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HomeMy WebLinkAbout02.12.2009• • COUNCIL WORK SESSION February 12, 2009 8:25 a.m. Council Chambers Members present: Mayor Hurley, Hart, Greenwood, Steve Schmitt, Welper, Reggie Schmitt. Members absent: Cole, Getty. Moved by Reggie Schmitt, seconded by Hart that the Agenda, as proposed, be approved. Ayes: Five. Absent: Cole, Getty. Motion carried. The purpose of the work session was to continue discussion on the FYE2010 budget. Mayor Hurley reviewed the Cultural & Arts Commission budget. Mayor Hurley recommended the following changes: Reduce Line Item 1112 (Part Time) in the amount of $8,000.00 with $1,144.00 benefits Reduce Line Item 1400 (Utilities) in the amount of $7,000.00 Reduce Line Item 1533 (Fuel) in the amount of $200.00 Reduce Line Item 1343 (Postage) in the amount of $500.00 Increase Line Item 3400 (Charges Revenue) in the amount of $1,800.00 Mayor Hurley reviewed the Youth Pavilion Budget. There are no new positions budgeted. Mayor Hurley recommended the following changes: Reduce Line Item 1400 (Utilities) in the amount of $3,000.00 Increase Line Item 3833 (Special Event Fee) in the amount of $2,500.00 Councilperson Welper stated that a couple of years ago he suggested the Center For The Arts charge a fee for use of their parking lot. Cammie Scully, Director of Cultural & Arts Commission, replied that at this time the parking lot is needing work, and they thought they would wait until everything settles down. Ms. Scully stated that charging a fee could mean additional staffing. Mayor Hurley noted that Ms. Scully asked to restore the custodian position in the part time line item, but he is suggesting an $8,000.00 reduction and asking Ms. Scully to work that out of all the part time positions. Councilperson Greenwood asked if the custodian duties could be contracted out like at City Hall. Ms. Scully responded they have immediate needs because of the events, room rentals, visitors, etc. Mayor Hurley noted that the Public Art Budget operates with restricted funds that come from donations and it currently has $1,475.00 cash on hand. Mayor Hurley explained that the Cultural & Arts Project Budget is funded by non -property sources such as donations, state grants, and hotel/motel tax grants. Councilperson Steve Schmitt asked why there is such a fluctuation in Line Item 3720 (Donations -Restricted). Michelle Weidner, Chief Financial Officer, explained that Cultural & Arts received an $89,000.00 grant from Black Hawk County Gaming. Councilperson Steve Schmitt asked about the $5,000.00 budgeted in the Youth Pavilion Line Item 1319 (Other Prof. Services). Ms. Scully explained that the Youth Pavilion will develop special programs each week and will need materials and instructors. Councilperson Steve Schmitt stated he thought the work sessions would be televised. Mayor Hurley replied that at first he thought it was a good idea, but then thought about the precedent and concerns with the Public Access Studio's budget. The Public Access Studio is funded with the PEG funds, which have been declining and the expenses have been increasing. The Public Access Studio budget will use $42,000.00 of tax money this year. Councilperson Steve Schmitt stated that the logistics are the same as for the Monday council meetings, and the staff will be Council Work Session February 12, 2009 Page 2 working their normal hours. Councilperson Welper stated that the work sessions are open meetings, Tim Jamison from the Courier attends, and there are no other persons in the council chambers. Councilperson Steve Schmitt stated that he hears from a lot of people who watch the council meetings, he hears about transparency, and he thinks it would be a good idea to televise the budget work sessions. Councilperson Welper stated that we have all this room and no one is attending the meetings. Councilperson Greenwood stated he is not in favor of televising the work sessions because people know the council works hard on the budget and takes it very seriously, Tim Jamison reports on the meetings and if there is additional cost, he would like to save the money. Councilperson Reggie Schmitt stated he doesn't feel it is necessary and he is more concerned with the bottom line. Councilperson Hart stated he wouldn't mind showing the work sessions. Mayor Hurley stated that there are a lot of free discussions, and asked would televising enhance or impair these discussions. Mayor Hurley stated that the budget instructions were no new people or programs. Ms. Scully stated that they have not implemented it yet and it is to bring more people in. It does add expense but it also increases revenue. Councilperson Greenwood asked if the big foundations are interested in donating funds. Councilperson Steve Schmitt asked about the salaries for the staff . Ms. Scully replied that according to a survey conducted by the Association of Midwest Museums, the salaries for her staff members are low. Mayor Hurley asked what Ms. Scully says to those who say the city cannot afford the Center For The Arts and that we should privatize. Ms. Scully responded that Davenport privatized and is now going broke. They added an $8.00 admission fee. They were funded by the City of Davenport for $750,000.00 and now they are $3 to $4 million in debt. Ms. Scully noted that some cities are selling art. Ms. Scully stated that with weddings they are booked for the next two years. The Center For The Arts has the largest Haitian collection in North America and they are also growing the Mexican art. Most of the art is purchased through gifts. Councilperson Steve Schmitt asked if they raise rates as he has heard the Symphony board is talking about moving to the Center For The Arts and cost was a factor. Ms. Scully replied they raise rates from time to time. It was moved by Reggie Schmitt, seconded by Welper to move the Cultural & Arts and Youth Pavilion budgets, with Mayor Hurley's recommendations, to the master budget. Ayes: Five. Absent: Cole, Getty. Motion carried. Mayor Hurley reviewed the following recommended changes to the Clerk/Finance Budget: Increase Line Item 3143 (IOC Host City Fee) in the amount of $20,000.00 Increase