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HomeMy WebLinkAbout03.05.2009411 • COUNCIL WORK SESSION March 5, 2009 8:15 a.m. Council Chambers Mayor Hurley called the meeting to order at 8:30 a.m. Members present: Mayor Hurley, Cole, Getty, Greenwood, Steve Schmitt, Welper, Reggie Schmitt, Hart. Moved by Reggie Schmitt, seconded by Greenwood that the Agenda, as proposed, be approved. Ayes: Six. Absent: Hart. Motion carried. Hart now present at 8:31 a.m. Mayor Hurley reviewed his recommendations of adjustments to the Sewer Fund, a copy of which is on file in the office of the City Clerk. Mayor Hurley noted that the Superintendent of Waste Management Services has proposed an organizational change to provide a level of management. We are looking at fair and equitable salaries for those promotions. Mayor Hurley explained that the Sewer Fund includes the sanitary lift stations, disbursement of treated solid waste, storm water lift stations, collections systems and flood control systems as mandated by the Iowa Department of Natural Resources (IDNR), the Environmental Protection Agency (EPA) and the Army Corps of Engineers. The IDNR is currently looking at our sewer operations as it is time to renew our permit. The total proposed expenditures for the Sewer Fund is $10,504,883.00. The budget includes $694,000.00 increase in sewer revenue fees, which is 5 percent sewer fee increase. In addition, $50,400.00 was added for revenue from ConAgra per our agreement. Interest revenue was decreased by $10,000.00, and a 1 percent increase for personnel costs of $16,350.00. Mayor Hurley recommended $400,000.00 be added to implement the storm water management fee for storm sewer maintenance. The storm water management fee will be a modest fee for residential and will be used for street sweeping and storm water maintenance, and it allows the city an opportunity to do the things mandated by state and federal governments. Councilperson Getty asked why the cost for street sweeping comes out of the sewer fund and not the Street Department budget. Michelle Weidner, Chief Financial Officer, responded that we have been doing this for years as it is cleanup. Councilperson Getty stated he feels the city is using these funds for things not intended for its use. Ms. Weidner stated she doesn't believe the City of Waterloo is doing anything illegal. Mayor Hurley stated that the duties have been split over the years. The city has to sweep the streets two or three times per year to keep the sand and dirt out of the river and the storm water system. Councilperson Getty stated he feels the cost for street sweeping should be put in the Street Department budget as the employees work out of the Street Department. Larry Smith, Superintendent of Waste Management Services, noted that storm water fee is for catch basin repairs, etc. The storm water management fee is a new funding source. Steve Decker, Superintendent of Streets, stated that at one time street sweeping was considered debris so it came out of the sanitation budget. Mayor Hurley explained that the increase of $16,350.00 to Line Item 1111 is for a promotion of a Treatment Operations Supervisor and a Collection System/Maintenance Supervisor as part of the reorganization of the Waste Management Services Department. Councilperson Getty asked are we saying that even with the 5 percent sewer rate increase we still need to cut $331,000.00 from the sewer budget. Mayor Hurley responded it will be a reserve of that amount. Ms. Weidner stated that we are trying to plan long-term because of all the other things that are coming. Mayor Hurley stated that the fee will cover things such as the Council Work Session March 5, 2009 Page 2 disinfection requirement and a number of things that they are asking us to do to renew our permit. Ms. Weidner noted that the City of Cedar Falls did a rate increase to meet their disinfection requirement. Councilperson Cole stated that the reason we are talking about a sewer rate increase is because of the unfunded mandates. Mayor Hurley stated that it is mostly for the storm water. The sludge classification is being examined and it looks like we will be required to perform additional lab tests. Councilperson Welper asked if we will replace the Assistant Superintendent of Waste Management. Mayor Hurley responded that the plan submitted by the Superintendent of Waste Management Services eliminates the Assistant Superintendent position but promotes two current employees, one to Treatment Operations Supervisor and one to Collection System/Maintenance Supervisor. Councilperson Steve Schmitt noted that there is $25,000.00 in Line Item 1373 (Equipment) in the FY09 budget, and $11,000.00 is budgeted for FY10, but none has been spent to date. Mr. Smith responded that there are three different line items for plant equipment and they use pumps of different sizes. This particular line item has not been spent because he is working on other line items. Mr. Smith stated that he actually has more expenses than what was budgeted for pump repairs. Pumps range from $1,500.00 to $80,000.00 for repairs. Line Item 1373 will be used before the end of the fiscal year. Mr. Smith stated the request is lower for FY10 because some of the expenses have been put in other line items. Councilperson Hart asked if we are adding two positions to replace the Assistant Superintendent position. Mayor Hurley responded we are adding one Instrument Control Technician and a promotion to the sewer budget. Mr. Smith stated he has requested the additional Instrument Control Technician for a few years. Ms. Weidner stated that the Instrument Control Technician position has been requested in this budget for several years, but has not been funded. We are reviewing the addition of the Operations Foreman position. Mr. Smith stated that the IDNR requires the city to have a Class 4 ICT for our license. Councilperson Steve Schmitt stated this department currently has 31 employees, and we are adding two people, and he thought that no new bodies would be added. Councilperson Steve Schmitt questioned why we are treated this department different than other city departments. Mayor Hurley stated the sewer operations is under a microscope. We just finished the last phase of the $90 million improvements at the sewer plant, and now there is a new wave of regulatory compliance. Our permit came due and the Department of Natural Resources is looking at it. We have a huge amount of work, a complex system and we need to suggest something different. Sewer is not funded by property tax or the $8.10 levy. Mr. Smith stated that the Instrument Control Technician position is being added because the inspection by the DNR is requiring the city have electronic equipment for our 26 lift stations. We currently have two Instrument Control Technicians and a foreman who do the electronic work. Mr. Smith stated he is requesting to promote two people, not