Although the administration has yet to release a budget for the 2016-17 fiscal year, in statements issued last week Mayor Scott Avedisian is recommending the creation of a funding plan for other …
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Although the administration has yet to release a budget for the 2016-17 fiscal year, in statements issued last week Mayor Scott Avedisian is recommending the creation of a funding plan for other post-employment benefits (OPEB) and the allocation of $140,000 for an inventory control system.
In addition, as a policy and not part of the budget, Avedisian recommends the proceeds from the sale of excess city property be used to reduce the city’s long-term debt and not allocated to the general fund.
The City Council is expected to receive the budget tomorrow, with public hearings starting Saturday, May 21, at 9 a.m. and running to 2 p.m. The hearings resume Monday, May 23, at 5 p.m.
“While it is definitely far reaching,” Avedisian said in relation to funding post-employment benefits other than pensions, “it is important that we identify now the manner in which we can logically sustain this funding.” He allocated $200,000 in his proposed budget for the current year, an amount the council deleted. For the coming year, he is budgeting $50,000.
The mayor said Council President Donna Travis, Councilman Steve Colantuono, and Councilwoman Camille Vella-Wilkinson have filed legislation to create an OPEB trust through the Rhode Island Interlocal Risk Management Trust.
A trust would set the process of building a fund to pay for such benefits as retiree health care in place, although it wouldn’t go far to meeting the unfunded liability placed at $321.3 million as of last June. What Avedisian envisions is a second phase of city contributions that would kick in substantially greater annual allocations staring in about 16 years. It is at this point that the city anticipates completion of a 40-year program to fund the unfunded liability of the Police and Fire Pension I. The city is kicking in more than $20 million annually to the pension fund, which carried an unfunded liability of $206 million as of July 1, 2015. The fund was closed in 1995.
“While it is definitely far-reaching,” Avedisian said in a statement, “it is important that we identify now the manner in which we can logically sustain this funding. Once the unfunded pension obligations are met, we should utilize that money for OPEB obligations.”
As for reducing the city’s indebtedness with the proceeds for the sale of excess city land, the mayor noted he has been in contact with Philip Thornton and the superintendent told him school properties would be transferred to the city when deemed surplus by the school department. Two properties – Aldrich Junior High and school administrative offices on Warwick Avenue – would appear to be the most likely candidates.
With the consolidation of secondary schools, this is the last year for Aldrich and Gorton junior high schools and Vets High. Vets will reopen this fall as a junior high, while Gorton has been identified for the consolidation of school administrative offices.
Both Aldrich on Post Road opposite the Walmart and administrative offices on Warwick Avenue would seem to be attractive candidates for redevelopment as housing and offices. The Aldrich property that backs up to the former Christopher Rhodes elementary school would appear to be especially attractive for redevelopment. Rhodes School has been vacant for years despite efforts to either sell or lease it.
In a statement, the mayor said, “right now the city’s bond indebtedness is very low at $32 million. I’m looking to continue to reduce our debt and believe that proceeds realized from the sale of any school buildings should be utilized to pay off long-term debt.”
The bond indebtedness figure used by the mayor does not include $12.3 million in school bonds nor the debt of the Warwick Sewer Authority or Warwick Water Division. Their bond indebtedness as of June 30, 2015, was $98,380,664 and $119,224, respectively.
As for the inventory control system, City Finance Director Ernest Zmyslinski said yesterday the administration is proposing the acquisition of a software system that would keep an accounting of all purchase orders as well as an inventory of supplies.
Avedisian said Public Works, Warwick Sewer Authority, and the garage of the Police Department would be the first departments to have the new technology.
“During my tenure as the Chairman of the Board of the Rhode Island Public Transit Authority, the CEO Ray Studley and I worked to bring about an inventory control system to RIPTA. It allowed for greater accountability, for streamlined processes or ordering, and gives a better flow to the buying and using of parts and other materials,” the mayor said in a statement.
“I think that such a system in the city would be beneficial for accountability, for better flow of ordering, and would allow for departments to use equipment and materials that other departments already have in stock by sharing that information.”
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RISchadenfreude
'“During my tenure as the Chairman of the Board of the Rhode Island Public Transit Authority, the CEO Ray Studley and I worked to bring about an inventory control system to RIPTA. It allowed for greater accountability, for streamlined processes or ordering, and gives a better flow to the buying and using of parts and other materials,” the mayor said in a statement.'
So it hasn't been a total waste of time and Warwick taxpayer dollars after all- Scotty finally learned something useful that he can apply to his part-time job as Mayor.
Tuesday, May 10, 2016 Report this
richardcorrente
Warwick deserves a Mayor that is not "tenured" at R.I. Public Transit Authority. During Avedisians inaugural address he spoke more about RIPTA than the issues of Warwick. During his term as Mayor, he has more going on there than in the Mayors office. Last January, Rhode Island Paintball and Airsoft (1207 Post Rd.) was demolished by a RIPTA bus. Avedisian represents RIPTA AND the City of Warwick and here we are FIVE MONTHS LATER and we are still processing the claim. In my administration we won't leave a business owner waiting for FIVE LONG MONTHS, WITH NO END IN SIGHT. Let Avedisian go to RIPTA. I am singularly focused on Warwick issues. My focus will be on the owner of the building and the owner of that business. As of today (5-10-16), the Mayor hasn't done a thing for either one of them! I sincerely hope they will be satisfied before the election. If not I will make it a priority. My committment will be to these two Warwick taxpayers. Letting this go so long is horrible.
