20230224 - 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 24, 2023 AT 5:00 P.M.

 

1.         CALL TO ORDER – OPEN PUBLIC MEETINGS ACT – ROLL CALL – FLAG SALUTE

 

Mayor Vagianos called the meeting to order at 5:24 P.M. and read the Statement of Compliance with the Open Public Meetings Act. At roll call, the following were present: Councilmembers Perron, Reynolds, Winograd, and Mayor Vagianos. Councilmember Weitz arrived to the meeting at 5:25 P.M. Also present were Heather Mailander, Village Manager/Village Clerk; Robert Rooney, Chief Financial Officer; and Olivia Andreula of the Finance Department.

 

Mayor Vagianos led those in attendance in the Pledge of Allegiance to the flag.

 

2.         COMMENTS FROM THE PUBLIC

 

NONE

 

3.         DISCUSSION ITEMS

 

            1.         REVIEW OF DEPARTMENTAL BUDGETS AND CAPITAL BUDGETS

 

A.        FINANCE DEPARTMENT

 

Robert Rooney, CFO, explained that salaries and wages are basically flat for 2023, as compared to 2022. The only change is an amount for overtime. Other Expenses increased approximately 47%, largely due to the intended purchase of a software package from Clear.gov, which Mr. Rooney said would have drastically streamlined the budget process this year; however, Mr. Rooney said that he would be removing this from the budget requests, to bring the overall budget down to a stable number, similar to last year’s budget. He spoke about Other Professional Services, which are mostly contractual in nature.

 

Deputy Mayor Perron asked about the overtime figure. Mr. Rooney explained that overtime wages are usually incurred during the development of the budget, and any unused monies will be used for transfers at the end of the year.

 

 

 

 

                        B.        TAX COLLECTOR

 

Mr. Rooney explained that salaries and wages for 2023 remain flat when compared to 2022. There are no changes in number of personnel. Other Expenses have increased slightly, due to postage and express charges for mailings. Printing and binding are also included in Other Expenses. Mr. Rooney stated that there was no Capital Budget for the Tax Collector’s Office.

 

                        C.        CAPITAL FUNDS

 

Mr. Rooney stated that the sum of $2.2 million still needs to be cut from the overall Capital Budget, in order to arrive at a favorable tax rate increase. Councilmember Winograd asked if the $2.2 million still included the request for $1.5 million for the purchase of two automated side-loaders and carts for the Recycling Department, and Mr. Rooney replied in the affirmative. If that is removed, then only $700,000.00 needs to be cut from the Capital Budget. Councilmember Reynolds asked if the current trucks would last another year, since Sean Hamlin, Supervisor of the Recycling Department, indicated at the last meeting that a couple of their trucks were in really bad shape.

 

Deputy Mayor Perron said that Mr. Hamlin indicated that out of the five trucks currently in their fleet, only one is reliable. Ms. Mailander recalled that Mr. Hamlin said that if the side-loaders were purchased, the trucks used for recycling could be used to pick up solid waste. Mr. Rooney pointed out that there is a budget request in the Solid Waste budget for $400,000.00 for the purchase of a truck.

 

Councilmember Weitz wondered if there was any way only one side-loader could be purchased instead of two. Ms. Mailander said that the carts that accompany the side-loaders have a 90-gallon capacity, which would be too heavy to be lifted manually. She suggested that perhaps the request could be decreased with the purchase of one side-loader and carts, along with the initiation of a pilot program using the truck in only one section of the Village. However, a problem would arise if the side-loader broke down, in which case there would be no spare truck to use. Councilmember Winograd recalled that the lead time from purchase to actual delivery of the side-loader could take up to a year, due to supply chain issues.

 

Councilmember Weitz asked if there were any non-side-loader trucks that were less expensive. Mr. Rooney recalled that Mr. Hamlin received some quotes from different companies, but he did not know if Mr. Hamlin explored trucks that were not side-loaders. Councilmember Weitz suggested that this matter be revisited and that other ways to cut the budget be explored, while at the same time consulting again with Mr. Hamlin to brainstorm other creative solutions for recycling and solid waste pickup, at less expense. Mayor Vagianos agreed and said that it would all depend upon how reliable Mr. Hamlin felt the existing trucks were, and how long he thought they would last.

Ms. Mailander said that she would get further information from Mr. Hamlin, hopefully before or during the next Budget Meeting scheduled on March 6, 2023. Ms. Mailander added that even if the $1.5 million were removed from the budget for the purchase of the two side-loaders and carts, the sum of $400,000.00 would need to be added back into the budget for the purchase of a new garbage truck. Councilmember Reynolds said that she would prefer if Mr. Hamlin attended the next Budget Meeting in person, so that he could be asked to answer and clarify some of these questions. Mr. Rooney indicated that the $400,000.00 for the purchase of a new garbage truck would be left in the budget for the time being.

 

When questioned by Councilmember Reynolds about the items listed under the column marked “Modified by Village Manager/CFO,” Mr. Rooney explained that Ms. Mailander and he met with all Department Directors, at which time some budget requests were either removed or reduced.

