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HomeMy WebLinkAbout02.09.2009• • COUNCIL WORK SESSION February 9, 2009 4:15 p.m. Council Chambers Members present: Mayor Hurley, Cole, Getty, Hart, Greenwood, Steve Schmitt, Welper, Reggie Schmitt. Moved by Reggie Schmitt, seconded by Greenwood that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. Mayor Hurley reviewed the process for the FYE2010 Budget. Instructions were sent to department heads in December 2008. Department Heads turned in their draft requests in January 2009. Mayor Hurley and Michelle Weidner, Chief Financial Officer, are meeting with department heads to review their draft requests. The departmental requests with suggested revisions by Mayor Hurley will be presented to council during council work sessions to be held on Mondays and Thursday. Council will be asked to approve moving departmental budgets, revised or not, to the full agenda as part of the total budget. The budget hearing is scheduled for March 9, 2009. Mayor Hurley reviewed the schedule for departmental reviews starting with General Fund departments. Mayor Hurley reviewed factors that will impact the FYE2010 Budget. The following items will help the budget: lower 411 pension contribution, residential rollback, property valuations, real growth in tax base, TIF release and full taxable valuation for Isle of Capri. The following items will hurt the budget: commercial rollback, conversion of apartments to condos, lower interest on the city's investments, city's service fee structure is under our costs, state homestead tax credits could be cut in half, lower Road Use Tax fund revenues, wage increase, 10 percent increase in health insurance premiums and state and national impacts on the city's economy. The following are things to watch: state legislative action particularly Chapter 20 changes, other state tax credit reductions, alternative revenue legislation, reductions in police grant funding, institution of stormwater management fee, garbage and sewer fees, property assessment appeals, utility excise taxes, retiree health insurance — single vs. family, hotel/motel tax revenues and 2008 flood impacts on future tax base. Mayor Hurley explained that the necessary minimum cut from the general fund draft requests to reach legal level for the $8.10 levy is $451,104.00, which represents 2.76 percent residential tax increase, but the more likely guesstimate of cuts necessary to reach the legal $8.10 levy is $800,000.00+. In order to achieve a zero residential increase, the minimum cut is $1,466,000.00, which would be a 3.05 percent reduction for commercial and 3.31 percent reduction for industrial. Mayor Hurley explained that none of these figures include 'add backs" that council may want to consider, such as: EMA assistance, YES+ Summer Youth Program, KBBG, increased Main Street support, new positions for return on investments, contingencies, consultant fees, and the possibility that pay increases will be higher than budgeted. Councilperson Welper stated that the Road Use Tax fund may see some increase since pickup trucks are no longer licensed at $35.00. Mayor Hurley noted that there is an $.08 tax increase on gasoline that is being considered by the Iowa Legislators. Mayor Hurley distributed binders to each council member that includes information submitted by each department for the budget. Mayor Hurley suggested that council members read the narratives for each activity. Mayor Hurley noted that a 2 percent salary increase was put into the budgets for bargaining and non -bargaining employees. Mayor Hurley reviewed the MIS budget. Mayor Hurley suggested that $500.00 be reduced from Line Item 1520 (Software). Councilperson Greenwood noted that $88,000.00 is budgeted in line item 1344 (Telephone, Fax). Jim Quint, MIS Manager, explained that this line item is for services provided by Verizon for local and long distance for all city departments. Councilperson Getty asked about the Spam received by city computers. Mr. Quint explained that there is a Spam filter, and if the filter is increased too high it could eliminate legitimate e-mail. The system updates four times per day. Councilperson Cole asked if department heads have Internet access from home. Mr. Quint responded there is a connection for those who require it. Moved by Getty, seconded by Reggie Schmitt to move the MIS budget, with Mayor Hurley's recommendation of $500.00 reduction, to the master budget. Ayes: Seven. Motion carried. Mayor Hurley reviewed the City Attorney's budget. Mayor Hurley recommended the following reductions: $2,000.00 from Line Item 1112 (Salaries Part Time), $18,000 from Line Item 1313 (Legal Services) and $1,500.00 from Line Item 1390 (Other Contractual Services) for a total of $21,780.00 including $280.00 for part time employee benefits. Mayor Hurley noted that Jim Walsh, City Attorney, is paid $1,500.00 per month retainage. Mayor Hurley noted that Line Item 1390 is used for the expenses for 657A filings. Mayor Hurley explained that the total requested City Attorney budget is $344,576.00 and he is recommending reducing that amount by $21,780.00. Councilperson Reggie Schmitt stated he wants to keep the $1,500.00 in Line Item 1390 as it is used for costs for 657A flings for items such as mail, title searches, filing fees, etc. Councilperson Reggie Schmitt noted that they expect to handle 48 houses per year, and reducing this line item by $1,500.00 would result in four less searches. Councilperson Greenwood stated that citizens talk to him all the time about houses needing to be torn down. Councilperson Hart stated he agrees with Councilperson Greenwood that it is important to continue with these homes, and he asked if there are any federal funds that could be used to supplement the city's funding. Mayor Hurley stated there may be some funds for tearing down flood damaged homes. Michelle Weidner, Chief Financial Officer, asked if 40 to 50 homes are scheduled to be demolished where the funding is coming from. Councilperson Reggie Schmitt responded there are other funding sources for demolition, such as Community Development Block Grant funds. Councilperson Welper asked after demolition and the property is sold where do those revenues go, and wouldn't that cover the costs. Ms. Weidner responded that if the lot proceeds to sale the money goes the Planning & Zoning for property sales. Noel Anderson, Community Planning & Development Director, explained that usually the lots are sold for $1.00 through development agreements. Mayor Hurley noted that his recommended cuts is 6.27 percent of the City Attorney's total budget. Councilperson Welper stated he feels when the city approves the development agreements we should try to break even and cover the city's costs. Ms. Weidner noted that demolition costs alone is about $5,000.00 to $6,000.00 per house. Councilperson Hart asked if the lot sold to Roosevelt Roby on Sumner Street was part of the 657A program. Councilperson Reggie Schmitt responded it was one of the 657A lots, federal funds were used and we received only the value of the property not the demolition costs. Jim Walsh, City Attorney, stated he was comfortable with Mayor Hurley's recommendation as long as there is enough money for demolition. Moved by Getty, seconded by Greenwood to move the City Attorney's budget, with Mayor Hurley's recommendation of reduction of $2,000.00 from Line Item 1112 (Salaries Part Time) and $18,000 from Line Item 1313 (Legal Services) for a total reduction of $20,280.00, including $280.00 for part time employee benefits to the master budget. Ayes: Six. Nays: Steve Schmitt. Motion carried. With no further business before the council, it was moved by Reggie Schmitt, seconded by Greenwood that the meeting be adjourned at 5:11 p.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk • •