20220228 - Village Council Special Public Budget Meeting Minutes
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 FEBRUARY 28, 2022 AT 5:00 P.M.
1. CALL TO ORDER – OPEN PUBLIC MEETINGS ACT – ROLL CALL – FLAG SALUTE
Mayor Knudsen called the meeting to order at 5:01 P.M. and read the Statement of Compliance with the Open Public Meetings Act. At roll call the following were present: Councilmembers Perron, Reynolds, Sedon, Vagianos; and Mayor Knudsen. Also present were Heather Mailander, Village Manager/Village Clerk; Robert Rooney, Chief Financial Officer; Stephen Sanzari, Treasurer; and Olivia Dimitri of the Finance Department.
Mayor Knudsen led those in attendance in the Pledge of Allegiance to the flag and asked for a moment of silence for men and women serving our nation, all first responders, and all who have been suffering the past few days in the middle of a war-torn environment.
2. COMMENTS FROM THE PUBLIC
There were no public comments at this time.
3. DISCUSSION ITEMS
A. REVIEW OF DEPARTMENTAL BUDGETS AND CAPITAL BUDGETS
1. WATER DEPARTMENT
Richard Calbi, Director of Ridgewood Water, along with Daniel Timmeny, Business Manager for Ridgewood Water, and William Bierwas, Superintendent of Ridgewood Water, were present this evening. Mr. Calbi welcomed Councilwomen Nancy Cronk Peet and Lorraine DeLuca from Midland Park to this meeting. Mr. Calbi mentioned that the final approved budget will be posted on the Ridgewood Water website sometime in April.
Mr. Calbi mentioned that Ridgewood Water is a municipally governed public utility. He mentioned that they are entering into their 101st year in existence, with 2021 being the 100th anniversary for the utility. The Village Council approves all expenditures, the budget, and all operations involving the water utility. Mr. Calbi reports to the Village Manager, Heather Mailander. There are several managers of the utility, including managers who run the day-to-day operations of the utility. In addition, there are 34 skilled laborers, operators, repairers, technicians, inspectors and administrative representatives, totaling 43 personnel working for Ridgewood Water. There are also several support staff in departments that provide services to the water utility (legal services, finance, Street Division, Fleet Division (vehicle maintenance), Parks and Recreation Department (plantings/tree removals), Fire and Police Departments, Solid Waste and Recycling.
Accomplishments in 2021 include the launching of the WaterSmart customer portal, new online bill pay platform, and new Ridgewood Water website. They successfully completed the sixth consecutive round of lead and copper testing. There was once again a “non-detect” level of lead, with no exceedances being found in the 60 samples taken throughout the system. As a result of that consecutive result, the utility was placed on reduced monitoring by the New Jersey Department of Environmental Protection (NJDEP).
Mr. Calbi indicated that they placed the Cedar Hill #4 replacement well into service, which will add 320 gallons per minute of new water volume into the system. They successfully drilled new replacement wells for the Goffle and Wortendyke #6 locations. Ridgewood Water replaced 1.2 miles of new water main (aged mains or ones with breaks).
They awarded a contract and broke ground for the renovation of the new Ridgewood Water offices at 111 North Maple Avenue in Ridgewood. Mr. Calbi stated that one of their main goals is to completely move into the new water facility at 111 North Maple Avenue, hopefully by June or July 2022.
Ridgewood Water is hoping to successfully complete construction of the new interconnection with the Passaic Valley Water Commission, which will be vital to adding water into the Ridgewood Water system for increased summer demands. It will also help with the PFAS situation, since the Passaic Valley Water Commission system has much lower concentrations of PFAS. The utility is going to commence with replacement of lead service lines. They plan to continue their Water Quality Accountability Act (WQAA) compliance. The WQAA was enacted in approximately 2018.
Another goal of Ridgewood Water is to replace over two additional miles of water main. Mr. Calbi indicated that the WQAA requires Ridgewood Water to replace two miles of water main a year. The most recent law, Chapter 183, Public Law 2021, requires all utilities, regardless of lead levels and treatment, to replace all lead and galvanized service lines by July 2031. This applies to both privately and publicly owned lines, from house to curb and from curb to street, respectively. The utility recently sent out certified letters to all property owners that have known lead service lines, another requirement of the law.
Mr. Calbi stated that, between the requirements for water main replacement and the replacement of lead lines, Ridgewood Water estimates that an additional capital expense of between $4 million to $5 million will be needed each year over the next ten years. These requirements closely follow on the heels of the utility’s further requirements to abate PFAS levels in the drinking water (which will cost approximately $100 million over the next few years).
Mr. Calbi presented a map showing where the known lead service lines are in the Ridgewood Water service area. There are 1,119 known lead service lines; there are another 3,800 lines made of “unknown” materials, and the utility is gradually investigating these lines to determine their materials. He presented a bar chart which showed that there are 654 known lead service lines in Ridgewood, 306 in Glen Rock, 141 in Midland Park, 17 in Wyckoff, and 1 in Paramus. These known lead service lines can be either public or private, or a combination of both. There is a lead service line lookup tool on the Ridgewood Water website where residents can research, by inserting their address, whether or not they have a lead service line. The tool will be updated as they discover more information during their investigation.