fill those two positions and add one Instrument Control Technician position. Councilperson Steve Schmitt stated that his concern with the added position is that we could look at all departments and that is the challenge we face. If the position is being added because of federal requirements, then that is the answer. Mayor Hurley stated that in the Police Department we have incrementally moved up the authorized level. Mayor Hurley stated he perceives this as a very specific and scary challenge. Its a complex operation as far as equipment, process, control, work shift and there are SKATA requirements. Mayor Hurley stated council will get a second look at the fees as we move forward to know what we need to do to get the new permit and if that will include a sewer rate increase. Ms. Weidner noted that there has not been a sewer rate increase since September 2002. • Council Work Session March 5, 2009 Page 3 • • Moved by Reggie Schmitt, seconded by Greenwood that the Sewer Department Budget, with Mayor Hurley's recommendations, be forwarded to the master budget. Ayes: Seven. Motion carried. Mayor Hurley reviewed his recommendation of changes to the Sanitation Department's budget. A copy is on file in the office of the City Clerk. Mayor Hurley explained that the Sanitation Department includes code enforcement, neighborhood cleanups, and bulk item collection/disposal. Mayor Hurley noted that he is recommending $45,000.00 reduction to Line Item 1386 (Compost/Grinding) because some of the increase was due to last year's flood. Mayor Hurley noted that 15 percent of the Operations Supervisor's salary or $13,261.00 and 35 percent of the Maintenance Supervisor or $30,480.00 was added to the Sanitation Department budget. The Assistant Superintendent position, which was funded 29 percent by the Sanitation Department budget, has been eliminated A sixth Waste Tech position has been added, but only budgeting for half way through the budget. Mayor Hurley noted that an additional $271,484.00 still needs to be cut from the Sanitation Department budget. If we implement a storm water management fee and use a portion for required street sweeping and purchase the rear load garbage truck using fund balance, we may avoid a rate increase. Councilperson Greenwood asked if the tech responding to code enforcement could be a part time position from March through October as we don't seem to have as much activity during the winter months. Lou Cutwright, Building Official/Maintenance Administrator, stated code enforcement is year round, and that during winter months they see folks putting stuff on top of the snow. Mr. Smith stated that they see a lot of issues year round, and in December and January they see an excess amount of TVs and sofas along the roads. Councilperson Steve Schmitt asked if Line Item 1370 (Repairs & Maint) is part of realigning expenses. Ms. Weidner stated there is a roof leaking that needs to be repaired. Mayor Hurley stated that the leak damaged the lab office area. Mayor Hurley stated that there is still $271,484.00 that needs to be cut and we will need to certify the budget. We could certify the budget showing deficit spending and then amend the budget once we figure out the storm water fees for sweeping. Ms. Weidner stated that the sanitation fund reserves are in good shape and she suggested that the fund balance be used to purchase one truck. Councilperson Welper asked if the sewer fee for sweeping is the same as the fee in the sewer budget. Ms. Weidner responded that if the storm water management fee is implemented, a portion would go to the sanitation budget and a portion to the sewer budget. Councilperson Welper asked if the money from the fee will exceed $400,000.00, and Ms. Weidner responded yes, but we just don't know the dollar amount. Mayor Hurley stated that we have the storm water management ordinance in place, and there is a provision to apply a fee which the council has to adopt. We are looking at $2.50 to $3.00 per month per residence. A fee will be applied for residence, commercial, industrial and non -profits. Councilperson Welper asked if the city's costs will reflect that fee. Mayor Hurley responded that we will probably build some reserves. The fee will support street sweeping, storm sewer maintenance, engineering, etc. Mayor Hurley noted if there are 23,000 residential properties, and we adopt a modest fee of $2.50 to $3.00 per month per residential property, it could bring in over $1 million per year. Moved by Getty, seconded by Cole that the Sanitation Budget, with Mayor Hurley's recommendations, be moved to the master budget, use reserve funds if necessary and amend the budget later if necessary. Ayes: Seven. Motion carried. Mayor Hurley reported that between $600,000.00 and $800,000.00 has been cut from the requests from department heads. In order to have zero percent property tax increase, we would Council Work Session March 5, 2009 Page 4 need to cut an additional $1.5 million. The budget at this point would increase property taxes for residential 5.15 percent, 2.3 percent for commercial and 2 percent for industrial. Mayor Hurley noted that the proposed budget maintains programs and services. Mayor Hurley stated that it has been his perception that people demand the services they have now, but they don't necessarily want to pay for them. Councilperson Reggie Schmitt asked if the 5.15 percent increase keeps the status quo, what will happen next year based on the businesses and homes that were flooded and may not be on the tax rolls, will it be 10 percent increase. Mayor Hurley noted that we know there are 48 homes on Sans Souci and other properties that will come off the tax roll and what is happening with the economy could lower next year's property valuation. To maintain the same services next year with these circumstances would require a larger increase. Mayor Hurley noted although the city received revenue from the Isle of Capri, the police and fire pension contribution was lower, we had a good building permit year this is not a more favorable budget. Some of that can be contributed to the increased rollback by the State of Iowa which impacts all of us. Mayor Hurley noted that city has reached tentative agreement with three unions, and we hope to reach tentative agreements with the Library and Teamsters within the next few days. Councilperson Steve Schmitt asked why the city's health insurance is increasing 10 percent but Black Hawk County had a zero percent increase. Ms. Weidner responded we are baffled how Black Hawk County came up with zero percent increase for their health insurance. We received our information and projections working with our consultant. We will be proposing a decrease from our original proposal. With no further business before the council, it was moved by Getty, seconded by Cole that the meeting be adjourned at 9:37 a.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk • •