STATE OF MAINE. I. CALL TO ORDER On Monday, May 14, 2018 at 6:30 p.m. a Special Council Meeting was held in the City Hall Auditorium.

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1 COUNTY OF YORK STATE OF MAINE CITY OF SACO I. CALL TO ORDER On Monday, May 14, 2018 at 6:30 p.m. a Special Council Meeting was held in the City Hall Auditorium. II. RECOGNITION OF MEMBERS PRESENT Mayor Marston Lovell recognized the members of the Council and determined that the Councilors present constituted a quorum. Councilors present: Marshall Archer, Roger Gay, William Doyle, Lynn Copeland, Alan Minthorn, Micah Smart and Nathan Johnston. City Administrator Kevin Sutherland and City Clerk Michele Hughes were also present this evening. III. IV. PLEDGE OF ALLEGIANCE GENERAL Mayor Lovell We have reached the culmination of the budget process. Thou we have not discussed changes to the City Administrator s directive budget other than the requests above directive. The entire operating budget is available for motions to increase or decrease. I m especially impressed at the City Administrator and staff that have been able to make adjustments to previous budgets and to produce a budget with a 1.5% reduction in costs to city operations. What is dis-concerning is that members of the Council and School Board have recommended increases raising the city property tax rate up 4.12%. I ask the council to recognize that many of those who are on fixed incomes have not seen a 4-5% increase in income in many decades. There is also a charitable organization called STEAM which looks to make donations to the schools. I view the presentation of the school budget as demonstrating the school boards belief that expense increases will have a positive effect on learning without substation or analysis. I question whether this is an effort to throw money at a problem as a fix for some matters that money alone will not repair or improve. There is the similar approach in the Central Office management. But, there are teachers who have their class rooms budgets reduced and parents who have concerns that teachers do not have all the resources they need for the best education that can be provided. There is a 10.7% jump in the school budget aside from some staff changes to compensate for some individual differences in learning and some capital expenses, there is not that much reassurance that a significant increase would yield significant results. I have the power to veto appropriation order but I see little utility in cutting the well-crafted city operations budget and the sincere and thoughtful efforts and members of the council to minimize increases in expenses. I cannot use my veto authority to adjust the school budget because of the timing of the June 12 th Election. Notice requirements and deadlines imposed by the state preclude that. I would ask the council if they agree with the following rule that will permit public remarks during the budget process on individual amendments? The council encourages the use of the public comment period in the agenda. After the public comment section is closed the meeting is open to the public comment on amendments before the council. To be specific, public remarks after public comment are not open for the entire budget or for any agenda item. Comment is to be made only for the amendment before the council at that specific time. Speakers are to address the Mayor and not individual Councilors or the audience. There will be a strict time limit of 3 minutes. Because of the length and complexity of our agenda we ask that speakers with similar points of view not repeat previous speakers. Going off topic or repetition will be discouraged. Expect me to interrupt this should the rule not be followed. Is the Council in concurrence? All Council members agreed. V. PUBLIC COMMENT Stephen Shiman School Board Liaison Mr. Shiman had no report since the last meeting. But, he did want to report that Saco STEAM which is a non-profit organization of which I m a founding member has nothing to do with the budget what-so-ever-. It has no connection to the budget. It is designed to pay for something that the budget doesn t cover. It is for special projects Don Pilon, 16 Glenhaven Circle Mr. Mayor and Council I have a few comments that I would like to make about the proposed increase in the mill rate. The mill rate increase is obviously coming out of the school budget. The city has made a responsible budget and we applaud the council for doing that. However, the School Budget and the School Committee has been somewhat irresponsible in preparing their budget and it is now before the council. I have not liked this method that the school board has used. They built the budget and they have not taken responsibility creating a fair budget. They were directed to give a budget that everyone could live with. They built it with blinders on and now it is before the council for the council to M:\2018\cm_2018_05_14.docx 6/26/2018 Page 1 of 21

