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HomeMy WebLinkAboutMinutes-03/06/2006• • March 6, 2006 The Council of the City of Waterloo, Iowa, met in Regular Session at City Hall Council Chambers, Waterloo, Iowa, at 5:30 p.m., on Monday, March 6, 2006. Mayor Timothy J. Hurley in the Chair. Roll Call: Kincaid, Welper, Gunderson, Greenwood, Getty, Cole, Schmitt. Moment of Silence. Pledge of Allegiance: Councilperson John Kincaid. Presentation by Bamboo Orchestra of Japan. 123072 - Schmitt/Kincaid that the Agenda, as amended to move Budget Hearing to end of agenda, for the Regular Session on Monday, March 6, 2006, at 5:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. 123073 - Schmitt/Kincaid that the Minutes, as proposed, for the Regular Session on Monday, February 27, 2006, at 5:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. CONSENT AGENDA 123074 - Getty/Kincaid that the following items on the consent agenda be received, placed on file and approved: a. Resolutions to approve the following: 1. Resolution approving Schedule AP640, pp. 1-61, dated March 6, 2006, in the amount of $1,527,362.82, a copy of which is on file in the City Clerk's office, together with recommendation of approval of the Finance Committee. Resolution adopted and upon approval by Mayor assigned No. 2006-161. 2. Communication from City Clerk transmitting request of Bruce Stiles for an exception to burning yard waste to burn approximately 20 acres of prairie grass bordered on the south side by Big Rock Road during the time period of March 18 -April 22, 2006, together with recommendation of approval of Leisure Services Director, Fire Chief and Superintendent of Waste Management Services. Resolution adopted and upon approval by Mayor assigned No. 2006-162. 3. Communication from Police Chief transmitting request of Waterloo Jaycees to hold Waterloo Jaycees Fireworks Festival on July 1, 2006 from 6:00 p.m. until 12:00 midnight, with live bands, food and beverage vendors, beer gardens and fireworks with activities to be held at Veteran's Memorial Park, 4th Street Bridge, Soldiers and Sailors Park, the city lot next to the Courier building and the Sixth Street bridge. Resolution adopted and upon approval by Mayor assigned No. 2006-163. b. Motion -to approve the following: 1. Michael Gibbons, Firefighter, to attend Effective Public Education Programs Class in Emmetsburg, Maryland on April 22-29, 2006, with costs not to exceed $124.30. 2. Todd Derifield, City Forester; Luke Even, Forestry Foreman; Lawrence Harms and Devon Wagoner, Park Maintenance II -Forestry; to attend Shade Tree Short Course in Ames, Iowa on March 14-15, 2006, with costs not to exceed $464.89, including use of city vehicle. 3. Shawn Monroe and Tom Sullivan, Police Officers, to attend Field Training Officer Certification School in Des Moines, Iowa on March 6-10, 2006, with costs not to exceed $1,396.52, including use of city vehicle. 4. Dave Boesen, Fire Marshal; and Arson K-9 Ebby to attend Arson K-9 Testing and Re -Certification in Omaha, Nebraska and Council Bluffs, Iowa on June 25-28, 2006, with costs not to exceed $545.44, including use of city vehicle. March 6, 2006 Consent Agenda continued Page 2 5. Ruth Muller, Clerk I, to attend Basic Iowa System Training in Des Moines, Iowa on March 14-16, 2006, with costs not to exceed $112.00. 6. Paul Huting, Leisure Services Director, to attend Annual Iowa Park & Recreation Association Conference in Dubuque, Iowa on April 2-5, 2006, with costs not to exceed $459.00, including use of city vehicle. 7. Kent Shankle, Curator, to attend Haitian Art Society Annual Conference in Miami, Florida on May 18-23, 2006, with costs not to exceed $899.93. c. Beer License Permit Application Class C Lafayette Laundry, 2036 Lafayette Street (New) (Expires 3/6/07) (Includes Sunday Sales) d. Beer/Liquor License Permit Application Class C Red Lobster, 941 East San Marnan Drive (Renewal) (Expires 3/10/07) (Includes Sunday Sales) Fortunes, 328 Elm Street (Renewal) (Expires 3/27/07) (Includes Sunday Sales) National Dairy Cattle Congress, 250 Ansborough Avenue (Renewal) (Expires 2/28/07) (Includes Sunday Sales) e. Outdoor Service Area Application Fortunes, 328 Elm Street f. Cigarette/Tobacco Permit Application Golden Pipe, 702 South Street g. Bonds. Ayes: Seven. Motion carried. HEARINGS & BIDS 123075 - Welper/Kincaid that proof of publication of notice of public hearing on F.Y. 2006 Sidewalk Repair Program - Zone 6 and Trail Repairs, Contract No. 710, as published in the Waterloo Courier on February 17, 2006, be received and placed on file. Ayes: Seven. Motion carried. 123076 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Welper/Schmitt that the hearing be closed. Ayes: Seven Motion carried. 