Mr. Calbi explained that the utility is at a pinnacle point in dealing with the PFAS treatment. They are breaking ground on a lot of the bigger projects. The Carr treatment plant has been in operation since 2019 and remains in operation. The Twinney treatment plant is under construction (2nd of 12 plants to be constructed). The Ravine/Marr and Carr/Linwood treatment facilities are to be publicly bid out by mid-July 2022. The four larger treatment facilities (Ames, Prospect, Cedar Hill and Wortendyke) are undergoing final engineering design and will be publicly bid out in the first quarter of 2023. The remaining plants (Eastside, East Ridgewood, Main, Mountain and West End) are under preliminary design. All treatment facilities will be operational by 2026, some sooner than others. The majority of the water will be PFAS-free by the end of 2023.
Mr. Calbi reviewed some highlights of his proposed Operating Budget. This budget has been reviewed by a rate consultant, Howard Woods, to verify revenue requirements, expense calculations, and rate projections. His report is posted on the Ridgewood Water website as well. For the second year in a row, costs were separated out between those attributable to PFAS treatment, operations and maintenance, and regular operating expenses. In this way, they can determine more definitively how much they are spending to resolve the PFAS issue.
There are budget increases for pumping costs (they must now maintain the new HVAC equipment installed at many of the new water treatment plants); transmission and distribution (as part of the lead service line replacement program and water quality accountability work with new water main work); statutory allocations for pensions, Social Security and unemployment costs; PAYGO Capital for items to outfit the new water utility facilities; and debt service (particularly as it relates to PFAS-related work, over $1 million so far).
Mr. Calbi gave a quick summary of the revenue requirements in the new budget. He pointed out that debt service and salary and wages are what really drive the budget. The total revenue requirement for 2022 is $18.4 million. He presented a pie chart showing the breakdown between the Operations Budget and PFAS. He then presented a year-by-year comparison of expenses for the years 2020, 2021 and 2022. The budget for 2021 was approximately $17.4 million. Actual (unaudited) expenses for 2021 amounted to $15.5 million, and 2020 audited expenses were $15 million.
Regarding capital expenses, Mr. Calbi explained that they are planning to perform modifications to the booster stations ($208,000.00 for Lakeview and Lafayette Transfer Stations, which are used to move water between different zones, critical in PFAS treatment); well and treatment improvements (Phase 2 of Twinney treatment plant, electrical, building and HVAC upgrades); distribution system improvements (water main replacements and lead service line improvements, $3 million); tank and reservoir improvements (the Valley View tank requires a mixer which is one of the last ones to be installed, along with some needed rehabilitation, $156,000.00); facility improvements at various locations (new fencing, driveway paving, lighting, security improvements, roofs); equipment and vehicles (replace older distribution service trucks used for water main breaks); PFAS treatment ($8.1 million for Ravine treatment facility construction in 2022, engineering designs for raw water mains connecting satellite wells to the new large treatment facilities); and PAYGO Capital as part of the Operating Budget for repairs and replacements, small equipment, security and technology.
Mr. Calbi showed the Village Council a bar chart of the Capital Budget from 2015 through 2026, with 2023 being the biggest year for PFAS treatment ($42 million), with 2024 being $27 million, 2025 being $11 million, and 2026 being $6 million. For the 2022 budget year, they anticipate utilizing $2.4 million of existing Water Utility surplus. They expect to receive $13.7 million in water rents. They cannot budget for more than what was received in the prior year. Hydrant service revenues come from other communities for use of the hydrants. Miscellaneous revenues include cell tower rents (five carriers on the Glen tank in Midland Park) and general revenue such as water turn-ons, water turn-offs, and water meter exchanges.
Mr. Calbi explained that there is a new cell carrier on the Glen tank for half of the year, so there is an additional $175,000.00 in revenue expected from that carrier. He spoke about water rent and PFAS charge increases which will bring in additional revenue. He summarized by stating that anticipated revenue for 2022 is approximately $18.4 million to offset the $18.4 million requested budget. He mentioned that weather plays an important part in the Water Utility and can affect revenues, as can the cell tower rentals which are not always guaranteed from year to year.
Mr. Calbi next spoke about the increases in PFAS treatment charges and volume charges. He mentioned that this is the second year the utility has collected PFAS treatment charges, which is necessary to meet the funding demand for filtering PFAS from the drinking water. The PFAS treatment charges began last year, to avoid “rate shock” to residents. If this had not been done, the volume rate would increase by 10%-20% over the years. The PFAS treatment charge proposed for 2022 is significantly less than what they thought it was going to be last year. In addition, they are proposing a 3% rate increase for volume charges.
Mr. Calbi explained what the rates would amount to, based upon meter size for the PFAS treatment charge. Most customers have a 5/8” meter size, and the PFAS charge is a fixed charge; therefore, those customers would see an increase of $7.06 on their quarterly bills. The volume rate, based on 1,000 gallons utilized per quarter, will go up to $5.53. This rate structure will be discussed at the next Village Council Work Session on March 2, 2022 and will be proposed by Ordinance at the March 2022 Public Meeting, with a final hearing in April 2022.