2 take action on. It is irresponsible for the council to be the bearers of this huge budget. When it came before the council for workshop they asked What do you want us to reduce? Give us a number. That is irresponsible budgeting. Give us a number. I would have implied that we want the same number as you had in the previous year. So, let s just back up a minute. What kind of an impact is this going to have? It is going to have a huge impact on businesses and the current business climate. The council is talking about building a new business park because we have outgrown the business parks that we have. You put this increase in and I dare say that you will have a problem filling the business park because you won t have any occupants. They will go somewhere else. The people that are in the parks now, you will see for sale signs up. This is like years ago you will recall that someone that raised the taxes 18% in the previous administration. How long did it take the city to recover from that? You will have no one looking at Saco with this kind of an increase. You will have multi-family homes like the Chinburg project Mill Building #4 that is full now, he is going to have to raise his prices for those apartments just to pay the increase in taxes. Also, those 3, 4, and 5 multi-family homes, the same thing. Everyone is going to have to raise their taxes to absorb this increase in the mill rate. The minimum wage was just recently increased as a result of the legislature to $10 an hour. It is going to $20 an hour in The cost of doing business in the state has increased significantly. Saco is going to be so far off the charts as far as being competitive. When I was Mayor from I went to all the budget meetings for the school board. The school board in their wisdom wanted parity with the council. They were not receiving any reimbursement for their time. The Council gets $1,200 a year and the Mayor gets $3,600 a year. They in their wisdom without it being vetted gave themselves parity with the council. They put it in the budget so that they are now making $1,200 a year as board members and they didn t vet it. It never went out to referendum. Reading the Charter, you can t do that. My suggestion to this council is, it comes out. It is a violation of the Charter. You have the power to do that. Barbara Colman, 45 B Stockman Ave. Long have we requested an audit position on a part-time basis at City Hall. After reviewing what I thought I was going to get for my FOAA request which is a line by line budget of all the details, I did not receive that. I received a small set of numbers versus what I presented back to everyone was from the City of South Portland. In reviewing the line by line budget, I have found several things that stand out to me. Under the Building Dept. postage is an entry for $7,200 but there is no budget for this. By the end of March that should have been picked up and a journal entry should have been put in place to correct it to the correct line. Based on the May 8 th document I did not see that corrected. There was an insurance claim I received on the original documentation as a refund/reimbursement of $1.2 million. But, on the document I received last week it went down to $1.18 million. So, I m wondering where the differential went and where that money is going to be going for purposes of this budget. Another discrepancy I noticed that I thought was a discrepancy per the budget lines that we were just adding extra money into lines and it was the same pattern. I said this is March and this is all they have spent for money? Like the telephone and postage and different accounts along the line. This doesn t make sense to me. One of my friends that we talk about these budget things mentioned is it a possibility that the sheets that you got didn t show any of the recent bills getting paid or have they been paid. At that point the ¾ mark it looks like substantial money sitting in different accounts. If the case is that I didn t have current data to look at the budget I couldn t analyze it. I also noticed that it was long fought to get the HR Assistant at the value of $31, 400 as the wages. If you look at your spreadsheets that position is now $57,000. That is an 84% increase and that person is being put into a supervisory position. My understanding is this is because of the addition of payroll. Well, I m sorry but if you go online to Indeed or any website that does wages when you have a HR Generalist they do the payroll and most of them are roughly $45,000. We could have left the assistant at their value and given them a regular increase and hired a part-time person 2-days a week to do your payroll and you would have saved some money there. So, I m really asking tonight for the council to put in an amendment that there be an internal auditor who reports to the City Administrator and to the Council at the same time issues that are popping up. If we have adjusting journal entries that need to be fixed, I understand it all falls to the bottom line but it is the bottom line. We are not looking at the individual departments that are affected. So, when you come to budgeting you believe they are over so you add more money. Reality is they may not be over. I know there are some issues with wages that were not classified correctly. But, if I had the line by line detail you would find there is even more information out there. So, there is probably more money in the budget that is available to be used. Though, I have to give credit. The City of Saco has taken the hit for the School Dept. and I understand that. I actually feel bad for our community at large because our community M:\2018\cm_2018_05_14.docx 6/26/2018 Page 2 of 21

3 (Parks & Rec, Public Works etc.) has not grown its staff accordingly to meet the demands of our community. They have been held back close to 15 years. We have gone up by over 23% in 10 years. So, we have to work together to get a more equalized system. Tony Palleschi, 2 Chantelle Way I want to clear up a couple of things. So far everyone in this process has done what they have been charged to do. The Administration was charged with coming up with a budget based on priorities. They have done so. The School Board is charged with making sure there are checks and balances within that system. They have done so. Your job is to approve or not approve and push it to something for the rest of us to vote for. Based on everything that has been said over the last couple of weeks that is going to happen. Based on what it sounded like earlier you guys aren t doing what you are supposed to do and the school board didn t do what they were supposed to do. I agree that there is allot of opportunity for improvement through the entire process. I think the workshop was great and should have happened a couple of months earlier. I think that discussion about what we should do to improve the process shouldn t be happening in the middle of the process. What we should be doing is having this conversation in July. After the people decide whether this is too high of a budget or not and then we can decide to talk about the process that happened. The communication needs to be better all around. There are not enough people here. There are not enough teachers here. I m partial to the school side but that is where my kids are right now and what we are focused on. I don t know if the other half of the process needs improvement as well. As far as the $1,200 a year goes if that is all that you are making, thank you. I know how many hours you spend and it is significantly lower than the minimum wage. Thank you to the school board, for working for that little. I appreciate that you guys are going to push this forward as you indicated that you are going to do so. I ll be here in the middle of the summer if that is when you want to start talking about making this process better. Charles Tsomides, 43 Middle St. I look at all the schools that I use to educated in. I m a little disappointed that Young School has not been rebuilt. If we had a referendum I would vote yes. Garrett Abrahamson, 18 Blake Ave. In our Charter 4.01E under compensation. The members of the School Board shall receive the same salary and compensation payable in the same manner and amount as the City Council as described in section 2.1 of this Charter. It was passed in November So, just making sure that that fact is correct. Again, you know my opinions on the school budget. VI. VII. CONSENT AGENDA AGENDA A. ADOPTION OF THE FISCAL YEAR 2019 WATER RESOURCE RECOVERY DEPARTMENT BUDGET The Fiscal Year 2019 operating budget for the Water Resource Recovery Division is $2,618,075 which is supported by a sewer user fee rate of $4.82 per unit. This rate is.14 cents or 3% above FY18 years rate. At the rate of $4.82 per unit, the average bill will be $ per year, a quarterly increase of $2.81. In Fiscal Year 2019, there is no use of Fund Balance budgeted. The Council discussed this item at Workshop on April 17, Councilor Archer moved, Councilor Gay seconded Be it Ordered that the City Council move to adopt an appropriation order for the adoption of the Fiscal Year 2019 Water Resource Recovery Division budget for the City of Saco, Maine as follows: Approve gross expenditures of $2,618,075; to be offset by $2,749,455 in anticipated revenues and other credits, which represents no increase in the sewer user fee rate of $4.82. Further move to approve the Order. The motion passed with seven (7) yeas. M:\2018\cm_2018_05_14.docx 6/26/2018 Page 3 of 21

