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Annual
City Meeting March 7, 2006 7:00 AM to 7:00 PM City Hall Auditorium, 39 Main Street Manager's Message
Message from the City Manager
Goals & Priorities • Ballot
Questions • City Budget • Overview
• Specifics • Conclusion
• Appreciation
It’s a great honor to present my 11th budget and annual report to this wonderful community. This has been a very busy year marked by deliberations over land use plan- ning, a comprehensive review of all the city ’s operations and expenses, the retirements of two key depart- ment heads and the year end rock slide on Elm Street. Goals and Priorities On May 25, 2005, the City Council, after conducting an April 4th workshop meeting, adopted of a series of priorities for the year. This statement strongly influences decisions, staff work, policy recommendations and budget proposals throughout the year. The 2005-2006 priorities were:
Key Action Items: 1 – Allow sufficient time for through budget analysis and review 2 – Move Carr Lot project and Urban Renewal District forward 3 – Enact Zoning for Sabin’s Pasture by December 1 4 – Complete and approve “Mini Master Plan ” 5 – Improve Water Source Protection at Berlin Pond 6 – Complete Energy Plan Ballot Questions: Article 9 - Bond vote for up to $380,000 for improvements to city facilities (City Hall, Fire Station, DPW garage) including generators, wiring, replacing underground fuel tanks, roof repairs and other items. This is the continuation and completion of a project approved by the voters two years ago. Many people saw the scaffolding on City Hall for roof and window replacement work. Costs of the initial phases of the project ran higher due to additional work needed. This funding will complete those improvements. Article 10 - Bond vote for up to $485,000 for bridge improve- ments.This will fund the city’s 10% share of the Langdon Street Bridge replacement project scheduled to be completed this summer by the Vermont Agency of Transportation.It also funds repairs to the Memorial Drive bike path bridge which has had some unexpectedly severe rusting problems. Finally, it will convert the city ’s interfund loan (from the water fund to the general fund) for the Pioneer St. Bridge prohect to a straight bond. Due to a change in accounting standards, this refinancing will help restore the fund balance to a healthier level. Article 11 - Bond vote for up to $1.2 million dollars for stabilization and repair of the rock slide on Elm Street and Cliff Street. At this point, it appears that most, if not all, of this project will be funded through state and federal emergency funds. This bond authorization, however, is necessary because the city will need to incur some advance costs before being reimbursed. It also provides a back up funding mechanism in the event that, for some reason, state/federal funds are not approved. Article 12 - Request for authorization for $52,000 to be placed into the Affordable Housing Trust Fund. The creation of this Trust Fund and appropration of a similar sum of money was approved by the voters last year. The Trust Fund steering committee was created, guidelines for the use of the monies adopted and project applications are currently being reviewed. This article would add more money into the fund. The amount requested is equal to one cent on the property tax rate. This item was placed on the ballot by the City Council upon request of the Housing task Force. Article 13 - Additional $96,000 in funding for the Kellogg-Hubbard Library. The City Council placed the item on the ballot after receiving a petition from the requisite number of registered voters. This funding would be in addition to $99,660 for Library operations and $52,834 for Library bond payment already contained within the city budget. Article 14 - $57,335 funding for the School Resource Officer. Police officer position working out of the schools and primarily with young people and their families. Item was removed from the school department budget by the school board. The City Council placed the item on the ballot after receiving a petition from the requisite number of registered voters. Under the Vermont education funding formula, it will cost local taxpayers less money if paid as a school item. As presented, the position would be funded 75% by the Schools and 25% by the City. Article 15 - An advisory question about fluoridation of the city’s water supply. The City Council placed the item on the ballot after reeeiving a petition from the requisite number of registered voters. Article 16 - A resolution calling on the Governor and Legislature to use education funds for education uses only. The City Council placed this item on the ballot upon request of the Vermont League of Cities and Towns. Other articles - Voters will note that, again this year, the Council has eliminated the long list of outside agencies