Mr. Calbi next showed a slide depicting what the average residential bill looks like for customers with 5/8” meters. He stated that in 2021, that customer was paying approximately $587 per year; in 2022, this will increase to $615.27 per year. The PFAS charge and volume rate increase total about a 4% - 4.5% increase for the average billed customer. Some customers utilize a lot less and some use a lot more. He also compared Ridgewood Water’s annual charges to other water utilities throughout the State of New Jersey. He pointed out some of the higher rates, including SUEZ Water. He said that the new Ridgewood rates are comparable to those in Fair Lawn and Lyndhurst. Mr. Calbi mentioned that Ridgewood Water’s rates were relatively lower than most of the private water companies. He asked if anyone had any questions.
Councilman Vagianos asked how far along Ridgewood Water’s PFAS filtration project is compared to other water utilities. Mr. Calbi replied that it is about 50/50; Ridgewood is about 50% ahead of other utilities, but due to the size of the treatment plants being constructed for Ridgewood Water, other water utilities are slowly “catching up.” He credits this progress to the proactive stance taken by Ridgewood Water when it first decided to investigate PFAS and how best to deal with it. Councilman Vagianos thanked Mr. Calbi for his very comprehensive presentation.
Councilwoman Perron said that it was her understanding that the Carr facility had been closed, the PFAS problem remediated, and the plant reopened. She was confused about the item in the Capital Budget for the design and treatment for PFAS contamination at the Carr treatment facility. Mr. Calbi replied that she was correct and that the Carr plant had been treated and been reopened. However, an additional well is being added to the facility. The Linwood well will be piped to Carr, so some improvements need to be made to the already installed treatment to facilitate that connection. It will be called the Carr/Linwood plant in the future.
Councilwoman Reynolds thanked Mr. Calbi for his presentation. She realizes that Ridgewood Water is facing some tremendous expenses.
Mayor Knudsen asked Mr. Calbi to explain, to those watching and those in the audience, how the issue of PFAS originated. Mr. Calbi explained that PFAS has been pervasively used in manufacturing since the 1940s or 1950s. He couldn’t explain how PFAS got into Ridgewood water, because it is currently in litigation, but stated that PFAS is “in everything that everybody uses.” It is in household carpets, products used to coat furniture and clothing to repel water, nonstick pans, dental floss and microwave popcorn containers.
Mr. Calbi indicated that, over time, as these products got utilized, PFAS got into the waste stream, into solid waste plants, into wastewater treatment plants, and eventually into the groundwater. Unfortunately, with the new regulations, Ridgewood Water is tasked with having to treat this PFAS contamination. Some components of this chemical have been phased out, but Mr. Calbi said there are now other replacement chemicals that are manufactured. He added that the State of New Jersey has some of the most stringent standards for drinking water in the nation and, as a result, New Jersey will have some of the safest drinking water in the United States. Similarly, New Jersey is one of the first States in the nation to pass a non-lead service line law.
Councilman Vagianos asked Mr. Calbi to explain how pervasive PFAS is in water systems throughout the country and throughout the world. Mr. Calbi replied that this is a worldwide problem. It has been found in polar bears. The products containing PFAS were used worldwide, and PFAs has been found in much higher levels, elsewhere in the world. He and his staff have fielded more than 300 calls from consumers regarding this issue.
Mayor Knudsen commended Ridgewood Water for always being proactive and for rendering excellent customer service.
Teresa Gilbreath, 618 Doremus Avenue, Glen Rock, stated that she is the Glen Rock Council President. She said it was her understanding that there are some unidentified lead service lines that must be identified by July 2022. She asked Mr. Calbi what the process was for determining what materials comprise a service line. Mr. Calbi indicated that his department is literally going block by block and digging holes to verify the type of material. Based on the number of service lines which still need to be identified, he estimates that this will take approximately 12 to 18 months to complete. They are required to complete the “unknown” verification by July 2022, at which time a new inventory must be submitted. However, after that time, they will continue with the identification process until completed. They are also trying to obtain information from homeowners as well. However, even if a homeowner can tell him what type of lines they have inside their home, the lines could be different outside their home.
Ms. Gilbreath asked Mr. Calbi if he and his crew would have to go onto the homeowner’s property itself to determine the materials used from the curb to the house connection. Mr. Calbi replied in the affirmative and indicated that they are performing this task by doing vacuum excavation, which avoids harming any other utilities that are in the area. It is also more seamless and quicker using this method.
Regarding the cost allocation for the lead lines, Ms. Gilbreath said that the utility has two choices: spread the cost across all homes or allocate it to individual homeowners. Mr. Calbi replied that there are indeed two choices available and they are still evaluating which option they will recommend to the Village Council. Their goal is to have their plan completed before July 2022 and then determine which option they will choose.
Mr. Calbi indicated that he belongs to a task group for the State of New Jersey with other utilities dealing with the same problem. The majority of the utilities are paying for the replacement of the lead lines, because it speeds up the process. This was successfully done in Newark where they went block to block replacing every line, rather than determine how they were going to assess each individual property owner. He mentioned that, being a utility, Ridgewood Water cannot make assessments outside of Ridgewood’s boundaries. If each homeowner served by Ridgewood Water were assessed, then tax assessors from four other towns would have to calculate individual tax assessments. Ms. Gilbreath mentioned that there are some towns serviced by Ridgewood Water with much fewer lead lines and, therefore, spreading the costs among all customers would seem to place an additional burden on property owners in towns with fewer lead lines.