123077 Welper/Kincaid that "Resolution confirming approval of plans, specifications, form of contract, etc. in conjunction with F Y. 2006 Sidewalk Repair Program - Zone 6 and Trail Repairs, Contract No. 710", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-164. 123078 - Welper/Schmitt that "Resolution ordering construction in conjunction with above said project", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-165. • • • • March 6, 2006 Page 3 Hearings & Bids continued 123079 - Welper/Cole to receive, file and instruct City Clerk to open and read bids and refer to City Engineer for review: Bidder B & B Builders and Supply, Waterloo, IA Dolan Excavating, Manchester, IA Ayes: Seven. Motion carried. 123080 - Getty/Cole Bid Bond 5% 5% Bid Amount $67,590.42 $123,976.13 that proof of publication of notice of public hearing on Purchase of Full Size Pickup Truck and Service Body, as published in the Waterloo Courier on February 27, 2006, be received and placed on file. Ayes: Seven. Motion carried. 123081 This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Getty/Cole that the hearing be closed. Ayes: Seven. Motion carried. 123082 - Getty/Cole that "Resolution confirming approval of specifications, bid document, etc. in conjunction with Purchase of Full Size Pickup Truck and Service Body", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-166. 123083 - Getty/Cole that "Resolution authorizing to proceed in conjunction with above purchase", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-167. 123084 - Getty/Cole to receive, file and instruct City Clerk to open and read bids and refer to Superintendent of Traffic Operations for review: Bidder Witham Ford, Waterloo, IA Ayes: Seven. Motion carried. 123085 - Schmitt/Cole Option 1 Bid Amount $34,202.00 Option 2 Bid Amount $36,806.00 that proof of publication of notice of public hearing on Cedar Terrace Park Playground Equipment, as published in the Waterloo Courier on February 16, 2006, be received and placed on file. Ayes: Seven. Motion carried. 123086 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Schmitt/Kincaid that the hearing be closed. Ayes: Seven. Motion carried. 123087 Schmitt/Cole that "Resolution confirming approval of specifications, bid document, etc. in conjunction with Cedar Terrace Park Playground Equipment", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-168. March 6, 2006 Hearings & Bids continued 123088 - Schmitt/Kincaid Page 4 that "Resolution authorizing to proceed in conjunction with above purchase", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-169. 123089 - Schmitt/Cole to receive, file and instruct City Clerk to open and read bids and refer to Leisure Services Director for review: Bidder Bid Amount John Finn Reese Recreation, Spring Green, WI $37,860.00 Gazaway & Assoc, Marshalltown, IA $38,000.00 Outdoor Rec Products, Elk Horn, NE $37,345.00 Gametime c/o Premier Recreation Products, W Des Moines, IA $37,500.00 Fry & Assoc, N Kansas City, MO $38,876.00 Ayes: Seven. Motion carried. 123090 - Schmitt/Cole that proof of publication of notice of public hearing on Byrnes Park Playground Equipment, as published in the Waterloo Courier on February 16, 2006, be received and placed on file. Ayes: Seven. Motion carried. 123091 This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Schmitt/Kincaid that the hearing be closed. Ayes: Seven. Motion carried. 123092 - Schmitt/Cole that "Resolution confirming approval of specifications, bid document, etc. in conjunction with Byrnes Park Playground Equipment", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-170. 123093 - Schmitt/Kincaid that "Resolution authorizing to proceed in conjunction with above purchase", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-171. 123094 - Schmitt/Cole to receive, file and instruct City Clerk to open and read bids and refer to Leisure Services Director for review: Proposal 1 Proposal 2 Bidder Bid Amount Bid Amount John Finn Reese Recreation, Spring Green, WI $68,545.00 $68,795.00 Gazaway & Assoc, Marshalltown, IA $70,000.00 Outdoor Rec Products, Elk Horn, NE $67,059.00 Gametime c/o Premier Recreation Products, W Des Moines, IA $75,00p.00 Fry & Assoc, N. Kansas City, MO $69,732.00 Ayes: Seven. Motion carried. • • • • March 6, 2006 UNFINISHED BUSINESS 123095 - Greenwood/Schmitt Page 5 that communication from Leisure Services Director transmitting recommendation of award of contract in the amount of $32,250.32 to Waterloo Implement of Waterloo, Iowa in conjunction with One John Deere 1565 Commercial Front Mower With Snow Blower, Cab and 60 Inch Front Blade Installed, be received, placed on file and "Resolution approving said award of contract", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-172. 