Election 2012: East Providence City Council candidates talk Budget Commission

Election 2012: East Providence City Council candidates talk Budget Commission

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EAST PROVIDENCE — As part of our ongoing coverage of Election 2012, The East Providence Post and eastprovri.com will be engaging candidates for office at both the state and local levels for their thoughts on some of the most pertinent issues facing the City and Rhode Island as a whole.

The following question was emailed to the candidates running for seats on the City Council from East Providence’s four wards. Candidates were not limited in their response, nor were their answers edited for content.

Putting aside the reason or reasons why it was implemented, the Budget Commission appears to be putting the City’s financial failings in order. Would you as a City Councilor continue in the same manner or are there better ways to go about reining it spending/costs?

James Briden, Ward 1 candidate:  “As a City Councilman, I would seek to continue with the progress made by the Budget Commission. My highest priority will be to keep property taxes down. This requires a sustained focus on making our City run more efficiently by consolidating positions and reducing operational costs in every way possible. A governing body must make decisions based on data and not politics. This is no easy task and involves navigating through numerous legal issues, maintaining public safety and necessary levels of operational effectiveness.

“Municipal government has become far more complex than was ever the case in the past. For this reason, in order to now successfully perform as a member of the East Providence City Council, one must have a suitable combination of education and experience. This establishes the necessary foundation to enable one to appreciate the complexity of important issues and to make good decisions. It also provides the ability to critically evaluate recommendations made by professional advisors, to know the important questions to ask and oftentimes the precise reasons for disagreeing with what is being proposed.

“I believe that by virtue of my educational background and professional experience that I have these capabilities. Equally important, I will also make decisions based on good and well- defined values. In sum, my objective as a Councilman will be to exemplify the very highest level of integrity, civility, and professionalism.”

Edward Lynch, Ward 1 candidate:  “The Budget Commission was established by the Director of Revenue on Dec. 20, 2011 and will remain in existence until abolished by the Director of Revenue. As established under RIGL 45-9-6, the Budget Commission consists of five members. Three are designees of the Director of Revenue, one is the elected chief executive officer of the City and one is appointed City Manager. I would like to personally thank Ms. Rosemary Booth Gallogly, Director of Revenue, for her oversight and vision for our City.

“I think the City has benefited from the team concept of the Commission working together to improve the overall financial future of the City. The entire Commission addressed many issues/problems resonating in every community in our region: cash flow, consolidation, regionalization, rising health care costs, bond rating, pension fund ARCs and accounting/auditing pitfalls.

“I realize that the current City Council inherited a multi-million deficit, but to be frank, they collectively were unable to work as a group (team) to resolve the difficult challenges at hand. Individually, I think many had the skill-set, it just seemed that petty politics plagued the process. I pledge to strongly avoid that pitfall and promise to work with all members of the Council equally on programs that best support the City. I’m simply too wise and the City deserves better.

“Additionally, I will be supporting the charter change on this year’s ballot that establishes a so-called ‘rainy day’ fund to establish a cash reserve for our financial future. Mr. Michael O’Keefe presented the entire Commission with a resolution pursuant to R.I. General Laws section 39-9-6(d)(7) for an ordinance to create a Budget Reserve Fund and a Capital Fund. In order to use the rainy day fund, the same criteria would have to met for exceeding the 3.5% tax rate cap. Ultimately, this provision will allow the City to enhance our bond rating with the idea of refinancing short and long term bonds at a lower interest rate. Many bond rating reporting authorities like to see that local communities maintain a cash reserve of up to 15% of its operating costs. Fortunately, the Commission was able to secure a better financial outlook from the bond rating firms of Moody’s and Standard & Poor’s, which allowed the City to borrow money at a lower rate of interest. This simply should be viewed as a benefit to the City and a a substantial accomplishment for all, but more needs to completed to obtain an optimum bond rating.

