ORDER-2016-145 : Appropriation of $547,246.05 From Available Free Cash To: A/C #84044-490000 - Contract Stabilization Fund, Transfer In - $349,746.05; A/C #84054-490000, Capital Stabilization Fund - $197,500.00 as set forth herein.

Transcript (~11 min @ 19:12)

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▶ 18:43 Peter D. Mortimer: We have a motion to recommend from Alderman Boycelle, duly seconded by Alderman Lemmerman. All in favor, please say aye. Aye. Any opposed, hearing none, this order will be recommended for passage at our next full board on Monday, May 2nd. Thank you very much Chief, thank you for your attendance this evening. The next order we have before us is order 2016-145. It is an appropriation of $547,246.05 from available free cash. To account number 84044-49000. Contract Stabilization Fund, transfer in 349 account number 84054-490000. Capital Stabilization Fund, $197,500 as set forth herein. This was offered by Mayor Dolan and referred to the Committee on Appropriations. We are still under suspension, so Mr. DelaRusso, would you and your colleagues please come up?

▶ 19:56 Peter D. Mortimer: you'd like to make a prefatory statement I'll proceed directly to the colloquy

▶ 20:02 Speaker 2: mr. chairman if I may through you to the members of the committee the portion of this order devoted to the contract stabilization fund is intended we do this on an almost annual basis to offset any potential expenses the city incurs in connection with collective bargaining we are currently out of contract for almost two years with the fire union and for one year with both public safety police unions so the bulk of this money is intended to offset any increased expenses the city may incur in reaching agreement I would also say that this amount also reflects a very conservative approach when it comes to compensation increases for union and non-union employees as I understand some of the funds in the Contract Stabilization Fund may also be utilized for non-union wages. So it represents a very conservative approach to our bargaining position right now.

▶ 21:04 Peter D. Mortimer: Thank you. And for people watching at home, that was our City Solicitor, Robert Van Kampen. He's joined on his left by our Chief Financial Officer, the Auditor, Mr. Patrick De La Russo. President Kahn, did I see your hand, sir?

▶ 21:20 Speaker 3: Yes, you did. So if the board acts favorably on the the medley of orders that we have this evening before us from the free cash What are we gonna have left for free cash balance after our next meeting? I'm sure the chair will have no

▶ 21:37 Speaker 3: Free cash left period so after the May 1st meeting if all these orders passed

▶ 21:41 Speaker 7: We've got no free cash for the balance of the correct not in the general fund. That's correct

▶ 21:46 Speaker 3: and have your budget are you gonna budget any additional monies for the upcoming year for the contract stabilization funds through the chair what we're

▶ 22:02 Speaker 7: trying to do now based on my understanding of the current

▶ 22:10 Speaker 7: negotiations depending on the timing we may have to revisit this in the fall and

▶ 22:15 Speaker 7: And that's to be determined, I can't speak specifically to it because of all the unknowns and-

▶ 22:22 Speaker 3: Yeah, and I certainly, and I hope everybody, members of the board, don't want anybody to speak to any specifics of any collective bargaining agreement that's under negotiations at this meeting. Is any of this money, is all of this for future settled agreements? Or is any of this allocated for agreements that have already been resolved?

▶ 22:44 Speaker 7: right now there there's a portion that's allocated for what's called compensated absences

▶ 22:58 Speaker 7: and um outside of that and this year the annual effort is 25 000 to address that

▶ 23:05 Speaker 1: um to my knowledge uh that's it there's no other commitments i think president Conn your question

▶ 23:08 Speaker 2: some of these funds would be utilized to the extent there's an agreed-upon contract in terms of retroactivity of wages. As I said, fire is out.

▶ 23:21 Speaker 3: I don't want to note the specifics, as we all know here, that settlement and negotiation of collective bargaining agreements by law are purely within the purview of the mayor and are not something that this board votes on other than for appropriate money. So back to my initial question, what are we going to see in the FY17 budget in this line, Mr. DelRusso?

▶ 23:51 Speaker 7: I have allocated no funds in this line from the regular budget process period, other than what is before you this evening.

▶ 24:01 Speaker 3: Okay, so essentially this free cash appropriation is going to be in lieu of budgeting for this line in the upcoming annual budget.