123096 - Greenwood/Schmitt that communication from Leisure Services Director transmitting recommendation of award of contract in the amount of $41,866.00 to Bill Colwell Ford of Hudson, Iowa in conjunction with Purchase of One Four -Wheel Drive Truck Chassis With Dump Box and Snow Plow Installed, be received, placed on file and "Resolution approving said award of contract", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-173. 123097 - Greenwood/Schmitt that communication from Leisure Services Director transmitting recommendation of award of contract in the amount of $77,698.00 to Dick Witham Ford of Waterloo, Iowa in conjunction with Purchase of Two Four -Wheel Drive Truck Chassis With Service Box Installed, be received, placed on file and "Resolution approving said award of contract", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-174. 123098 - Gunderson/Welper that communication from Superintendent of Traffic Operations transmitting recommendation of award of contract in the amount of $8,361.25 to B&B Builders and Supply of Waterloo, Iowa in conjunction with Flammang and Sarah Left Turn Pocket Extension, TRAF-116-06, CS -TSF -8155(681)-85-07, be received, placed on file and "Resolution approving said award of contract", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-175. PETITIONS FROM PUBLIC 123099 - Kincaid/Cole that communication from Senior Planner transmitting request of Fairbanks Builders for a minor site plan amendment to the "R -3,R -P" Planned Residence District for the development of one duplex in Crossroads Estates Replat No. 2 generally located off Hummingbird Circle, just north of Southtown Drive, be received, placed on file and "Resolution approving said minor site plan amendment", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-176. DOCUMENTS 123100 - Schmitt/Cole that communication from Senior Planner transmitting request of Mian Nisar Ahmed for tax exemptions totaling $142,096.00 for 3011-3013 Angeles Drive located in the Consolidated Urban Revitalization Area, together with recommendation of approval, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Assessor of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-177. March 6, 2006 Documents continued 123101 - Schmitt/Cole Page 6 that communication from Senior Planner transmitting request of Brian Freed for tax exemptions totaling $29,235.00 for 743 Englewood Avenue located in the Consolidated Urban Revitalization Area, together with recommendation of approval, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Assessor of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-178. 123102 - Getty/Cole that communication from City Engineer transmitting Completion of Project and Recommendation of Acceptance of Work performed by K. Cunningham Construction Co. Inc. at a cost of $605,048.44 in conjunction with F.Y. 2002 San Marnan Drive Turn Lane Construction - Phase 2, Contract No. 647, be received, placed on file and "Resolution approving said documents", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-179. 123103 - Getty/Cole that communication from City Planner transmitting agreement with Heartland Vineyard Church to lease a portion of 303 Jefferson at a cost of $500.00 per month, with lease ending June 30, 2006, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-180. 123104 - Gunderson/Schmitt that communication from City Clerk transmitting request of Harold Youngblut on behalf of Deer Creek Development to burn trees and stumps in a burn pit located in Gateway Business Park Development during the time period of March 7-17, 2006, be received, placed on file and "Resolution approving said request", be adopted. Prior to a vote on the above motion, the following comments were heard. Mayor Hurley noted this request is different from the exception to burning application that was approved under tonight's consent agenda because that request to burn was for prairie grass. Mayor Hurley stated that up to last fall, we granted developers' requests to burn thinking we had the right to do that. When checking the ordinance, the Fire Chief did not have the authorization to approve burning requests from contractors. Mr. Youngblut's request involves dozens of semi loads of stumps and brush that was cleared off property for development near Greyhound Park. Mayor Hurley stated he doesn't believe developers knew the city put itself out of the business of approving these applications. Mayor Hurley reported the City Attorney is working on an ordinance which would provide for these types of requests. Mayor Hurley commented that the most likely place for the stumps and brush to go is to haul it to the Black Hawk County Landfill and be charged for the load because the city doesn't want the material dropped off at our free drop-off site on Easton Avenue. Councilperson Greenwood asked if the developer had a turf grinder wouldn't that be a solution for him to grind it on site. Tim Shea, Superintendent of Waste Management Services, responded grinding does not alter the weight of the product, and