Richard Corrente
Democrat for Mayor
Tuesday, May 10, 2016 Report this
PaulHuff
Clearly it is Avedesian's fault that negotiations with the insurance company are taking so long.
Mr. Corrente....you sound like a loon.
Wednesday, May 11, 2016 Report this
richardcorrente
Dear PaulHuff,
You're right! It is clearly Avedisians fault!
I'm not sure if the delay is on the City of Warwick's side or the RIPTA side but since they are both in the control of Scott Avedisian, the processing of an insurance claim that usually takes 3 or 4 weeks, is now at the 5 month mark with no relief in sight.
The liability is 100% RIPTA's. A settlement check should have been cut months ago. Call any insurance adjuster. I called two.
I recommend you speak to the property owner or, better yet, the business owner to determine who the "loon" might be.
But thanks for your input, however misguided.
Take good care,
Richard Corrente
Democrat for Mayor
P.S. A RIPTA bus hit a bus shelter on the East Side of Providence Monday night, May 8th injuring 8 adults and a child. If they have to wait 5 months or more for their settlement checks would that be fair to them Paul? Would that be Avedisians responsibility? I fear that this will be the case and, yes I will blame Avedisian. He has a long history of massive delays, something that won't be part of my administration.
Wednesday, May 11, 2016 Report this
Scal1024
How about your thoughts on the article Mr. Corrente? Do you support this plan? Do you support the inventory control system? I would say debt and liabilities are a #1 priority. To turn around and make it about RIPTA, and 1 accident is foolish. How about the substance of the article? Do you support it or oppose it? Or are you going with the Stacia Huyler playbook of making things up for political gain?
PS: Never got your thoughts on the Warwick Watch/ bathroom debacle. Care to comment?
Wednesday, May 11, 2016 Report this
patientman
At least the mayor is finally admitting the unfunded OPEB problem exists. That's a start. It seems odd that he mentioned the "cities low indebtedness" but didn't mention the Warwick sewer agency's $100,000,000 bond debt. Who is liable for that debt? The Cranston residents?
Wednesday, May 11, 2016 Report this
Justanidiot
Mayer Corrente -- I look forward to your term(s) as chief executive. Warwick will be great again.
Trump and Corrente in '16
Things are looking up!!!!!!!!!!!!!!!!!!!
Thursday, May 12, 2016 Report this
richardcorrente
Dear Scal1024, Patientman, and Justanidiot,
I think I agree with Patientman when he says "At least the Mayor is finally admitting the unfunded OPEB problem exists."
I credit the hard work of Rob Cote and Robert Cushman for bringing this issue so much press.
As far as supporting a plan for better inventory controls, of course I support that. Who wouldn't? You also bring up "debt as the number one priority." I feel cutting taxes and cutting spending (debt) need to happen at the same time to keep our cash-flow balanced. Then, if we can increase the number of taxpayers contributing to the system (through tax rebate checks, a 2 year moratorium on building permit fees, and a strong promotion of Warwick to the rest of the state), we can actually make our dysfunctional City Hall functional again. The new tax revenue will reduce the need to "over-tax" the rest of us.
Please stop by the Grand Opening of the Corrente-For-Mayor Headquarters at 1609 Warwick Ave. in the Gateway Plaza next to Dave's in Hoxie Four Corners on Saturday May 14th from 3 PM to 7 PM. I would like to meet you very much.
Hope to see you then.
Richard Corrente
Democrat for Mayor
Thursday, May 12, 2016 Report this
Scal1024
Mr. Corrente I appreciate your response, and I agree the mayor is taking the right steps in this instance. My concern is when I hear you state cut taxes, cut spending, and then also hear grant tax exemptions for new home owners, tax exemptions for new businesses etc I haven't heard much about how we will pay for it. The loss of revenue on taxes cannot be offset with spending cuts. I just don't believe the money is there for those types of programs. I applaud your effort for putting plans out there (for people like me to read, sometimes critique). I just think there needs to be more detail on your plan other than tax cuts and spending cuts.
Thursday, May 12, 2016 Report this
howdydoody
I wish you teachers would just shut up and do what Scott and Phil want.
Lets see how the Scottie Values his employees
Firemen 3% , 3% , 3% He’s afraid of them so he also puts extra money in the pension fund
Police 3%, 3%, 3% He’s afraid of them he gives them a $4,000 health savings account wink wink.
Trash men 3%, 3% ,3% He’s afraid of those men too. He also changes no language in the contract.
Looks like another 0% for you teachers
Teachers the mayor laughs at you because you are a bunch of women and geldings. He offers you 0%,0%,0% because he knows you will do what’s best for the kids.
You teachers have to pay for the mayors side of the budget.
Sunday, May 15, 2016 Report this