Ms. Gilbreath asked whether Ridgewood Water’s budget would be posted on their website, and Mr. Calbi said that it would be shortly. Ms. Gilbreath asked for a brief summary of the new water facility headquarters on Maple Avenue. Mr. Calbi replied that it is two buildings away from Village Hall, next door to the Ridgewood Library. The property used to be owned by the Ridgewood Elks Club. He stated that it made sense for the Village to purchase the property in order to expand the Village’s “campus” on Maple Avenue. He stated that Ridgewood Water is moving into this location since they presently work out of three different locations (Village Hall, Glen Avenue and Wortendyke), which causes difficulty when attempting to streamline operations and communication. Coordination of work would be achieved much faster and more efficiently with everyone under one roof (operations, lab, distribution, and billing).
Ms. Gilbreath indicated that she used the “look-up tool” on the Ridgewood Water website to find out if certain addresses had lead service lines or not. She commented that it was very user friendly and easy to use.
Midland Park Council President Nancy Peet mentioned that she also found the “look-up” tool on the Ridgewood Water website to be very useful, and they appreciate the time taken by Mr. Calbi and his staff to provide periodic updates concerning the lead line remediation and how the costs will be shared amongst all the communities served by Ridgewood Water. Mayor Knudsen thanked the Midland Park and Glen Rock Councilmembers for attending the meeting this evening and for their valuable comments.
2. SOLID WASTE
3. RECYCLING
Sean Hamlin, Supervisor of Recycling and Sanitation, presented his departmental budget. Accomplishments in recycling include his participation in the CRP course to obtain his Certified Recycling Professional Certificate and the success of the food waste pilot program. He said that all of the data is being tabulated for the food waste pilot program and he thanked all of the residents who participated.
Mr. Hamlin indicated that one of his goals for 2022 is to expand the food waste program, which he will present to the Village Council shortly. Another goal is to justify the purchase of the Styrofoam densifier recently obtained. They have not been able to commence the densifying program yet because the densifier is not hooked up. Mr. Hamlin stated that they have Styrofoam stored everywhere, waiting to go into the densifier. They have three containers loaded with styrofoam at the Recycling Center and they have started using their tractor trailers at the construction yard to store more styrofoam until the densifier is hooked up, after which time they can begin the densifying process. Mr. Hamlin mentioned that after leaving the meeting this evening, he has a Zoom conference with Allendale officials who are also considering the purchase of a Styrofoam densifier or perhaps a Shared Service Agreement.
For the Division of Solid Waste, Mr. Hamlin announced that the costs for the contract (for disposal) did not increase this year. They had anticipated that the price per ton would increase, but it remained the same. His goal has been to hire younger crews in the Recycling Department to improve camaraderie, respect and safety. Regarding the overall truck maintenance, he mentioned that the younger men are keeping the trucks in better condition, although they have to be trained. Mr. Hamlin spoke about the collaboration between his department and other departments in the Village when Hurricane Ida struck.
Mr. Hamlin said that one of his goals for 2022 is to train the newest members of his crew, which has already begun with the implementation of Moises Barahona, Assistant Recycling Supervisor. He maintains the trucks and supervises the workers at the center. Mr. Hamlin will continue to explore cost-saving options and limit the amount of items entering landfills. He said that one problem they are facing right now are the “fly by night” mattress companies that send mattresses in a box. Consumers purchase them and the old mattresses soon end up in a landfill. There are three companies in New Jersey which recycle mattresses, and Mr. Hamlin would like to research this option.
Mr. Hamlin indicated that they are looking to purchase a 31-yard side-loader automizer which is also known as a “side arm bandit.” He feels that this will curtail staff injuries. He doesn’t think that the entire Village can be serviced with the side-loader because there are issues with one-way streets; therefore, there is still a need for a regular garbage truck. They would like to have a pilot program, servicing approximately 1,000 homes in the Village, with the side-loader, and gradually increase it over time. He spoke about the cost-saving option of curbside garbage pickup for consideration in the future.
Councilman Vagianos asked if there was only one operator on each truck. Mr. Hamlin said that there are two operators on the comingled recycling pickup truck (one driver and one loader, switching positions every hour until route is done). Councilman Vagianos asked if this side-loader would allow this task to be completed by only one person. Mr. Hamlin replied that it would allow them to have only one operator for comingled recycling pickup, but he reiterated that there will be some one-way streets on which this truck cannot be used. Routes can be mapped out where the side-loader can be used, driven by one operator. The cost of this side-loader is $450,000.00 (high estimate). The recommended lifespan of these side-loaders is 10 years or 10,000 engine hours. However, Mr. Hamlin said that this lifespan can be extended with proper and regular maintenance. Councilman Vagianos pointed out that a lot of money can be saved over the course of ten years by not having to pay an extra operator to be on the truck during recycling pickups (i.e., $50,000.00 each year, savings $100,000.00). Mr. Hamlin agreed.