 

Regarding Councilmember Reynolds’ question at the February 23, 2023 Budget Meeting regarding drainage improvements, Mr. Rooney indicated that he spoke with Christopher Rutishauser, Village Engineer, today and Mr. Rutishauser stated that there has been repeated flooding on Hope Street and that is the reason why the funds for the drainage improvements proposed in that area were left in the budget. The drainage improvements by Morningside Road had money appropriated in 2022 for drainage improvements, which amount is currently being used by the Engineering Department, but they were looking for more funds for this project. In addition, the drainage improvements proposed at Circle Avenue did not need to be completed this year, but a request for same was merely put on their “wish list.”

 

Ms. Mailander stated that after the Village Council discussed the budget for IT/MIS, it was reduced by $45,000.00. Mayor Vagianos asked about the $290,000.00 that remains in the MIS Capital Budget.

 

Regarding the purchase of Toughbooks for the Police Department, Mr. Rooney stated that there was a need to outfit the new police vehicles with the Toughbooks, so that they can access all of the necessary data to function properly. In the past, problems were encountered because there were no backup devices in the event one of the devices failed. Mr. Rooney recalled that approximately $60,000.00 was taken out of the original request for network equipment. With the number of Open Public Records Act (OPRA) requests and required paperwork that must be maintained on the servers, the servers are gradually running out of available memory. He said that information cannot be deleted each year, as one can do on a personal computer, since the data needs to be retained. The costs for servers and computer chips are rising because of supply chain issues.

 

Regarding the request for new printers, Mr. Rooney stated that some of the printers in Village offices don’t function as well as they used to, and new ones should be purchased. In addition, some of the older printers are not compatible with the newer laptops and desktop computers used by Village employees. Councilmember Winograd felt that the request for printers could probably be eliminated, since more and more people are going paperless and are relying more on electronic files. She felt that perhaps some adaptations could be made to the older printers to make them compatible with the newer software on laptops and computers. However, she does agree with the request for network equipment, since the servers are running out of capacity to store data. It was agreed to reduce the printer purchase request to $10,000.00. There was further discussion about how certain documents must be retained indefinitely in paper form by various Village Departments versus going paperless.

 

There is a request in the budget for the Office of Emergency Management for the purchase of a trailer. Mayor Vagianos stated that the trailer will pay for itself within two years, so he felt that item should remain in the budget. Councilmember Weitz stated that the Department Director made “a pretty good case” in favor of purchasing the trailer. Mr. Rooney reminded everyone that the request is simply for the cost of the container and not the infrastructure required inside the trailer, such as wiring and electronics. Councilmember Weitz said that, in that case, a request should be made next year, which included all the necessary hardware for the trailer.

 

Regarding the surveillance camera trailer request, Mayor Vagianos said that while he understands the need for it, the Village has lived without it for many years and can live without it for a while longer. Everyone agreed with Mayor Vagianos that this request would be removed.

 

Ms. Mailander stated that the request for the Maple Park Turf Replacement Sinking Fund is necessary, because sufficient funds need to be on hand in the event the turf needs to be replaced.

 

Regarding the Mason dump truck request this year, Mr. Rooney said that the Village funded one last year for $54,000.00. He said that he does not know the condition of the rest of the trucks. Mayor Vagianos said that this request is on his list for removal, unless someone tells him that the Village “can’t live without it.” There was a consensus that this item would be removed from the budget.

 

Regarding trees, Councilmember Winograd stated that the Village should have sufficient funds for tree planting, at the Schedler property and throughout the Village. She said that many more ash trees must be removed, since they are dangerous due to the emerald ash borer, so funds are needed for that, as well. Councilmember Reynolds agreed with Councilmember Winograd, saying that $100,000.00 is not that much money to allocate towards this purpose and that it shouldn’t be reduced any further. Mayor Vagianos agreed. Deputy Mayor Perron was concerned that a lot of these funds get used up for tree removals rather than plantings. Councilmember Winograd said that the Parks and Recreation Department did not monitor their funds closely enough last year, and felt that this department would do a better job of doing so this year. There was a discussion about plantings in the tree wells in the Central Business District (CBD) and elsewhere throughout the Village, to contribute to the vibrancy and beauty of the Village. It was agreed that the $100,000.00 for trees would stay in the budget for the time being.

 

Regarding the installation of a playground to satisfy the diversion issue, Councilmember Winograd stated that it was her understanding that this playground would be installed at Schedler Park. Ms. Mailander said that it all depends upon when the Village gets approval from the State of New Jersey. The playground must be installed within six months after such approval and, if it is not, then it will not count towards satisfying the diversion. Ms. Mailander said that timing will dictate where the playground would be installed (either at Schedler Park or Kings Pond) to satisfy the diversion. She explained that the additional request for 2023 for the playground was due to rising costs of the playground equipment.

 

Councilmember Winograd said that she did not agree with installing the playground near a body of water (Kings Pond) and wanted to see this request removed from the budget. Ms. Mailander explained that the money cannot be removed, because the Village will need to have available funds when the time comes to install the playground. Mr. Rooney added that the Village must show good faith by appropriating funds for the playground.

 

Councilmember Reynolds asked if Ms. Mailander had any idea when approval would be received by the State for the diversion. Ms. Mailander said that she did not know, but it appeared that the second phase of the final application is being brought “up the chain” by Green Acres. She explained the various channels through which the application is approved, including the final step, which is approval, by the Statehouse Commission, which does not meet very often. She said that probably the earliest the application will be heard by them would be in the fall of this year. The Village has six months after approval within which time, the playground must be fully installed.

