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HomeMy WebLinkAbout02/20/92CITY COUNCIL WORK SESSION February 20, 1992 4:00 p.m. Large Conference Room Roll call: Mayor Manning, Angel, Dell, Buck, Brown and Wright. Larry P. Burger, Clerk/Auditor, provided general fund expenditure levels for the FY 1993 budget. The amount of tax levy to sustain each operation was delineated. The chart indicated that the problem does not lie in the city's general fund tax levy since with increased valuations, all expenditures necessary for operation of the general fund can be levied within the $8.10 levy. This levy ($19.84) includes current year expenditures plus negotiated salary increases. The increase in the tax levy primarily comes from the increased cost to the city for the police and fire pension levy and debt service. The total of all other levies including the general fund levy, is $19.84. In order to arrive at last year's tax levy of $18.63 per $1000 of valuation, approximately $1.5 million must be cut from the levy. Since most other levies outside the general fund are fixed, i.e. employee benefits, debt service levy, unemployment levy, police and fire pension levy, etc. most of the cuts will need to come from the general fund operation. Mr. Burger explained that in order to decrease the rate from $19.64 to $18.63, each department was asked to reduce its budget by 6.5%. Even this lower rate would mean a slight increase in taxes of $40 per home with an assessed valuation of $50,000. Councilperson Brown stated that during the last municipal election, the voters had sent a clear message by stating they did not want their property taxes raised. Councilperson Angel stated that the 6.5% reduction in department's budget was definitely cutting into the "bone". Councilperson Buck stated that the Council has one of two choices: either across the board cuts or eliminate some major programs. Councilperson Brown supported the view of an across the board cut. Councilperson Wright stated that it was important to prioritize programs rather than across the board cuts. Councilperson Buck proposed several major projects for elimination or down -sizing. The first was the elimination of animal control. City staff commented that if it were eliminated, some agency must be responsible for handling bite cases. The current animal control budget is $160,000. Buck also suggested the elimination of non - conflict street lighting at an approximate cost savings of $85,000. Councilperson Dell favored an across the board cut. Councilperson Brown stated that the City cannot continue to fund large salary increases because the money is simply not there. Councilperson Angel stated that the City is bound by State Law in its collective bargaining process. Jim Rodemeyer, Personnel Director, stated that the council will be asked to consider a resolution that would address the current Police Protective Association collective bargaining process. In essence, the resolution states that if the arbitrator awards any higher increase than the City's final offer, the cost would come directly out of the Police Department's budget. Councilperson Brown also stated that employees should share in health care costs. Councilperson Buck supported the idea of looking at specific program cuts since across the board cuts would cause undue harm to those departments that have been asked to cut back to fund previous major public safety expenditures. Councilperson Brown reiterated his position that funding of human service agencies should be cut from the city budget. Councilperson Wright disagreed with this philosophy. Councilperson Dell stated that these outside agencies do a valuable service to the city and that we must look at their results and potential cost to the city if funds are not allocated to these human service agencies. Continuing with Mr. Buck's proposal cuts, he suggested that the recent mayor and city council increases be rolled back to December, 1991, levels. He also suggested that the travel line item within the city council budget be eliminated ($3100). Buck also suggested City Council Work Session February 20, 1992 Page 2 the closing of a fire station. Stations that would be considered for closing include Nos. 5 and 6. Mayor Manning stated that even after several of these larger programs were eliminated, each department would then still be requested to make a small decrease. He stated that if the Council imposed an across the board decrease, the council is no longer setting policy as it should be. Councilperson Buck also suggested the possible closing of South Hills Golf Course. Councilperson Dell stated that the City could consider one pro for all three courses. Rick Tagtow, Director of Parks and Forestry, stated that he would rather see a restructuring of the pro shop activities whereby the City would realize revenue from these individual, private enterprises. He stated that it is important for the City to capitalize on our golf courses which is considered to be an asset. Discussion was heard on whether the Park Board or City Council is responsible for changing the pro contracts. The City Attorney may want to investigate. John Meyer, Public Works Director, stated that approximately one year and a half ago, proposals for privatization of garbage collection was solicited. At that time, the City could provide the service at a lesser cost. Larry P. Burger, Clerk/Auditor, stated that the FY 1993 budget anticipates a cash carry over of approximately $1 million which does not include the assets of the Waterloo Housing Authority. He