HomeMy WebLinkAbout02/19/91CITY COUNCIL WORK SESSION MINUTES
February 19, 1991
4:00 p.m.
Large Conference Room
Members present: Mayor McKinley, Dell, Fox, Budak, Angel,
Wright, Brown.
The purpose of the meeting was to discuss the F.Y. 1992
Budget and its affect on the operations and service levels
in the city.
Mayor McKinley stated that the proposed balanced budget will
require a major reduction in park service, delay repayment
of Airport debt, an allocation of $2,000 for the Cable
Commission, Library hours of 45 hours per week instead of
the additional hours requested by the Library to assist in
the certification process, and reduction of personnel over
time.
In response to a question by Councilperson Angel, Mayor
McKinley stated that the proposed cuts were the result of
Department and Division Heads working together to determine
the priorities of the city. Many hours were spent by
Department Heads in sometimes tense situations to arrive at
the proposed budget. The Mayor also indicated that the
proposed reduction in the street lighting budget may be
restored with funds being allocated from the street
maintenance and snow removal budget.
The Budget Review Committee continues to work on their
recommendations and will present their document to the Mayor
and Council on Monday, February 28, 1991.
Larry P. Burger, Clerk/Auditor, stated that very little
money remains in the budget for capital expenditures. The
possibility of financing police vehicles is being
investigated through a lease purchase option. Equipment for
the Fire Department will be financed through the issuance of
General Obligation Bonds. Any lease purchase agreement will
require the approval of the City Council.
Mr. Burger reported that the proposed budget was developed
by department and division heads after careful study and
review. Various decision packages were prepared and the
budget is now presented to the Council for review. The
budget anticipates that no cash balances will be used for
operational purposes. The current levy rate for city taxes
is $18.44 per thousand dollars of taxable valuation
resulting in the current city tax bill on a $40,000 home of
$737.60. The F.Y. 1992 budget proposes a 1% increase in
city taxes with a total levy rate of $18.62. The budget
also includes a 4% increase for employees' salaries
reflecting previously negotiated collective bargaining
contracts.
Additionally, the budget contemplates the closing of a fire
station. Revenues will be evaluated in mid -year. The
budget does not propose an increase in the transit levy for
RTC or MET. The budget anticipates a 45 cent per thousand
dollars of taxable value transit levy. The budget also
includes a one-third cut in revenue to the city's outside
agencies. All agencies' subsidies have been combined into
one line item reflecting a collective decrease of one-third.
Mayor McKinley stated that all subsidized agencies of the
city are being proposed to be cut by one-third from their
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February 19, 1991
Page 2
current year's allocation. These subsidized agencies
include: Waterloo Visiting Nursing Association, Northeast
Council on Substance Abuse, Waterloo Community Playhouse,
Martin Luther King Center, Boys and Girls Club of Waterloo,
Grout Museum of History and Science, Jesse Cosby
Neighborhood Center, Inc., Waterloo Municipal Band,
Operation Threshold, Cedar Valley Food Bank, Retired Senior
Volunteer Program, KBBG Communications, and Cedar Arts
Forum.
Councilperson Dell suggested that there may be some
alternative to this method of funding and stated that the
city should be looking at the services that the agencies
provide. The Focus Group study was discussed as a method
for the Metro Funding Council to determine distribution of
its funds. The city is currently working with Focus to
help determine the priorities of the community. As it
currently stands, it was being recommending that the city
subsidized agencies be funded as determined by the Focus
study with funds to be distributed by the City of Waterloo.
Funding for the Metropolitan Transit Authority was
discussed. In the current year budget, the city is levying
45 cents per $1000 valuation or 9 cents less than the legal
levy limit for transit activities. The 45 cents per $1000
generates approximates $540,000 annually. An additional
$100,000 would be generated if the full 54 cents was levied
resulting in a $4.00 annual increase in property taxes for a
house valued at $40,000.
A proposed allocation of $2,000 for the Cable Commission
will mean that a staff person will not be hired as well as a
delay in equipment purchases.
Councilperson Dell questioned the revenues in the Planning
and Development Division budget. It was explained that with
the increased building permit activity, these revenues are
funding other activities within the division. If these
revenues are not received, cut backs will be necessary
accordingly. The Police budget has been increased due to
additional costs related to trust and agency (insurance),
negotiated increases in salaries ($130,000), and the
addition of six officers for the school liaison program
($150,000). Originally, it was agreed that the city and
school would split the cost of the officers but due to the
defeat of the school levy, the schools will be approximately
$40,000 short of their contribution. The Chief has
indicated that fund raising activities will be necessary to
meet budget.
Councilperson Angel questioned whether the roof on Fire
Station No. 3 is included in the budget. This $20,000
expenditure is not yet included in the F.Y. 92 budget. The
budget also contemplates the closing of Fire Station No. 6
increasing their response time to approximately 8 - 10
minutes to the area previously served by the Station. This
station was chosen for closing based upon the number of
calls its receives compared to the others. The Department
may face the probable lay off of five officers on January 1,
1992, depending on the revenues the Department has
generated. At that time, the budget will be reviewed in
light of revenues versus expenditures.
The Human Rights budget proposes the reduction of the
director's paid time from 40 hours per week to 32 hours per
week. Councilperson Dell stated that if there is merit in
this case to reduce personnel staff hours, it may be
justified in other areas. B.J. Furgerson stated that she
was not in favor of this reduction but in light of the need
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February 19, 1991
Page 3
for budget cuts, personnel expenses is the largest part of
their budget and the only place to cut costs.
The Waterloo Housing Authority budget was reviewed. During
the current year, the city subsidizes the Authority
approximately $18,000 per year. Based upon discussions with
the Chamber, the city is proposing that this year's
allocation be reduced to $9,000 and the following year to 0.
The Waterloo Housing Authority staff would remain at the
Chamber office one more year after which time they could be
moved to the Library annex. Beginning July 1, 1991, the
city will carry their assets on the city books.
Funding for the Library was discussed. Keeping the Library
open for additional hours was discussed. Bev Lind, Director
of the Public Library, stated that accreditation for the
Library requires a certain staff level, numerous materials
and a set number of hours available to the public. Waterloo
is the only major city in Iowa that does not have an
accredited Library. State law allows a special levy for
library services if voted upon by the people. An additional
27 cents per $1,000 can be levied with such a special
referendum. The Mayor indicated that this special levy
should be explored in the future to allow eventual
accreditation of the Library.
No changes were made in the proposed F.Y. 1992 budget. The
Mayor announced that the Citizens Committee would make their
report on Monday, February 25, 1991, at 4:00 p.m. with the
City's public hearing on the budget to be held on Wednesday,
March 6, 1991. No official action was taken on the budget.
With no further business before the Council, the meeting was
adjourned at 5:30 p.m.
Larry P. Burger
City Clerk/Auditor