Village Council Special Public Meeting March 27, 2017
A SPECIAL PUBLIC BUDGET MEETING OF THE VILLAGE COUNCIL OF THE VILLAGE OF RIDGEWOOD HELD IN THE SYDNEY V. STOLDT, JR. COURT ROOM OF THE RIDGEWOOD VILLAGE HALL, 131 NORTH MAPLE AVENUE, RIDGEWOOD, NEW JERSEY ON MARCH 27, 2017 AT 5:30 P.M.
- CALL TO ORDER – OPEN PUBLIC MEETINGS ACT – ROLL CALL – FLAG SALUTE
Mayor Knudsen called the meeting to order at 5:30 P.M. and read the Statement of Compliance with the Open Public Meetings Act. At roll call, the following were present: Councilmembers Hache, Sedon, Voigt, and Mayor Knudsen. Councilwoman Walsh arrived at 6:40 P.M. Also present were Heather Mailander, Village Manager/Village Clerk; Robert Rooney, CFO; and all Department Directors.
Mayor Knudsen led those in attendance in the Pledge of Allegiance to the Flag and held a Moment of Silence for all the men and women serving our nation and all first responders.
- PUBLIC COMMENTS
Boyd Loving, 342 South Irving Street, stated his support for a Parks and Recreation Budget that would facilitate a number of new items at Graydon Pool. Mr. Loving identified himself as a member of the Graydon Pool Ad hoc Committee. The Graydon Pool Ad hoc Committee proposed the installation of new bathrooms, including new indoor showers, a custom-made awning over the existing pergola, the installations of canopies to provide more shade throughout the facility, the replacement of wood chips with a rubberized surface under the existing playground, and the installation of lockers. Mr. Loving spoke of the importance of the Parks and Recreation Department being properly staffed to ensure that the facility is kept clean.
Anne Loving, 342 South Irving Street, questioned why a maintenance position at Graydon Pool was eliminated or consolidated since last year, noting that the Graydon Ad hoc Committee discussed at length the need for additional bathroom maintenance. Ms. Loving asked that this position be reinstated.
Mayor Knudsen thanked the Graydon Ad hoc Committee for the work they did on recommendations that were relevant and important to the clean and wonderful operation of Graydon Pool.
- DISCUSSION ITEMS
- Overview of 2017 Capital Budgets
Village Manager/Village Clerk Heather Mailander pointed out that the 2017 Capital Budget was sent out to all Village Councilmembers on Friday for their review.
Village Chief Financial Officer, Robert Rooney, referred to the summary page of the 2017 Capital Budget. The summary page detailed the initial requests from all departments, which had a sub-total of $15.5 million to start. So far this year, $1.5 million has been authorized for street paving, the Police Department scheduling system, and the new bathroom at the firehouse. After holding collective discussion meetings with the Department Directors and Ms. Mailander last week, the current budget recommendation was reduced to $7.6 million, of which $209,000 is available through grants and funding. Last year the budget was $6 million. The increase is the result of timely vehicle and equipment investments. As an example, Mr. Rooney referred to the aggressive replacement of police vehicles over the last two years. Other departments also have vehicles and equipment that have been bypassed over the last several years, resulting in this increase in the 2017 Capital Budget.
Mr. Rooney explained that the 2017 Capital Budget contains some big ticket items for the Village Councilmembers to consider. Ms. Mailander listed these big ticket items as Kings Pond Park, the Schedler Property, and the acquisition of property.
Mr. Rooney pointed out that the net debt for 2017 is .78%, which is the same figure as five years ago. Last year, there was a refund in the debt, which will save the Village a substantial amount of money in the long term. The bonds for the next two years, 2017-2018, are a little higher than in the past, because of the timing in which the refunding will take effect.
Under questioning by Councilman Voigt, Village Engineer Christopher Rutishauser explained that the $500,000 allocated for the Kings Pond Dam is needed for the start of the design process, but this will not be the total cost. Councilman Voigt did not feel this was an immediate need.
Under questioning by Councilman Voigt, Ms. Mailander explained that the $1.75 million budget item for the acquisition of real property involves sites discussed under Closed Session.