the contractor would still have to dispose of the material and would have disposal costs. Councilperson Welper commented that it is a tremendous amount of brush and asked if it is material citizens could use for firewood. Harold Youngblut, 643 E. Griffth Road and Manager of the Deer Creek Project, reported they are removing all the leaves and going to put out a "free firewood" sign so that there will be less of a fire. Mr. Youngblut stated they are willing to follow the same requirements as last year such as dig a hole, have a supervisor on site at all times and then haul away the remaining material. • • • • March 6, 2006 Page 7 Documents continued Councilperson Gunderson asked if this area is part of the new construction in the area such as the Gold Gym. Mr. Youngblut replied they did not remove any from the Greenbelt side, but along where they need to put the sewer. Councilperson Getty stated he is totally opposed to this item being on the agenda as there is an ordinance which say you cannot burn trees, branches and leaves, and there is a burning ban in the city. Councilperson Getty stated there must be 50 or 60 dump truck loads of timber they are asking to burn. Councilperson Getty noted that several years ago the council said no burning, with two members on the council in favor of allowing burning of which he was one. Since it happened, the air is much cleaner than it is in Cedar Falls and Evansdale. Councilperson Getty stated he feels the city should stay with no burning and not allow this as we would violate our own ordinance. Councilperson Getty stated he would not support a new ordinance. Mayor Hurley noted that the city's ordinance does allow for recreational fires, and that since the no burning ordinance the city has had these types of authorized burns. Councilperson Welper stated he agrees with Councilperson Getty, and he does not want to start back up with a new ordinance, and maybe Mr. Youngblut can find enough residents to take a large part of the material. Following comments a vote was taken on the above motion with the following result. Ayes: Three. Nays: Kincaid, Welper, Greenwood, Getty. Motion failed. RESOLUTIONS TO BE ADOPTED 123105 - Gunderson/Cole that "Resolution committing financial support in the amount of $10,000.00, using hotel/motel tax funds, for the Dan Gable Wrestling Institute and Museum's application to the Iowa Department of Economic Development for a Community Attraction and Tourism (CAT) grant in the amount of $250,000.00, subject to funding by the CAT grant program", be adopted. Prior to a vote on the above motion, the following comments were heard. Councilperson Greenwood asked if the $10,000.0 would be from hotel/motel funds and not the council's discretionary funds. Mayor Hurley responded he assumed from the council's discretionary funds. Councilperson Getty asked when would the city have to make its first installment. Don Temeyer, Community Planning & Development Director, responded it would be in FYE2007. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-181. NEW BUSINESS 123106 - Cole/Schmitt that communication from City Planner transmitting Development Agreement with OFI Properties, LLC to convey approximately 7.7 acres of property generally located just south of Gray Transportation site in the Northeast Industrial Park to allow construction of 69,120 sq. ft. industrial building, with a minimum taxable value of $1,900,000.00, and five years tax rebatement at 50 percent of the project, be received, placed on file and "Resolution setting date of hearing as March 20, 2006, at 5:30 p.m. in the City Hall Council Chambers on the above described request", be adopted and City Clerk instructed to publish notice of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-182. March 6, 2006 New Business continued 123107 - Cole/Schmitt Page 8 that communication from City Planner transmitting request to vacate easement generally located along the westerly edge of a portion of Lot 12 and Lot 13 in the Northeast Industrial Park Plat No. 3, be received, placed on file and "Resolution setting date of hearing as March 20, 2006, at 5:30 p.m. in the City Hall Council Chambers on the above described request", be adopted and City Clerk instructed to publish notice of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-183. 123108 - Cole/Schmitt that communication from City Planner transmitting request to amend the Development Standards of Article III of the Deed of Dedication to the Northeast Industrial Park Plat No. 3 to allow truck dock and maneuvering area to face GT Drive within the Industrial Park area, be received, placed on file and "Resolution setting date of hearing as March 20, 2006, at 5:30 p.m. in the City Hall Council Chambers on the above described request", be adopted and City Clerk instructed to publish notice of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2006-184. BUDGET HEARING 123109 - Cole/Schmitt to call for a recess at 6:20 p.m. Ayes: Seven. Motion carried. Mayor Hurley called the meeting to order at 6:27 p.m. 123110 - Getty/Schmitt that proof of publication of notice of public hearing on FYE2007 Budget, as published in the Waterloo Courier on February 23, 2006, be received and placed on file. Ayes: Seven. Motion carried. 