from the ballot. Most of these items, which have been approved by voters in previous years, have been included within the City’s base budget. The City Budget The FY07 budget preparation had severe challenges. If we had simply rolled over all the items from the current budget to next year’s, we would have faced a whopping and unacceptable 14 cent ($0.04) tax increase. Several reductions and changes needed to be made to reduce that increase. Major increases in fuel and electrical costs have had heavy impact throughout our operations. Inflation jumped up to 4.3% after hovering in the low to mid 2’s and low 3’s for quite a while. Employee pension costs had an unplanned increase due to a law suit brought by the unionized employees. Fund balance reserves, which have been used to hold the tax rate down in recent years, were not available this year. We have continued equipment needs, demands for expanded capital projects, increased demands for services on our work force, and a stag- nant pool of available revenue sources. In the meantime, we have been steadily trimming the city ’s budget since the 1980’s so our choices become fewer each year. One positive item was a much lower than normal change in employee health insurance costs.Insurance rates increased at a much lower level than anticipated. That coupled with a 5% increase in employee contributions to insurance held our insurance costs steady for a year. We also continue to reap some benefit from anticipated employee retirements and the ability to bring some (but not all) newer employees in at lower pay rates. Overview: The current Budget proposal contains the following:
The General Fund budget totals $8,415,548 which is an increase of $422,537 (5.3%)from the comparable FY06 spending plan. While this is a big increase, it's fair to note that the two prior year budgets only increased a combined total of 3.2% making the three year average only 2.8%. I don't like to resort to rationalization but point out that many if not most municipal budgets have exceeded a 2.8% annual increase in this same time frame. The budget also includes $121,638 in items which are either existing items being accounted for differently or items with direct new revenue offsets. When these are backed out,the "apples to apples" budget increase is $300,820 (3.8%) - right at the inflation rate. Major items in the budget include an increase of $143,354 (44.2%) in salary and wage costs (including the new Code Enforcement position, a restored Finance Director position, a restored Community Development position) and $78,546 (5.8%) in employee benefit costs mostly due to pension increases. $6,500 (-0.7%) decrease in the capital program; $9,396 (-3.8%) decrease in the Equipment Plan; and an increase of $284,494 (18.0%) in other operating expenses. Community Expenses decreased $67,961 (-16.11%). These changes are supported by the substantial $187,878 (7.3%) increase in projected non-tax revenues.The other major sources of revenue are tax related income (interest and penalties), fees for services,and transfers from the proprietary funds.In addition the grand list value is estimated to grow by about one percent for next year.$49,984 in new revenue has been budgeted for state inspection and plans reading service fees. The net effect is that $5,666,190 in property taxes must be raised to finance the base municipal budget. The tax rate to support these revenues would be $1.08 which is 3.0 cents, and 2.9% higher than the $1.05 tax rate for comparable programs in FY06. Services: This budget maintains the level of service in most areas. Administration - This includes Council, Manager, Clerk/Treasurer, Finance, Assessor, Technology and Tax Collection. A part time position in echnology has been added.his includes first full year funding of the contracted Assessor ’s position and restoration of the full time Finance Director position. Planning & Development – No changes in departmental structure are proposed. The budget calls for the CD/Housing Specialist to be funded at 100% (up from 60%) with grant funded revenue to offset the increase. Code Enforcement – Includes $70,466 in expenses, $49,894 in new revenue from, state inspections through a contract with the Department of Labor & Industry and local health inspections, additional revenue from local building permits and a cut in the health officer account of $88,772 requiring no net new taxes for this position. This will be to implement a full time Code Enforcement program operated within the Fire Department which includes rental housing inspections, building inspections, health inspections and permit administration Police/Dispatch - Funding anticipates transition of two senior sergeant positions due to retirement. Fire/EMS - No changes in staffing or service levels are proposed. In the past year, the department has taken on building inspection duties. Public