Under questioning by Councilman Voigt, Mr. Rooney explained that the $200,000 allocated for the preliminary plans for the parking garage is above what has been already allocated. This figure is on the high side. No expenses have been incurred yet.
Councilman Sedon agreed that the Kings Pond Dam Project was not an immediate need, as long as the NJDEP is not considering it as critical. He suggested improvements to the pond itself or the area around the pond, instead.
Councilman Sedon noted that the budget item for the property acquisitions was subject to change.
In reference to the Schedler property, Councilman Sedon suggested conducting the sound study and to use the $150,000 grant for the clean-up.
Ms. Mailander noted that the Village has $125,000 in grant funding for the clean-up of the Schedler property and will be receiving a Community Development Block Grant for Open Space Funds which may cover some of the improvements in the Kings Pond area. Additional improvements could be considered for next year. Councilman Sedon pointed out that beautification work could begin in about two years, when the treatment period for the invasive species is over.
Under questioning by Councilman Hache, Mr. Rooney explained how the net debt was calculated.
Mayor Knudsen recalled that the Kings Pond Dam Project wasn’t recommended by Jeannie Epiphan of the Ridgewood Wildscape Association because it may disrupt the ecosystem.
Under questioning by Mayor Knudsen, Mr. Rooney explained that the upgrades for Graydon Pool are contained in the budget under “Buildings” for bridge painting and a sunshade system; and under “Equipment” for a dumpster, ice machine, and Wi-Fi-System.
Councilman Sedon questioned why the funds to upgrade the bathrooms were not included in this year’s budget. Ms. Mailander noted that if the $500,000 budget item for the Kings Pond Dam Project is removed, this money could be used to fund the Graydon Pool bathrooms, if that is the desire of the Village Council. Mayor Knudsen agreed.
A discussion was held on the potential cost of the upgrade of the Graydon Pool bathrooms. Mr. Rutishauser explained that the waste drainage lines will need to be upgraded, as well. He contacted an architect to obtain a rough, budgetary price, but has not yet heard back. The bathroom upgrade involves several challenges such as meeting the requirements of the State Historic Preservation Office and permitting issues with the NJDEP, for land usage, if a larger footprint is required.
Under questioning by Mayor Knudsen, Mr. Rutishauser explained that Graydon Pool was named as an historic site a number of years ago. When the sloped entry into the pool was created, requirements needed to be met to the extent of tinting the concrete of the ramp to match the beach sand. Ms. Mailander will verify that Graydon Pool is on the State Register of Historic Places.
Under questioning by Mayor Knudsen, Director of Parks and Recreation Timothy Cronin explained that the Somerville Tennis Court renovation includes skimming the top layer off of the court and fixing the existing cracks. This is mandatory because Somerville Tennis Court is a competitive court, used by both Ridgewood High School and the public, and the cracks create a safety hazard.
Under questioning by Mayor Knudsen, Mr. Cronin explained that there are two requests for a Memorial Park at Van Neste Square irrigation expansion. The budget item involves a renovation. The original request was made by The Women Gardeners of Ridgewood. An irrigation system exists, but it needs to be elevated. The other request is for two-day-per-week watering at a location behind the Stable, where a new garden donated by The Conservancy for Ridgewood Public Lands is proposed.
Ms. Mailander summarized this discussion as resulting in the removal of the $500,000 allocated for the Kings Pond Dam Project and monies being added to cover the Graydon Pool bathroom renovations. All Village Councilmembers agreed.
- Operating Funds - 2017 Financial Statements
Mr. Rooney referred to the comparison of the balance sheets and income statements he submitted for the three operating fund financial statements for 2016 (unaudited) and 2015 (audited). The income statements support the surplus numbers contained in the report addressing the balance of surplus available each year and how much was utilized in the budget. All funds other than Water Department funds are basically flat. The last few years have been very successful for the Water Department. The Water Department’s budget is down slightly from last year. The Parking Utility is flat; revenues for fees and permits were up slightly from last year. The Fund Balance for 2016 has been increased and the contribution made to the General Fund from the Budgeted Fund Balance was increased $200,000 between years. Overall, the Fund Balance for the Parking Utility is down approximately $400,000 over last year. The recommended budget for this year is consistent with another $500,000 of the Fund Balance being utilized in the Contribution to the General Fund of $450,000.