4 B. ADOPTION OF THE FISCAL YEAR 2019 SCHOOL DEPARTMENT BUDGET The School Board recommended FY2019 budget of $39,348,972 plus $118,247 for Saco s portion of the Adult Education would be a tax rate increase of $0.71, if the school department budget is adopted as presented. The FY2018 budget was: $35,548,262. Local Share EPS (This Motion) $18,223,952 Additional Local Tax Revenue (Next Motion) $8,925,161 FY2019 Tax Levy (School & Adult Ed) $27,267,360 FY2018 Tax Levy (School & Adult Ed) -$24,061,762 Net Increase $3,205,598 Note: Title 20-A, section A(5)(B) requires a separate, recorded vote for additional local funds above the Local Share EPS and approval by a majority of the full council. Section provides for the School Board s Statement of Reasons to accompany the article as provided to the Council. Appropriation Order #1 - Councilor Doyle moved, Councilor Minthorn Be it Ordered, pursuant to Title 20-A, sections 2307, 1485 and 15690, that: 1. The following school budget cost centers be adopted and approved for expenditure for fiscal year : Cost Ce nte r School Board Budge t Regular Instruction 23,512,880 Special Education 7,341,949 Career and Technical Education 0 Other instruction 204,623 Student and staff support 2,293,762 System administration 762,523 School administration 1,135,374 Transportation and Buses 1,786,652 Facilities Maintenance 1,989,660 Debt Service and Other Commitments 321,550 All Other Expenditures 0 M:\2018\cm_2018_05_14.docx 6/26/2018 Page 4 of 21

5 1. The sum of $39,348,972 be appropriated for the total cost of funding public education from pre-kindergarten to grade 12 as described in the Essential Programs and Services Funding Act and the sum of $18,223,952 be raised as the City s contribution to the total cost of funding public education from kindergarten to grade 12 as described in the Essential Programs and Services Funding Act in accordance with the Maine Revised Statutes, Title 20-A, section 15688; State Mandated Explanation: The City s contribution to the total cost of funding public education from pre-kindergarten to grade 12 as described in the Essential Programs and Services Funding Act is the amount of money determined by state law to be the minimum amount that the City must raise in order to receive the full amount of state dollars. 2. The sum of $321,550 be raised and appropriated for the annual payments on debt service previously approved by the City s voters for non-state-funded school construction projects and non-state-funded portions of school construction projects in addition to the funds appropriated as the local share of the City s contribution to the total cost of funding public education from kindergarten to grade 12; State Mandated Explanation: Non-state-funded debt service is the amount of money needed for the annual payments on the City s long-term debt for major capital school construction projects that are not approved for state subsidy. The bonding of this long-term debt was previously approved by the City voters or other legislative body. 3. The School Board be authorized to expend $39,348,972 for the fiscal year beginning July 1, 2018 and ending June 30, 2019 from the City s contribution to the total cost of funding public education from pre-kindergarten to grade 12 as described in the Essential Programs and Services Funding Act, non-state-funded school construction projects, additional local funds for school purposes under the Maine Revised Statutes, Title 20-A, section 15690, unexpended balances, tuition receipts, state subsidy and other receipts for the support of schools; and 4. The School Board be authorized to expend such other sums as may be received from federal and state grants and/or programs and/or other sources during the fiscal year for school purposes provided that such grants, programs or other sources do not require the expenditures of other funds not previously appropriated. Further move to approve the order. Amendment Tier #A - Councilor Archer moved, Councilor Gay seconded Be it Ordered that the City Council approves a decrease to the FY2019 School Budget in the amount of $15,000 to the Facilities Cost Center, a decrease to the FY2019 School Budget in the amount of $62,300 for the Students and Staff Support Cost Center, and a decrease to the FY2019 School Budget in the amount of $350,000 for Regular Instruction as adopted by the School Board. Mayor Lovell announced that there would be a 5-minute recess. Time: 7:25 p.m. Mayor Lovell brought the meeting back to order at 7:30 p.m. The Finance Director asked for a few more moments to get everything in order before continuing on. Tabled Councilor Minthorn moved, Councilor Smart seconded to table item #B until be address some of the other items. The motion passed with six (6) yeas and one (1) nay Councilor Archer. D. ADOPTION OF THE AMENDED FEE SCHEDULE FOR FISCAL YEAR 2019 The City Council establishes and approves all fees and charges required by ordinances or policies in the City of Saco. This includes: permits, licenses, approvals, and applications, as well as fees and charges collected by the City of Saco that are authorized by state law or require the city to set the amounts of such fees and charges. The Council may establish any new fees or charges that the Council deems necessary or appropriate to offset the cost of operating programs, delivering services, or administering any ordinances or policies. Those fees shall be included in the fee schedule and updated on an as needed basis. Note for Changes: Eliminations Additions Councilor Minthorn moved, Councilor Smart seconded Be it ordered that the City Council approve the amended fee schedule for Fiscal Year Further move to approve the Order. M:\2018\cm_2018_05_14.docx 6/26/2018 Page 5 of 21