Works – Basic staffing and service levels have been maintained. Anticipates retirement of senior personnel and a potential re-aallocation of supervisory assignments. Capital Projects - Funded at $943,500. In FY07, annual project funding totals $288,599, which is an decrease of $58,100. This is anticipated to be the lowest level of annual funding until after FY12. The budget includes $654,901 in anticipated debt payments. However, $43,597 in projected debt payments for the rock slide are included in these numbers. If the city does not need to bond for these costs, this money will be converted back to annual projects as originally planned. Community Enhancements - All community enhancement programs, events and agencies funded in FY06 are included within the city ’s budget. These include the Community Justice Center, the Montpelier Downtown Community Association (MDCA), Community Arts Fund, Green Up Day, Independence Day celebration, First Night, Wood Art Gallery, Capital City Band, Diversion program, Welcome Legislators reception, Holiday Lighting, and the USS Montpelier museum. Small increases in event funding have been made s a re-allocation offunds which formerly went to the Onion River Arts Council. Kellogg-Hubbard Library - I have included $99,660 in funding for the library which is the same amount they received last year. The library has requested an additional $6,135. Green Mountain Transit – $27,972 in funding is included for GMTA which is the same amount as last year and what they requested this year. Parking Fund - Contains no transfer from the General Fund and is presently balanced on paper as a result of cost allocation changes and recently approved fee increases. Parks Fund – Maintains basic level of services. Increase in tax funding of $8,480 is to address overdue repair (Hubbard Tower Stairs) and equipment needs. Cemetery Fund – The Cemetery Commission requested the same amount of tax funding from the city as in FY06. Water/Sewer Funds - These budgets have recently been reviewed carefully in conjunction with the rate increases. They are balanced and in good shape. As a result of the rate increases, we are not recommending a one cent increase in the CSO benefit charge this year as had been originally planned. We will assess revenues under the new rate structure and determine whether this increase needs to be implemented with next year's budget. Key Areas of Focus: There were some very identifiable costs and issues which impacted this year's budget. I’d like to call them specifically to your attention and also mention some additional challenges that you will face. Specific key problems are:
We have become accustomed to budget challenges over the years. This year, however, presented an accumulation of factors – some unexpected and some building from prior years - which together created some major hurdles. At the same time, we are trying to successfully position the city government for the many transitions in personnel and leadership that we expect over the next two years. I am concerned, as I have been the last two year, that the city government is not fully able to meet the accumulated expectations of high services. This budget represents hard work to address the many goals the Council and community have articulated for us. While the proposed 3 cent ($0.03) tax increase is the highest since 7 cents ($0.07) in FY99, 6 cents ($0.06) in FY00 and 5 cents ($0.05) in FY01 it represents perhaps some of the most difficult work to achieve under the circumstances. It also needs to be placed in context – in the five years since FY01,the municipal budget has only gone up 4 cents ($0.04) in total. This proposed increase would make the average annual increase over 6 years only 1.17 cents or 0.9%. Its our opinion that this tax proposal can only be reduced if we re-visit policy choices in areas like the capital plan,the equipment plan, use of fund balance and direct service levels to the community. Appreciation: I would like to thank the dedicated individuals who deliver local government services to Montpelier residents 24 hours per day, seven days per week, 365 days per year. City employees work under difficult circumstances and dangerous situations so that residents may have clean water, effective sewage disposal, safe and clear roads, quick and effective fire and ambulance response, responsive and preventive police work, comprehensive planning and review of local development, wonderful parks/facilities and proper administration of citizen's needs. They are highly trained in specialized fields. I thank all of them for their excellent work. These public servants perform these tasks to earn a living, yes, but more importantly to provide a service and an opportunity to help others in the community. I am proud of all of Montpelier's employees and know that they are hard working, dedicated and incredibly capable. Montpelier's