Mayor Knudsen spoke about curbside versus rear yard garbage pickup, as well as seniors with mobility issues. She asked whether the use of the side-loader would require each resident to bring their garbage cans, plus their recycling, to the curb. Mr. Hamlin replied that they still have a list of senior citizens for whom they collect recycling and trash from their rear yard; everyone else would have to put their recycling curbside on their appointed pickup day. Ms. Mailander pointed out that the side-loader was only to be used for recycling purposes and not for trash pickup.
Councilwoman Reynolds ask how many days per week the truck would be used to pick up recycling (bottles and cans). Mr. Hamlin replied that the truck would be used four days a week. Councilwoman Reynolds asked about the line item for barrels in the budget. Mr. Hamlin replied that there would be 1,000 barrels needed at roughly $50.00 each. Councilwoman Reynolds asked how many households were in Ridgewood, and Mr. Hamlin replied that there were a little over 8,000 households. Councilwoman Reynolds asked if each household would receive one barrel, and Mr. Hamlin replied in the affirmative. In the future, households will have the option of buying extra barrels. Councilwoman Reynolds asked if this side-loader could be used for solid waste collection. Mr. Hamlin replied that the truck could be used for that purpose, but the barrels would have to be different colors to distinguish them from the recycling containers.
When questioned about the collection of newspapers and cardboard, Mr. Hamlin stated that these items will still be collected the same way as they are now. However, in the future, he would like to look into having special containers for these items because that is the only time when the Village “loses money” (when newspapers, magazines and cardboard become wet when it rains, they go straight into the garbage and cannot be recycled).
Mayor Knudsen asked if containers were used for “fibers” and whether or not it would help if the containers had covers so the contents wouldn’t get wet on a rainy day. Mr. Hamlin said that wet newspapers, magazines and cardboard doubles the weight of the recyclables and then the Village has to pay the same price as the Village pays for garbage, to dump the wet recyclables, rather than generate revenues from recycling them. Recyclers do allow for a certain amount of moisture, but not from a soaking rain. Mayor Knudsen asked if such containers exist with covers. Mr. Hamlin replied that he thought those containers once existed, but the amount of cardboard collected is sometimes so voluminous that some households would need 10 containers just to recycle their cardboard. On the brighter side, on sunny days, the Village is making “top dollar” on its recycling efforts, because the recyclables remain clean and dry. He praised his staff for their hard work in sorting all of the comingled recyclables.
Mayor Knudsen asked if businesses in the CBD were doing a lot of “fiber” recycling. Mr. Hamlin replied that they are getting clean cardboard from the businesses and it is not going into a mixed paper truck, which is what was occurring before. He reiterated that the Village makes its “top dollar” on cardboard. Mayor Knudsen mentioned that it is ironic that so much cardboard is being used for deliveries to households and businesses, after which time that cardboard is recycled to “save the earth,” yet the vast number of trucks making those deliveries are polluting the air with exhaust fumes, which are detrimental to the environment.
Councilwoman Reynolds brought up the new bulk garbage regulations which have been enacted, which limits each household to seven items, for each bulk pickup. She asked Mr. Hamlin whether he thought that most households were aware of these new regulations. Mr. Hamlin said that there are not as many households aware of these new rules as he would like, but that he has ordered postcards to mail out to every Village resident with the new regulations on them. He said that he also obtained stickers to affix to items that are not picked up because they go beyond the allotted number of items; however, he does not like to leave items remaining on the curb. These stickers have the new regulations printed on them to inform residents.
Councilwoman Reynolds asked if other towns could utilize the Styrofoam densifier, once it is hooked up, through a Shared Services Agreement. Mr. Hamlin said that that was indeed a possibility. However, he doesn’t want any more traffic at the Recycling Center, since it is already very busy and it is also shared with the Parks Department. Therefore, he would like to offer interested towns the option of purchasing a collection unit in their transport trailer; that town would collect their residents’ styrofoam at their own recycling facility and then bring it to the Ridgewood Recycling Center on days that it is closed (such as on Wednesdays) to use the densifier themselves.
4. FINANCE DEPARTMENT
5. TAX COLLECTOR
6. CAPITAL FUNDS
Robert Rooney, Chief Financial Officer and Director of the Finance Department, presented his departmental budgets. He indicated that 2021 was a challenging year because of the Covid pandemic. They are very proud of having maintained tax collections, vendor payments, and introducing and adopting their budget in accordance with state regulations on a timely basis. They completed their audit in accordance with statutory regulations. They conducted a note sale during the year and maintained the Village’s AAA rating for debt. In addition, they expanded the use of Laserfiche for finance documents. He explained that Laserfiche is a scanning process whereby papers are scanned and converted into OCR electronic documents, for ready accessibility on the computer for the entire department.
In 2022, Mr. Rooney is planning to coordinate training for employees in his department to expand the use of Word, Excel, and related software. They are going to be conducting Edmunds Training for all Village Departments. Olivia Dimitri in the Finance Department has begun to spearhead this project and will be explaining how to process requisitions and purchase orders.