Under questioning by Councilman Voigt, Mr. Rooney explained that the Village Council passed a resolution last year which outlined the minimum and maximum General Fund Balance that would be available. Going below a certain number would create a need for a tax increase, and going above a certain number would require the funds being put back into the budget.
Under questioning by Councilman Voigt, Mr. Rooney explained that for three or four years, the General Fund paid for the deficits in the Parking Utility because of the shortage of revenue. By statute, the Village was allowed to recoup that and, using that surplus money, still have approximately $100,000+ left that the Village has not been able to recoup. The Fund Balance anticipated for 2017 is $726,000. It is anticipated that $500,000 will be contributed to the General Fund Balance, leaving a net balance at the end of 2017 of approximately $200,000. Mr. Rooney pointed out that this does not consider any impact on a change in the rate structure, as this is an unknown variable.
At Mayor Knudsen’s request for the benefit of the general public, Mr. Rooney explained how the Parking Utility surplus is calculated. Mr. Rooney explained that when the revenues are sufficient to cover appropriations, the Parking Utility is considered self-sustaining. In a year when the revenue stream is exceeded, the Fund Balance then can be used in subsequent years, anticipating the same results. This is not guaranteed and the history of the Parking Utility shows that this has not happened in the past. The surplus was generated for one-time income and the Village was allowed to use that to both anticipate and then to move it to the General Fund to reduce taxation and reimburse it for the years it paid out. Mr. Rooney pointed out that the Parking Utility Budget was flat this year, so $500,000 will not always be generated.
- Current Fund Revenues
Mr. Rooney explained that out of the $5.8 million in revenue collected last year, the entire amount is anticipated for 2017. State Aid is flat and hasn’t changed in the past five to six years. In regard to Municipal Agreements involving interlocal shared services, the Village is no longer participating with the Village of Hanover for Planning and Development Services, so half of the cost to the Village is lost. However, there is a Shared Services Agreement which has been approved with Washington Township, which is anticipated to be approximately $38,000, to offset expenses for the maintenance of vehicles.
Mr. Rooney explained that he is anticipating $78,000 in grants. As this changes during the year, so does the appropriation. The realized amount of public and private revenues for 2016 was approximately $155,000 and he anticipated the same level this year.
Mr. Rooney addressed “Other special items”. Under General Capital Fund Balance, the debt service this year will be roughly $600,000 over last year. In 2019 it will drop drastically under the refund. Mr. Rooney determined the anticipation by taking another approximately $600,000 over Capital Surplus, where there is over $2 million to help reduce that burden, since most of the proceeds that went into Capital Surplus would result in the refunding of premiums, etc.
Mr. Rooney explained that revenues under “Administrative Charges for Police” were approximately $137,000 over last year, so the Village has the benefit of using these additional funds. In other areas the revenue was down, so Special Revenues is only slightly higher.
Mr. Rooney stated that the Current Surplus will be increased by $330,000 to offset some of the increases experienced this year in appropriations.
Mr. Rooney stated that the receipts from delinquent taxes are also anticipated to be higher this year. The Village had a shortfall of about $75,000 that was the result of foreclosing on tax title liens. No foreclosures are indicated for this year.
Mr. Rooney addressed a document entitled" “Current Fund Surplus” that gave a history of the surplus balance over the last seven years. He proposed $3.630 million to be utilized in surplus this year, which was slightly higher than last year, but consistent will prior years and well within the structure of allowance for utilizing capital surplus.
Mr. Rooney stated that there will be approximately $300,000 of additional revenue available this year.
Under questioning by Councilman Voigt, Mr. Rooney explained that the approximately $48.8 million revenue figure included the amount to be raised by delinquent taxes.
Councilman Voigt questioned why some of the local revenues are down from last year. In reference to the Operating Surplus of the Water Utility, Mr. Rooney explained that most of this $13,000 reduction in revenue will be realized if the Water Utility Budget is approved this evening. In reference to the reduction in Sewer Use Fees - Outside Hookups, Mr. Rooney explained that this is the result of timing issues because of payments received outside the service year.
- Staffing Levels
Councilmembers reviewed the document they received this evening on staffing levels. Councilman Sedon noted that there is a total of ten new positions.