experienced and talented Department Heads are second to none throughout the state. Assessor Caroline Lockyer, Fire Chief Norm Lewis, Police Chief Doug Hoyt, City Clerk/Treasurer Charlotte Hoyt, Public Works Director Steve Gray, Finance Director Sandy Gallup, Planning Director Valerie Capels, Parks Director Geoff Beyer and Cemetery Superintendent Patrick Healy work together as a highly efficient team while also managing their respective areas of responsibility. Assistant City Manager Beverlee Pembroke Hill holds everything together while making continual improvements. Bev is most often seen out in the community, at the legislature and in the middle of any number of meetings. The City has benefited enormously from her many talents, dedicated service and enthusiastic attitude. During 2005 we saw some wonderful employees leave the city for other opportunities. We wish the best of luck to Truck Driver Curtis Ashline, Police Officer Donald Murray and Firefighter Brian Donald and thank them for their contributions to the city and its residents. We also had some very valuable employees choose to retire. Mechanic Glenn “Frenchie” French hung up his tools after nearly 30 years with the city. He was a dedicated worker who will be missed. Finance Director Jana Bagwell retired after five wonderful years. She was instrumental in upgrading all of the city ’s financial systems and has been an integral reason why we have been able to hold the line on our budgets and tax rates in recent years. She had an incredible work ethic and a wonderful attitude. As an indication of her dedication, she officially retired in October yet stuck around to complete the budget and work on issues until her successor began work in December. Finally, of course, there’s Steve Gray. Steve has been Public Works Director for 33 years since 1974 and worked for the city since 1969. He is the quintessential public servant. There are few people anywhere who command the respect and admiration that Steve does. His accomplishments and contributions are far too long to be listed here. It's been an honor for me to have worked with him and I know many others feel the same way. As much as we hate to see valued employees leave, we enjoy welcoming people who bring new experience, credentials and enthusiasm to our ranks. In 2005, we added Assessor Caroline Lockyer, Finance Director Sandy Gallup, Police Officers Andy Apgar, Joshua Macura and Marc Poulin, Mechanic Tyson Blouin, Wastewater Treatment Plant emplopoyee Steven Rubalcaba, Water Treatment Plant operator in training George Hood, Firefighter/EMT Galen Thereault and DPW Stock Records Clerk Dolores Codling. And right before this was sent to press, we announced the hiring of Todd Law as the new Public Works Director. I thank the Mayor and City Council Members for their consistent support of the city staff and for the huge amount of time they commit to the community. This past year saw Council Members David Grayck and Chris Smart say farewell to City government and we welcomed Council Members Tom Golonka and Nancy Wasserman to the council chambers. I also thank all the many citizen volunteers on our boards, commissions and committees for the long hours they devote toward the honorable purpose of serving their fellow residents. They face controversy, tough decisions, pressure and public criticism yet continue to offer their time, energy and expertise. Our democratic form of government relies on citizen participation for success and these individuals deserve the utmost in respect and appreciation for their dedication. I encourage more citizens to run for office, apply for appointments and volunteer for committees. After eleven years, I’ve run out of superlatives to describe Sandy Pitonyak and Jane Aldrighetti in the City Manager ’s office. They are certainly deserving of the highest praise possible. The two of them epitomize dedication to the public, out- standing efficiency and “service with a smile”. I hope that the public appreciates them both as much as I do. As always, I sincerely thank my family for their love and support. My wife Anne and our children Olivia, Patrick, Claire and Angus provide humor, balance, a sense of priority and occasional humility when needed. Having our family grounded and involved here in Montpelier gives me a full sense of commitment and mission to this work and community. Anne gracefully and successfully balances the demands of four school aged children, her own community involvement, a part time job, a husband with an often unpredictable job and sometimes uneven personality. She frequently gets saddled with the unenviable task of being asked to answer for my decisions. She offers great advice, honest feedback and clear thinking. Respectfully Submitted, WILLIAM J. FRASER,City Manager For More Information
Updated May 12, 2006 |
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