123111 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Michelle Weidner, Chief Financial Officer, presented "Building The Budget FYE07", a copy of which is on file in the City Clerk's office. Some of the items presented were: Top Strategic Priorities As Defined by Mayor and Council, How is Funding to Accomplish a City's Mission and Purpose Provided, Where Does My Property Tax Dollars Go, How is the Tax Levy Set, What Special Tax Levies Are Used By the City of Waterloo, How Does The State Impact The Tax Levy, Long -Term State Impacts, How Are Property Taxes Calculated, When Are Property Tax Rates Set, Who Pays Property Taxes in Waterloo, Valuation Trends - City of Waterloo, How Do Property Values By Type Compare to Property Taxes Paid in Waterloo, Assessed Values, Taxable Values, How Do Changes in Property Valuation Affect The City's Budget, Property Tax Trends - City of Waterloo, Property Tax Levy Trends, Property Taxes Collected - Waterloo, City of Waterloo Property Tax Trends With Comparison To Inflation, Are There Other Factors That Affect How My Tax Bill Is Determined, Average Residential Revaluations By Category, I Can't Afford This Tax Increase - Why Can't The City Tax Me The Same Amount, How Is the Tax Bill On My Home Determined, How Does The City of Waterloo Provide Services, How Are Sewer User Fees Spent, How Are Garbage User Fees Spent, How Are Road Use Tax Funds Used, How Are Local Option Tax Funds Used, How Are Federal Block Grant Funds Used, How Are Federal Housing Funds Used, How Are Capital Project Funds Used, How Are Debt Service Funds Used, How Many Employees Does The City of Waterloo Use To Provide Services, Do My Property Taxes Pay All The City's Expenses, What Activities Are General Fund Property Tax Dollars Used For, What Does The City Use My Property Tax Dollar For, What Types of Things Does The City Pay For With My General Fund Property Tax Dollar, What Types of Things Does The City Pay For With My Total Property Tax Dollar, Comparison of Waterloo With Other Iowa Cities, Revenue Source Comparison With Other Cities, Cost of Living Comparison, Items Impacting The FYE07 General Fund Budget, Proposal to Balance The FYE07 General Fund Budget, Annual Building Permit Valuation, Median Home Sales Price, Retail Sales, and Trends in General Fund Balance. • • • • March 6, 2006 Page 9 Budget Hearing continued Mayor Hurley summarized how he got to tonight's budget. We started with the Mayor's base line budget, added to it and ended with $937,000.00 gap. Some of the adds were backed off, we threw in $300,000.00 of original line item cuts, added line item changes of $250,000.00 and some minor corrections. On the budget proposed to the council on Friday, the remaining Isle of Capri funds were added for a proposed levy rate of $18.6767. Mayor Hurley reported tonight he is presenting a levy rate of $18.84580, which is 1% percent decrease in the current levy rate. Mayor Hurley stated with the proposed rate the city will be able to carry on with most of the things we are doing today. Shane Schellhorn, representing International Association of Fire Fighters Local No. 66, asked how this budget will affect the Fire Department and how will it affect services they provide to the city. Mayor Hurley responded this budget delays backfilling of retired positions, and the last target for Waterloo Fire Rescue was $100,000.00. Mr. Schellhorn stated the Fire Department is authorized for 115 personnel and currently are at 111. Mr. Schellhorn asked with the four position not being filled now, are no future retirees to be filled. Mayor Hurley responded he can't answer specifically as there is no edict in writing but the writing is on the wall. Mayor Hurley noted that 75 percent of General Fund costs is public safety. Mr. Schellhorn stated that Mayor Hurley talked about wanting to provide the same services, and the Fire Association has always had a good working relationship with the mayor and council Mr. Schellhorn stated the Fire Department is already down people, and they are concerned for the citizens' safety. Mr. Schellhorn stated the firefighters use whatever the city gives them at 100 percent. Mr. Schellhorn noted that last week there was a fire station closed for part of the day, and citizens don't know it when the stations are closed down. Mr. Schellhorn asked which part of this community are mayor and council willing to close down. Mayor Hurley responded it would