 

A discussion ensued about representatives from the State Historic Preservation Office (SHPO) meeting with relevant Village staff at the Schedler property yesterday. Ms. Mailander stated that an update would be given at the March 1, 2023 meeting. Councilmember Winograd stated that she specifically asked to be notified when this site visit would occur, because she wanted to speak with Jennifer Leynes, who works for SHPO, but she was not notified. Ms. Mailander stated that she did not remember Councilmember Winograd saying that she wanted to attend that meeting at the Schedler property, but indicated that the meeting was only for staff directly involved in developing the property. Ms. Mailander added that if this meeting with SHPO had been announced, too many people would have shown up and Village staff would not have had ample opportunity to speak with the SHPO representatives.

 

Councilmember Winograd stated that the neighbors near Schedler and the Village Councilmembers had a right to know that SHPO representatives were visiting the site. Ms. Mailander apologized, but stated that the main purpose of the site visit was for SHPO representatives to review all of the elements that were proposed for the site. There was more back-and-forth discussion pertaining to why the Village Councilmembers were not notified of the site visit. Deputy Mayor Perron stated that she was glad that Village staff had the opportunity to meet with SHPO representatives.

 

Moving back to the budget, Ms. Mailander said that there was a line item concerning the installation of a pavilion at Kings Pond. She said that this was a part of the diversion and she would have to check to see if this item for $39,600.00 could be removed from the budget. Ms. Mailander felt that it should be left in the budget for the time being.

 

Mayor Vagianos stated that the discharge pump for Graydon Pool must remain in the budget. He said other line items include a chipper, chip truck and utility vehicles, totaling about $500,000.00. He asked if any of these items could be removed. Ms. Mailander said the Parks and Recreation Department’s first priorities are the Mason dump truck ($108,000.00), to be used as a primary vehicle, and snow plow, followed by the utility vehicles (Parks Division replacement).

 

Other line items included the emerald ash borer treatment and the CBD tree wells. There was a conversation about the chipper and chip truck. Deputy Mayor Perron asked if other towns have chip trucks and, if so, she wondered if the Village could lease or rent one from another town to use for a year. It was agreed that the chipper and chip truck would be removed from the budget.

 

Mayor Vagianos asked if anyone had heard back from the Police Department to see what could be removed from their budget. Mr. Rooney replied that he has not heard back from Police Chief Jacqueline Luthcke. Councilmember Weitz recalled that Chief Luthcke had mentioned that the variable message board was not as important as her other requests. Ms. Mailander stated that the request for cell phones in the Capital Budget could probably be removed, since once they are purchased; maintaining them on a monthly basis is going to be expensive in the Operating Budget. The need for the cell phones was to enable police officers to download their body camera footage into their cell phones. They currently need to go to Police Headquarters in order to do so. Councilmember Winograd said that the police officers are probably afraid to use their personal cell phones. Ms. Mailander said that they cannot use their personal cell phones, but should download the footage at the police station. Mr. Rooney suggested that perhaps this could be a project for next year, and Mayor Vagianos agreed.

 

Mayor Vagianos asked Mr. Rooney and Ms. Mailander if they knew what the priorities were for the Police Department. Councilmember Weitz noted that there was an original request for the purchase of four vehicles ($360,000.00) for the Police Department, and that was reduced to $200,000.00. He asked how many vehicles are being purchased for the $200,000.00. Mayor Vagianos indicated that it would probably cover the cost of two vehicles. Mr. Rooney explained that $200,000.00 was budgeted in 2022, and stated that the Police Department is asking for $400,000.00 in 2023, which was reduced to approximately $300,000.00.

Mr. Rooney felt that the Village has been very proactive in approving the purchase of vehicles for the Police Department for many years, sometimes two or three new vehicles per year. However, he stated that he could not say what the needs of the Police Department are currently. Councilmember Reynolds said that the sum of $360,000.00 would be enough to purchase four vehicles ($90,000.00 each). Two vehicles could be purchased for approximately $200,000.00. Councilmember Reynolds asked what type of vehicles the Police Department was looking to purchase. Mr. Rooney said that they wanted to purchase either Ford Explorers or Tahoes. There was a discussion regarding what size vehicle (SUV versus Prius) the police officers would need. Councilmember Weitz stated that police officers would need a large vehicle because of the body armor and equipment they carry on their person, as well as their ancillary equipment which they need to set up in the vehicles, such as a computer. However, he would be in favor of a less expensive alternative. The cars would come fully equipped when purchased (striping, interceptor engines, radios, and lights). There was a consensus that further information would be obtained as to what the priorities of the Police Department are and what types of vehicles they would like to purchase. These budget items would be held in abeyance until this information is obtained.

 

When questioned by Councilmember Winograd, Mr. Rooney replied that another $313,000.00 still must be cut from the Capital Budget. He removed the sum of $1.5 million for the side-loaders, $480,000.00 for the recycling carts, $295,000.00 for the chip truck, $102,000.00 for the chipper, $52,000.00 for the trailer, and $20,000.00 for the printers. He added $400,000.00 back in for the new garbage truck. Mayor Vagianos went over his own calculations and stated that he had not removed the $1.5 million for the side-loaders and had not added in the $400,000.00 for the garbage truck. Other deductions he has include printers ($20,000.00), surveillance camera trailer ($52,000.00), chip truck and chipper. According to his calculations, another $230,000.00 needs to be cut from the Capital Budget. There was further discussion about what was removed or kept in the budget, and calculations were compared.

