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HomeMy WebLinkAbout09/12/1988CITY COUNCIL WORK SESSION September 12, 1988 4:45 p.m. Large Conference Room Members present: Mayor McKinley, Brown, Dell, Buck, Fox and Wright. Mayor McKinley opened the meeting by stating that currently the City of Waterloo is funding various human service agencies and have done so for many years. In the past, these agencies were funded with revenue sharing with the understanding that when revenue sharing money was cut off from the City, likewise funding would be eliminated for these agencies. Revenue sharing monies have not been received by the City of Waterloo for two years; however, said agencies have continued to be funded from City tax dollars. Currently, there is no criteria for funding the agencies as listed. Councilperson Brown stated that the human service agencies do not belong in the City budget structure and that other sources of funding should be sought by said organizations. He made it clear that all of the organizations are good and provide necessary services to the community, but given the financial situation of the City, we are unable to afford to fund them. Councilperson Buck questioned the legal responsibility of continued funding to the Waterloo Redevelopment Authority (WRA), the Iowa Northland Regional Council of Governments (INRCOG) and Civil Defense. Currently, the City, the WRA and INRCOG have signed agreements for financial support. The legal ramifications of funding Civil Defense must be investigated. The City has also committed to funding Cedar Valley for three years in the amount of $10,000 each year. Discussion was heard concerning how the City began funding some of the organizations listed. Some of the agencies came to the City for match money and therefore continued on City funding. It is unknown at this time what percentage of the operating budget the City's contribution is of each of the agencies listed. Councilperson Fox asked which of the agencies listed are dependent on the City for survival. This was also an unknown factor. Councilperson Buck stated that the agencies listed provide a valuable service to the City and that the City has a responsibility for continued funding. The subsidy to these agencies is approximately $225,000 annually, or approximately three quarters of 1 percent of the total City budget. This is a small price to pay for providing the basic human services that these agencies provide. Councilperson Brown stated that the City is limited in the amount of money that can be raised through taxation. He asked Councilmembers how the City would treat new requests for funding. He asked what criteria would be used. He suggested the possibility of funding the human service agencies from the Quality of Life portion of the sales tax, if approved on September 27. Councilperson Buck stated that funding these agencies from the sales tax is still tax money and was really no different than funding them from the regular City budget. Councilperson Dell asked how three quarters of 1 percent of the entire City budget could adversely affect the City. He stated that it would be a positive statement to the community if we would commit to continued funding. Councilperson Wright suggested that funding for the human service agencies be reviewed again at budget time, and that if money was not available at that time, action would be taken accordingly. Work Session Minutes September 12, 1988 Page 2 Clerk/Auditor Larry Burger stated that funding these agencies through the Quality of Life Commission created by the Local Option Sales Tax would allow the Commission to closely review the agencies' needs. Currently, given the time constraints during the City budget process, it becomes impossible for the Citizens Budget Review Committee to adequately review the agencies and give proper attention to the City's entire $40 million budget. It was suggested that funding for the agencies be reviewed after the election. Councilperson Fox stated that the Council should be philosophically deciding whether or not we should be funding these agencies and not looking at each one individually. Should we or should we not be in the business of funding these agencies. Councilperson Buck stated that such agencies Partnership, INRCOG, WRA, Civil Defense, and contract for the Employee Assistance Program category as the other human service agencies the City's subsidy to human service agencies as the Cedar Valley the substance abuse are not in the same therefore reducing to $160,000 annually. Mayor McKinley suggested that all agencies currently funded by the City resubmit their request justifying the need for the subsidy. Councilperson Fox suggested that the City establish a dollar limit that human service agencies will be funded and that agencies make applications according to this established amount. Councilperson Fax also suggested the possibility of establishing a Blue Ribbon Committee to review the human service agencies' budgets. Councilperson Dell reiterated his statement that it would be a positive sign to the community if the City were to continue funding of the human service agencies. It was the consensus of the Council that the currently funded human service agencies be notified by letter that each will need to make application to the City for funding for F.Y. 1990. There will be no automatic renewals without making application for funding through the City. With no further business before the City Council, the Work Session was adjourned. Larry P. Burger Clerk/Auditor