The Finance Department will continue to coordinate departmental audits with the Village’s external auditor regarding internal controls, similar to internal audits. This has been done for the last five or six years and it has been successful in identifying areas that could use improvement. The Finance Department will be expanding revenue reporting used by all departments, so that it can be integrated with their current accounting system.
Mr. Rooney explained that the 2022 budget for the Finance Department is relatively flat compared to last year. The only significant change is in “Other Contractual Services,” a reduction from last year. They are maintaining their fixed asset accounts in-house rather than going to a third party.
Mr. Rooney explained that the 2022 budget for the Tax Collector’s Department is also relatively flat compared to 2021. There is a slight decrease in “Conferences and Training” as a result of the Tax Collector’s assistant obtaining her Tax Collector Certificate.
Regarding the Capital Budget, Mr. Rooney explained that there are capital improvements totaling $8.8 million. He would like to decrease it to $7.5 million to be consistent with what has been done in prior years. He spoke about the “anomaly” in 2021 ($10 million) due to Hurricane Ida. Mr. Rooney welcomed any ideas from the Village Council as to how the Capital Budget could be reduced.
Mr. Rooney indicated that $400,000.00 was taken off regarding the Kingsbridge Lane bridge replacement. It was originally $500,000.00 and now it is down to $100,000.00 to hire a structural engineer to determine the viability of the Kingsbridge Lane bridge for reopening. Ms. Mailander said that it is hoped that repairs can be made to “shore it up” so that the entire bridge doesn’t have to be replaced. However, if that cannot be accomplished, then additional money will have to be allocated for the entire replacement of the bridge. The $100,000.00 is a guess-timate. A Request for Proposal (RFP) will be issued for the structural engineering services. Mr. Rooney indicated that the Library also reduced their estimate to hook up to the Ridgewood Water generators by $20,000.00.
Mayor Knudsen asked about the restoration of the front entrance on Maple Avenue to Village Hall. Mayor Knudsen asked if that could be put off for another year. Ms. Mailander said that the entrance looks terrible (peeling paint) and the pillars are rotting. The pillars may be either painted or encased to protect them. It was the general consensus that these repairs are long overdue. Mr. Rooney said that they will find out what materials are being used for the columns at the new Ridgewood Water facility, and may use the same materials for the Village Hall columns.
Councilwoman Reynolds stated that $750,000.00 is a lot of money to renovate the Library. She believes the original amount was $1.4 million, contingent upon the Library receiving a matching grant and fundraising the rest of the money needed. Since the grant was not received by the Library, due to Ridgewood’s socioeconomic status, she feels that the Library staff needs to do more fundraising in order to come up with the $2 million they originally said they would raise. She is concerned about a high tax increase and stated that she doesn’t see any other areas where funds can be reduced.
Mayor Knudsen said that the Library currently has $720,000.00 from the Village in their budget from last year, for the renovations, and now there is another $750,000.00 to possibly be allocated. Mayor Knudson indicated that she and others will be meeting again with some members of the Library Board of Trustees, the Library Foundation, and Friends of the Library. Mayor Knudsen said that the Library still has no concrete plan for renovations since the “Re-Imagine” plans have been scrubbed.
Mayor Knudsen wondered whether the request for the additional $750,000.00 should be determined by Ridgewood voters via a bonding referendum. It was indicated that there is enough time to put this issue as a referendum question on the ballot for the November General Election. If the bond referendum is passed, then the Library can obtain bonding for the money and there will be a separate tax assessment on everyone’s tax bill, similar to what was done in the past for the Board of Education. If the bond referendum does not pass, then it can be revisited in 2023.
There was further discussion about the proposed Library renovations. Councilman Vagianos indicated that he would really like to look at plans before approving such a large amount. Perusing the items on the Capital Budget, he said that he noticed a lot of big ticket items such as the purchase of trucks, the tree budget, etc. He wondered if those items could wait another year. He said that perhaps the desired $900,000.00+ decrease (to reach the desired $7.5 million) could be accomplished if only 80% of the requested amounts were allocated for certain departments. Deputy Mayor Sedon mentioned that donors have pledged a lot of money for the Library renovations and they want to see the Village have “skin in the game” regarding the renovations.
Mayor Knudsen remarked that the requests for the purchase of vehicles cannot be reduced because “half of a truck” cannot be purchased. She personally doesn’t want to reduce the tree budget since it has been dwindled down over the years and now is the time to take action to restore the treescape in the Village.
Deputy Mayor Sedon indicated that he is not interested in cutting the tree budget. He asked if perhaps the Village could put in less money for the Library renovations, since the renovations are not going to occur this year. Deputy Mayor Sedon indicated that $250,000.00 could be authorized for the Library renovations this year and this figure can be adjusted if the Library comes back later in the year and requests more money. Another Capital Ordinance could be drawn up for any additional funding before the end of the year or in 2023.
Mayor Knudsen proposed that $280,000.00 be added to the $720,000.00 already sitting in the Library’s budget, to arrive at $1 million, and have the Library pay for the façade improvements and electrical work for the generator out of those funds. In the alternative, the Village Council can state for what purposes these funds should be earmarked. This would further reduce the amount needed to arrive at a $7.5 million budget.