6 Councilor Smart inquired about Chapter 118 Mooring Late Fee showing the original $50 crossed out and a new fee of $50 and the Mooring Application Fee showing the original $10 crossed out with a new fee of $10. Finance Director Glenys Salas noted that was an error. Councilor Smart inquired whether that should have gone up or stayed the same. The Finance Director stated they are staying the same and they were highlighted in error. Amendment #1 Councilor Copeland moved, Councilor Doyle seconded to keep the Resident Parking Permit for the Beach and Camp Ellis at $10.00 per resident rather than $ Be it Ordered that the City Council approve a decrease to the City of Saco FY2019 Fee Schedule for the Resident Parking Permit in the amount of $15. The motion passed with four (4) yeas and three (3) nays Councilors Johnston, Smart, and Gay. Amendment #2 Councilor Copeland moved, Councilor Johnston second to keep the Application for Taxicab Business License and Application for Taxicab Operator License as they were. Be it Ordered to approve the decrease to the City of Saco FY2019 Fee Schedule for the Application for Taxicab Business License and Operators License to remain as there were at $60 for the Business License and $40 for the Operator License. The motion passed with seven (7) yeas. Amendment #3 Councilor Copeland moved, Councilor Doyle seconded to keep the Finance Fees Payment Plan as it was at $ Be it Ordered that the City Council approve a decrease to the City of Saco FY2019 Fee Schedule for the Payment Plan in the amount of $2.00 to $10 as it was. The motion passed with seven (7) yeas. Amendment #4 Councilor Smart moved, Councilor Minthorn seconded to accept the document from the Finance Director modifying the Fee Schedule for Code Enforcement Fees through a consolidate motion to approve 9 changes highlighted in yellow. The motion passed with seven (7) yeas. Note: The purple colored changes were accepted as well to bring it up to 9 total. M:\2018\cm_2018_05_14.docx 6/26/2018 Page 6 of 21

7 Mayor Lovell called for a vote on the main motion with amendments. The motion passed with six (6) yeas and one (1) nay Councilor Doyle. M:\2018\cm_2018_05_14.docx 6/26/2018 Page 7 of 21

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13 B. ADOPTION OF THE FISCAL YEAR 2019 SCHOOL DEPARTMENT BUDGET CONTINUED FROM PAGE #5 Remove from the Table Councilor Doyle moved, Councilor Copeland seconded to remove item #B from the table. The motion passed with seven (7) yeas. City Administrator Kevin Sutherland clarified that currently on the floor is a motion with 3 cost center dollar amounts. A friendly amendment could be made stating that based on new information that we have received from School Administration that there are really 4 cost centers and it is the same dollar amount. They were just outlined under the wrong group. Friendly Amendment Councilor Minthorn moved, Councilor Gay seconded to make a friendly amendment to Councilor Archer s Tier #3A amendment deleting the decrease to FY2019 Saco School Budget in the amount of $62,300 for Student and Staff Support Cost Center amending that to a decrease to the FY2019 Saco School Budget M:\2018\cm_2018_05_14.docx 6/26/2018 Page 13 of 21

