Minutes of a Special Work Session of the Board of Trustees of the Village of Johnson City, New York, held at 6:00PM in the George Korutz Justice Building on April 29, 2009.

PRESENT: Harry G. Lewis Mayor

Richard Balles Trustees

Dennis Hannon

Bruce King

Monica Silas

Jeff Jacobs Attorney

Meeting Number Thirteen of the 2009-2010 Budget.

Mayor Lewis noted that due to the assistance of some of the Bargaining Units, the Budget currently stands at 4%. He noted that this includes the consolidation of the Planning Department. Mayor Lewis recognized Dee Golazeski’s years of service to the Village and accepted, with regret, her letter of resignation. He acknowledged that some units came forth and made offers and concessions to the Board.

Mayor Lewis opened the floor for Public Comment at 6:10PM

· Mary Hanzlik – 223 N. Harrison Street – inquired as to who does the book keeping for the Village.

Mayor Lewis noted that the Clerk/Treasurer, with assistance from the consultant, handles the accounting for the Village.

· Mike Tugwell – 127 Greenridge Street - inquired as to if two Police Officers will be in the academy.

Mayor Lewis answered in the affirmative. He noted that three letters were received from the Police Bargaining Unit withdrawing their letters of retirement. Mayor Lewis deferred to Trustee Hannon for further comment.

Mike Tugwell inquired as to if the Village Board knew the Police retirements were imminent given the hiring and eventual release of the new recruits.

Trustee Silas noted that two Police Officers are only going to be funded through the Police Academy and are not going to be hired unless there was going to be further retirements in the Police Department.

Trustee Hannon explained to Mike Tugwell the complexities of not allowing the recruits to complete the academy. He further explained that upon completing the academy the recruits would be certified, and could be hired, hopefully by the Village if retirements were submitted.

· Roxanne Eggleston – 1 Harrison St. Binghamton, NY – representing the Broome-Tioga Federation of Labor AFL-CIO read the following letter [enclosed] of support for the members AFL-CIO working for the Village of Johnson City:

The Broome-Tioga Federation of Labor, AFL-CIO, is a Council of unions representing over 15,000 members, including members living and working in the Village of Johnson City. We are writing to urge the Village of Johnson City to honor the contract obligations agreed upon in its collective bargaining agreements. The residents and workers of Johnson City deserve a local government that honors its agreements and lives up to its word. They are entitled to expect that their government will honor its contracts. Further, neither the residents, the workers, nor the employers of Johnson City will benefit by cuts that decrease the ability of the Village to provide for public safety and essential maintenance. Fiscal responsibility and good governance include maintaining essential public services. We urge the Village of Johnson City to honor its contractual agreements and its responsibility to the community to assure public safety and provide essential public services.

• Julie Deemie – 153 Zoa Avenue – inquired as to the firefighter savings as made mentioned by the Fire Fighter Local 921 and also inquired as to how many positions were being eliminated.

Trustee Silas stated that six (6) firefighter positions were being eliminated.

Julie Deemie inquired as to the savings of six (6) positions over a period of time relative to the cost of safety. She stressed the importance of balancing both monetary efficiency and services.

Trustee Hannon disputed the $480,000 figure that Julie Deemie was referring to as put forth by the Fire Fighter Local 921. He emphasized that the figure was for a two year period and the offer failed to mention the concessions that the Union demanded from the Village. Trustee Hannon expressed remorse at the misinformation and the half information given to the public. He noted that the Board has done research relative to the elimination of the positions and there will be no impact on services or on the taxpayers. He felt that the cuts were necessary and noted that the Department Heads will have to make adjustments and streamline, namely do more with less.

Julie Deemie inquired as to if response time would be compromised.

Trustee Hannon noted that the eliminations should not change anything. He emphasized that the changes will mean that the Chief will have to make adjustments to the groups and if necessary the Board can assist him.

· Greg Deemie – 153 Zoa Avenue – noted that since the firefighters are being eliminated, and the possibility of litigation appears likely, he inquired as to if the Village had a projected cost of this potential litigation.