Councilman Voigt questioned why there was an increase in the headcount of the Streets Department from nine to eleven and a staffing budget increase of $138,000 over last year. Director of Operations, Rich Calbi, stated that there should not be an increase in headcount. Mr. Rooney pointed out this was the result of a cross-over. This year’s budget includes the full-time supervisor position, which was a part-time position last year, and the six-month salary of John Spano, who is retiring. Councilman Voigt also questioned the salary increases for Equipment Operators and Laborers. Mr. Calbi, Ms. Mailander and Mr. Rooney will review the figures and report back.
- Current Fund Budget Proposal
Ms. Mailander explained that in order to get to CAP, the budget needed to be reduced by $746,525 with an additional amount of $300,000. An additional 3% reduction of Operating Budgets across the board is recommended, as well as specific reductions, which all of the Department Directors were notified of today, to meet the CAP reduction.
Ms. Mailander asked Ridgewood Police Captain Forest Lyons to address police overtime, as this was a concern previously expressed by the Village Councilmembers. A pie chart was distributed showing that most of the overtime in 2016 was due to a personnel shortage. Six new police officers were hired in the latter part of the year, and these officers were in the Police Academy until December. There was also sick time and worker’s compensation time. Captain Lyons pointed out that the sick time and personnel shortage represented 51% of all overtime costs. Other reasons requiring overtime are calls for service, which varies greatly from storms to arrest processing, court security, meetings and training. Training overtime, which represented 18% of all overtime costs in 2016, will increase in 2017 as a result of new mandatory training requirements for 16 hours of active shooter training and 8 hours of cultural diversity training for every police officer. Captain Lyons estimated the additional cost for this mandatory training alone at $92,880. There are also ongoing discussions to require more mandatory training in the future.
Captain Lyons explained that with the addition of the six new police officers, sick time and personnel shortage costs should be drastically reduced. The year-to-date figures are already down drastically. From January 1, 2016 through March 25, 2016 there were 3,378 hours of overtime, as compared to the same period this year, which is currently at 1,725 overtime hours. The new officers are still in field training, so their benefit has not been fully realized; however, this should improve within the next month or so.
Under questioning by Councilman Voigt, Captain Lyons stated that the $130,000 amount budgeted for Emergency Response Training is not mandatory, but it is critical as it involves more high liability training such as defensive tactics, criminal case law review, search and seizure review, and entries for active shooter events. The $19,500 budgeted under Training Account #040, which was approximately $14,000 above last year’s amount, included both mandatory and non-mandatory training. This figure includes training courses that firearms instructors are required to take outside the police department, including mandatory community relations training. Ridgewood Police Officers are trained as instructors who come back and train the other officers within the department.
Councilman Voigt questioned why the budget item “Other Contractual Services” was up approximately $32,000 from last year. Captain Lyons explained all the systems included in this budget item have been in use for some time; however, this year they were broken down by category. Some of the costs are rising for reasons of accreditation.
Councilman Voigt asked Captain Lyons to comment on the new police tracking program. Captain Lyons explained that the new system replaces an antiquated system. The new system will help identify patterns and trends in the foreseeable future, as well as provide up-to-date data, which now requires time-intensive research.
An unidentified police officer further explained that the new system will give the Police Department the power to generate reports for the Village Council, as well as the ability to project future costs years into the future. He agreed to provide status reports to the Village Council once every two months after the system is up and running.
Mayor Knudsen complimented Captain Lyons on the pie chart presentation, which broke down the causes of overtime.
Mr. Rooney explained the process followed in determining the 2017 Current Fund Budget Proposal, which included reviewing budget proposals from the different departments and subsequent meetings with Department Directors to come up with a proposed budget number. If the proposed number was used, it would have resulted in a 7% tax increase. Upon further review and obtaining CAP information from the State, the proposed budget number was reduced by $700,000 to be CAP compliant. If that number was used, a 4.5% tax increase would be realized. Using the 3% overall reduction in other expenses, the anticipated $330,000 increase in surplus, increasing the amount in General Capital Surplus to $1 million, and reducing the Appropriation of Reserve for Uncollected Taxes by $100,000, the result would be a 2% tax increase. This increase represents an approximately $635,000 appropriation over last year, which results in an average increase to the homeowner of $79.46. If the Village Council wishes to go below or above the 2% tax increase, Mr. Rooney will provide the parameters required.