Line Item 3145 (IOC Dev. Fee) in the amount of $40,000.00 Mayor Hurley noted that Line Item 3614 (Interest Savings Account) is showing 60 percent decrease, and that the city only earned $97,000.00 by December 31, 2008. Michelle Weidner, Chief Financial Officer, noted we don't know if we will maintain the level of revenue received from Isle of Capri because of the economy. Councilperson Steve Schmitt asked about Line Item 3111 (Hotel/Motel). Ms. Weidner noted that those funds used to be budgeted to be transferred to debt services. Councilperson Greenwood asked about the cable franchise fee. Mayor Hurley responded the lawsuit is still in the courts. Mayor Hurley noted that Line Item 3750 (Sale of Bonds) was used when the city was borrowing short capital loan notes to pay for frozen sick pay when employees retired, and now each department budgets for those payouts. Mayor Hurley noted that the postage line item has been increased and that is mostly due to a proposed change to the Water Works invoice to an 8 %2 x 11 invoice. Councilperson Greenwood asked with the new website will the city now switch to electronic billing and licensing. Mayor Hurley responded that the framework is there. Ms. Weidner stated we would need an investment in software and banking. Mayor Hurley noted that not many Iowa cities are allowing electronic payments and the Iowa League has been doing some testing. Ms. Weidner stated it also becomes a reconciliation problem. Mayor Hurley noted that Line Item 1780 (Election Cost) occurs every two years and includes the municipal election, runoffs and the Local Option Tax referendum. Mayor Hurley stated that many of the contiguous cities are looking at holding the Local Option Tax referendum with the municipal elections. Nancy Eckert, City Clerk, noted that the Election Office has said it will cost $22,000.00 to hold the Local Option Tax referendum. Councilperson • • Council Work Session • 11111 February 12, 2009 Page 3 Greenwood noted that the charge backs have not been changing, and that we need to charge an equitable amount for providing services to the garbage and sewer departments. Mayor Hurley stated that if those charge backs are increased we may have to increase garbage and sewer fees. Ms. Weidner stated that not a lot of time is spent tracking hours the Finance and Clerk staff spend on service to the sewer and garbage departments. Mayor Hurley reviewed the following recommended changes to the Parking Administration Budget: Increase Line Item 3451 (Meter Revenue) in the amount of $12,000.00 Increase Line Item 3520 (Meter Fines) in the amount of $8,000.00 Mayor Hurley noted that parking revenues are down and some of that is due to the meters being removed from East 4th Streets and staffing problems. Mayor Hurley stated the challenge is to get the revenues back up. Councilperson Greenwood asked if we have considered hiring contractual persons to write the parking tickets. Mayor Hurley responded that is being discussed. Mayor Hurley recommended increasing Line Item 3510 (Dist. Court Fines) in the amount of $3,000.00. Mayor Hurley reviewed the following recommended changes to the Liability Budget: Decrease Line Item 1139 (Workers Comp) in the amount of $25,000.00 Mayor Hurley reviewed the following recommended change to the Self -Funded Workers Comp Budget: Decrease Line Item 1368 (Medical Claims) in the amount of $15,000.00 Mayor Hurley reviewed the following recommended change to the Public Access Studio Budget: Increase Line Item 3000 (Cash) in the amount of $20,000.00 Mayor Hurley noted that the Self -Funded Health Insurance Budget is currently projected at an increase of 10 percent, but we expect some change to the final figures. Councilperson Greenwood questioned the Prescription Drugs line item and the PBM transparency. Councilperson Greenwood stated he has concerns with Express Scripts and our consultant, Bill Robinson. Nancy Eckert, City Clerk, noted that we received a quote from Express Scripts using the traditional method versus the pass thru method, and the city would save about $23,000.00 the first year with the pass through method. Councilperson Greenwood stated he would like to have a professor look at costs for certain drugs. Ms. Eckert suggested that the Prescription Drug provider be re -bid and that we not just look at specific drugs. It was moved by Hart, seconded by Welper to move the Clerk/Finance, Parking Administration, Liability, Self -Funded Workers Comp and Self -Funded Health Insurance Budget, with Mayor Hurley's recommendation, to the master budget. Ayes: Five. Absent: Cole, Getty. Motion carried. Mayor Hurley reviewed the following recommended changes to the Human Resources Budget: Reduce Line Item 1369 (Unemployment) in the amount of $10,000.00 Reduce Line Item 1315 (Safety Comm) in the amount of $7,500.00 Mayor Hurley reviewed the following recommended changes to the Human Rights Commissions Budget: Increase Line Item 3831 (Reg Fees) in the amount of $1,000.00 Reduce Line Item 1130 (Emp Ben Re) in the amount of $360.00, with $28.00 benefits Reduce Line Item 1301 (Tem Agency) in the amount of $500.00 Reduce Line Item 1303 (Workshop) in the amount of $400.00 Reduce Line Item 1311 (Clerical & Acct) in the amount of $2,000.00 Reduce Line Item 1313 (Legal Services) in the amount of $1,000.00 Council Work Session February 12, 2009 Page 4 Reduce Line Item 1375 (Auto Expense) in the amount of $500.00 Reduce Line Item 1561 (Supplies) in the amount of $220.00 Reduce Line Item 1346 (Travel) in the amount of $700.00 David Meeks, Executive Director of Human Rights Commission, explained that there are no new programs. They are enhancing and promoting what they do. Mr. Meeks noted that they have decreased case processing from three years to one year. Moved by Hart, seconded by Reggie Schmitt to move the Human Resources and Human Rights Budgets, with Mayor Hurley's recommendation, to the master budget. Ayes: Five. Absent: Cole, Getty. Motion carried. With no further business before the council, it was moved by Greenwood, seconded by Steve Schmitt that the meeting be adjourned at 10:13 a.m. Ayes: Five. Absent: Cole, Getty. Motion carried. Nancy Eckert City Clerk • •