Mayor Lewis acknowledged that this cost is unknown as it depends on the length of any potential litigation.

Greg Deemie inquired as to where the money comes from to pay for the costs for these proceedings.

Trustee Balles stated that the legal fees in the 2009-2010 Budget has been increased.

· Mary Hanzlik – 223 N. Harrison Street – made a comment relative to the Fire Fighter salaries.

· Mike Hanzlik – 223 N. Harrison Street – inquired as to if the six (6) firefighters should win in arbitration where will the retroactive money come from.

Mayor Lewis noted that the contingency fund is one resource.

Mike Hanzik noted that with the amount of positions this could be a considerable sum and that the Village may have to borrow to pay the firefighters should the Village lose in arbitration.

· John Sullivan – 701 Marian Dr – inquired as to how much money was taken out for Parks and Roads.

Trustee King stated that what remained in the Budget for Parks was $150,000, Roads was $145,000 and there was monies remaining for Road Repair. Trustee King mentioned CDBG from the Town of Union will also be used.

John Sullivan questioned the sales tax revenue change.

Trustee Hannon addressed Mr. Sullivan’s concerns.

· Lee Kovacic – 29 Martin Ave – commended the Board on the Budget. He felt that the Board was going the correct way and noted the Board should continue their actions if the Village is to continue to exist.

· Ron Heebner – 515 Riverside Dr - supported Mr. Kovacic’s comments. He spoke at length noting that he was impressed with the Board and how they went through the Budget process line by line, noting the difficult, but necessary decisions that were made.

· Liz Johnson – 2 Myrtle Ave – inquired as to if the Board was considering bonding anything.

Mayor Lewis stated that this remained a possibility if the Village had to come up with an arbitration settlement, or if an emergency situation arose.

Liz Johnson inquired as to if the two firefighters were suspended with or without pay.

Mayor Lewis noted that this is a personnel matter and he cannot comment.

• Milt Barlett – 816 Cyndy Street – inquired as to the percent of increase in the 2009-2010 Budget.

Mayor Lewis stated 4.0%

• John Sullivan – 701 Marian Drive – inquired as to if any members of the Board are in disagreement with the 2009-2010 Budget.

Trustee King noted that he was not in agreement with every line and this topic will be discussed during the vote.

• Patrick Corry – 46 Rose Lane – inquired as to why the Fire Fighter Local 921 offer was not taken and asked for an explanation of the cost figures of the concessions that the Village came up with.

Mayor Lewis stated that the Fire Fighter Local 921 added the manning clause and asked for the reinstatement of positions, therefore this offer was not accepted by the Board.

Patrick Corry asked for an explanation of the cost factors.

Mayor Lewis explained that $500,000 was needed for the 2009-2010 year alone. The Fire Fighter Local 921 offered a savings of $217,000 for 2009-2010 and an additional $300,000 was for 2010-2011. The Board’s position was that the entire amount was needed in 2009-2010. He also reiterated that the Local 921 attached positions to their offer.

Trustee Hannon stated that the concessions wanted from the Village was a manning clause. He emphasized that this was removed at the expense of a multi-million dollar contract. He felt that the concession of $217,000 in 2009-2010 alone would be taken in overtime.

• Julie Deemie – 153 Zoa Avenue - inquired as to who is responsible for Fire Inspections.

Mayor Lewis stated that the Fire Department is responsible for Fire Inspections.

Julie Deemie inquired if this is a generating revenue line.

Mayor Lewis answered in the negative.

• John Walker – 43 Lincoln Avenue – inquired as to the FEMA reimbursement and the overtime cost.

Jennifer Kakusian noted that the overtime cost was beyond the FEMA reimbursement.

• Mike Castelli – Hudson Street – expressed concern about the potential Police Officer cuts and public safety.

Trustee Hannon assured Mr. Castelli that there would be no less Police Officer’s on the streets. He noted that if the department strength drops below 41, there will be adjustments so the street strength is not compromised. There will be reorganization such that if, strength drops the Chief will make necessary adjustments to keep the Police presence on the streets.

Mike Castelli inquired as to if overtime costs might be effected.

Trustee Hannon stated that there should be no additional overtime costs as long as the bids were maintained.

Mike Castelli felt that the part-time Police Officers in the parks was a good idea.

Trustee Hannon concurred but stated this could, unfortunately, no longer be funded and thatthis had to be negotiated with the PBA which they were unwilling to do.

Trustee King requested a change to Budget line A3989.1. He deferred to Daria Golazeski, Director of Planning, to speak to this concern.

Trustee Hannon noted that this was discussed and settled last evening.

Daria Golazeski spoke to the position of Part-time Code Enforcer and its importance.

Trustee Silas felt that the position should still be omitted from the Budget.

Trustee King noted that it is not a revenue generating position but emphasized it rather as a position of safety and well-being.

Motion to amend resolution change A3989.1 to one part code at salary of $11,154 to reinstate made by Trustee King – seconded by Mayor Lewis.

Board members polled

Motion Failed Ayes 2 Nayes 3

Trustee Hannon Naye

Trustee Balles Naye

Trustee King Aye

Trustee Balles Naye

Mayor Lewis Aye

Trustee Balles stated that he understood the concerns of the Planning Director and that if problems occur, the Board will address them at that time.

Resolution #90 - Authorizing certain modifications to the 2009/2010 Tentative Budget of the Village.

Whereas, pursuant to Village Law the Village Board of Trustees may only revise the Tentative Budget after the public hearing on the Tentative Budget by resolution; now therefore be it,

Resolved that the following modifications to the 2009/2010 Tentative Budget be and hereby are authorized:

April 20, 2009: Original Revised

A8140.4 Storm Sewers Contractual $5500 $0.00

April 22, 2009:

A5110.1 Street Maint Personnel Services $371,010 $163,503

A5110.4 Street Maint Contractual Services $98,800 $100,500

A7140.4 Playgrounds Cont Expenses [Fuel Reim] $900 $500

F8310.1 Total Personal Services $98,425 $96,153

F8320.1 Total Personal Services $62,295 $73,429

F8340.1 Total Personal Services $328,747 $318,030

G8120.1 Total Personal Services $298,856 $460,161

EM8160.1 Total Personal Services $514,685 $494,685

EM8160.2 Total Equipment $107,300 $500

EM8160.4 Total Contractual $300,100 $297,100

April 27, 2009:

A1440.1 Personnel Services $59,794 $0

A1440.4 Contractual Expenses $0 $15,000

A3120.1 PD Personnel Services [Typist] $22,524 $0

A3140.1 FD Personnel Services [Fire Chief] $89,752 $83,173

A3140.1 FD Personnel Services [FF 1^st Grade] $1,719,032 $1,412,057

A3140.1 FD Personnel Services [FF 2^nd Grade] $39,031 $0

A3140.1 FD Personnel Services [Physical Fitness] $16,000 $9900

A3140.1 FD Personnel Services [OT Pay] $75,000 $50,000

A3140.1 FD Personnel Services [4 Hours] $123,895 $106,155

A1120 Non Property Taxes Distributed by BC $2,790,000 $3,200,000

A1170 Franchise Fees $165,000 $175,000

A1230 Treasurer’s Fees $2000 $2400

A1255 Clerk’s Fees $500 $1000

A1520 Police Department Grants $17,000 $21,000

A1710 Public Works Services $4000 $3500

A2501 Business & Occupational Licenses $16,000 $20,645

A3089 NYS Administrative Aid $0 $18,000

April 28, 2009:

A1440.1 Planner Personnel Services $4000 $1200

A1440.4 Planner Contractual Expenses $1400 $550

A3120.1 PD Personnel Services [4^th Grade] $93,596 $29,820

A7620.4 JC Senior Citizens Center $5000 $6000

F8340.2 Equipment $76,000 $68,611

F8340.2 Equipment $0 $53,000

A2665 Sale of Equipment $4265 $14,265

A2701 Refund Prior Years [Pagoda Grant] $0 $79,000

Motion made by Trustee Hannon – seconded by Trustee Silas.