 

Councilmember Winograd asked about the portable radios and license plate readers for the Parking Enforcement Officers (PEOs). Mr. Rooney indicated that he budgeted for these items in the Parking Capital Budget.

Deputy Mayor Perron recalled that the Village Council wanted to see if the Ridgewood Library could reduce their request from $125,000.00 to $75,000.00 to hook up the generator, which is used by Ridgewood Water at their new headquarters, to the library. Mr. Rooney said that he still needs to discuss this, with Library staff.

 

Deputy Mayor Perron asked how many tasers the Police Department is requesting. Councilmember Winograd asked how many police officers are licensed to use tasers. Mr. Rooney replied that he thought all of the police officers were licensed for tasers, and Mayor Vagianos agreed. Mr. Rooney also stated that he assumed that tasers would need to be purchased for all police officers on the force. Deputy Mayor Perron suggested that funds for half of the requested tasers be allocated in the budget this year and the rest next year, since not all police officers work at the same time on every shift and the tasers can be shared amongst them. Mr. Rooney indicated that the tasers are connected to each officer’s body camera and, when the officer pulls out their taser, their body camera automatically goes on. This is the reason why the tasers cannot be shared and each taser must be unique to each officer. Deputy Mayor Perron asked if the Police Department is statutorily mandated to purchase these tasers by a certain date. Mr. Rooney said that he did not know.

 

Councilmember Weitz suggested that these questions be posed to Chief Luthcke, so that perhaps some cuts could be made which would not compromise safety. Mr. Rooney indicated that the State of New Jersey has a mandate on what equipment must be purchased and replaced by police departments, which he stated, was overwhelming. He mentioned that the Village spent $300,000.00 just for body cameras, since it was mandatory. However, he said that he did not know the statutory requirement, if any, for the purchase of tasers. Mayor Vagianos asked Ms. Mailander and Mr. Rooney to discuss these matters with Chief Luthcke to get some answers, and Ms. Mailander said that they will do so.

 

The discussion then turned to the Streets Division budget. Councilmember Reynolds asked if the request for the purchase of two lift trucks ($395,000.00) was reduced for the purchase of one truck, and Ms. Mailander replied in the affirmative. Councilmember Reynolds asked what a hooklift truck was. Councilmember Winograd asked if such a truck could be shared with the Parks Department, and Ms. Mailander replied that it could not be shared. Deputy Mayor Perron asked why the truck could not be shared, and Ms. Mailander replied that the truck would be used daily by the Streets Division and would have no downtime. Mr. Rooney explained that the hooklift truck would serve as a multipurpose truck, with a box for hauling leaves, snow, dirt, and various other items. It would also come equipped with a salter and a snowplow to use during the winter months. Councilmember Reynolds asked if the Streets Division indicated how many hooklift trucks they currently have, and Mr. Rooney replied that there is no indication in the budget paperwork how many trucks they currently have in their fleet.

 

Mayor Vagianos indicated that the Village Councilmembers cannot make decisions “in the dark.” Ms. Mailander agreed and stated that each Department Director will be reminded that a certain number of items still need to be cut from the budget, and then they will be asked how they feel about the cuts being recommended by the Village Councilmembers. Mayor Vagianos indicated that the discussions on the Capital Budget would be tabled until the Department Directors could be consulted directly. Ms. Mailander stated that that some items would be taken off of the regular agenda for next week, so that this can be accomplished. One item which could be taken off the agenda, would be the fleet analysis requested by Mayor Vagianos, since it was not time sensitive. Ms. Mailander said that she would move that item to the April 3, 2023 meeting agenda.

 

D.        DEBT SERVICE

 

Mr. Rooney stated that the 2023 appropriation for Debt Service has decreased approximately $500,000.00 from last year. The sum of $310,000.00 was put into the budget as a result of the note sale held in January, which is close to the sum paid last year. The appropriation for loan repayments is very small. The contingent amount is $25,000.00. Regarding the amount for the Capital Improvement Fund, Mr. Rooney indicated that this sum could decrease slightly if they reach $7.5 million in the Capital Budget. He said that he needs 5% as a downpayment. Regarding Northwest Bergen Central Dispatch, he said that the amount shown is the Village’s share of the 9-1-1 capability. The Capital Improvement Fund shows the appropriation for 2023 as compared to 2022, along with the ending balance in 2022.

 

Councilmember Winograd asked how Mr. Rooney arrived at the $7.5 million figure, and Mr. Rooney said that it was based upon what has been done in prior years. He tries to determine what the debt service will be every year and tries to maintain it so that there are no significant fluctuations. Mr. Rooney explained that emergencies arise during the year, such as the problem encountered by the Water Pollution Control Facility (WPCF) last year. There was further discussion about the RME litigation and the purchase of assets that were being used by the WPCF, as well as the debt incurred as a result of the PFAS project with Ridgewood Water and the bonding procedure. Mr. Rooney stated that the Village’s revenue streams in the utilities are sufficient to pay for the Village’s debt service and operating costs. Insufficient funds would impact the Village’s bond rating in the General Fund.

