Village Council Special Public Meeting 20150527 Minutes
A SPECIAL PUBLIC MEETING OF THE VILLAGE COUNCIL OF THE VILLAGE OF RIDGEWOOD HELD IN THE SYDNEY V. STOLDT, JR., COURTROOM OF THE RIDGEWOOD VILLAGE HALL, 131 NORTH MAPLE AVENUE, RIDGEWOOD, NEW JERSEY, ON WEDNESDAY, MAY 27, 2015 AT 7:30 P.M.
1. CALL TO ORDER – OPEN PUBLIC MEETINGS ACT – ROLL CALL
Mayor Aronsohn called the meeting to order at 8:44 P.M., and read the Statement of Compliance with the Open Public Meetings Act. At roll call, the following were present: Councilmembers Hauck, Knudsen, Pucciarelli, Sedon, and Mayor Aronsohn. Also present were Roberta Sonenfeld, Village Manager; Donna Jackson, Deputy Village Clerk; and Matthew Rogers, Village Attorney.
2. 2015 BUDGET HEARING
a. Presentation of 2014 Budget
Ms. Sonenfeld noted that the auditors were in attendance at the meeting, John Rooney and Bud Jones. She thanked them for coming.
Ms. Sonenfeld stated this would be a shorter presentation than what was given in the last four meetings on the 2015 budget. At the previous meeting, there was a lengthy discussion about the accomplishments and highlights of 2014. The process was also discussed. The focus of this presentation will be the proposed budget at a higher level. Ms. Sonenfeld said she would present a summary of operating expenses, and the investment in people and services would be reviewed again, because she believes that is important to the budget. There will be some discussion about revenues, as well as consideration of risks and opportunities. Finally, taxpayer dollars will also be examined.
Ms. Sonenfeld reminded everyone that the operating and capital budgets were done together. The capital budget has been adopted, and the operating budget remains outstanding. The operating budget is approximately $47.1 million, representing a 1.2% tax increase. The increase on an average assessed home is $46.12, not $46.72, which was incorrectly reported previously. It is estimated that the outstanding bonds and notes will be decreased by the end of 2015, and both revenues and expenses have increased by approximately 1.8% over 2014.
The total appropriation is approximately $47 million. The surplus being used, which was discussed at length in the previous budget presentations, is approximately $3.032 million. That has resulted in leaving more surplus funds this year than in prior years by a small margin. The amount to be raised by taxation, based on other revenues, is approximately $31.326 million, which is approximately $350,000 more than in 2014. The Public Library increase is approximately $9.
Ms. Sonenfeld thanked the members of the Financial Advisory Committee (FAC) for their assistance, particularly with pie charts and some parts of this presentation, as well as with the budget newsletter. She added that for the second consecutive year, the budget represents fully-loaded expenses in each of the areas. All of the public safety expenses represent approximately $19.2 million of the total budget, or 41%. Expenses for the Fire Department have decreased, while those for the Police Department have increased. Expenses for services are flat year-to-year.
Ms. Sonenfeld noted that the numbers in parentheses represent the budget figures from 2014 to compare against the figures for 2015. She pointed out that the expenses for recycling and waste management increased, mainly due to dumping fees; polymer increases for the wastewater facility; sludge hauling; and absorption of the blue and white contracts for the past three years (which was finally settled in 2014). General government expenses were also higher in 2015, and include Planning Board legal fees for Valley Hospital, as well as legal fees for the PBA negotiations; investment in technology and human resources; the new parking paradigm; and the Chief Financial Officer.
Ms. Sonenfeld mentioned that it is important to note that the Councilmembers thought that if taxes were to be increased, there should be some investments made that would give Ridgewood residents satisfaction, and there are significant investments in services and people in this budget. There is a new CFO/Parking Utility Director. Parkmobile has been almost completely implemented; the counting of coins has been outsourced; and parking conditions will be evaluated on a continuous basis to ensure optimum parking in the Village, as well as taking all steps necessary to begin construction of the parking garage.