“Notably, the Commission helped restore the City’s cash flow and paid Bradley Hospital $4.33 million it owed for special education services, resolving what the hospital’s top official called a crisis. Equally as important was the Commission oversight that allowed State lawmakers to advance the City its share of state education funds to resolve the cash shortage the City was experiencing to our advantage.

“On the horizon, the Commission is seeking to enter into a lease with OCI solar Power Llc. The energy company is seeking to lease the old Forbes Street landfill with the anticipation of producing as much as nine megawatts of power each year that the potential to net the City $120,000 annually.

“If fortunate to be elected to the Ward 1 seat, I pledge to continue to work with the Budget Commission and the entire Council as a team to develop a multi-year (obtainable) financial plan that reviews all current expenditures, structural causes, labor agreements, pension fund obligations, bond rating enhancements, economic development initiatives and equally as important our quality of life issues in an effort to re-engineer the City of East Providence to prominence.”

Melissa Abbott, Ward 2 candidate: “I feel the budget Commission is trying to sort out years of debt and destruction that the previous City Council and school committee members have failed to recognize and or begin to fix. They are trying to make the tough decisions that no one else seems to be able to make. If our previous members of leadership did their jobs instead of personally gaining off each other then we would not be in this mess.

“Of course now that it is election time the current members are trying to make it seem like they care about the City and its residents. I commend the state for their hard work; however some of the places that cuts are being made are unreasonable. The children of the City should not suffer because the City’s leadership has failed to run the City properly.

“Why is it that children and education seem to be the first to suffer? Going forth if I were to be elected I would continue to work with the budget Commission until the crisis is resolved, but I would require a more detailed quarterly report from each department. So the City Council and the Commission can all work together to reduce their operating costs.”

Helder Cunha, Ward 2 candidate: “Reclaiming our City finances is at the cornerstone of my campaign and a big part of why I decided to run for office. It is a disgrace that we have a state takeover of our City and there is no reason why East Providence cannot once again regain itself and start making our own decisions on fiscal matters.

“In regaining hold of our City finances, we ought to work towards strengthening our tax base by promoting a more business-friendly environment. Put simply, government primarily raises revenue from either taxing or borrowing. Without a healthy tax base, it must resort to the latter or is forced to make cuts that affect our City services. It’s too hard to open or run a business in this City. Jobs create income which adds to the tax base instead of always having to rely on your home and mine. Instead of making potential business owners jump through hoops, we should have a welcome mat out at the City line. This will reduce the overall tax burden as attracting new business will raise property values and bring more dollars into East Providence.

“Above all, the first step in stabilizing our City finances is having the proper leadership that understands not just the needs and concerns of new and existing businesses in East Providence, but of the City as a whole. There is no need to continue down the path of unpaid bills, relying on short-term borrowing, and resorting to increases of tax, fees and charges, while getting less bang for our buck. Instead, we should work toward getting more out of City services for less. We deserve better.”

Bruce Rogers: Ward 2 incumbent:  “I believe the five year plan proposed and supported by the Budget Commission is an excellent basis for a cost saving and spending reduction based budget going forward. Many ideas which the Budget Commission implemented were ideas brought forward originally by the majority of the City Council at various times. Some tweaking will be needed but as a whole I am supportive of the five year plan.”

Thomas Rose, Ward 3 incumbent: “The Budget Commission’s five year plan has excellent savings for the future of the City of East Providence. A majority of the ideas were brought forward by members of the sitting Council these past few years, and were strengthened by the Budget Commission’s plan. I feel it would be in our best interest to continue in the same manner.”

Candace Seel, Ward 3 candidate:  “I would work to continue the good things the Commission has accomplished, but also work to overturn the unfortunate things they needed to do in order to balance our budget and put us in good fiscal shape.

“On the ‘good’ side: The Commission was able to stave off receivership or bankruptcy, despite having begun with a multi-million dollar deficit, including a $4.3 million overdue bill to Bradley Hospital. Also, credit bureaus such as Moody’s have upgraded our status from ‘junk’ in some cases to acceptable or at least “not awful”.