 

E.        DEFERRED CHARGES, STATUTORY EXPENDITURES

 

Mr. Rooney said that this budget represents the appropriations that are required in 2023 to satisfy any special emergencies that were incurred by the Village over the last several years. He said that there were certain emergencies that required appropriation of funds, revenue deficit funding, and Covid funding. He said there was an emergency authorization at the end of 2022 for utilities and fuel. The $25,000.00 for RME is the amount that was not canceled, but instead represented the downpayment that had to be made on the financing. The $5,000.00 for capital ordinances is an amount that is put into the budget every year to satisfy the Village auditors, to demonstrate that the Village is providing funding for unfunded improvement authorizations.

 

                        F.         PARKING

 

Mr. Rooney explained that the adopted budget for the Parking Utility last year was $2.3 million, and there was $2.5 million in revenue in 2022. He said that parking revenues are starting to climb. For 2023, he is seeking to appropriate $2.6 million to satisfy the appropriation requirements. He pointed out the parking appropriations, which were previously provided to the Councilmembers. The biggest change to be noted is a request for the hiring of a part-time Parking Enforcement Officer (PEO). He said that up until the Covid pandemic, there were two full-time PEOs and, at times, three full-time PEOs, along with a part-time PEO. Mr. Rooney indicated that there has not been a part-time PEO since Covid. He spoke with Sergeant Jay Chuck, who felt that parking enforcement has become more critical at the current time, since business establishments have resumed regular business hours. The PEOs enforce parking not only for meter violations, but also for no-parking zones and double parking. The Village has been advertising for a PEO for several months, but Mr. Rooney indicated that they have not had any interest to date.

 

Mr. Rooney said that another increase over 2022 is an allocation to the Capital Improvement Fund, to aid the Village when seeking any improvement authorizations for capital activity related to the Parking Utility.

Deputy Mayor Perron indicated that she was surprised that a full-time salary for a PEO was $36,000.00, stating that she did not know how anyone could live on such a low salary.  Regarding the budget allocation for Salaries and Wages, she said that she understands that the Parking Utility must allocate funds to other departments for services rendered relating to the Parking Utility, but she wondered what the line items listed under Direct Expenses represented and asked for an example. Mr. Rooney explained that staff from other departments perform services related to the Parking Utility, including staff in the Village Clerk’s Office, Finance Office, and Police Department. Direct Expenses are known expenses, which the Current Fund or another fund picked up on behalf of the Parking Utility. For example, if Christopher Rutishauser, Village Engineer, worked on developing ordinances over a course of four weeks, which were directly related to the Parking Utility, then a direct charge for his time would be made in the Parking Utility Budget.

 

Deputy Mayor Perron asked where removal of the parking stanchions was indicated in the budget. Mr. Rooney said that was not in the Parking Utility budget, since he did not have an estimate of cost in order to do so. Mayor Vagianos recalled that this work would be done inhouse and that no additional expenses would be associated with it. Mr. Rooney indicated that this was a very good example of a direct expense. When Village staff removed the parking meter poles from the CBD and performed the necessary work to restore the area, the hours spent by the staff are attributed directly to the Parking Utility Operating Budget. Councilmember Winograd asked if anyone had researched whether the Village could realize some revenue for reclamation of the metal poles, and Mr. Rooney said that they are looking into it.

 

Regarding the Parking Utility Capital Budget, Mr. Rooney said that there were two requests for portable radios and license plate readers for the PEOs, for a total of $59,000.00. When questioned by Deputy Mayor Perron, Mr. Rooney confirmed that the PEOs already have one license plate reader, which is installed in their car, and the purchase of a second license plate reader would be used in the second PEO vehicle. Sergeant Chuck told Mr. Rooney that the license plate reader has resulted in many summonses being issued, which were not challengeable. Mayor Vagianos added that this is an item that pays for itself.

 

                        G.        CURRENT FUND REVENUES

 

Mr. Rooney explained that any highlighted items are still being worked on, and the surplus to be used in 2023 is estimated. He pointed out the revenues received in 2022 and indicated that he is limited to anticipating only the amount of revenues that were collected in the prior year.

 

Councilmember Weitz asked Mr. Rooney if the Village can charge more for alcoholic beverage licenses, or if the fee is set by statute. Ms. Mailander replied that the Village is charging the maximum fees permitted by statute, which have not been increased for 25 to 30 years. There are 17 such licenses in the Village, with only two that are not in circulation (one consumption license and one distribution license). A discussion ensued about the terms of the licenses, requirements for renewal by Alcoholic Beverage Control, Village Council approval or disapproval, and appeals of adverse determinations.

 

Mr. Rooney explained the Energy Receipts Tax, with revenue of $97,000.00 realized last year, more than in the past ten years. One grant program for health is included in the 2023 budget. Under Other Special Items, the only significant increase over last year were the administrative charges and vehicle fees for outside services performed by the police. He explained the reserve for debt service of $638,000.00 and revenue from Valley Hospital for bed count, which totals approximately $481,000.00. Mr. Rooney stated that he is not sure how much revenue would be received from Valley Hospital next year, since they are moving the main facility to Paramus. Two items related to the American Recovery Plan totaling $2.6 million ($1.3 million for 2021 and $1.3 million for 2022) are not contained in this year’s anticipated revenue.

