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HomeMy WebLinkAboutMinutes-March 08, 2018-Special Session March 8, 2018 The Council of the City of Waterloo, Iowa, met in Special Session at Harold E. Getty Council Chambers, Waterloo, Iowa, at 5:30 p.m., on Thursday, March 8, 2018. Mayor Quentin Hart in the Chair. Roll Call: Jacobs, Morrissey, Shimp, Klein,Amos, Schmitt, and Juon. 146645 - Juon/Schmitt that the Agenda, as proposed, for the Special Session on Thursday, March 8, 2018, at 5:30 p.m., be accepted and approved. Voice vote-Ayes: Seven. Motion carried. Michelle Weidner, Chief Financial Officer, gave a presentation of the FYI Budget. Mrs. Juon questioned if other cities have adopted their budgets and if they are increasing or decreasing their tax rates. Michelle Weidner explained that Sioux City and Council Bluffs have substantial tax increases. Waterloo will be among the highest though the askings have decreased. Mr. Jacobs questioned how much state roll back money is included in the budget. Michelle Weidner explained that the entire rollback is included and explained pending legislation at the state level affecting the rollback. PUBLIC HEARING 146646 - Juon/Schmitt that proof of publication of notice of public hearing on the FYE2019 Budget as published in the Waterloo Courier on February 23, 2018, be received and placed on file. Voice vote-Ayes: Seven. Motion carried. This being the time and place of public hearing,the Mayor called for written and oral comments. David Dryer, 3145 W. 4th Street, questioned when Waterloo would stop worrying about comparing itself to other cities and when the Mayor will be working to reduce the number of department heads. Forest Dillavou, 1725 Huntington Road, commented that he does not support raising the franchise utility fee due to the fact that it has a burdensome impact on people and other entities that turn around and tax citizens. John Sherbon, 1715 Robin Road, commented that the debt service takes up a large sum of money on the budget and levy rate and that the city needs to reevaluate everything it does in order to find savings. Mike Spence, 4042 Jill Drive, commented that calls for service and the number of firefighters have decreased over the years. He explained the hazardous impact of the periodic closings of Station 6 and that continued reductions to Fire staffing levels is a serious concern. 146647 - Juon/Schmitt That the hearing be closed and oral comments be received and placed on file. Voice vote-Ayes: Seven. Motion carried. 146648 - Juon/Amos that "Resolution approving the FY2019 budget with a total tax levy rate of$17.76290 and property tax askings in the amount of $41,134,775", be adopted. Roll-call vote-Ayes: Two. Nays: Five (Jacobs, Morrissey, Shimp, Klein, and Schmitt). Motion failed. Mr. Morrissey requested an overview of the reductions included in the proposed budget. Michelle Weidner provided an overview of the reductions included in the proposed budget. Mr. Shimp questioned if the franchise fee increase would need to be a separate vote by council. March 8, 2018 Page 2 Michelle Weidner explained that the council would need to vote to approve a franchise fee agreement at a later date. Mr. Jacobs commented that the Strategic Plan has a levy rate of $16.50 and at budget time, the strategic plan goal gets pushed aside. He explained that the council sets the direction with a levy rate and the responsibility lies with the department heads to find cuts. He commented that he believes the franchise tax is a regressive tax because it impacts individuals who already have a difficult time paying their bills. Mrs. Klein commented that the proposed levy rate is a complete abandonment of the goal set in the Strategic Plan. She commented that the city is taxing too much and that she does not support the utility franchise fee increase. She further noted that she submitted thirteen budget suggestions and does not see them included in the budget and did not receive an explanation as to why they were not included. Mrs. Juon commented that it is not fair to simply look at tax askings and that the city's property tax valuation decreased. Mr. Morrissey commented that he was present for the strategic planning sessions and believes that picking a number to get the tax rate to was painting the city into a corner. He noted that if there were going to be reductions then there should be increases in revenue. He commented that he submitted proposals and did not believe that his were included in the budget either and that he would like an opportunity to present his ideas. Dubuque used 50% of its Local Option Tax to help balance the budget. Mr. Morrissey proceeded to present his proposed budget ideas submitted to the Chief Financial Officer. Mrs. Klein commented that she wishes council could have shared ideas together prior to the special meeting. She presented her proposed budget ideas submitted to the Chief Financial Officer. Mr. Shimp commented that he is in favor of the Local