The budget also includes funds for revitalization of the Building Department, which was discussed in detail during the budget reviews with the Village Council; full implementation of Human Resources capability; and significant growth in the application of technology, including “municipality in a box,” which will hopefully be implemented by August 1st. In addition, the “No Leaf Left behind” program will continue. The Village is also working on the re-accreditation of the Ridgewood Police Department as a flagship organization. It has been discovered through budget reviews that there is enhanced support for the Public Library and Community Center. Funds are available in the budget for staff development, including Bergen LEADS; CIO training; and fire leadership training. There are also funds available for the development of a continuity of operations plan; the aesthetics for shade tree and tree wells; launching the new Village website; a strategic plan for the Village footprint so that was discussed during the budget reviews; conversion of the incandescent streetlights to LED lights; and preparation for the 2016 implementation of the new sidewalk café ordinance and enforcement.
Moving to revenues, Ms. Sonenfeld stated that the revenues raised by property taxes and the Public Library tax are approximately $33.4 million, or 71%. That includes money from the Federal Emergency Management Agency (FEMA); as well as side jobs for the Ridgewood Police Department, for which the Village is paid administrative fees; and the Parking Utility paying back some of its previous years’ deficits.
Key considerations in the budget include the fact that the Police Department budget was significantly increased due to contractual obligations (approximately $400,000), while the Fire Department budget was decreased by an amount approximately equal to that due to retirements in the new contract. Group health insurance costs have also increased significantly. Utility decreases were driven by lower gasoline costs (approximately $200,000). Ms. Sonenfeld noted that, as she stated earlier, the general government increases were driven by investments in the Building Department, Technology, Legal, and Human Resources.
Some of the challenges of this budget include the one-time revenues, which were discussed last year, particularly the FEMA reimbursement in 2015 of approximately $800,000. Legal fees for the Planning Board and the PBA negotiations were also challenges. Others include unfunded liabilities (i.e., retirement payments), and the fact that the reserve contains approximately $637,000, which is more than was available in 2014. Ms. Sonenfeld pointed out that the unfunded liabilities will be decreased going forward due to the new contracts that were negotiated for the Fire Department and the blue and white workers, and that will continue in 2015 with the Police Department negotiations. Furthermore, it is apparent from the examining the budget figures that the aging infrastructure of the Village in 2014 caused significantly more expenditures in building maintenance than were planned ($60,000 was budgeted, while approximately $120,000 was spent). The current allocation is approximately $80,000, but if it is necessary to spend more money, Ms. Sonenfeld commented that it will be necessary to figure out how to support a higher figure. In addition, this past winter was particularly bad, so the amount available for snow removal only allows for one bad snowstorm, or possibly 1.5 moderate snow storms, in 2015.
Opportunities to be found in this budget include the fact that the Police Department contract expires in 2015, and Ms. Sonenfeld thinks that will be a significant opportunity for the Village, as it was with the Fire Department contract. There is also the introduction of the new technology platform; more identification of in sourcing/outsourcing/shared services; effective management of the Parking Utility, as well as enhancement of the Village parking experience; and new tax ratables due to development, particularly the development on Route 17.
Ms. Sonenfeld demonstrated how each tax dollar is spent. The County tax burden takes approximately 10.25%, based on the initial figures from Bergen County that came out approximately two weeks ago, which mentioned a 1.7% increase in the County tax. Ms. Sonenfeld noted that the County percentage could decrease slightly, based on discussions currently being held among the Board of Chosen Freeholders. The Board of Education portion of the tax dollar, based on the budget that just passed, is approximately 34% of each dollar, while the Village gets approximately 24.2%, representing a decrease from 2014, when it was approximately 25.5%. However, that could also change if the County percentage changes.