Board members polled.

Motion carried. Ayes 5 Nayes 0

Resolution #90A - Authorizing certain modifications to the 2009/2010 Tentative Budget of the Village as noted by Clerk/Treasurer Jennifer Kakusian.

Motion made by Trustee King – seconded by Trustee Balles.

Board members polled.

Motion carried. Ayes 5 Nayes 0

Trustee Hannon emphasized the spending freeze put in place January 2009, and noted the previous evening by Jennifer Kakusian. He felt that the reason there was a General Fund Unappropriated Balance was due to the spending freeze, the Police Department was $200,000 under budget and there were other items outlined by Jennifer Kakusian last evening. Thus, he felt that the Board could move $86,400 from the Unappropriated General Fund Balance to the General Fund to bring the tax rate down from 4% to 3%. He noted that Jennifer Kakusian had advised not moving more that $130,000, as in years past and he would be comfortable moving $86,400 for residents.

Resolution #90B – Authorization to move $86,400 from the Unappropriated Fund Balance to General Fund.

Motion made by Trustee Hannon – seconded by Trustee Silas.

Board members polled.

Motion carried. Ayes 5 Nayes 0

Resolution #91 - RESOLUTION ADOPTING ANNUAL BUDGET FOR 2009/2010

WHEREAS, The Village Board of Trustees of the Village of Johnson City having, on the 13th day of April, 2009 commencing at 7:00 o’clock P.M., duly held a public hearing on the tentative budget filed with the Village Clerk for the fiscal year commencing June 1, 2009 and having heard all persons desiring to be heard in the matter and the matter of the budget for this Village for such fiscal year having been fully discussed and considered, it is

RESOLVED, that the said tentative budget, with such modifications and adjustments as approved by the Board of Trustees, is approved and established as the budget for the Village for the fiscal year beginning June 1, 2009 and that such budget as so adopted be included and attached to the minutes of the proceedings of this Board of Trustees.

Motion made by Trustee Hannon –seconded by Trustee Balles to adopt the 2009-2010 Budget at 7:30 PM.

Trustee King read from the following prepared statement:

I believe we are stewards of our earth, our community, and our neighborhood. The costs for caring for our community rest on the taxpayers in our society. Whether or not we utilize specific services they do exist and are utilized by many in our community and also by the visitors here in Johnson City on a daily basis. I have talked to many residents of our Village and listened to their ideas and comments. What I hear is “we love our Village and the services that it provides”, some say they don’t mind paying for these services, and some say “but at what cost?” I also spend time talking to employees, department heads, and bargaining unit leadership. What I hear from them is “We like our jobs, we want to see the Village succeed, we need the tools and staff to do the job right the first time, and we will help however we can”. A lot can be accomplished if we sit down and have open, honest dialogue. As many of you know The Village Board, Village Clerk and the department heads have worked many long hours to get this budget pulled together and ready on time. Through many hard decisions and discussions we have a budget. All the bargaining groups have stepped up and offered suggestions, concessions and their support to keep Johnson City a viable and prosperous Village, even in these tough times. To all I say thank-you for your honesty and support.

As you may know my concerns with this budget are strictly based on the safety of our residents, visitors, and our employees. We must work to provide police and fire coverage in an efficient and cost effective way, but we must give them the equipment and manpower needed to do the job as safe as possible. I am frustrated and embarrassed that this board cannot sit down with the Police or Fire Units and sit there till the job is accomplished. It seems to always be “let them make us an offer”. I also hold the bargaining unit boards accountably for some of these issues. Two years, three years without a contract……..Unacceptable!!!!! The police could have at least met with us and I hope they will still consider doing that so we may avert any cutbacks in police staff. I would ask the Mayor to set up a meeting between the Police and Fire units and the Village negotiating teams. The Fire unit offered in excess of $700,000 in salary increase givebacks. They in turn wanted some concessions from the Board. Instead of saying we can’t give you that come in and let’s see what other ways we might work this out as a team, the Board gave them a last minute offer that was clearly unattainable. I am in hopes that we still might accomplish something that will save Fire Fighter jobs. Again I thank you to all the employees that helped put this budget together and I would like to also thank the public for their comments and suggestions.