“The members of the Commission succeeded by making tough decisions that current elected officials and previous ones were unable to do. They had a thorough understanding of the issues before them, gathered and analyzed facts, and then made impartial decisions without regard to special interests, backroom deals, party preference or whatever other influences politicians succumb to.

“If elected, I will continue the Commission’s decision-making process to strive for the best outcome for our entire community, based on our common good.

“On the ‘unfortunate’ side: Eliminating funding for middle school sports, two branch libraries, and video streaming and archiving of Council and School Committee meetings. Also, the slow erosion of the homestead exemption, defunding CDBG grants for many social service agencies, and the removal of a great number of previously untaxed clubs, groups and non-profit agencies from the tax-exempt rolls.

“If elected, I will work to restore middle school sports and branch libraries through a combination of budgeted funds and community ‘booster’ clubs. I will also work to reinstate video streaming immediately – at a cost of about $3,000 annually – to provide as much transparency as possible into the workings of our local government. I will look to the Planning Department, in particular David Bachrach, and the Tax Assessor’s Office to help restore funding for much-needed social service agencies and to guide legitimate non-profit groups through the maze of becoming tax exempt.

“My top priority will be to restore the homestead exemption in its entirety.

“Where would I find the money? Through continued consolidation of City- and school-side services, through pooling as many municipal employees as possible into one basic health insurance plan and one life insurance plan, and through bulk purchases for all City and school departments (i.e., office supplies, computer equipment, bathroom tissue). I would also take another look at that Roger Williams University report from several years ago, which cost the City $25,000 and which we threw aside almost as soon as we received it.

“Traditionally, 80 percent of a municipality’s operating budget goes to salaries and benefits. There are excesses that can be trimmed from agreements the City has with its employee unions. I do not mean cutting to the bone. Our employees for the most part are professionals and deserve to be compensated fairly. I mean trimming the fat, for instance, of paid birthday holidays, excessive longevity pay, overly generous vacation time, and low-cost to no-cost insurance benefits. I would also call for accountability at all levels, from workers to supervisors, to ensure that we the taxpayers are getting what we pay for.”

Michael DiGioia, Ward 4 incumbent: “A City Councilor has a moral and ethical obligation to the citizens it serves to pass and approve a balanced budget, a responsible budget, provide a safe community, great City services, great schools, and not continuously raise taxes and raise fees. The citizens of East providence deserve nothing less.

“It’s so important to be honest and transparent about the real numbers involved. And for many years the problems facing our community were being ignored and kicked down the road. That must stop. I have fought for the past two years for open and transparent government. I have fought to get the truth behind our deficit, the real numbers and facts of our pension obligations. Being honest about the issues and then making the tough decisions is what I have done and what I intend to continue to do.

“I repeatedly requested from our administration and the school departments information concerning the facts and truth about our spending and revenue. I voted against an irresponsible budget that had a built-in deficit. Personal agendas and special interest have no place on the Council. This is not rocket science. We can all work together to protect this City or we can play politics and adopt ridiculous plans with no real numbers.”

Christine Rossi, Ward 4 candidate: “Although I do not agree with the State Imposed Oversight, the Budget Commission has the right approach to budgeting. When you begin to build any budget, it must start with an evaluation. We know what our approximate income is and we have a solid speculation of what we will need to spend based on last year’s expenses. We also have a great group of employees with a wealth of institutional knowledge that are ready, willing and able to help with the process if we let them. It is crucial to have the people who do the work have input in budgeting because they know where our trouble spots are. It is all well and good to have department head meetings but the department heads aren’t out there doing the physical work. If you want to know where the bones are buried, ask the guy who dug the holes. The factor that puts us behind the eight ball now, and has been for some time, is the unforeseen spending due to lack of preparedness for future crisis. East Providence has built buildings and walked away from them with negligible preventative maintenance policies in place. Instead of the mantra we can’t afford it, we should have seen that we can’t afford not to.