▶ 24:10 Peter D. Mortimer: that is correct thank you thank you president cod alderman's werco please thank you mr chairman

▶ 24:18 Michael P. Zwirko: uh prior going forward should the board appropriate this uh amount into the contract

▶ 24:26 Speaker 7: stabilization fund is there a balance in that fund now yes the balance right now is 105 723.10

▶ 24:31 Michael P. Zwirko: so this would be adding the 350 to that figure that's correct and again it won't be funded in fy17 so that that figure will carry forward absolutely and one good thing about the funds

▶ 24:42 Speaker 7: and just again for the people at home as well as a refresher for everyone is this uh the funds do

▶ 24:51 Speaker 7: not close out at year end and the only way that the funds are utilized is through the board of

▶ 24:58 Michael P. Zwirko: all of them and i vote from the board period so i was wondering if you could explain a little bit um the capital stabilization fund and its purpose i understand that this is just appropriating to to those accounts but to discharge therefore after that will also come before us but I'm just curious if you could just explain a little bit that the purpose of the capital stabilization fund absolutely the really chair the

▶ 25:19 Speaker 7: objective of the fund is to address sort of as a pay-as-you-go basis if possible

▶ 25:28 Speaker 7: to the best of our ability capital items generally in $25,000 and over that we see on the horizon coming before the board and the community I can speak to

▶ 25:41 Speaker 7: this I guess at this point since it's been brought up the allocation that was

▶ 25:50 Speaker 7: seeking for the capital is 197 500 and right now as I'm sitting here it's made up of two components one is voting machines from the election office which

▶ 26:01 Speaker 7: takes the lion's share and the second item that I at some point will ask the

▶ 26:06 Speaker 1: board to consider obviously after July 1st would be additional cruises for the

▶ 26:18 Speaker 1: police department and again particularly on the election side there they're still discussing and there's some review on timing so I think the my position might

▶ 26:30 Speaker 7: the prude thing to do would be to set this aside in the fund and when the time

▶ 26:34 Speaker 1: is right after the July 1st that they feel either both or one are ready to

▶ 26:38 Speaker 7: come to the board and make a proposal then there are funds available to

▶ 26:46 Speaker 1: address it at that time again the funds will be in the fund is awaiting

▶ 26:52 Michael P. Zwirko: appropriation and my question is the same with respect to the contract stabilization fund is there a balance in this account prior to you requesting the

▶ 27:01 Speaker 1: one ninety seven five yes there's three thousand two fifty one point sixty eight

▶ 27:05 Michael P. Zwirko: so this will bring it just about just over two hundred thousand dollars absolutely correct is there a line item in FY 17 to fund this as well or is that what just like the contract stabilization are we going to leave it

▶ 27:14 Speaker 1: as it's like the it's like the contract stabilization we do we do through the

▶ 27:21 Speaker 1: chair respect we do have an allocation for capital outlay the board recalls we

▶ 27:28 Speaker 7: He had put $300,000 a year for five years as the plan for the IT department.

▶ 27:32 Speaker 1: And that line within the budget itself carries that. But this really is a fund, it is different.

▶ 27:41 Speaker 1: And this is fund 8405, and it's really established hopefully to the best we can use.

▶ 27:50 Speaker 1: It pays to go with the approach avoid borrowing, which would incur the, as everyone is aware, interest cost and issue cost.

▶ 27:54 Speaker 7: we can do that when we can do it it's great but i can tell you now uh that's always a challenge

▶ 28:01 Michael P. Zwirko: and one final question um president khan had asked what the free cash balance will be should all these items pass favorably and you said the free cash will balance will go to zero that's correct if there was a balance in free cash that doesn't expire correct i mean that could stay within the

▶ 28:20 Speaker 7: general ledger um what would happen is if it's not appropriate prior to the end of the fiscal year

▶ 28:28 Speaker 7: it does expire and technically it rolls over into next year so theoretically it could become

▶ 28:33 Speaker 1: part of your free cash next year right but it does actually expire those are all the questions

▶ 28:43 Peter D. Mortimer: i had thank you thank you alderman swirko seeing no other alderman wishing president

▶ 28:47 Speaker 3: khan yes i don't have a question but um you know i come from a time when we had no stabilization in funds of any kind, and what would happen back in those years is we would have rollercoaster budget situations where if you had an award that was unfavorable relative to an arbitration on a contract. Or something of that nature, we would have a large mid-year budget problem. Or Mr. Delarusso used to, would remember me harping about bonding for things like cruisers and trucks, which I always felt was an inappropriate use of the bonding power. So, you know, this is a sound financial tool for us to establish some of these funds so that we don't get caught short and we don't create emergencies where none need to exist.

▶ 29:46 Peter D. Mortimer: Thank you, President Kahn. Seeing no further, Alderman wishing to be heard. Motion to recommend. We have a motion to recommend from Alderman Forbes, duly seconded by Alderman Zwirko. All in favor, please say aye. Aye. Any opposed? Hearing none, this order will be recommended to the full board at our next full board meeting. Thank you. You're welcome, sir. The next order we have before us is Order 2016-146. It is an appropriation of $120,000 from available free cash to account 0-1-2-1-1-1-5-1-3-0-0-0, police salaries over time. We are still under suspension. Chief Lyle, would you join us, please?