Trustee Balles read from the following prepared statement:

This years 09-10 budget is obviously the most arduous and one of the most challenging in terms of “ personnel employee” sacrifices that I can remember being on this Village Board over the last 11 years. As the governing body of Johnson City, our Village Law Section 4-412 empowers us with the fiduciary responsibility to have financial control of the management of Village Property, finances, operational management & business, protection of property, and the safety, health, and general welfare of its inhabitants. I take this fiduciary responsibility very seriously and I know my fellow colleagues on this Village Board do as well. We all know the very tough economic times we are faced with today and the economic hardships we are all facing. We are also facing a national recession and our own personal finances have taken a huge hit. I am also sure that each and everyone of the hard working residents in Johnson City who live, work, and pay taxes in our Village are also cutting back to ensure that they can keep their home and personal budgets in-line. Our community has a high rate of fixed income taxpayers. We are hearing from many residents who are saying “no more taxes” and “please stop the unnecessary spending & borrowing.” What we are also witnessing and hearing about are so many good people leave our state for better working conditions and greener pastures elsewhere. Many businesses cannot borrow or make payroll. Many families cannot pay their bills or their mortgage. Many workers are watching their life savings disappear, and many of us are both anxious and uncertain of what the future will hold. In Broome County, census data shows that 13.0% of the population has an income below the poverty level, compared to the statewide rate of 14.6%. The median income is $35,347, which is below the state median income of $41,994. Sixteen percent of Broome County’s children age 0 – 17 live in poverty. Broome County’s elderly population is higher than the State and National averages. According to Census data, persons aged 60 and older represent 21% of Broome County’s population. The fastest growing population group is those ages 85 and older. For those persons age 60 and over, 7.0% live in poverty. Also, in the Village of Johnson City our population continues to decline and not increase which is a sign of bad economic times. But I do believe we can turn this around if we start by reducing our tax base to the public, looking at ways to streamline our government, attract more jobs, improve our down town, and work out a long term economic plan that will revitalize our village. In March of 2009, our Treasurer provided the Board a tentative budget with the potential increase in taxes in our Village of 29 % for FY 2009-10. This year’s budget reductions have come with some personal hardship that unfortunately was hard to avoid. There is no one on this Board that wanted to take the action of abolishing any position. We as a Board are all very sympathetic to the employees that may have to leave, but after much discussion with our Department Heads and Unions it was apparent that the need to cut staff had to happen in order to provide the taxpayers a fiscally responsible budget. Each Department was also given an opportunity to cut back at least 10-15% from their original budget & also each Union was contacted to discuss any contract concessions that would assist the Village Board with cost reductions in our 09-10 budget. Each Department submitted plans, but I wanted to recognize the DPW Department because they showed the Board and the people of Johnson City that they were willing to sacrifice two years of salary reductions in order to save possible cut in employee positions. In the DPW Department we have the Water, Sewer, Refuse, Streets, and Parks Department. In the DPW, we have very hard working employees who on every day pick up your garbage, clean your streets & parks, maintains our sewer & water systems. I want to publicly say thank you to our DPW superintendent of Public Works Bob Bennett, Union president Mr. Ken Fortier, Union representatives, and all employee members for your personal sacrifice in helping this Board meet some of our cost objectives.