 

Councilmember Winograd asked why the percentage increase on investments and deposits is significantly increased (588%). Mr. Rooney explained that interest rates were bad last year and he is only allowed to anticipate this year what was realized in 2022 (approximately $55,000.00). He said that the Village only realized about 0.05% interest on investments. However, interest rates escalated in 2022, so that is why the percentage increase on investments has increased.

 

                        H.        SALARY/ACCUMULATED LEAVE

                        I.          STAFF LEVELS

 

Mr. Rooney explained that the seven-page printout he distributed to the Village Councilmembers delineated the staff levels in the Village and staff titles. In the right-hand column, Mr. Rooney showed what staff salaries would be if they were just hired in 2023. The numbers represent the “asks” from each department.

 

Deputy Mayor Perron asked if the salary for a civilian administrative clerk (Records Discovery Clerk FT) for the Police Department was included in Mr. Rooney’s figures ($50,000.00), and Mr. Rooney confirmed that it was on the last line in the paperwork. There were also salaries included for the hiring of a Recording Clerk in the Village Clerk’s Office, an additional Engineer in the Engineering Department, and an Electrical Inspector and Keyboard Clerk in the Building Department.

 

Deputy Mayor Perron recalled that Chief Luthcke has been asking to hire a Records Discovery Clerk for one to two years. She said that she was surprised that the Village Councilmembers approved the hiring of additional police officers before they approved the hiring of the Discovery Clerk. Councilmember Reynolds stated that the hiring of more police officers is a matter of public safety. Councilmember Winograd added that hiring the Records Discovery Clerk will “free up” police officers to perform their required duties. Ms. Mailander added that there are going to be several police officers retiring from the Police Department this year and the staffing levels need to be increased accordingly.

 

Councilmember Reynolds asked why there were seven spaces for police officers, two of which have $40,000.00 and five of which have $20,000.00. Ms. Mailander replied that the other five staff members are going to be hired mid-year in July, so the salary reflected is for half a year. When questioned by Councilmember Winograd, it was explained that the 49 staff members listed include the members who are planning on retiring this year, but have not yet done so. There will be five retirees, leaving 44 staff members on the police force.

 

Councilmember Reynolds stated that there were two spots for clerical (Police Desk) and one for Records Discovery, and she asked if the Police Department wanted to hire two clerical staff members. Mr. Rooney clarified that he had suggested the hiring of two clerical staff members many months ago, including one for the front desk, so that police officers would be freed up to patrol the Village. The request was for one Records Clerk and two administrative staff members for the Police Desk (one for night shift and one for day shift). Deputy Mayor Perron said that she would be in favor of hiring the three clerical personnel, and Mayor Vagianos agreed, stating that police officers belong on the streets rather than remaining inside the Police Department doing paperwork.

 

There was a motion by Councilmember Weitz to suspend the Special Public Budget Meeting Session at 7:02 P.M., which was seconded by Deputy Mayor Perron and carried unanimously by voice vote.

 

There was a motion by Deputy Mayor Perron to resume the Special Public Budget Meeting Session at 7:35 P.M., which was seconded by Councilmember Reynolds and carried unanimously by voice vote.

 

                        J.         SURPLUS, CURRENT FUND

 

Mr. Rooney explained the Surplus Fund Balance. He explained the available fund balances in various categories: General Capital, Water Capital, Parking Capital, General Fund, Water Operating Fund, and Parking Operating Fund. This will be finalized once the Village Council finalizes the numbers for 2023.

 

                        K.        TRUST FUNDS

 

Mr. Rooney explained that these are funds that have been specifically identified to be held in trust, for specific purposes. He said that the handout showed the activity for 2022 to the end of this year for all major trust funds. He said that there are funds held in trust for permits and things of that nature, which are not included, because these funds are not accessible to the Village. He explained the statutes pertaining to trust funds and the circumstances during which the Village may spend these monies.

 

Councilmember Winograd asked about the library tax. Mr. Rooney said that the Village receives the tax funds and then an appropriation is paid to them, so it is a wash. Councilmember Winograd also asked about the Open Space Trust Fund, and whether increasing contributions to that fund would need to be done via a referendum, and Mr. Rooney confirmed that she was correct.

 

Deputy Mayor Perron asked where the monies for shade trees came from, and Mr. Rooney replied that they came through the Parks and Recreation Department. He stated that he did not know exactly how that worked, but it was mostly likely done through contributions. Adopt-a-Tree and Linda’s Grove were mentioned.

 

                        L.        OVERALL BUDGET (GENERAL)

 

Mr. Rooney explained that in the handout he distributed earlier, there was a 2023 tax comparison. The left column showed the adopted budget for 2022. The 2023 column reflects the reductions that were originally made, then two more columns reflecting two more rounds of reductions. He explained that he took a “deeper dive” to cut more items, which decreased the tax rate increase from 10% to 6%. When questioned by Councilmember Reynolds, Mr. Rooney said that the contemplated new hires would not take place this year, based upon these cuts. He added that he did this unilaterally, without first discussing the cuts with Department Directors. However, the Village Councilmembers can decide to add items back into the budget if they so choose. He explained that a 1% tax increase would amount to $367,000.00. Even with a 10% tax increase, Mr. Rooney said that he would have had to cut at least $177,000.00 out of the budget, before he did the “deep dive” into the budget.