Ms. Sonenfeld stated that it was discussed at a prior Village Council meeting that the user-friendly budget was already prepared to meet the State requirement. Contrary to other municipalities that are passing resolutions stating that they will not use the user-friendly budget for various reasons, Ms. Sonenfeld stated that she and her financial team were able to do this, for which she gave credit to Village staff and the FAC, because all of the work that was done in assembling this more transparent, fully-loaded budget worked directly in their favor when putting together the user-friendly budget.
b. Village Council’s Comments
Mayor Aronsohn thanked Ms. Sonenfeld, and commended her and her team for all of their efforts in putting the budget together, as well as for the budget presentation.
Councilman Pucciarelli stated that anyone who was present during the budget process saw a different kind of budget process than in the past. The presentations were crisp, thanks to the efforts of the Village staff and the FAC, and they were understandable. He also commented that it was a zero-based budgeting exercise because every department supervisor came before the Village Council to justify every dollar spent in the department. Councilman Pucciarelli also noted that in the past, the Village had 0% tax increases, and he is keenly aware that that was implemented even with the contractual obligations that had to be accommodated, including significant collective bargaining increases. Those increases were spread out to other departments throughout the Village, and Councilman Pucciarelli believes they had reached the maximum level at which they could expect the other departments to carry the burden of those increases. Looking at the budget for 2015, Councilman Pucciarelli saw that there is a $400,000 contractual obligation which the Village must honor, which was offset by the agreement negotiated with the Fire Department, as well as other comments that could absorb that increase. That could have put the Village in a position for a zero-based budget, but there was a $350,000 increase in expenditures. Council Pucciarelli said he could not think of approving that increase without some strategic plan for those increases, showing that the monies are designed to help the infrastructure and long-term planning. Finally, Councilman Pucciarelli said he has confidence that the people who are entrusted with this money know what they are doing with it.
Councilman Sedon thanked Ms. Sonenfeld and her staff for a wonderful budget presentation. He stated that it is generally a good budget. Councilman Sedon particularly likes that there is an investment in technology, which he believes has been woefully neglected for too many years in Ridgewood. It will make things more user-friendly for residents, as well as for all Village staff members who use technology every day to do their jobs. Councilman Sedon also praised the allocation for aesthetic items, such as tree wells, which will bring people into the CBD. Although Councilman Sedon said he agrees with some of the hiring items, he is not fully supportive of the creation of the Human Resources Director. When that was first discussed, Councilman Sedon thought it was to be a part-time position, because there were long-standing personnel issues that needed to be addressed, so someone would be brought in part-time to work solely on those issues. He was surprised to hear his colleagues and other Village employees refer to the “HR department,” which Councilman Sedon did not recall discussing, nor was he aware that an entire department was being created. It has now become a $105,000 expenditure, plus the potential for benefits, and Councilman Sedon thought the allocation of that money could be used more productively in, for example, the Engineering Department, which has a very long backlog of issues that need to be addressed, or the Department of Parks and Recreation, or some other department that might be able to reasonably argue that they need more staff to address other areas of the Village that need addressing, even as far as the creation of a project bank, in which the $105,000 could be used to outsource some of the Engineering Department backlog. That is why Councilman Sedon said he would be voting against the budget, because he felt that he was misled in that discussion, and was not involved in it.
Councilwoman Hauck stated that she endorses this budget, and she is happy to adopt it. She commented that it is tight, solid, and shows foresight, along with a careful investment in the future while improving services. It also continues to put pressure on all Village departments to be as efficient as possible, which helps to keep taxes down. Councilwoman Hauck believes that the greatest goal for the Councilmembers is to keep taxes down for Village homeowners. She thinks that the 1.2% increase represents a tightening of belts throughout the Village without risking errors and mistakes, which have occurred in the past. Departments need to be staffed with enough people to do the job well, but not overstaffed. After having two years of 0% tax increases, Councilman Hauck believes that the residents of Ridgewood can handle a 1.2% increase.
