March 29th Budget Commission Meeting... by Bob Rodericks

City Budget Commission Busy …

(Meeting of March 29th)

Water Rate to Increase:

Make no mistake about it, the cost to East Providence residents of using water is going up. Commission chairman Michael O’Keefe said that the commission could “just implement it without public discussion” but O’Keefe wants the public to hear him out. “People aren’t going to like the new water rate, but it needs to be done. I want the public and the city council to hear our reasons and to give us input,” said O’Keefe. “People will like it less if we wait and fix the system later rather than earlier,” he added. O’Keefe said that although the water rate fee really isn’t a tax, he is treating it like one. “We should advertise a hearing, go to the city council and listen to the public. At the end of the day, we will have done this right,” said O’Keefe. According to a March city presentation the new rates “assumes 5/8” meter and approx. 73,000 gallons annual consumption less annual exemption of 3,500 cf.” City administrators estimate the average homeowners bill to increase from $461 in fiscal year 2011 to $566 in 2013. The public hearing is set for the April 17 council meeting. See a draft of the wastewater rate study at http://www.eastprovidenceri.net/filestorage/619/E__Providence_Council_Presentation_(3-6-12)_Final_DRAFT.pdf.

Some Good News:

Chairman O’Keefe did say that he felt things are “moving along and we see some good news today.” O’Keefe told the commission members, including Mayor Bruce Rogers and other state appointed members, that “we’re making decent progress.” City Finance Director, Ellen Eggeman reported that the “cash flow issue will be difficult through about the middle of May. However we intend to send tax bills out early – in May, instead of June – as a way of getting a better cash flow,” she said. O’Keefe asked about the financial status for this fiscal year. “I estimate that the city should end the fiscal year with a $1.5 million surplus and the school department will have a $1.3 million deficit,” predicted Eggeman. “Well that’s a cumulative 0.2 surplus which is good news,” added O’Keefe. Also putting a smile on the face of O’Keefe was the projection that the city will be current on all its outstanding bills by summer. “This is big,” O’Keefe told commission members. “Well, I also want to say that the commission has now met with every department in both the city and school departments. We have made cuts and consolidations and the next round of savings will have to come from contract (union) negotiations.

Looking at Everything:

The commission is looking at every possible function of city and school management. O’Keefe told the Reporter after the meeting that “we are here at least 3 days a week, 10 hours a day or more,” he said. The commission even has jurisdiction over the operation of the carousel at Crescent Park. Annual seasonal hiring of part-time park workers has been on hold, awaiting commission approval. The commission will allow the hiring of some 20 temporary carousel workers, but not until a “written” plan is developed for advertising and interviewing applicants. “How will you handle 200 applicants for the 20 jobs? Are all your procedures in writing,” asked O’Keefe. “Well, no, we talked about it but we will get it down in writing,” said Eggeman. Traditionally, Crescent Park has an Easter time opening which attracts hundreds of visitors.

Parks & Recreation Fees:

The commission has been totally revamping the fee structure within the city parks and recreation division. “The fee structure is a little out of whack,” O’Keefe told members. “I want the recreation department to fund 15% of its budget for 2013; go to 20% in 2014 and fund 25% from fees from 2015 to 2017,” outlined O’Keefe. O’Keefe said that he found East Providence was charging almost 20% less for its facilities than other public and private venues. “The ultimate goal is to see an operating budget made up of 25% user fees and 75% from the tax base. I guess frequent users won’t be happy but those who never use (the recreation sites) will be happy,” opined O’Keefe. The Director of Parks & Recreation, Alba Curti, reports directly to the City Manager. Seven full-time employees staff the Recreation Division. The staff includes an Adult Services Coordinator, Recreation Center Manager, Recreation Center Supervisor, Pierce Athletic Complex Manager, two laborers and one Administrative Assistant. There are over 70 seasonal employees who assist with a variety of programs sponsored by the department. The city did not replace long time recreation director Joseph Crook when he retired, opting to name the assistant director, Curti, as its new director. For a list of current fees for city recreation venues, go to: http://www.eastprovidenceri.net/, parks & recreation.

Rainy Day Fund:

The commission wants to establish a charter provision to provide for a rainy day fund which the city does not have. O’Keefe wants the city to look at limit spending to 99% of anticipated revenues. The other 1% would go into a budget reserve or rainy day type fund. O’Keefe also wants the city to deposit money from the sale of city and school property into this fund. O’Keefe left the specific amounts up for further discussion and other operating requests remain. “I want it as a charter provision so it is not subject to change through the years,” advised O’Keefe. Historically, school department officials in the past have had their requests to save a capital expense budget, denied.

Change Ordinance for Layoffs:

O’Keefe and commission members were frustrated that city ordinance language states that ‘no regular employee shall be laid off while another person in a classified position is employed on a provisional or temporary basis in the same class’. The commission agreed that this needs to be changed after bringing it back to the city council. Mayor Rogers agreed but wanted it discussed before the council. O’Keefe wants the city to reduce the highway division by 6 laborers through attrition. O’Keefe does not want the school department to fill a vacant plumber’s position. “They (schools) can pay someone as needed for more complicated jobs but anyone can use a plunger on clogged drains, etc.,” said O’Keefe. “That isn’t too difficult to do,” he said. “That’s ok,” said a high school official not wanting to be identified. “We’ve got plenty of clogged drains and will need lots of plungers”, he mused.

No More Birthday’s Off!

The commission chair also wants to address some items in upcoming contract negotiations that he sees as costly or unneeded. “We have saved money in lots of areas but we need to look to contract negotiations next. Does anyone really need a birthday as a paid day off? Some holidays are ok, but let’s look at it all,” said O’Keefe. The Reporter could not readily determine if any city worker actually gets a birthday off with pay.

Why is O’Keefe Making Progress?

The Reporter asked O’Keefe why he seemed to be making some progress in deflating East Providence’s budget deficit, when local officials evidently could not. “Well, we’re (thecommission) here three days a week or more, exclusively looking into the budget. It’s easier to sit down with every department. We have extensive budgeting experience and I’ve done this before when the state was dealing with the credit union crisis. I am also dealing with a 5 year budget development,” O’Keefe said. What O’Keefe didn’t say is that he has total authority to implement actions, mostly without any local approval. The budget commission has five members. Three are from the state Department of Revenue; Michael O'Keefe, Chairperson, Diane L. Brennan and State Police Major Stephen Bannon. The City Representatives are Mayor Bruce Rogers, and City Manager Peter Graczykowski. The commission is also assisted by two staff fiscal advisors, Christy Healey and David Eaton. The Commission was established by the Governor on December 20, 2011 and will remain in existence until abolished by the Director of Revenue. Residents can email the commission at: EP.BudgetCommission@revenue.ri.gov. Asked if he was optimistic about this process, O’Keefe responded, “we’ve got a lot of hard work to do yet.”