14 in the amount of $36,500 for the Student and Staff Support Cost Center and a decrease to the FY2019 Saco School Budget in the amount of $25,800 for the System Administration Cost Center. Councilor Archer was acceptable to the friendly amendment. Mayor Lovell called for a vote on the amendment with the friendly amendment. The motion passed with four (4) yeas and three (3) nays Councilors Minthorn, Smart, and Johnston. Councilor Copeland read the background information: The School Board recommended FY2019 budget of $39,348,972 plus $118,247 for Saco s portion of the Adult Education would be a tax rate increase of $0.71, if the school department budget is adopted as presented. The FY2019 budget was: $35,548,262. Amendment Tier 2 Councilor Copeland moved Be it Ordered that the City Council approve a decrease to the FY2019 Saco School Budget in the amount of $80,000 for Transportation Cost Center, and decrease to the FY2019 Saco School Budget in the amount of $67,150 for Regular Instruction. Due to a lack of a second the motion was not considered. Amendment Tier 1 Councilor Copeland moved, Councilor Gay seconded Be it Ordered that the City Council approve a decrease to the FY2019 Saco School Budget in the amount of $145,000 for Facilities Cost Center, decrease to the FY2019 Saco School Budget in the amount of $80,000 for Transportation Cost Center, decrease to the FY2019 Saco School Budget in the amount of $370,150 for Regular Instruction Cost Center, decrease in the FY2019 Saco School Budget in the amount of $59,450 for Other Instruction Cost Center, and decrease to the FY2019 Saco School Budget in the amount of $866 for Special Education Cost Center. The motion failed with two (2) yeas and five (5) nays Councilors Archer, Doyle, Minthorn, Smart, and Johnston. Reconsider Tier #3A Councilor Archer moved, Councilor Doyle seconded to reconsider Tier #3A do to confusion and the misunderstanding of what was going on at the time. The motion passed with seven (7) yeas. Amendment Tier #3A Mayor Lovell called for a re-vote on the motion. The motion failed with three (3) yeas and four (4) nays Councilors Archer, Minthorn, Smart, and Johnston. Councilor Minthorn asked that the record reflect pages 4, 5, and 6 of the agenda which is Agenda item #B which was read in by Councilor Doyle. Mayor Lovell called for a vote on Appropriation Order #1. The motion passed with four (4) yeas and three (3) nays Councilors Gay, Doyle, and Copeland. Appropriation Order # 2 Councilor Doyle moved, Councilor Smart seconded Be it Ordered that $8,925,161 be raised and appropriated in additional local funds, which exceeds the State s Essential Programs and Services allocation model by $8,925,161 as required to fund the budget recommended by the School board. State Mandated Explanation: The additional local funds are those locally raised funds over and above the City s local contribution to the total cost of funding public education from pre-kindergarten to grade 12 as described in the Essential Programs and Services Funding Act and local amounts raised for the annual payment on non-state funded debt service that will help achieve the school department budget for educational programs. School board s Statement of Reasons for Exceeding Essential Programs and Services allocation model: The school budget proposed for the fiscal year exceeds the state s funding allocation model for various reasons. In general, (i) the model does not recognize the actual costs to operate and maintain the school program and curriculum; (ii) the state is not funding the model at 55% of the actual total cost of education; (iii) the state has added certain costs to the model without increasing available funding such as the state share of teacher retirement costs; (iv) the state has reduced or eliminated funding of costs necessary to operate the schools by such means as changing the student: teacher ratio, the student: ed tech, and other student: staff ratios and reducing funding of administrative costs. Further move to approve the order. The motion passed with seven (7) yeas. Appropriations Order #3 Councilor Doyle moved, Councilor Minthorn seconded Be it Ordered that $118,247 be appropriated for adult education and that $118,247 be raised as the local share; with authorization to expend any M:\2018\cm_2018_05_14.docx 6/26/2018 Page 14 of 21

15 additional, incidental, or miscellaneous receipts in the interest and for well-being of the adult education program. The motion passed with seven (7) yeas. C. ADOPTION OF FISCAL YEAR 2018 MUNICIPAL BUDGET To start the fiscal year 2019 budget process, the Finance Director and City Administrator presented a budget forecast in workshop on February 5, 2018 which established a directive for staff. On March 19, 2018, the Finance Director presented a recommended FY 2019 budget which partially covered school department expenditures. The School Board voted on their budget on March 21 st and was subsequently moved forward to the Council for consideration. The Council met with departments and agencies to review and discuss budgets in workshop on March 26 th, April 9 th, April 17 th, April 23 rd and April 30 th. Councilor Johnston moved, Councilor Mnthorn seconded Be it Ordered that the City Council move to approve an appropriation order for the adoption of the Fiscal Year 2019 budget, excluding all school and county related items, per Section 6.06 and 6.07 of the Charter of the City of Saco, Maine as follows: Approve gross expenditures of $23,333,253 in municipal expenditures, $1,323,765 in TIF transfers, and $2,704,971 in capital improvements for municipal operations. Expenditures are to be offset by $27,361,989 in anticipated revenue and other credits, which represents $9,748,730 in anticipated municipal revenues, $720,000 from the Ambulance Fund, $66,261 from the Camp Ellis Fund, $270,000 from the Economic Development Fund, $184,000 from the Downtown TIF, $230,000 from all other TIFs, $25,000 from Fire Impact Fund, $8200 in other transferences, and thereby raising gross taxes of $16,109,799. This Motion includes the following items that were above the City Council s initial directive to the City Administrator, but considered vital to the sustainable future growth of the city and therefore included: Department Project Name Total Approved Assessor Vision Software Upgrade 25,000 Human Resources Time Clocks 20,000 Parks & Recreation Used Forestry Truck 80,000 Planning & Econ Dev Planning Admin Desk Scanner 300 Planning & Econ Dev Public Info Station 2,500 City Administration Executive Assistant 68,205 City Administration Marketing Efforts 30,000 City Clerk Scanner/Tabulator for Elections 8,260 City Clerk Temporary Election Help 2,250 Code Enforcement Blight elimination 30,000 Fire/Ambulance Engine 3 Mid-Life Rehab 60,000 M:\2018\cm_2018_05_14.docx 6/26/2018 Page 15 of 21

