Burlington’s budget normally reaches the City Council in the form of a thick, unmanageable and “monstrous Excel file,” said Interim Chief Administration Officer Paul Sisson on Monday.
But not this year. New accounting software will be in place by July and a condensed chart of accounts has already been created, Sisson explained. In addition, the council has decided to hold a series of budget work sessions that previously involved only members of the Board of Finance.
“I really wanted to have these work sessions,” explained Council President Joan Shannon at the start of the first meeting, which unveiled the new chart of accounts format and included a review of proposed budgets for the Fire Department and Department of Public Works. At least three more sessions will be needed to examine projected expenses and revenues for the remaining departments and city enterprises.
Rather than going through all the details twice, first in the Finance Board and later at a council meeting, Shannon suggested that the legislators consider a different approach, especially since the many changes in both format and budget content this year may generate more questions than usual.
On May 3 Sisson and Mayor Miro Weinberger announced that no property tax increase will be needed to produce a balanced budget for FY 2013. Last winter the previous administration, projecting a deficit of $750,000, asked for a two-cent increase in the general city property tax rate. The City Council rejected that idea, and Weinberger expressed skepticism about the numbers during his campaign.
After Sisson was appointed on April 2 the new administration looked at how to eliminate the deficit through spending reductions and changes in revenue forecasts. One of the first revelations was that the potential shortfall looked even larger. An interim settlement on Burlington Telecom between the city and Citibank meant that $425,000 had to be placed in escrow, increasing the projected deficit to $1.2 million.
A month later Sisson announced that the gap had been closed. The largest saving will be a $350,000 decrease in cost of living adjustments (COLA) for employees, based on an internal audit and re-computation of labor contract impacts. The Department of Public Works anticipates $300,000 worth of changes in revenue and expense projections. About $200,000 more will be saved on expenses for the police department’s North Avenue building by prepaying a lease with bond proceeds.
Bonds will also be used to save $105,000 in lease payments for capital projects, as well as for DPW equipment and a heating, ventilation and air conditioning unit at the airport. The Burlington Electric Department will handle $60,000 in workers’ compensation costs previously covered by the general fund.
Money transferred to the Community and Economic Development Office will be reduced $50,000 by recalculating rent expenses for the Criminal Justice Center and eliminating a funding request for graffiti removal.
The forecast for gross receipts tax revenue has increased by $50,000.
On Monday, Sisson did not dwell on the savings, instead he briefed the council on the new format and improvements in budget adjustment methodology that should allow more timely action when variances develop. Some changes address internal control problems identified by the state auditor.
The councilors also heard from fire department Chief Seth Lasker and DPW Director Steve Goodkind. Their presentations combined overviews on departmental activities with the proposed budgets.
Last year the fire department responded to 7,000 dispatch calls, of which 65 percent were emergency medical responses, Lasker noted. The department has two staffed ambulances and one spare to handle what “has evolved into a technical, expensive part of our business.”
In such situations the goal is to have an engine at the location in three minutes, often before an ambulance even arrives. The fire trucks are sent in part to help move patients, but also because they must be prepared to go directly from a medical emergency to a fire. It’s actually “more effective to have less vehicles,” Lasker noted.
In addition to dealing with medical emergencies and extinguishing fires, the department deals with hazardous materials, rescues, and emergency planning. Another task is fire prevention and investigation, which involves about 10,000 contacts a year to inspect licensed facilities and approve permits for new construction.
Personnel costs account for 89 percent of the department’s proposed $6.1 million budget, a 4.5 percent increase over last year.
Burlington is becoming a busier place, Lasker said. “Call volume has increased 19 percent over the last five years with no budget increase.” Reasons for the rising volume include improved carbon monoxide detection and more calls to the University of Vermont, which is adding upgraded buildings to the municipal fire alarm system.
The department has “absorbed this through efficiencies and shopping around,” he explained. An agreement between UVM and Burlington, set to be renegotiated this summer, includes a fee for departmental services. Institutions like UVM are also charged when they request municipal alarm boxes.
A new $150 fee was recently added to cover the dramatic increase in “time of sale” home inspections. Last year the department conducted 300 such inspections, most involving repeat visits. If the trend continues this could bring in an additional $35,000.