“We have historically robbed from Peter to pay Paul when a big ticket item breaks down. We have allowed our buildings and roads to deteriorate without a plan.  Our maintenance line items are always underfunded. The former thinking of outsourcing everything because the labor is cheap has cost us big money. The practice of spending without looking at the out-years to see what it will cost down the road, has led us to purchase items because they cost less up front, but we couldn’t afford to maintain them.  All we were doing was rearranging deck chairs on the Titanic. If a detailed budget was in place all this time, we would have seen this coming. Five year projections and fiscal impact statements should have been the norm for a City of this size, not a new defensive maneuver.

“Here’s an example. We are looking at buying a new phone system here in the City to replace our old and failing system. We wrote a request for proposal based on very specific items. There is only one brand of phone system that fits our request for proposal. We left no room in the proposal for any other type of phone system. It is a reasonable fee and package to have the system installed. It is actually less than several other systems out of the gate. Research has led me to find that the particular system we are looking at comes with enormous bills down the road in the way of technology upgrades that must be done annually and if they are not done, the system will fail to work. It will become very expensive to keep up in years two, three and beyond.  We will eventually spend more on system upgrades on this particular ‘Cadillac’ of phones than other brands that may cost a few dollars more in the beginning but will not need upgrading anywhere near as often and will last us for the next 20 years. We would get our money’s worth and more over time. I have brought this to the attention of the City Manager.

“What I would like to see in future budgets is detail, detail and a little more detail. We, the average people of East Providence, should be able to pick up the budget or better yet, download a copy right onto our computer, and be able to understand EXACTLY where our money is going. There should be a line item for every item right down to the last paper clip. There should be a column for each of following: The name of the line item, two years of actual spending, our estimate for the coming year and a column for spending to date that would be updated systematically every time we do a check run. It would be able to be done by cost code because that is how our system works. It could be linked from our accounting system to our website and we the people would know exactly where we are every day.”

Tracy Capobianco, At-Large candidate: “Regardless of fault or blame, the Budget Commission was imposed on the City of East Providence due to the fact that the city’s financial situation was in dire straights. While this was an unfortunate situation, the Budget Commission is here to do a job and that job is to get the city back on track.

“That said, it would be my job as city councilor when the commission time has ended to maintain fiscal responsibility without causing undo stress on taxpayers or limiting valuable resources for the community.

“The main focus of the next Council will be the responsibility to keep the budget in check along with taking the time to meet as many parties involved in running the city and collectively making a plan that works. It will be the opinions, suggestions, and comments from the taxpayers as well as the expertise of qualified leaders to make a great plan for a great city.”

Steven Santos, At-Large candidate: “The Budget Commission resulted from the failings of our City government to deal with the City’s fiscal problems. Mr. O’Keefe and the Commission have worked diligently to restructure the present budget to bring it in balance and also provide a framework of balanced budgets for the next 5 fiscal years. There have been some very unpopular cuts made to programs along with employee wage & benefit cuts and increases in both property taxes and fees for water/sewer and a host of others. Continued cutting in these areas will not provide the solution to our problem. As for continuing to tax and fee the already overburdened homeowners of East Providence, that is out of the question.

“The solution is to grow the economic pie here in East Providence. This City needs to utilize the talents of City government along with those of its business leaders and regular citizens to bring new enterprises to our City.

“We all know R.I. is considered one of the least friendly business states but it doesn’t mean it can’t be done. East Providence is uniquely situated on the new Route 195 corridor providing a direct route to our City and infrastructure improvements along the waterfront will open up more areas of our City. We need to attract businesses that will grow our tax base and provide good paying stable jobs for our citizens. Expanding economic development in our City is the viable solution to our problems and the solution where everyone wins.”

Editor’s Notes: Attempts by The Post to reach Ward 3 candidate Daniel Dalton by phone, at the number provided by the City Canvassing Department, and at his listed address, 109 Bliss St., were unsuccessful. The submission of Burton Plamondon, a Ward 2 candidate, was not made in time for the initial posting of this article.

 

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