16 Department Project Name Total Approved Fire/Ambulance Staffing 92,500 Fringe Benefits Merit Pay Program 60,000 Human Resources HR Technology Station 1,300 Human Resources Professional Development 10,000 Information Technology Blank-It 2,360 Information Technology iworq - Licensing 1,849 Information Technology iworq - Online Permitting 1,300 Information Technology Nessus 2,195 Parks & Recreation Neighborhood parks 16,880 Parks & Recreation Young School Tennis Courts 15,000 Planning & Econ Dev Greenbelt GIS Map 5,000 Planning & Econ Dev Professional Services 30,000 Police Department Parking Control Person 15,555 Public Works Construction Inspection Services - Public Works Transfer Station Waste Handling 33,698 Supported Entities Library Programming for Children 4,500 Supported Entities Saco Main Street Funding Increase 15,000 Furthermore, be it ordered that the Recommended amounts set in the following attached schedule titled CITY OF SACO FY2019 BUDGET OVERVIEW shall become a part of the City Clerk's records and shall designate the form of the City of Saco Budget for Fiscal Year as authorized under Section 6.04 of the Charter of the City of Saco, Maine. Further move to approve the order. Amendment #1 Councilor Johnston moved, Councilor Doyle seconded to remove the Used Forestry Truck RAD from the cities budget. Be it Ordered that the City Council approve a decrease to the City of Saco FY2019 City Budget for the Parks & Recreation Department in the amount of $80,000. The motion passed with six (6) yeas and one (1) nay Councilor Minthorn. Amendment #2 Councilor Johnston moved, Councilor Smart seconded Be it Ordered that the City Council approve an increase to Contracted Services in Parks & Recreation for $ The motion passed with seven (7) yeas. Amendment #3 Councilor Johnston moved, Councilor Doyle seconded to remove the cities Blight elimination RAD from the city budget. Be it Ordered that the City Council approve a decrease to the City of Saco FY2019 City Budget for the Code Enforcement Department in the amount of $30,000. Further move to approve the Order. The motion passed with six (6) yeas and one (1) nay Councilor Minthorn. Amendment #4 Councilor Johnston moved, Councilor Gay seconded to approve the part-time Internal Auditor role. Be it Ordered that the City Council approve an increase to the City of Saco FY2019 City Budget for the Finance Department in the amount of $20,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #5 Councilor Johnston moved, Councilor Gay seconded to remove the Merit Pay Program RAD from the city budget until the Personnel Committee has been established. Be it Ordered that the City Council approve a decrease to the City of Saco FY2019 City Budget for the Fringe Benefits Department in the amount of $60,000. Further move to approve the Order. The motion passed with six (6) yeas and one (1) nay Councilor Minthorn. Amendment #6 Councilor Minthorn moved, Councilor Doyle seconded Be it Ordered that the City Council approve an increase to the original Council Directive to support the Age Friendly Saco RAD in the amount of $7,500 as M:\2018\cm_2018_05_14.docx 6/26/2018 Page 16 of 21

17 approved in the City of Saco FY2019 City Budget. The motion passed with seven (7) yeas. Amendment #7 Councilor Johnston moved, Councilor Smart seconded to transfer an additional $30,000 from the City of Saco TIF Funds to support marketing efforts in FY2019. Be it Ordered that the City Council approve an increase to the City of Saco FY2019 City Budget for the TIF Transfer Revenue of $30,000. Further move to approve the Order. The motion passed with xix (6) yeas and one (1) nay Councilor Doyle. Amendment #8 Councilor Johnston moved, Councilor Minthorn seconded to provide funding for a Citizen Satisfaction Survey by providing $7,000 as a one-time use of fund balance. Be it Ordered that the City Council approve an increase to the City of Saco FY2019 City Budget in the amount of $7,000 for a Citizen Satisfaction Survey. Furthermore, that said funding be appropriated from unassigned fund balance. The motion passed with four (4) yeas and three (3) nays Councilors Copeland, Doyle, and Archer. Amendment #9 Councilor Johnston moved, Minthorn seconded to provide an additional $15,000 for improving and maintaining parks. Be it Ordered that the City Council approve an increase to the City of Saco FY2019 City Budget for the Parks & Recreation Department in the amount of $15,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #10 Councilor Johnston moved. Councilor Minthorn seconded Be it Ordered that the City Council approve and increase to the City of Saco FY2019 City Budget for the TIF Transfer Revenue of $15,000. The motion passed with seven (7) yeas. Note: The TIF funds would support Tri-City Transit efforts in Fiscal Year 2019 and would come out of the Mill Building #4 Chinburg TIF. Amendment #11 Councilor Johnston moved, Councilor Smart seconded to transfer an additional $15,000 from City of Saco TIF funds to support Saco Main Street efforts in Fiscal Year Be it ordered that the City Council approve an increase to the City of Saco FY2019 City Budget for TIF Transfer Revenue of $15,000. Further move to approve the Order. Councilor Archer noted that in the interest of transparency he serves on the board. So, he will need to abstain unless the council members have no issues with him voting. There was no council motion for Councilor Archer to recuse himself from voting. The motion passed with seven (7) yeas. Amendment #12 Councilor Johnston moved, Councilor Minthorn seconded to pull forward a portion of the Local Road Drain Replacement Project in the Capital Plan from Fiscal Year 2020 to Fiscal Year Be it ordered that the City Council approve an increase to the City of Saco FY2019 City Budget for the Capital Program of $100,000. Further move to approve the Order. The motion passed with six (6) yeas and one (1) nay Councilor Doyle. Amendment #13 Councilor Johnston moved, Councilor Copeland seconded Be it ordered that the City Council approve an increase to the City of Saco FY2019 City Budget for Seeds of Hope in the amount of $10,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #14 Councilor Copeland moved, Councilor Gay seconded to reduce the transfer from the Camp Ellis to the General fund by $19,000. That amount was originally funded by a significant increase in the resident parking pass, which has not been approved by council. Be it ordered that the City Council approve a decrease to the City of Saco FY2019 City Budget for transfer from the Camp Ellis Fund in the amount of $19,000. Further move to approve the Order. The motion passed with six (6) yeas and one (1) nay Councilor Johnston. Amendment #15 Councilor Minthorn moved, Councilor Johnston seconded Be it ordered that the City Council approve a decrease to the City of Saco FY2019 City Budget for Excise Tax Revenue of $50,000. Further move to approve the Order. The motion failed with one (1) yea and six (6) nays Councilors Johnston, Smart, Copeland, Gay, Doyle and Archer. Amendment #16 Councilor Gay moved, Councilor Doyle seconded to reduce the Transfer Station Fees by $185,000 to match adjustments made to the fee schedule as proposed by the City Administrator. Be it ordered that the City M:\2018\cm_2018_05_14.docx 6/26/2018 Page 17 of 21