probably be based on statistics. Mayor Hurley stated in terms of how the budget was built, he told staff and council that he was not willing to take the historic tract and that was to cut the other departments 20 percent. Mayor Hurley noted the city is moving forward and making great strides. Mayor Hurley reported Waterloo Fire Rescue was authorized for 114 in FYE06 and 113 for FYE07. Mr. Schellhorn stated he appreciates the time put into this budget, and the firefighters look forward to working with everyone. Mayor Hurley thanked the firefighters for the work they do and their loyalty to the citizens. Mayor Hurley commented it is unfortunate we have to do this every year, but we have more demand than there is supply. Dale Willie, 2648 Saratoga Drive, asked who owns the Five Sullivan Brothers Convention Center and what is the operating cost. Michelle Weidner, Chief Financial Officer, responded $170,000.00 is budgeted, and it is completely subsidized by the hotel/motel tax. Our taxpayers are only helping to pay the debt service. Ms. Weidner noted the city is doing its best to fund it by the people who use the facility, and that facility helps our businesses. Mr. Willie reported the Knights of Columbus is holding its state convention here which should bring in 15,000 to 20,000 people, and that is not a pleasant place to hold a convention. Mr. Willie asked if citizens were given an opportunity to vote on how to use the money when the one cent local option sales tax passed a year ago. Mayor Hurley responded the Five Sullivan Brothers Convention Center is looking and running better. Mayor Hurley reported the one cent local option tax was 100 percent for reconstruction and overlay of streets. Mayor Hurley stated he surveyed the citizens and asked if the local option sales tax should be used for items such as economic development and property tax relief and there was great consternation about it. Mayor Hurley stated the last referendum allows up to 10 percent of the taxes to be used for roads in an economic package if matched by federal and state funds. Mayor Hurley noted the local option tax is in effect for seven more years. Schmitt/Kincaid that the hearing be closed and oral and written comments be received and placed on file. Ayes: Seven. Motion carried. March 6, 2006 Budget Hearing continued Page 10 123112 - Councilperson Getty asked what percent of tax increase is the proposed $18.84580 levy. Mayor Hurley responded the levy deceases, but taxes collected increase about 2.9 percent in terms of dollars coming in with that levy. Councilperson Getty stated he finds it difficult to agree with a 2.9 percent tax asking increase. Councilperson Getty noted that the presentation talks about raising the Fire Department's ambulance fees, and that a lot of people can't afford an increase in ambulance fees. Councilperson Gunderson stated he feels we have done as much as we can with the budget, but he is not happy with not filling positions. Councilperson Gunderson commented that outside influences drive this budget. The State's lack of funding the police and fire pension has placed the burden back on the cities. Councilperson Gunderson stated he will vote for the levy rate. Councilperson Greenwood stated he feels the mayor and council have done due diligence with the budget. We have the police and fire unfunded mandates, the rollback, expense of health care and the lack of employees sharing in the purchase of health care. Councilperson Greenwood stated private companies ask their employees to share more and more. The city's employees have market place salaries, but the health insurance price is under market rate. Councilperson Greenwood stated he wished the city could get more contribution from the employees. Councilperson Greenwood stated he is satisfied the mayor and council have done a good job. Councilperson Welper stated we didn't get at this tax levy overnight and we have to go back slowly. The State keeps putting mandates on the back of cities. Councilperson Welper stated the city continues to do better year after year, and it is just a matter of time before we will get the levy rate down. Councilperson Welper stated he will support the proposed levy rate. Councilperson Getty stated 2.9 percent is too much of an increase, and he thinks we could cut more. Councilperson Getty stated the insurance for employees keeps going up, and there is only one place to cut. Councilperson Getty stated we can't keep passing along the increases to the citizens. Councilperson Cole stated her vote on the 2007 budget is her 3rd year and what keeps coming back is nothing has changed. The health insurance costs went up 23 percent. Councilperson Cole stated we have tentative agreements with some of the bargaining units and an employee with single coverage will pay $15.00 per month and an employee