Deputy Mayor Sedon mentioned that there are two police vehicles requested in the Police Department’s budget. He suggested removing one of the requested vehicles, which would reduce the desired amount of the budget by another $80,000.00. Ms. Mailander remarked that the Police Department budget originally had requests for four vehicles. She mentioned that she honestly believes that two vehicles are needed by the Police Department.
Mayor Knudsen remarked that she felt that the Office of Emergency Management did not really need a surveillance camera trailer at a cost of $38,000.00. Such a trailer can be borrowed from Bergen County when needed. Councilwoman Perron and Deputy Mayor Sedon agreed. This would further reduce the amount needed to arrive at the desired $7.5 million budget to about $332,000.00.
There was further discussion about delaying the purchase of the side-loader requested by the Sanitation Department at a cost of approximately $450,000.00, along with the requested barrels to go along with the side-loader, a further reduction of almost $50,000.00. Mayor Knudsen proposed that this request be delayed until 2023, and put those funds back into the Library budget. Councilwoman Perron said she would be agreeable to this, since she learned at a recent League of Municipalities meeting that there is also an electric side-loader which could be purchased in the future and some grants might be obtained for this purchase.
Councilwoman Reynolds asked if perhaps a “sinking fund” (reserve) could be established towards the future purchase of the side-loader. She also asked what the tax rate would be if the budget came in at $7.5 million. There was further discussion and Mr. Rooney explained about debt service and capital expenditures and how he is trying to keep the budget stable from year to year. Mr. Rooney said his goal is to keep the debt service flat.
Councilman Vagianos spoke about the tandem dump truck requested in the Streets Division budget for $243,000.00 and the Mason crew truck at $120,000.00. He asked if these purchases could be delayed for another year. Mayor Knudsen suggested that the work at the new Ridgewood Water headquarters, and the Village Hall and Library entrances be done at the same time, probably at a cost savings.
It was decided by all Councilmembers to cut the OEM trailer out of the budget ($38,000.00), the side-loader truck for $500,000.00 ($450,000.00 for the truck and $50,000.00 for the barrels), and the engineering plans for the Library to hook up to the Ridgewood Water generator ($15,000.00), totaling $553,000.00, and to keep the $72,000.00 for renovations to the Library entrance. By deducting the $553,000 from the $912,000.00 total request for the Library, approximately $360,000.00 (rounded out) will be allocated to the Library budget this year for renovations.
There was a discussion about the vehicle inventory sheet which Mayor Knudsen felt was very helpful, and Mr. Rooney explained that he has learned over the years that one cannot judge a vehicle by its age, as to whether or not it should be replaced. Even though a police car may have low mileage, it really depends on the “engine hours” to determine the lifespan of a vehicle. For example, if a vehicle were left running in order to perform a certain function, such as vacuuming water lines, the engine hours are greater than the mileage. Councilman Vagianos added that it also depends upon “stop and go” traffic, versus highway miles, which can put additional wear and tear on a vehicle.
7. DEBT SERVICE
Mr. Rooney indicated that debt service (in principle) is decreased slightly from last year by about $800,000.00. Loan repayments are down significantly to a principal payment of approximately $163,000.00. The $500,000.00 Capital Improvement Fund number will decrease based upon the cuts agreed to previously this evening. Northwest Bergen Central Dispatch costs have increased approximately 2% since last year to $711,000.00. The $100,000.00 placed into the Capital Improvement Fund for bond anticipation notes is a place holder. They are still in the process of identifying whether or not any payments need to be made on any notes. There is a statutory calculation which must be done, so that number will potentially go down.
8. DEFERRED CHARGES
Mr. Rooney explained that $50,000.00 has usually been budgeted every year for the Master Plan. This year, allowance must be made for the special emergencies that occurred in 2020 (revenue deficit and Covid expenditures), one-fifth of which is $201,565,615.00. He mentioned the emergency expenses incurred during Hurricane Ida. He indicated that the down payment was $74,500.00 and said that this amount has to be appropriated again as well. Every year, $5,000.00 is put into the Fund from unfunded ordinances to show contribution and avoid comments from auditors.
When questioned by Mayor Knudsen, Mr. Rooney explained that under an emergency appropriation, it has to be funded in the following year’s budget. Since it was Covid related, it was a special emergency appropriation, and nothing had to be budgeted in 2021. However, starting in 2022, the law requires that one-fifth of that amount must be budgeted. The Village has five years to pay off appropriations for special emergencies.
9. STATUTORY EXPENDITURES
Mr. Rooney explained that the first two sections relate to accumulated leave compensation and salary negotiations and costs. They try to maintain appropriate trust balances for terminal leave (to pay retirees for accumulated vacation and sick time). Last year, he started with $100,000.00 in this category; however, in order to reach the tax rate, it was reduced to $25,000.00. This is similar to what was done for salary negotiations, in order to reach the desired tax rate. He would like to keep an appropriate amount in the salary negotiations line item, since there is one contract which will be renegotiated this year.
Regarding Social Security, Mr. Rooney indicated that there is an increase in the item for Medicare Part B, as a result of Obamacare and the requirement that the Village fund increases in premiums for Social Security for retirees. The sum of $165,000.00 has already been incurred for this item, and he anticipates that it will be approximately $325,000.00 in 2022. The other items on the sheet which are “uncontrolled” are those dealing with pensions, PERS and police and fire retirement, which have increased approximately 6% to 7%.