The Police Department Union could not obviously commit to any cost reductions because we are currently in contract arbitration, but Chief Doug Potts did help the taxpayers out by cutting back within his department and should be applauded for his efforts. In our Fire Department, A/C Bob Dempsey did provide some cost reductions in his expenditure items relative to his equipment line items, but in order to achieve our final cost objective goals for FY 09-10 we had to meet with the Fire Department Union. The Fire Department Union was very aware of the Village’s financial troubles and the union did submit cost saving alternatives, but their final offer was cost prohibitive, because it came with conditions. In today’s news article dated April 29, 2009. Marty Meaney, president of Johnson City Professional Firefighters Local 921, said the fire department offered concessions of nearly $500,000 by forgoing pay raises, but the village would prefer to fight the matter in court. These comments that the Village would prefer to fight this matter in court is not true. Prolonging the litigious process makes the taxpayer suffer when the Board is trying to make fiscally responsible decision to the benefit of the taxpayer. The article did not explain that the $500,000 offer contained savings of $147,000 in FY 09-10 and the balance in FY 10-11, but the offer was contingent upon the following: Add back- A/C position, Code Inspector, incorporate the minimum shift strength staffing level to 7 men, and agree that all legal proceedings by both sides cease. In our other departments such as the Courts, Planning, Recreation, and Clerk/Treasurer; all of these departments provided some cost savings in order to help us try to reach our final cost objectives. Debt within our Village continues to rise. Fiscal Advisors & Marketing was at our Board meeting a couple months ago to discuss are long & short term debt plus bond ratings. They stated that our percent of debt contracting power exhausted is at 23.56%. This also means that the Village of JC is currently at our issuing capacity of 78.98%, or closer to 80%. This indicates that we are in the danger zone – negative impact on budgetary flexibility & property taxes. In regards to our debit limitations. I was very happy to see that we did no borrowing this year in 09-10 budget and the entire board should be commended for this action. Stretching out the burden of financing long-lived assets promotes equity among generations of taxpayers and helps to maintain stable tax rates. However, excessive reliance on debt, especially if it is used to finance operating expenditures like salaries, is often the first sign of fiscal strain. Ladies & Gentlemen, we don’t have the luxury, as we did 10, or 20 years ago, of expanding local government. We are in the mist of the greatest recession since 1930 and based upon the financial experts being quoted today our economic downturn could get worse before it gets better. We must find ways to eliminate waste, reduce spending, hold the line on tax increases, and encourage our employees to do more with less. We must also work together as a Team, and let the taxpayers know we are listening and working for them. If we don’t, then our quality of life and tax base will continue to suffer. This is what our Village taxpayers have been asking for and this is what they deserve.

Trustee Hannon noted that Ken Fortier, President AFSCME 3718, handed the Board a note and read this note which stated:

The concessions and sacrifices agreed on by the Public Works/Water Department underscores the strength of the longstanding relationship between the Village and the Union as well as our commitment to its residents. I hope this goes toward the long term health of Johnson City.

Trustee Hannon commended the DPW. Those in attendance applauded.

Board members polled.

Motion carried. Ayes 3 Nayes 2

Trustee Hannon Aye

Trustee Balles Aye

Trustee King Naye

Trustee Silas Aye

Mayor Lewis Naye

Mayor Lewis noted that the Board worked very hard on the Budget and thanked them for their efforts.

Resolution #92 – Authorization for Mayor to sign agreement with Excellus Blue Cross Blue Shield for renewal of health insurance plan for active employees and retirees under age 65.

Motion made by Trustee King –seconded by Trustee Hannon.

Board members polled.

Motion carried. Ayes 5 Nayes 0

The Work Session was adjourned at 7:37PM. Ayes 5 Nayes 0

ADJOURNMENT

____________________________________

Jennifer Kakusian, Village Clerk/Treasurer

Motion made by Trustee King – seconded by Trustee Balles to enter into Executive Session at 7:44PM to discuss a employment of a particular individual.

Jennifer Kakusian left at 7:51PM

The Executive Session ended at 9:45PM per Mayor Harry Lewis.

NO ACTION TAKEN IN THIS PORTION OF THE EXECUTIVE SESSION