Option Tax and clarified the impact of the utility franchise increase. Mrs. Juon questioned if the city can legally require employees to live a certain distance from work. Pat Treloar, Fire Chief, explained the state law on residency requirements for civil service public safety employees and noted that the current policy is 10 miles from city hall. Mr. Schmitt commented that he has had recommendations while he has been on council and he presented a power point in 2016 and noted that the majority of the conversation taking place tonight has been to increase revenue but in the private sector they work to both increase revenue and cut expenses. He further commented that he is not in favor of using fund balance and increasing the utility franchise fee and is in favor of some of Mrs. Klein's proposals. Mrs. Juon commented that a city reorganization committee has been established and hopes that changes will come from these discussions. Mr. Morrissey commented that the majority of cities have increased their utility franchise fee. He further commented that a reduction of services is not appropriate. Mayor Hart commented that he asked for suggestions from council and has had conversations with council members and has tried to find a compromise with council suggestions. He further commented that he believes the city can get close to the $16.50 goal in the strategic plan and noted that the plan calls for property valuations increasing in order help get the city to the goal. Mr. Morrissey commented that he is opposed to the resolution due to the reduction of two jobs in the Fire Department. 146649 - Morrissey/Juon To recess for 10 minutes at 7:01 p.m. Voice vote-Ayes: Seven. Motion carried. 146650 - Morrissey/Amos To reconvene at 7:13 p.m. Voice vote-Ayes: Seven. Motion carried. March 8, 2018 Page 3 146651 - Klein/Schmitt To approve a resolution adopting a levy rate of $17.17, removing 1/3 of backfill figure, and eliminating increases to the utility franchise fee. 146652 - Morrissey/Amos To recess for until 7:35 p.m. Voice vote-Ayes: Seven. Motion carried. 146653 - Morrissey/Amos To reconvene at 7:39 p.m. Voice vote-Ayes: Seven. Motion carried. 146654 - Morrissey/Amos Motion to recess for 10 minutes at 7:40 p.m. Voice vote-Ayes: Seven. Motion carried. 146655 - Shimp/Amos Motion to reconvene at 7:59 p.m. Voice vote-Ayes: Seven. Motion carried. The council then voted on motion number 146651, Resolution adopting a levy rate of $17.17, removing 1/3 of backfill figure, and eliminating increases to the utility franchise fee. Roll call vote- Ayes: Four. Nays: Three (Morrissey, Amos, and Juon). Motion carried. Michelle Weidner explained that the cuts total $2.761 Million. Mayor Hart commented that losses in personnel would have to take place in every department in order to meet the cuts. Mayor Hart handed out a veto letter and read the notice to council. Mr. Schmitt motioned to reverse the mayor's veto. Motion died due to a lack of a second. 146656 - Morrissey/Juon To recess for fifteen minutes at 7:15 p.m. Voice vote-Ayes: Six. Nays: One (Shimp). Motion carried. 146657 - Morrissey/Amos Motion to reconvene at 8:30 p.m. Voice vote-Ayes: Seven. Motion carried. 146658 - Morrissey/Amos Resolution adopting a budget based off of the $17.76 proposal by restoring the two eliminated fire fighter positions, removing cuts to the library and human rights commission, use of $210,000 fund balance, use of 5% increase in general fund fees and permits, and a levy rate of$17.4070. 146659 - Shimp/Jacobs To recess for 10 minutes at 8:44 p.m. Voice vote-Ayes: seven. Motion carried. 146660 - Morrissey/Shimp Motion to reconvene at 8:54 p.m. Voice vote-Ayes: Seven. Motion carried. Michelle Weidner explained that it would put the city at a levy rate of$17.4070. Mrs. Klein questioned if that includes raising the utility tax and the full backfill amount. Mr. Morrissey confirmed. Mr. Jacobs requested clarification on the 5% increase to fees and permits. March 8, 2018 Page 4 Mr. Morrissey explained that it would increase the general fund fees for permits. Mr. Shimp questioned what fees are included in the general fund. Michelle Weidner explained the permits included. Mrs. Klein stated that she could not support increasing fees. 146661 - Morrissey/Amos To lay on the table and take the item up at the end of the regular agenda on Monday. Roll call vote- Ayes: Three. Nays: Four (Jacobs, Shimp, Klein, Schmitt). Motion failed. The council then voted on motion number 146658, Resolution adopting a budget based off of the $17.76 proposal by restoring the two eliminated fire fighter positions, removing cuts to the library and human rights commission, use of$210,000 fund balance, use of 5% increase in general fund fees and permits, and a levy rate of $17.4070. Roll call vote-Ayes: Three. Nays: Four (Jacobs, Shimp, Klein, and Schmitt). Motion failed. ADJOURNMENT 146662 - Juon/Amos that the Council adjourn at 9:26p.m. Voice vote-Ayes: Seven. Motion carried. Kelley Fele City Clerk