HomeMy WebLinkAbout03/14/95March 14, 1995
The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council
Chambers, Waterloo, Iowa, at 7:00 p.m., on Tuesday, March 14, 1995. Mayor John R. Rooff in
the Chair. Roll Call: Anders, Jordan, Murphy, Getty, Krizek, Collier, Mollenhoff.
104477 - Anders/Collier
that the Calls for the Special Session of the City Council at 7:00 p.m.on Tuesday,
March 14, 1995, be received and placed on file. Ayes: Seven. Motion carried.
104478 - Mollenhoff/Jordan
that the Agenda, as proposed, for the Special Session on Tuesday, March 14, 1995,
at 7:00 p.m., be accepted and approved. Ayes: Seven. Motion carried.
104479 - Krizek/Murphy
that proof of publication of notice of public hearing on the proposed F.Y. 1996
Budget for the City of Waterloo, Iowa, as published in the Waterloo Courier on March
10, 1995, be received and placed on file. Ayes: Seven. Motion carried.
104480 - Mayor Rooff introduced the members of the Budget Review Committee: Chairman George
Scully, Gary Heinick, Sandra Wild, Earl Baugh, Don Bergan and ex officio member
Tunis Den Hartog. He thanked them for their contribution to the budget process.
The Mayor explained that the Council had set objectives during their campaign to
provide leadership, improve streets, return pride to the community, enhance public
safety and control the budget. The proposed budget reflects those objectives.
When the Mayor and Council took office the cash balance was $283,000. At the end
of this fiscal year it is estimated to be $1.7 Million dollars. The Council
initiated line item control and spending control by requiring the Finance
Committee's approval of all expenses over three hundred dollars and all budget line
item transfers. Further attention will be given to cutting spending through the
evaluation of departments by an Operational Review Committee. This committee will
begin with the Police and Fire departments after their appointment next week.
Future goals include moving to G.A.A.P. accounting methods for further financial
strength. The proposed budget cuts the property tax levy from $20.04 per thousand
to $18.58 per thousand dollar valuation. The overall tax askings is reduced by
forty thousand dollars.
The Mayor reviewed the total budget changes some of which included three percent
salary increases, increased funding for projects such as the Water Pollution Control
improvements, parking ramp expansion, Young Arena operations, Community Development
and Economic Development increased funding and an increased contingency. The Mayor
then opened up the discussion to members of the Council.
Councilperson Krizek thanked the Budget Review Committee and city staff for their
hard work on the budget. All the department heads were very cooperative even if
they requests were not appropriated in full.
Councilperson Anders asked for an explanation of the MET transit levy. Bruce
Meisinger, Finance Manager, stated that this levy is outside the general fund levy
and is allowed by State Code to specifically fund transit services. The levy was
budgeted to allow for the same level of funding but with the revaluations the levy
tax was lowered. This levy is a major funding source for MET along with Federal
funds which make up approximately forty percent of the total revenue received by
MET.
With no further discussion by the Council, Mayor Rooff invited members of the public
to ask questions or comment about the budget.
Kathy Oberle, 1101 Western Avenue, referred a question to the $1.2 Million dollar
cash balance at the end of fiscal year 1995. What portion of the funds were
restricted funds and what is the estimated amount of restricted funds for the end
of FY 1996? Bruce Meisinger, Finance Manager, stated that there were approximately
$400,000 in health reserve restricted funds and $100,000 in tort liability reserve
funds in the total $1.2 Million dollars at the end of fiscal year 1995. It is
estimated that approximately $1 Million dollars will be unrestricted at the end of
fiscal year 1996.
Mrs. Oberle then referred to the budget comparison chart and noted that spending is
increased and she felt it is out of line. As in the past economic development is
adversely impacted by our high tax levy. The residents have been overtaxed on Sewer
and Garbage rates over the last four years, and she opposes the transfer of funds
from either one of these surcharges to cover costs in the general fund. Any
available funds should be used to reduce the general obligation bonds issued for
this specific purpose. Mayor Rooff explained that the Sewer and Garbage rates had
been set by previous administrations but would be needed to fund the matching
requirements on the Federal funds for the Water Pollution Control plant
improvements. The fund transfers have been discussed and reviewed by the City's
auditors and have been found to be an appropriate purpose.
March 14, 1995 Page 2
Hearing - continued
Mrs. Oberle asked for a breakdown of the transfer of Road Use Tax funds to the
general fund. Mayor Rooff identified $127,905 dollars to reimburse the Central
Garage for vehicle maintenance of Road Use equipment, $3,000 in personnel costs,
$482,852 for right of way mowing services and $386,847 for engineering services.
These are all appropriate uses for these funds and will still maintain a cash
carryover balance of $600,000.
Mrs. Oberle expressed her feelings that spending is out of control and should be
curbed.
Jerry Schatzer, 1829 West Seventh Street, commended Finance Manager Bruce Meisinger
for his assistance in answering Mr. Schatzer's questions about the budget. Mr.
Schatzer provided information on salary comparisons between Portland, Maine and the
City of Waterloo for the position of police chief. Mr. Schatzer stated that he had
heard about the proposal to increase the number of firefighters. He feels that
without an increase in industrial development there shouldn't be an increase in
government staff. It is his opinion that if the industrial base doesn't increase
government will be faced with reducing the number of employees within three years.
Mr. Schatzer stated that the administration has used some creative accounting in the
last year. It is his observation that creative accounting will cause problems if
done on the basis of hopes rather than reality. He cited the use of Road Use tax
money for other purposes than just direct road repair as creative accounting. He
contends that departments should be made to live within their budgets. He stated
that he is concerned with the "haves and the have nots" in our nation and it seems
that government employees are the "haves" and private industry the "have nots".
Bill Shepard, with the Waterloo Community Band, expressed his appreciation of the
funding of the band and invited the Council and the public to attend their summer
concerts.
Getty/Collier
that the hearing be closed and oral and written comments be received and placed on
file. Ayes: Seven. Motion carried.
104481 - Jordan/Krizek
that the F.Y. 1996 Budget be approved, as proposed above, and that "Resolution
approving F.Y. 1996 Budget for the City of Waterloo in the amount of $93,441,669,
with a tax levy rate of $18.58", be adopted. Ayes: Seven.
Resolution adopted and upon approval by Mayor assigned No. 1995-161.
104482 - Mollenhoff/Collier
that "Resolution authorizing the City Clerk to certify necessary debt service tax
levy to pay interest on General Obligation Bonds to be levied in Fiscal Year 1996
for the City of Waterloo", be adopted. Ayes: Seven.
Resolution adopted and upon approval by Mayor assigned No. 1995-162.
104483 - Getty/Murphy
that the Council adjourn at 7:58 p.m. Ayes: Seven. Motion carried.
Susan Fangman
City Clerk