Councilwoman Knudsen appreciated all of the work that went into the budget process, and having observed budget process is in the past, she commented that this was very user-friendly, and a much better approach. Councilwoman Knudsen did not agree with the 0% tax increase, because she thought it put an undue burden on the various departments. This particular increase is minimal, and not burdensome. However, as she expressed throughout the process, Councilwoman Knudsen’s concerns are specifically focused on the Parking Utility. Part of her issue with the Parking Utility is that the operating expenses, salaries, and wages have increased by nearly $200,000, which is a very significant increase. Although she supported hiring the new CFO/Director of the Parking Utility, she does not understand why the allocation was taking from the Village Manager’s department and put in the Parking Utility, increasing the expenses of the Parking Utility by a substantial margin. These are concerns that Councilwoman Knudsen raised throughout the process, and she is not satisfied with the figures for the Parking Utility. That is why she will not be supporting this budget, either. Councilwoman Knudsen agreed with Councilman Pucciarelli’s points that this budget is not as burdensome as in the past, and she is happy with the decrease in bonds and notes, she finds that the general government increases are significant. Moreover, Councilman Sedon made a point about the Human Resources Department that Councilwoman Knudsen wanted to address. She has said that during the budget process, one of the presentations made was about the Director of the HR Department. The reasoning behind hiring a new Director was that the Village would be saving money in contract negotiations, which would be a benefit in the long run, and Councilwoman Knudsen has now discovered that there are additional legal fees for the PBA contract negotiations. All of these issues combined are of great concern to Councilwoman Knudsen, and she suggested that perhaps the HR Department is not necessarily fulfilling the expectation that she had in saving those dollars, and she is also concerned with the changes in the Parking Utility.
Councilman Pucciarelli mentioned the Ridgewood Public Library, which showed a very modest increase in its budget. Just last year, the Public Library budget was restored to its 2009 level, after going through several years of budget cuts. Councilman Pucciarelli noted that the Public Library attracts many visitors/users, because it is so much more than a Public Library. It is also a cultural center. Councilman Pucciarelli commented that their budget increase was considered carefully, and although they did not get what they requested, they did make a good case for getting the full amount.
Mayor Aronsohn recalled that when he first started on the Village Council, the budget discussions were held in the Caucus Room, which was very unwelcoming to the public. The various Department supervisors came in there to defend their budgets, and Mayor Aronsohn did not find it an effective use of the Councilmembers’ time, nor was it the most effective way to implement a budget. It also did not engage the public at all. By contrast, in 2015, all of the budget discussions were held in the Sydney V. Stoldt, Jr., Court Room, and was spaced out over several nights to allow for the changes in schedules among members of the public. The budget discussions received live coverage, and they were also videotaped. All of the Department Supervisors attended the meetings. Mayor Aronsohn found the process to be very user-friendly and transparent, and he thanked Ms. Sonenfeld, as well as Stephen Sanzari, Treasurer, and the rest of the team for their efforts. It is a great service to the Councilmembers and the entire community to make the process user-friendly and accessible. Mayor Aronsohn also mentioned the budget newsletter, which is very easy to read. He commended the team for making the presentations available on the Village website.
With respect to the budget, Mayor Aronsohn also mentioned the 0% tax increases for the past two years, for which he was a key proponent. He recalled that the first year he suggested it, he was told that there would be massive layoffs, which did not happen. After all the years of large tax increases, they seem to be a lot of superfluous areas that could be cut. Now, Village government is leaner and more efficient. Mayor Aronsohn supports this budget, including the 1.2% increase. He supports the increase because it follows the mandate given to Ms. Sonenfeld that tax increases should not be implemented just for the sake of tax increases, but must be done purposefully and with good reasons behind them. This budget makes smart investments in people and technology, which is extremely important to enhance the customer service aspect of Village government. As far as people are concerned, Mayor Aronsohn noted that they are the greatest resource, and the most important part of this or any government. He stated that he wholeheartedly supports a full time Human Resources professional, and he cannot think of an organization of this size that does not have one. It is necessary for the effective functioning of this government or any other organization.
c. Public Hearing on 2014 Budget
Mayor Aronsohn asked if anyone from the public wished to speak regarding the 2015 budget for.