Noting that costs are rising every year, Mayor Knudsen commended every department for assuming responsibility and being willing to work with less and less, recognizing that this can be very painful.
Mr. Rooney added that there are costs that cannot be controlled such as insurance and pension costs; and these costs may create a CAP overage, making it necessary to reduce operating expenses.
Under questioning by Councilman Voigt, Mr. Rooney stated that the 2% tax increase was calculated using the additional 3% across the Board cut in expenses.
Councilman Voigt questioned the rise in total insurance costs from $7 million to $7.4 million. Mr. Rooney explained that he was able to reduce the cost by approximately $100,000. These figures are consistent with those budgeted in the past and he cautioned that if too much insurance coverage is trimmed, it may result in having to find funds to pay for issues in the future.
Under questioning by Councilman Voigt, Mr. Rooney explained that he tries to stay as close to the actual costs from the previous year to determine budgets. Situations do arise when costs included in the previous year’s budget are not spent until the next year.
Councilman Sedon thanked Mr. Rooney and the Village Staff for all the work they put into preparing the budget.
Under questioning by Councilman Sedon, Mr. Rooney stated that to maintain the 2% tax increase some of the proposed, new employees may not be added.
Under questioning by Councilman Sedon, Mr. Rooney explained that last year’s tax increase was 1.64% and the year before it was 1.5%. The 2% increase is slightly higher than previous years, but it is reasonable, taking into account cost of living and cost of goods.
Councilwoman Walsh arrived at the meeting at this point.
Councilman Hache thanked Mr. Rooney and the Village Staff for all the work they put into preparing the budget, and their willingness to accept cuts and compromises. He pointed out that the inflation rate in the United States over the last twelve months ending in February was 2.7%.
Ms. Mailander thanked everyone for working together as a team and accepting the budget cuts that allowed a reasonable tax increase of 2%. She acknowledged how hard it can be to work within a reduced budget and she appreciated their hard work on behalf of the Village.
- WRAP-UP OF BUDGET DISCUSSIONS AND SETTING OF 2017 TAX RATE
Councilman Voigt recalled that three Budget Scenarios would be presented to the Village Council for consideration. Mr. Rooney explained that once he saw the CAP calculations which resulted in additional cuts in the amount $700,000, he only focused on reaching the 2% tax increase. He pointed out that if the Village Council wishes to consider a 2.5% tax increase, tax bills will increase $.10 for every $1.00 or an additional $166.00 on the average assessed home.
Mayor Knudsen acknowledged that this year’s budget is much tighter than it has been in the past.
It was the consensus of the Village Council to move forward in preparing the proposed budget with the 2% tax increase. Ms. Mailander asked the Village Councilmembers to contact her with any questions. She also noted that a response will be forwarded to the Village Councilmembers regarding the staffing questions in the Department of Public Works’ budget.
Under questioning by Councilman Sedon, Ms. Mailander stated that the Revised Capital Budget will be available for review by the Village Councilmembers, pending the receipt of an estimate of the cost to renovate the bathrooms at Graydon Pool.
- PUBLIC COMMENTS
Mayor Knudsen asked if there were any comments by the public.
Fran Loshin Turso, 354 McKinley Place, questioned if the tax increase included the full-day kindergarten. Mr. Rooney explained that the increase reflects only the municipal share of the tax burden, not the schools or the county. It is not a 2% increase for the entire tax bill. Councilman Sedon further explained the breakdown for each tax dollar as 24% going to municipal services; 65% going to the school budget; and 10% going to the County. Mayor Knudsen noted that on an average assessed house, at $680,000, the 2% tax increase would be $79.00 for the year.
- ADJOURNMENT
There being no further business to come before the Village Council, on a motion by Councilman Sedon, seconded by Councilman Voigt and carried unanimously by voice vote, the Village Council’s Special Public Budget Meeting was adjourned at 6:50 p.m.
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Susan Knudsen
Mayor
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Heather A. Mailander
Village Clerk
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