10. SHARED SERVICES
Mr. Rooney indicated that the Village has Shared Services Agreements with Municipal Court and Northwest Bergen Central Dispatch. There are a few agreements coming up this year that are not budgeted for yet (in the health area). He is waiting for agreements to be signed and nothing can be budgeted until they are signed. He mentioned that it is a revenue-producing source if the Village Health officials perform duties in other communities, through a Shared Services Agreement.
11. PARKING UTILITY
Mr. Rooney indicated that the budget for the Parking Utility this year is approximately $2.3 million, higher than anticipated from last year. Some reserves have been put aside for the past two years for maintenance of the garage, which resulted in a reduction in some other expenses. There are increases in debt service for the bond principals that are coming due under the bond issue from last year. Mr. Rooney said that the utility’s revenue stream is better than he projected by approximately $200,000.00. This is based upon the three-year average that the NJ Division of Local Government Services allowed to be utilized. Approximately $268,000.00 of the American Recovery Plan monies will be needed. He had originally budgeted a $700,000.00 loss for the Parking Utility. He hopes that more revenue will be generated in the Parking Utility in 2022.
12. REVENUES, CURRENT FUND
Mr. Rooney said that he has supplied the Councilmembers with a spreadsheet showing three-year averages for General Fund revenues. He has not completed the revenue analysis because the books have not yet been closed out; however, he asked the Councilmembers to note the three-year average he is showing for 2021, which will be used in 2022. Some are very favorable compared to what was anticipated for 2021, except for the Municipal Court. Revenue from the Municipal Court was approximately $240,000.00 less than what they anticipated for last year. However, Graydon Pool revenues were higher than anticipated. Mr. Rooney said there was a mixed bag of revenue streams in the Village, at the current time.
13. SALARY/ACCUMULATED LEAVE
14. STAFF LEVELS
Mr. Rooney indicated that the Village had 291 employees in 2021 (258 full-time employees and 33 part-time employees). In 2022, he is projecting that there will be 286 employees (268 full time and 18 part time).
15. SURPLUS, CURRENT FUND
Mr. Rooney said he was unable to complete the 2022 surplus numbers to be used in the budget until the 2021 funds are closed out. He presented a sheet showing what surplus was available in each fund for utilization. He hopes to have this completed for the final Special Public Budget Meeting on March 7, 2022.
16. TRUST FUNDS
Mr. Rooney explained that the trust fund reserves are funds which have accumulated and which can only be spent for specific purposes, with the largest amount being $1.2 million representing escrow and security deposits which must be held until various projects are completed. The terminal leave figure which he spoke about before, is approximately $858,000.00 as of the end of the year. He tries to keep this fund between $800,000.00 and $900,000.00 in anticipation of employees leaving. By comparison, he mentioned that Jersey City had accumulated leave of approximately $125 million, which they had to bond.
Mayor Knudsen noted that there was no amount for the Public Defender indicated and wondered if the Public Defender was just paid out of operating funds. Mr. Rooney replied in the affirmative.
Mayor Knudsen also asked what the tax sale premiums represented. Mr. Rooney explained that the Village is required to have a tax sale every year. In 2021, the Village sold 2020 taxes and prior. If someone has an interest in purchasing these taxes (in order to hold the tax lien), a bidding war develops whereby people pay “premiums” for the Village to hold the tax sale certificates until they are redeemed. Once the sale is redeemed, the premium is paid back to the individual who originally put up the money. He mentioned that these become very lucrative opportunities for people.
Mayor Knudsen asked for clarification of “Police Outside Duties.” Mr. Rooney said that when the Village Police Department performs services for contractors, the contractor is billed for the time spent by police, along with an administrative fee. That money is received, the police officers are paid for their time according to their contract, and the Village keeps the administrative fees. This money gets held in trust until it is liquidated by the certain project. For example, Public Service Electric & Gas (PSE&G) may need police to route traffic if they are performing work in a four-block area. Money is taken out of the trust fund gradually, as certain phases of the project are completed.
17. OVERALL BUDGET
Mr. Rooney indicated that he does not yet have sufficient information to complete calculating the tax rate. He anticipates receiving information from the County on the net valuations taxable this week, in order to complete his calculations and close out accounts.
B. WRAP-UP OF BUDGET DISCUSSIONS AND DISCUSSION OF 2022 MUNICIPAL TAX RATE
Ms. Mailander indicated that March 7, 2022 is the last Budget Meeting. At that time, the tax rate will be discussed. The introduction of the budget will be held on March 9, 2022.
4. COMMENTS FROM THE PUBLIC
There were no comments from the public at this time.
5. ADJOURNMENT
There being no further business to come before the Village Council, on a motion by Deputy Mayor Sedon, seconded by Councilwoman Reynolds, and carried unanimously by voice vote, the Village Council’s Special Public Budget Meeting was adjourned at 7:06 P.M.
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Susan Knudsen
Mayor
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Heather A. Mailander
Village Manager/Village Clerk
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