The proposed DPW budget is $6.3 million, plus an additional $524,000 for the city’s recycling program. But projected revenues of $6.8 million mean that the gap will be just $49,294, “the lowest need from the general fund ever,” said Goodkind.
The department maintains equipment and fuel for 11 city departments, all but the public schools. The current downward trend in fuel prices should help to create an overall $150,000 saving in this area, but “could be an issue” in the future, Goodkind said. Eliminating vehicle leases will net $50,000.
Revenues from inspection services are projected to rise by $260,000 next year, a 56 percent increase. The department is adding the option of credit card payments for trade inspections. Savings are also expected in engineering services due to a projected 16.6 percent increase in revenues.
The city’s ambitious program of sidewalk work will continue, but an increase in revenues is expected to result in a $90,000 improvement, Goodkind said.
After the presentation Councilor Sharon Bushor, a Ward 1 independent and member of the Board of Finance, mentioned hearing some concerns at a Neighborhood Planning Assembly about “more timely feedback from customer service.” Goodkind said that plans for a more automated tracking system should lead to improved followup.
Ward 2 Councilor Max Tracy, a Progressive elected to his first term in March, inquired about the allotment for bike lanes. Although Goodkind did not provide a specific number, he said that it will be part of $815,000 budgeted for sidewalks, bike lanes and related matters “based on complaints and priorities.”
Paul Decelles, a Ward 7 Republican recently appointed to the Finance Board, wondered whether bike riders might be charged a small fee to offset the cost of maintaining the lanes. Goodkind noted that since street improvements are funded through a special city tax “everyone more or less” contributes.
Once the presentations were completed Shannon asked whether the council wanted to continue holding work sessions. “This information is valuable,” she noted, “and as we go forward, and are faced with a new budget that isn’t comparable to the previous one, it seems a waste of time to have all departments present to both finance and the full council.”
Several councilors described the new approach as an improvement. “These presentations were clear,” commented Ward 2 Democrat Bram Kranichfeld, “the first time that has happened.” Ward 4’s David Hartnett, also a Democrat, said he too appreciated the opportunity for earlier involvement.
“Already this is better than it’s ever been,” said Decelles. More effort could be made to inform and involve the public, he added, but “if charter allows it, I’m all for that.”
Ward 5 Democrat Chip Mason, another council newcomer, suggested that whether all council members are involved in the early stages of the process is mainly a matter of custom, since the finance board will still review the “big budget” before it comes before the full council for adoption. Mason added that he was more likely to attend council work sessions than finance board meetings.
Bushor did not oppose the new process, but was not enthusiastic about too much streamlining.
“Finance is charged with reviewing the budget in more detail,” she noted. “I don’t want to shortchange that process.”
Although acknowledging that the new chart of accounts format developed by Sisson is easier to understand, Bushor added that the old one contained more details. “If you took the time you could have more understanding,” she said.
“I have no problem with whole council attending,” Bushor added, “but not if we don’t get a full presentation. I want to make sure we have the time we need.”
Sisson projects that three more sessions will be needed to review all departments, plus enterprises such as the Burlington Electric Department, Burlington Telecom and the airport. On Monday, May 21, the focus will be BED and Parks and Recreations. BT, CEDO, the airport and the retirement fund will be examined last.
A Thursday, May 17, session was devoted to smaller units such as the City Attorney’s office, Human Resources, Planning and Zoning, Code Enforcement, and the Fletcher Free Library. Preliminary budgets for these and other departments are available at the city’s website (www.burlingtonvt.gov).
Proposed expenses for the library are $1,299,748, an increase of less than 2 percent. Book fund expenses could decrease by almost $6,000.
Expenses are expected to rise from $889,869 to $935,048 in the Department of Code Enforcement, mainly due to an increase of $65,407 in the salary account. But a projected increase in revenues should offset most of this.
The proposed $643,450 budget for the city attorney’s office indicates an increase of $33,000, also mainly due to salaries. The proposed $396,911 budget for Human Resources reflects a similar increase, with the salary line rising from $281,257 to $313,080. For Planning and Zoning the proposal is $562,146 in expenses, a 14.4 percent increase due mainly to salaries, some of which may be offset by revenues.