stated that he is considering asking the Council to adopt an ordinance setting a minimum cash balance. He indicated that it is standard practice for a city our size to have an approximate cash carry over balance of $5 million. This cash reserve is important to the city's bond rating and is a continual struggle to keep at acceptable levels. Councilperson Brown stated that the duties of the Civil Defense Department could be transferred to the Fire Department and that it is not a legal obligation of the City to maintain the Civil Defense Department. Brown also suggested that the Convention and Visitors Bureau be housed at the 5 Sullivan Brothers Convention Center. This would reduce the City's subsidy to the Housing Authority which basically is its occupancy cost at its current location (Chamber of Commerce). Councilperson Brown also suggested that the Waterloo Housing Authority Section 8 Housing Program be transferred to the Community Development Department. Councilperson Dell suggested that more engineering services be conducted in-house eliminating the need for consultant services. It was stated that currently city staff are doing all engineering services related to the local option sales tax reconstruction projects, the annual sidewalk repair program, small storm sewer projects, and others. Currently, the engineering budget is comprised of 94% personnel costs. If the city were to consider doing all of its own engineering, a cadre of staff would be required and most probably not be used on a year-round basis due to their specialties. It was stated that the city can use outside engineering services at a much cheaper rate. Again, Mr. Buck stated that the city could cut major program areas or impose a 6.5% across the board decrease. Councilperson Wright stated that there were too many unanswered questions for a decision at this time. Unemployment costs are doubling which reflects the laying off of the seasonal employees in the Park Department for 6 months of the year. Larry P. Burger, Clerk/Auditor, stated that the city's contribution to the police and fire pension has increased dramatically with the transfer of funds to the State of Iowa. The State is mandating that cities levy 17% of total salary costs which City Council Work Session February 20, 1992 Page 3 translates into a $600,000 increase from last year's levy. He noted that the State imposed mandate has been very costly to the city since the city's pension fund would most probably have been self-funded within five years if the city had retained control of the fund. Some discussion was heard on whether the city could appeal or sue the State for this cost increase. It was noted that the citizens report had recommended that the city pick up the additional cost equal to MET's decrease in federal funding. Although the exact amount of federal cuts have not yet been determined, it is anticipated that an additional 10 cent levy would be required to maintain current service levels. Mr. Burger stated that as the budget currently stands, the city would publish at the $19.84 levy rate unless the council directed otherwise. It was the consensus of the council that the city should publish at the $18.63 level. Any increases to the budget after publication would require a new public hearing. Chief Koehrsen stated that the 6.5% decrease in budget would mean approximately $415,000 less to run the Waterloo Police Department and that the affects would be devastating. Programs that would be terminated include the following: two officers in the liaison program at East and West High Schools, additional officers placed into the tri county drug task force, four officers in the police liaison program, and the number of ward cars on patrol in the city would be cut by one-third, from 10 to 7. The following loss of services would also occur: funeral escorts, closing the service counter of the police department, no investigation into non -injury automobile accidents, no response to simple misdemeanors unless they are in progress or violence has occurred, no response to reports of shoplifting, no investigation of minor larcenies to home or businesses unless injury had occurred, and reduce of scope of the narcotics enforcement unit. In total, the Department would be twelve less personnel including police officers and civilians. Kathy Oberle, 710 Forest Avenue, stated that the police and fire department could cut costs drastically if the departments were combined. She indicated that she had cut the city budget to a levy of $18.35 per $1000 of valuation. Mr. Burger asked that she provide the city with a copy of these cuts. She also stated that the outside human service agencies should be funded as they serve a definite need for various constituents. Her plan to combine police and fire departments would begin with centralized dispatch resulting in savings of two to four individuals. She also urged cross training of various individuals. She also stated that non - bargaining salary increases should be frozen and that a strong statement should be sent to bargaining units concerning future salary increases. Dean Myhr, Director of Recreation, stated that his entire department is non -bargaining personnel and that freezing their salaries would be unfair. No official action was taken on any of the above items. The next meeting of the City Council to discuss the FY 1993 budget will be held on Monday, February 24, 1992, in the Large Conference Room. With no further business before the Council, the meeting was adjourned at 5:35 p.m. Larry P. Burger City Clerk/Auditor