Jim Griffith, 159 South Irving Street, commented that Ms. Sonenfeld explained very clearly how she went through the budget process, and Mr. Griffith stated that transparency and teamwork are the keys to many successes, and Ms. Sonenfeld used both in putting together the 2015 budget. He noted that she very carefully explained what she was trying to accomplish, and what the risks are. Mr. Griffith also believes having a Human Resources Department is essential. He thanked Ms. Sonenfeld and the Councilmembers for a smooth budget process, and commended all of them.
Boyd Loving, 342 South Irving Street, noted that there was a lot of discussion about investing in technology, and Mr. Loving said he is a bit perplexed. Mr. Rutishauser mentioned that he had to send multiple emails in order to transfer files to the parking consultants, and Mr. Loving said he is not sure why file sharing is not in use in the Village. He also wondered why there was still a portable screen in use the Sydney V. Stoldt, Jr., Courtroom, instead of a permanent projector with a screen affixed to the wall. That caused Mr. Loving to ask Dylan Hansen, Network Supervisor, if there was any increase in the technology budget to take care of such things. Mr. Loving noted that having a permanent projector with a screen on the wall would be a help to the public and the Village Council, because it would improve the visual aspects in the room. Ms. Sonenfeld answered that the technology budget increases significantly year to year. She pointed out that when the discussion is about automating the Village, it always includes the fact that the technology in Ridgewood is very old and does not communicate well with the residents. Ms. Sonenfeld added that a contract was recently signed for spatial data, which will be implemented in the Building Department first, then to the Village Clerk’s office, the Village Engineer, and then to the Health Department. It is hoped that the first rollout in the Billing Department will be sometime around August 1st, with all necessary conversions and trainings completed by then.
Ms. Sonenfeld congratulated Dylan Hansen for being accepted into the Rutgers University CIO (Chief Information Officer) Program.
As far as the capital budget is concerned, there are some capital funds assigned to technology. Mr. Loving asked if Ms. Sonenfeld had the technology figures available. Ms. Sonenfeld responded that the total technology budget is $154,000 for 2015, which is an increase over the $118,000 budget in 2014. She emphasized the fact that the $154,000 represents only expenses, but there was also an increase in technology revenues.
Mr. Hansen explained that the “municipality in a box” software would be convenient for everyone, linking all departments throughout the system. It will help monitor everything from OPRA requests to building permits; requests from other departments; the Engineering Department; and the Health Department – dog licensing, just to name a few. Regarding the visual presentations in the courtroom, Mr. Hansen included money for putting in screens and replacing the projectors. Ms. Sonenfeld explained that in the capital budget, there is an allocation of approximately $30,000 for courtroom video and audio recording equipment. Mr. Hansen commented that he contacted other municipalities that have installed such equipment to find out how their systems are working in order to formulate a plan for Ridgewood.
Councilwoman Knudsen asked if there was an update available on the Village website. Mr. Hansen answered that there is a meeting scheduled for tomorrow at 4:00 P.M. Ms. Sonenfeld explained that a final review has been completed, the meeting tomorrow is to discuss what needs to be done next to get their website up and running. More information will be available next week. Councilwoman Knudsen asked who would be meeting, and Mr. Hansen responded that he would be meeting with Ms. Sonenfeld and Mayor Aronsohn. Ms. Sonenfeld added that one of the things that has not yet been prepared is a technology strategy, to determine the status of the technology now, and what the Village should be doing in the following years. Many municipalities do not have a technology plan or strategy, but Ms. Sonenfeld is now talking to the two municipalities in the State that do have such a plan. It is hoped that she can “borrow” their technology plans/strategies to help in formulating one for the Village. Ms. Sonenfeld is trying to avoid the necessity of hiring a consultant to come up with a plan, as the other municipalities did. She believes it is necessary to do this in order to figure out how to manage the different Village websites; and what the duties of the CIO should be relative to others. Ms. Sonenfeld pointed out that Dylan Hansen is one person, and he is handling all of the technology, network, phones, and any other technology need in the Village.
