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HomeMy WebLinkAbout02/17/92CITY COUNCIL WORK SESSION February 17, 1992 5:00 p.m. Council Chambers Roll Call: Mayor Manning, Angel, Brown, Buck, Budak, Fox, Dell and Wright. Bill Lemke, Chairperson of the Citizens Budget Review Committee, introduced committee members including Rev. Stanley Kennedy, Larry Moser, Jerry Northey, Marilyn Rasmusseen, Kathy Oberle and Roosevelt Taylor. Mr. Lemke read the entire contents of the Committee's report, a .copy of which is on file in the office of the Clerk/Auditor. He also noted that two minority reports had been filed by Kathy Oberle. The audience was given an opportunity to review this report. The Mayor asked for oral comments. Mel Smelser stated that he did not think public money should go to outside agencies if they were not willing to open their books. He elaborated on the recent agreement signed by the City of Waterloo with Cedar Valley Partnership stating that the City was operating without a contract from July to December, 1991. Councilperson Buck concurred with the Committee's recommendation to establish sunset clauses for the City's tax increment financing districts. In response to a question by Vonnie Jackson, Planning and Development Director Don Temeyer stated that the downtown TIF was created in 1974 with a total valuation increase since that time of $25 million. If authorized through the City Council, a debt limit and sunset provision could be implemented. Councilperson Fox stated that he agreed with centralized dispatch for Police & Fire that the initial cost of such a move may be upwards of $1 million. Councilperson Wright questioned what the net affect was of the Committee's recommendation and tax levy limit. Mr. Lemke stated that the Committee attempted to have zero growth and include negotiated salary increase and benefits. He stated that the general fund levy of $8.10 per $1000 of valuation has been met. Councilperson Dell asked whether the Committee had addressed the increasing costs of health care and possible remedies. Could employees be asked to contribute more to their health care costs? Mr. Lemke stated this had been discussed but no recommendation would be forthcoming. Councilperson Angel questioned whether the transit levy for Metropolitan Transit Authority could be increased to cover Federal cutbacks, which have not yet been determined. Vonnie Jackson asked for a clarification of the City's health benefits for employees. Larry P. Burger, Clerk/Auditor, stated that employees have the choice of one of two coverage which include Blue Cross Blue Shield or Heritage National Health Plan. Employees choosing the Blue Cross Blue Shield plan are on an 80%/20% split with an individual policy incurring the first $100 of costs during a plan year and under a family policy an individual is responsible for the first $300 of costs incurred during a plan year. Employees covered by Heritage National Health Plan are responsible for a premium of $25 per month. Current costs to the City of family insurance is approximately $450 per month. The City is self- insured on its Blue Cross Blue Shield plan and is on a premium basis for Heritage. Discussion was heard concerning double coverage for some employees because of a spouse being covered at their place of employment. Shirley Koslowski commended the Committee for their recommendation that the Convention and Visitors Bureau revive the magazine entitled "The Inn Towner" and get it back into publication. She City Council Work Session February 17, 1992 Page 2 stated that this was an excellent marketing tool for the City and would promote conventions and tourism. Councilperson Buck stated that the Convention and Visitors Bureau books are open to the public since they are funded with public monies. Mayor Manning stated that discussion concerning the City's contract with Cedar Valley Corporation and the implication of the former Mayor as a conflict of interest should be addressed. He stated that the Mayor could have elected not to sign the agreement even if the Council had approved it but that within fourteen days, the resolution would have become a matter of law and the agreement approved. Councilperson Brown stated that regardless of the former mayor's employment, the City has continued to pay the same contractual amount equal to the three previous years. Councilperson Buck thanked the Committee for their many hours of work and for their excellent report. Councilperson Dell commended the recommendation of the Committee that the Library consider placing a library levy before the electorate. Bev Lind, Director of the Public Library, stated that a levy question could be worded as directed by the Council to fund a multitude of items. She noted that the only obstacle to accreditation is that the Library must be open for 64 hours per week. Ms. Lind also noted that the maximum levy authorized by State Code is 27 cents per thousand dollars of valuation which would generate approximately $330,000 per year. This would cover the additional personnel needed to stay open 64 hours per week. She stated that the Library Board will be discussing this item at its next regularly scheduled meeting. Councilperson Dell questioned -what the current transit levy was. It was noted that the current levy is 51 cents per thousand dollars of valuation but that cities are authorized through the State Code of Iowa to levy up to $1.04 per thousand dollars of valuation. Councilperson Wright again questioned whether the Citizens budget would increase taxes. Larry P. Burger, Clerk/Auditor, stated that the total tax levy as it stands would be $19.84 per thousand dollars of valuation which includes the statutory $8.10 per thousand dollars of valuation for the general fund and all other funds including increased costs for pension, debt service and trust and agency. Last year's levy of $18.63 per thousand dollars of valuation would require a cut of approximately $1.1 million. The higher levy rate of $19.84 would generate approximately $94 per year more on a house valued at $50,000. Councilperson Brown stated that the electorate voted in November, 1991, and voted a no increase in taxes. It was noted that a cut of $1.5 million generates into approximately 6.5% decrease in each department's budget. It was noted that the general fund levy of $8.10 is figured at the current year's staffing levels plus previously negotiated salary increases. Larry Moser, a member of the Committee,, thanked the Committee members for the loyal and dedicated service during budget deliberations. He also complimented city department heads for the excellent work they have done in performing city services. He stated that the entire budget must be viewed with an eye towards cutting expenditures in a time of lesser population to pay the tax bill. He stated that although the report on the surface may not reduce expenditures, compensation of city employees must be reviewed with an eye towards reorganization and restructuring. He stated that there is one of two choices including an increase in taxes or reduction in city services. A delicate balance must -be met. City Council Work Session February 17, 1992 Page 3 Mel Smelser questioned whether additional public input would be allowed on the budget. Larry P. Burger stated that work sessions of the City Council will be scheduled, a public hearing held with certification to occur on March 15, 1992. Chairman Lemke stated that the City must continue to work toward balancing the City budget. No official action was taken by the City Council. The meeting was adjourned at 6:10 p.m. Larry P. Burger City Clerk/Auditor