,500.00 40,218.83

Woburn

26. School             0300     Budget             46,690,187.00

Northeast

31. Regional           0301     Budget             800,204.00

47,490,391.00

31. Engineering      0410     Salary 260,002.65

Maintenance                 24,525.00

Outlays                                  0.00                                                                       284,527.65

33-36 Public Works 0411 Salary 2,262,467.03 37 Public Works 0412 Administration 19,000.00 37 Public Works 0414 Tree Moth 37,500.00 38 Public Works 0416 Surface Drain 0.00 38 Public Works 0417 Street Maint 449,000.00 39 Public Works 0418 Snow Remove 279,000.00 39 Public Works 0419 Traffic Control 109,900.00 39 Public Works 0420 Street Lighting 340,000.00 40 Public Works 0421 Repair & resur 0.00 40 Public Works 0422 Sidewalk Rep 0.00 40 Public Works 0424 Comm. Events 14,000.00 40 Public Works 0425 Bridge Repair 0.00 40 Public Works 0426 Fence Repair     0.00 41 Public Works 0428 City Garage 0.00 41 Public Works 0429 Telephone 12,500.00

41. Public Works   0430     Gas  &  Oil                    275,000.00
42. Public Works 0432 Trucks & equip 253,000.00 42 Public Works 0435 Public building 432,600.00
43. Public Works   0436     Outlays            0.00  

Total Public

41. Works Budget             4,483,967.03
42. Cemetery         0490     Salary 372,454.37
43. Maintenance    0.00

46. Outlays            10,000.00         382,454.37

Board of

46. Health 0512     Salary 347,835.99
47. Maintenance    94,550.00

Rubbish

46. Removal          0495     Maintenance             2,832,500.00     3,274,885.99

Council on

46. Aging   0541     Salary 200,404.75

Maintenance                 83,200.42                                                                           283,605.17

Dept Code

Page           Department               #                 Summary                      

Veterans

46. Benefits           0543     Salary 47,900.00

Maintenance                   2,500.00

Benefits                       209,500.00                                                                        259,900.00

United

46. Veterans          0544     Maintenance             10,850.00         10,850.00
47. Public Library 0610     Salary 822,020.27
48. Maintenance    210,790.00

1,032,810.27

46. Recreation       0620     Salary 73,477.85

55                                                            Programs                      99,320.00

56-57                                                          Maintenance                 89,290.00   262,087.85

58. Parks   0630     Salary 348,140.27 59             Maintenance    121,650.00
59. Outlays            15,000.00         484,790.27

Historical

58. Comm.             0650     Maintenance             1,000.00           1,000.00

Handicap

58. Commission    0660     Maintenance             500.00 500.00

Biotech

58. Commission    0670     Maintenance             500.00 500.00 Traffic
59. Commission    0640     Maintenance             500.00 500.00

Human Rights

58. Commission    0685     Maintenance             500.00 500.00

Historical District

58. Commission    0690     Maintenance             1,000.00           1,000.00
59. Maturing Debt 0710     Principal             820,000.00

Interest                        344,954.39                                                                      1,164,954.39

Interest Temp

58. Loans 0715     Interest            50,000.00             50,000.00

Woburn

58. Retirement       0970     Salary&Maint             4,333,616.00     4,333,616.00

Non

Contributory

58. Pensions         0970     Salary 37,992.55             37,992.55
59. Unemployment            0980             Maintenance    45,000.00             45,000.00
60. Insurance        0980     Maintenance             15,165,978.20   15,165,978.20
61. Medicare Tax   0980     Maintenance             730,000.00       730,000.00 TOTAL GENERAL FUND BUDGET             97,637,001.42

73-74        Water & Sewer Enterprise Fund Budget

Water =

75-78                                         0450                                          6,329,931.21

Sewer =

79-83                                         0440                                          9,753,339.33

Direct Charges to Enterprise

Fund                      16,083,270.54

Indirect Charges

Reflected in

                                                                                                  General fund      1,399,931.25

Total Enterprise Fund

Budget

s/President Denaro

Alderman Drapeau stated that he wants copies of the recap sheets for the city and school budgets to see the current year’s performance, that this seems to be a well thought-out plan, that the city is in better financial condition than other communities, and that the Whispering Hill and Spence Farm proposed purchases are worthwhile efforts to preserve open space. Alderman Gately stated that the Mayor indicated that the bond of $6,700,000.00 for various surface drainage projects would not require water and sewer rate increases for two years, and that he will need additional data in order to evaluate the proposal before voting on the matter. Alderman Raymond stated that he wanted some clarification on how the city will know that the money from the meals tax will be available for the purchase of additional parcels of land, and that while he is generally not in favor of tax increases he sees a benefit in this tax where the city will acquire eighty acres of open space. Alderman DiTucci stated she is pleased to receive the drainage proposal, and that she would prefer to earmark the meals tax for the future enhancement of the city. Mayor Galvin stated that the $6,700,000.00 bond for surface drainage projects will be paid out of the Water and Sewer Enterprise Fund, that there will be no increase in water and sewer fees for two years or more, that the MWRA assessments to the city have been reduced significantly, that the meals tax revenue will go into the General Fund as it cannot be linked to the particular bonds, that a good portion of the bond authorization will be paid from the meals tax revenue, that a fictional account could be created to show the revenue collected from the meals tax versus the spending of the meals tax revenue for payment of the bonds, and that if the meals tax income stream was adopted by the end of May 2010 the city would realize approximately $550,000.00 to $600,000.00 for all four quarters according to DOR estimates. City Auditor Surette stated that the meals tax and hotel tax revenue is placed into the General Fund as it is received from the State. President Denaro stated that no public hearing is required for the meals tax but there should be community input, and that he wants to schedule a public hearing on the meals tax for the City Council Regular Meeting of May 18, 2010. Motion made and 2^nd that the proposed FY 2011 Municipal Budget be referred to Committee on Finance, as amended, with the amendment as follows: That a budget recap sheet for the current year be provided to the city Council for review by the City Auditor and the School Department, all in favor, 9-0.

_______________________

ORDERED     That $7,000,000.00 is appropriated to pay costs of acquiring the Whispering Hill Property, so-called, located at Cambridge Road containing approximately 74.5 acres for recreational purposes, including costs incidental or related thereto; that to meet this appropriation the Treasurer with the approval of the Mayor is authorized to borrow $7,000,000.00 under Chapter 44, Section 7(2) of the General Laws as amended or any other enabling authority; that the Mayor is authorized to contract for and expend any federal or state aid available for the project; and that the Mayor is authorized to take any other action necessary to carry out this project.

I hereby approve the above: s/Scott D. Galvin, Mayor

I hereby recommend the above. s/Gerald W. Surette, City Auditor

s/President Denaro

Motion made and 2^nd that the above four Orders be referred to the Committee on Finance, all in favor, 9-0.

_______________________

ORDERED   That the City of Woburn accept G.L. c. 64L, §2(a) to impose a local meals excise.

I hereby recommend the above. s/Scott D. Galvin, Mayor

s/President Denaro

Motion made and 2^nd that a public hearing be held regarding the Order to impose a local meals excise tax at the Regular Meeting of the City Council on May 18, 2010, all in favor, 9-0.

_______________________

Motion made and 2^nd to ADJOURN, all in favor, 9-0. Meeting adjourned at 6:51 p.m.

A TRUE RECORD ATTEST:

William C. Campbell

City Clerk and Clerk of the City Council