Councilman Pucciarelli commented about the Human Resource Director, saying that he was aware that there were some inconsistencies in the way policies were perceived. As a result, there was no pattern across the board with respect to entitlements. There was also a very large unfunded liability that was identified, and in order to address particular policies and procedures, it takes a professional Human Resources person who can author a policies and procedures manual. In addition, Councilman Pucciarelli noted that during the collective bargaining agreement negotiations, the labor lawyer was brought in at the end of the process, due to the fact that the new Human Resources Director was able to create a memorandum of understanding that was comprehensible and acceptable to both sides. It was then given to the labor lawyer for review and for the lawyer to turn it into a contract. That saved the Village a lot of money. Council Pucciarelli said he is convinced that investing in a Human Resource Director is an essential investment.
Councilwoman Knudsen asked about the number of employees shown on the budget information sheets, which she said she never saw before. It shows that there were 213 employees at the end of 2014, and there are now 209 employees. Councilwoman Knudsen asked if Ms. Sonenfeld had information on the breakdown of part-time and full-time employees within that number. Ms. Sonenfeld answered that each Councilmember has in his/her budget book the comparison of every department year-to-year. She also noted that the paper to which Knudsen referred was not correct, because the numbers had risen slightly.
There were no other comments from the public at this time, and Mayor Aronsohn closed the time for public comment.
Mayor Aronsohn asked the Village Clerk to read the title of the 2015 budget.
The Village Clerk read the 2015 budget by title:
2015 MUNICIPAL BUDGET OF THE VILLAGE OF RIDGEWOOD, COUNTY OF BERGEN, FOR THE FISCAL YEAR 2015
Mayor Aronsohn explained that the Public Hearing on the 2015 budget was now open. There were no comments from the public, and Mayor Aronsohn moved that the Public Hearing be closed. Councilman Pucciarelli seconded the motion.
Roll Call Vote
AYES: Councilmembers Hauck, Knudsen, Pucciarelli, Sedon, and Mayor Aronsohn
NAYS: None
ABSENT: None
ABSTAIN: None
3. RESOLUTIONS
15-147 Dedication by Rider – Performance and Surety Bonds
Roll Call Vote
AYES: Councilmembers Hauck, Knudsen, Pucciarelli, Sedon, and Mayor Aronsohn
NAYS: None
ABSENT: None
ABSTAIN: None
15-148 Dedication by Rider – Tax Sale Premiums
Roll Call Vote
AYES: Councilmembers Hauck, Knudsen, Pucciarelli, Sedon, and Mayor Aronsohn
NAYS: None
ABSENT: None
ABSTAIN: None
15-149 Adoption of 2015 Budget
Roll Call Vote
AYES: Councilmembers Hauck, Pucciarelli, and Mayor Aronsohn
NAYS: Councilmembers Knudsen and Sedon
ABSENT: None
ABSTAIN: None
15-150 Award Contract – Professional Parking Consulting Services – Hudson Street Garage (NTE $7,800)
Roll Call Vote
AYES: Councilmembers Hauck, Knudsen, Pucciarelli, Sedon, and Mayor Aronsohn
NAYS: None
ABSENT: None
ABSTAIN: None
4. ADJOURNMENT
There being no further business to come before the Village Council, on a motion by Councilman Pucciarelli, seconded by Councilman Sedon, and carried by unanimous voice vote, the Special Public Meeting was adjourned at 8:55 P.M.
PAUL S. ARONSOHN, Mayor
DONNA M. JACKSON, Deputy Village Clerk
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