 

Mr. Rooney said that the packet (10 pages) handed out by Olivia Andreula of the Finance Department breaks everything down by department. It contains a salary for a new Village Manager for half a year. On his first and second rounds of cuts, $12,000.00 was taken out of the Operating Budget for Other Expenses in the Village Manager budget. Regarding the Village Council, he took out the request for a grant writer ($36,000.00). Regarding the Police Department, Mr. Rooney left in the request to hire two police officers, in addition to the two trainees currently in the Police Academy. The original request was to hire seven police officers, including the two trainees. The salaries for the two trainees were cut in half, since they probably would not start working until July 2023. There would be a total of four new police officers.

 

Mr. Rooney stated that he cut back the termination pay by approximately $300,000.00 because, by law, police officers are only allowed to receive $65,000.00 in the first year that they retire. He removed the request to hire a Discovery Records Clerk and two administrative civilian positions for the Police Department. He also cut back Police overtime to what was actually incurred last year. There is a total of approximately $700,000.00 that Mr. Rooney removed from the Salaries and Wages category, in the Police Department budget.

Regarding streets and road maintenance, Mr. Rooney reduced that budget, because there are funds available in the “Snow Trust” which can be used. Mayor Vagianos asked Mr. Rooney if he anticipated that there would be no snow this season, since there has been very little snow all winter. Mr. Rooney replied that he did not and was aware that a snowstorm could still occur until the warmer temperatures arrived. Ms. Mailander recalled many snowstorms that occurred in March in the past. Mr. Rooney indicated that the figures he has presented are an educated guess, based upon prior experience. There is an increase in the Snow Trust Fund during some years when there is not much snow, and then some years it is whittled down to nothing because so much snow has fallen.

 

Mayor Vagianos asked what the driving force was for Mr. Rooney to start with such a large tax increase of 10%. Mr. Rooney explained that there were funds received from the American Recovery Plan in 2022 ($2.6 million) that will not be received in 2023. There are contractual settlements with the Police and Fire Departments representing an increase of approximately $400,000.00. There is a healthcare insurance increase of 24%, or approximately $1.6 million. There was a pension increase of 7% or approximately $800,000.00. Utility costs rose approximately $700,000.00. These increases total about $6 million, and these are things which Mr. Rooney must take into account and which he cannot remove from the budget. He added that the costs for materials and supplies have risen dramatically as well.

 

Mayor Vagianos recalled a chemical used at Graydon Pool, which used to cost $42,000.00 and now costs approximately $162,000.00. He asked Mr. Rooney what would need to be done in order to get the tax rate below 4%. Ms. Mailander said that they would need to start looking at personnel, which they obviously would prefer not to do. Mr. Rooney said that he has only reduced the requests for new hires and has not touched the salaries and wages of existing Village personnel. Mayor Vagianos asked how many new hires are proposed in the budget as it currently stands, with a proposed tax increase of 6%. Mr. Rooney said that the two Police Academy trainees and the two police officers scheduled to be hired in July are in the budget currently before the Village Council, which results in a 6.5% tax increase. The other new hire requests have been removed. Mr. Rooney stated that, excluding Ridgewood Water personnel, there are approximately 250 full-time employees and 26-part-time employees in the Village.

 

Deputy Mayor Perron asked if the one hire for police officer could be switched to a new hire for a Records Clerk. Ms. Mailander explained that there are three police officers retiring this year and there were two last year, so the police force has been reduced. Mr. Rooney said that it would cost $50,000.00 to hire a Records Clerk, but only $40,000.00 (half-year salary) to hire two police officers who would start in July. Mayor Vagianos said that police officers do not start at a high salary, but they get step raises contractually. Their salaries would substantially increase over the long term, but the short-term problem facing the Village right now is that the Police Department is short staffed.

 

Councilmember Winograd said that there cannot be such a huge tax increase, so further reductions need to be made and everyone agreed. Mayor Vagianos stated that in order to reduce the tax rate from 6.5% to under 4%, another $900,000.00 must be cut from the Operating Budget. He suggested that perhaps Ms. Mailander and Mr. Rooney could “huddle” together with Department Directors to see if they can come up with another $900,000.00 in cuts, which the Village Council could then review, which would then result in a 3.96% tax rate.

 

Councilmember Reynolds asked if the Capital Budget affects the overall tax increase. Mr. Rooney said that the only impact from the Capital Budget is that he needs 5% for a downpayment for whatever the Village Councilmembers decide they want to authorize this year. If a project costs $8 million, then he would need to put a $400,000.00 downpayment into the budget. He indicated that he has already taken $100,000.00 out of the Capital Improvement Fund.

 

Mayor Vagianos asked everyone how they wanted to proceed. Councilmember Weitz suggested consulting with each Department Director and informing them that they each need to cut their budget requests by a certain percentage.

 

Deputy Mayor Perron asked Mr. Rooney how all of this would affect the caps. Mr. Rooney explained that there is an appropriations cap and a tax cap (levy), both of which allow for exclusions. He said that the State is allowing increases in pensions, healthcare, fuel costs, and a couple of other items, to be outside of the cap only for this year. He said that there should be no problem in that regard. However, he does not yet have the workbook from the State that will tell him what the cap is for the tax levy. There are exclusions for the tax levy as well, which center on increases in pensions and healthcare, changes in debt service, and other factors which need to be input into the workbook, in order to be able to do the calculations. He also mentioned that he has $700,000.00 in the bank that was left over, which he will use if necessary.