18 Council approve a decrease to the City of Saco FY2019 City Budget for Transfer Station Fees of $185,000. Further move to approve the Order. The motion failed with three (3) yeas and four (4) nays Councilors Minthorn, Smart, Johnston, and Archer. Amendment #17 Councilor Johnston moved, Councilor Minthorn seconded The School pays the City back for garage labor costs incurred by the City while working on school buses. This revenue was not budgeted for Fiscal Year Be it ordered that the City Council approve an increase to the City of Saco FY2019 City Budget for School Revenue in the amount of $60,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #18 Councilor Archer moved, Councilor Gay seconded Municipal Revenues were budgeted too high by $19,000 under the assumption that the City had the authority to increase vehicle registration fees. Be it ordered that the City Council approve a decrease to the City of Saco FY2019 City Budget for City Clerk Fees in the amount of $19,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #19 Councilor Smart moved, Councilor Doyle seconded The City Administrator approved the Saco Main Street RAD of $15,000 twice, for a total budget of $86,003 rather than the requested $71,003. This motion adjusts the appropriation for Saco Main Street to its requested level. Be it ordered that the City Council approve a decrease to the City of Saco FY2019 City Budget for Saco Main Street in the amount of $15,000. Further move to approve the Order. Councilor Archer noted that in the interest of transparency he serves on the board. So, he will need to abstain unless the council members have no issues with him voting. There was no council motion for Councilor Archer to recuse himself from voting. The motion passed with six (6) yeas and one (1) nay Councilor Archer. Amendment #20 Councilor Doyle moved, Councilor Minthorn seconded Be it Ordered that the City Council approve a decrease to the original council directive to support the City Administration Executive Assistant RAD for the City Administration Department in the amount of $68, 205 as approved by the City Administrator in the City of Saco FY2019 City Budget. Further move to approve the Order. The motion passed with four (4) yeas and three (3) nays Councilors Johnston, Smart, and Archer. Amendment #21 Councilor Doyle moved, Councilor Minthorn seconded to remove the Grants and Special Projects Coordinator position and use the funding for that position to create a full time Grants/Internal Auditor position. Mayor Lovell called for a vote on the amendment. The motion failed with three (3) yeas and four (4) nays Councilors Archer, Copeland, Smart, Johnston. Amendment #22 Councilor Archer moved, Councilor Johnston seconded Be it Ordered that the City Council approve an increase to the City of Saco FY2019 City Budget for the City Administration Department in the amount of $34,000. Note: This amendment is for a Part-Time Executive Session. The motion passed with six (6) yeas and one (1) nay Councilor Doyle. Mayor Lovell called for a vote on the main motion with the amendments. The motion passed with six (6) yeas and one (1) nay Councilor Doyle. M:\2018\cm_2018_05_14.docx 6/26/2018 Page 18 of 21

19 E. FISCAL YEAR 2019 STATE REQUIRED COUNCIL ACTION The State of Maine requires two separate actions by the Municipal Officers after the budget is passed. Section 5682 of Title 30-A requires that the City may receive State funds only on the affirmative vote of the Council to accept those funds. The numbers in the motion are the estimates from the budget. Total accuracy on the estimates is not a requirement, only that acceptance of the funds is authorized. The City Clerk must certify the vote and return the information to Augusta before July 1, Councilor Smart moved, Councilor Minthorn seconded Be it Ordered that the City Council authorize the City Treasurer to accept, on behalf of the City of Saco, the following categories of state funds and their estimated amounts for the fiscal year which are provided by the Legislature of the State of Maine to the City of Saco, and which action is required under Title 30-A MRSA Municipal Revenue Sharing $1,137,870 Local Road Assistance $235,635 Tree Growth Reimbursement $35,630 Veterans Exemption Reimbursement $12,544 General Assistance Reimbursement $96,396 Homestead Exemption Reimbursement $803,136 And other such state revenues, grants, or reimbursements which may become available to the City of Saco from the State of Maine, from time to time. Further move to approve the order. The motion passed with seven (7) yeas. M:\2018\cm_2018_05_14.docx 6/26/2018 Page 19 of 21