with family coverage will pay $25.00 per month, which means that over 12 months an employee with family coverage will pay $300.00 per year while the city will pay $12,396.00 per year. The employee contribution will increase $5 per month during the second and third year of the contracts. Councilperson Cole stated she is concerned there is no performance review for management personnel, and that we are stuck in the business as always mode. Councilperson Cole stated she believes it is time for business as unusual, and she advocates the city bringing in a municipal organization consultant, not a blue ribbon committee, for FYE08. We should look at staffing levels, new technology, perhaps consolidation, what services and programs we are offering and whether we should be offering them and examine the role of what a contemporary city should be. Councilperson Cole stated to ensure our taxpayers are getting the most service possible for the dollars we collect, she feels we owe it to them to go through the process and carefully weigh all options. Councilperson Cole stated we talk about the great things that are happening in Waterloo, and they are and she believes the best always lies ahead. But she also believes it is time to look inward to ensure we continue to grow in a positive manner. Instead of hanging on by our fingernails every February and March and looking for savings in paper clips, pencils and vehicle parts and other line items, we have to come up with a better way of doing business. Councilperson Cole thanked Michelle Weidner and her staff and all department heads for all the great jobs they do and for the hours they put in on this budget. Mayor Hurley stated that one of his adds in the budget was to put in a small amount to address non -bargaining disparities to comparables. Councilperson Kincaid thanked Mayor Hurley, the Finance Department and all city staff who worked on the budget. Councilperson Kincaid noted at this point the council will have to pass the budget, but what troubles him is the way the tax bill is determined. The assessed value on a lower priced house went up more and a higher assessed house will be paying less. Councilperson Kincaid stated it is unfair but it is out of the city's hand because as a city council there are things passed on that they have to work with the best they can. Councilperson Kincaid stated he will vote for this budget. • • • • March 6, 2006 Page 11 Budget Hearing continued Mayor Hurley stated homes with lower valuation will see large dollar increase and higher homes won't. Mayor Hurley noted he is paying the same levy rate as everyone who lives in Waterloo. In fairness to people in the middle or higher brackets, the assessor's valuation addressed some parity issues because clearly since 1999 when this was last done they have been paying more than their "fair share". Councilperson Schmitt stated every time we go through this budget process it always boils down to taxpayers expected services and the council has to balance that with the people required to perform the services. Then they look at assessed valuation times the levy rate which provides the dollars to perform those expected services. We look at the tax base growth which is balanced with the rising cost of natural gas, health insurance, gasoline, everything it does to provide those services. We micro manage that with department heads and pull the last dollar out until we get down to nothing but people because they are 75 percent of the budget, and police and fire are 50 percent of that. Councilperson Schmitt stated we cannot loose sight of the macro level. The city's reserve fund is growing, even with our expenditures for the Riverfront Renaissance Project coming up this summer, our reserve funds are growing, its on the right track. Councilperson Schmitt stated the city's bond rating is going up and is on the right track because the debt to asset ratio is going down like it should be Councilperson Schmitt stated all and all on the macro level we are on the right track. It would be nice to say zero percent tax increase this year, but it would be $660,000.00 be bodies, 15 or 16 more people. programs, we cannot do that this the right track, heading in the levy rate. Getty/Cole that the above oral comments be Motion carried. 123113 - Welper/Schmitt more we would have to pull out, and that would To provide any level of expected services or year. Councilperson Schmitt stated we are on right direction, and he supports the proposed received and placed on file. Ayes: Seven. that "Resolution approving FYE2007 Budget at a levy rate of $18.84580", be adopted. Ayes: Six. Nays: Getty. Resolution adopted and upon approval by Mayor assigned No. 2006-185. ADJOURNMENT 123114 - Cole/Schmitt that the Council adjourn at 8:24 p.m. Ayes: Seven. Motion carried. �ca Ta Nancyckert, CMC City Clerk