 

When questioned by Mayor Vagianos, Mr. Rooney explained that, every year, there are calculations done for the tax levy bank and the appropriations bank, through the use of the workbook. He said that if not all of it is used, it is banked. For example, if he is allowed to use 2.5% and he only uses 2%, then the .5% goes into his “bank.” Every third year, this bank expires. He explained that he had credit left over from 2019 totaling $1.9 million, which he lost last year because it was unused. Money is pulled from the bank as necessary. If there are no funds in the bank, then monies can only be obtained through a referendum.

 

Mayor Vagianos asked Mr. Rooney if there was $700,000.00, which could be applied to the $900,000.00 in cuts they still need to make. Mr. Rooney said that it cannot be applied. He said that if he is raising $40 million and the calculation of what he is allowed is $40.5 million, he can take $500,000.00 out of his bank and appropriate $40.5 million. He said that the Cap Law governs this process, which was enacted years ago because people were complaining about high tax increases. Therefore, there is a cap on how much taxes can be increased per year, but the State also allows him to bank what is not used. Deputy Mayor Perron asked if this was in the form of credits or actual money. Mr. Rooney said it was like a credit and not physical money in the bank.

 

Mayor Vagianos asked how the tax levy increase would be affected, if Mr. Rooney elected to use the credit. Mr. Rooney explained that if he arrived at a figure of $40 million after doing the calculations in the workbook, and the budget comes out to be $40.5 million after cuts, he has two options. There could be a referendum to allow for the additional $500,000.00, or $500,000.00 would need to be cut from the budget so that he can meet that cap. Mayor Vagianos asked Mr. Rooney when he would know what the cap is, and Mr. Rooney replied that he would know by next week sometime.

 

Mayor Vagianos asked if Mr. Rooney had any clue as to what the cap might be, and Mr. Rooney stated that he has no idea, because of the exceptions to the cap, which just came out by the State. In addition, he needs to close out all of the financial statements so that he feels comfortable with the number he gives to the Village Council. Mayor Vagianos said that he could never support going out for a referendum to go over the cap, and Deputy Mayor Perron agreed.

 

Mayor Vagianos again asked Ms. Mailander and Mr. Rooney to get together with the Department Directors to see what can be cut from each of their budgets, since $900,000.00 still needs to be cut from the budget, and then the Village Councilmembers need to review all of the budget cuts. Councilmember Winograd said that she would like to explore going further (to lower the tax rate below 4%). She said that she was not comfortable with the $900,000.00 figure and was afraid that the cuts may need to be higher, maybe to reach a 3% tax hike. There was further discussion regarding the amount of money needed to reach a reasonable tax rate increase.

 

In response to a question by Councilmember Winograd, Mr. Rooney indicated that there are statutory deadlines by which the budget needs to be introduced and adopted. Councilmember Winograd asked if another Budget Meeting should be set, other than the one scheduled for March 6, 2023, before the Public Meeting on March 8, 2023. Ms. Mailander replied that an additional meeting can always be added, but the meeting needs to be advertised properly beforehand. In addition, the budget must be adopted by the end of April. There must be a certain number of days in between the introduction of the budget and its adoption. Mr. Rooney added that 28 days are required in between.

 

Mayor Vagianos asked Ms. Mailander how much time she and Mr. Rooney would need to consult with the Department Directors and present to the Village Councilmembers two proposals: one with cuts that would reduce the tax rate to 3% and another, which would reduce the tax rate to 4%. After conferring with Mr. Rooney, Ms. Mailander stated they will both meet with the Department Directors next week to see where cuts can be made, and will hopefully have the revised number in time for the next Budget Meeting on March 6, 2023. If the budget is still not ironed out in time for introduction on March 8, 2023, Ms. Mailander said that a subsequent Special Public Budget Meeting can be held on March 15, 2023, at which time the budget could be introduced. If this latter meeting is held, then a Special Public Meeting would probably be held on April 19, 2023 (the third Wednesday in April). Mayor Vagianos asked if a Special Budget Meeting could be held in March, other than on March 6.

 

Councilmember Winograd indicated that she will not be able to attend a meeting on March 15, and Councilmember Reynolds cannot attend the March 8, 2023 meeting. Councilmember Reynolds suggested having a Special Public Meeting at the regularly scheduled meeting on March 22, 2023. Mayor Vagianos said that the Councilmembers could also hold a meeting on the budget at 5:00 P.M. on March 22. Ms. Mailander indicated that she is unable to attend a meeting on March 22, but Mr. Rooney will be available. There was a discussion about holding the meeting on March 29. Ms. Mailander reminded everyone that attempting to get the tax rate under either 3% or 4% may require furloughing existing personnel, which would affect Village services to residents.

 

4.         COMMENTS FROM THE PUBLIC

 

NONE

 

 

 

 

 

5.         ADJOURNMENT

 

There being no further business to come before the Village Council, on a motion by Councilmembe Reynolds, seconded by Deputy Mayor Perron, and carried unanimously by voice vote, the Village Council’s Special Public Budget Meeting was adjourned at 8:17 P.M.

 

 

 

 

 

                                                ____________________________________

                                                                                                Paul Vagianos

                                                                                                        Mayor

 

 

 

 

 

 

 

 

____________________________________

                     Heather A. Mailander

             Village Manager/Village Clerk