20 F. FISCAL EAR 2019 PROPERTY TAX DUE DATES AND INTEREST RATES Under Title 36, MRSA, Section 505, a municipality may, by vote, determine the interest rate that shall apply to delinquent taxes committed during the taxable year until those taxes are paid in full. The Treasurer of the State of Maine determined that the maximum rate of interest that can be charged per Title 36, MRSA, Section 505 (4) for calendar year 2018 is 8.0%. Therefore, for the FY2019 tax commitment, the maximum rate allowed is 8.0%. As a normal course of business, the City has adopted the maximum rate as its rate. Under Title 36, MRSA, Section 506, a municipality may set the interest rates and authorize the prepayment of taxes. Therefore, we are requesting that City Council set the interest rate of 0% for the overpayment of the FY2018 taxes and authorize the application of any prepayment of taxes directly to the tax account as they are received without having to pay interest on these prepayments. The tax payment due dates are as follows: First half due: 9/14/18 (interest accruing from 9/17/18) Second half due: 3/8/19 (interest accruing from 3/11/19) Amendment to EZ Pay due date: Continuation of the EZ Pay program for fiscal year 2019 with 8 monthly payments starting September 15, 2018 and ending April 15, Councilor Copeland moved, Councilor Minthorn seconded Be it ordered that the City Council set the interest rate for delinquent FY2019 property taxes at 8.0%, set the refund interest rate of FY2018 tax payments at 0.0% and authorize the tax collector to accept prepayment of taxes not yet committed without having to pay interest on these prepayments, and to establish the due dates for tax payments as follows: payment for the first half due on September 14, 2018, with interest occurring from September 17, 2018, and payment for the second half due on March 8, 2019, with interest accruing from March 11, Further move to approve the Order. The motion passed with seven (7) yeas. G. RECONFIRM THE AUTHORITY TO APPLY TAX PAYMENTS TO THE OLDEST OUTSTANDING TAX On October 6, 1986, the City Council approved a tax collection policy which allowed the Treasurer or the Tax Collector to apply tax payments received from an individual to the oldest unpaid tax bill first. We would like to reconfirm the existing policy with the onset of a new tax year. Tax Collection Policy The municipal officers of the City of Saco have approved the request of the municipal treasurer and the tax collector that any tax payment received from an individual as payment for any property tax, personal property, and sewer user fees be applied against outstanding or delinquent taxes due on that property in chronological order beginning with the oldest unpaid tax bill. Taxes may not be applied to a period for which abatement request or appeal has not been resolved unless approved in writing by the taxpayer. Also, on the 30-day lien notice or day foreclosure notice, a statement will be added indicating the City s tax collection policy. Councilor Gay moved, Councilor Smart seconded Be it Ordered that the City Council accept the tax collection policy as presented pursuant to title 36 MRSA Section 906. Further move to approve the Order. The motion passed with seven (7) yeas. H. ADOPTION OF THE FY2019-FY2023 CAPITAL PROGRAM The Capital Plan Committee met on January 17 th and subsequently on February 28 th to develop and recommend a Capital Program that would be included as part of the City Administrator s recommended budget. On March 19, 2018, the Finance Director presented a recommended FY 2019 budget which included as Section 3 of the overall budget, the five year Capital Program. The Council discussed the Capital Program as part of April 9 th workshop. Councilor Gay moved, Councilor Minthorn seconded Be it ordered that the City Council approve the FY19-FY23 M:\2018\cm_2018_05_14.docx 6/26/2018 Page 20 of 21

21 Capital Program. The motion passed with seven (7) yeas. I. A RESOLUTION REGARDING THE SCHOOL BUDGET REFERENDUM Councilor Johnston moved: Whereas, the information provided by the School Board on the immediate need for a $1.16 increase in the property tax rate does not adequately explain the urgency of that need. Whereas, the need to increase spending by an additional $3,800,710 over prior year spending has not been explained. Whereas, the total increase in Property Tax of $3,800,710 represents a substantial addition to the burden Saco government is placing on its taxpayers. Resolve, the Council recommends a vote of No on each of the categories on the School Budget to be voted by referendum on June 12, By voting NO, the voters allow the School Board and the Council to further evaluate the School Budget. Due to a lack of a second the motion was not considered. VIII. IX. COUNCIL DISCUSSION AND COMMENT ADJOURNMENT Councilor Minthorn moved, Councilor Doyle seconded to adjourn the meeting at 11:35 p.m. The motion passed with seven (7) yeas. Attest: Michele L. Hughes, City Clerk M:\2018\cm_2018_05_14.docx 6/26/2018 Page 21 of 21