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HomeMy WebLinkAbout03.06.2008(2)• COUNCIL WORK SESSION March 6, 2008 8:15 a.m. Council Chambers Members present: Mayor Hurley, Cole, Getty, Hart, Greenwood, Steve Schmitt, Welper, Reggie Schmitt. Moved by Reggie Schmitt, seconded by Cole that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. Mayor Hurley gave an update on the FYE09 budget. Mayor Hurley explained that the Sanitation and Sewer funds are balanced. In the sewer fund, we are holding off hiring a few people but will look at that after council adopts a stormwater fee. In the Road Use Tax budget, there was $468,000 gap from what the departments asked and what was available. In the FYE09 budget, Koad Use Tax employee benefits have been moved to the general fund. Mayor Hurley explained that the council already adopted the stormwater ordinance with the stipulation that the fee would be adopted at a later date. At this time, we are proposing that all residential customers pay a flat fee, and commercial and industrial customers will pay a base fee, plus a certain amount per square foot for areas such as parking lots. No one will be exempted. Mayor Hurley noted that with a nominal fee, it is projected to generate $800,000 to $1 million per year. The Engineering Department will administer and monitor the stormwater ordinance. Eric Thorson, City Engineer, has submitted a draft proposal to be allocated $200,000 of the fees, which includes 1.5 additional people. In this budget, Mayor Hurley proposes to change street sweeping operations from the sanitation budget to use the stormwater fees as they clean catch basins with the sweeping operation. Mayor noted the good news is the enterprise budgets are balanced without the need for increased fees. Mayor Hurley reviewed the general fund budgets. Mayor Hurley reviewed the process for departments to submit items for the CIP. Mayor Hurley explained that he reduced the amount requested by $800,000 as he has concerns that the departments can get everything done. We currently have five-year old bond money that has not been spent. Mayor Hurley reviewed the process he used to reduce the departments' requests for CIP funding. Mayor Hurley noted that health insurance costs increased by 6 percent, but that with GASB 45, we have budgeted $512,000 for future costs of retiree health insurance. Mayor Hurley reported he has included $18,000 for the YES Program and asked council what they would like to put in the budget for KBBG, security at the library, a city newsletter, non - bargaining gap increase and Pathways. Mayor Hurley noted that the Young Foundation contributed $10,000 in past years for the YES Program. Mayor Hurley noted that currently he has budgeted $18,000 for the YES Program, $1,500 for KBBG, $34,000 for the Safety budget, $13,000 for security at the library, $25,000 for a newsletter. Councilperson Cole commented she thinks a newsletter is an excellent idea and a good way to educate the citizens and she is interested in working on it. Mayor Hurley explained that this could also include inserts with the water bills and/or quarterly newsletters and other departments could use it to mail out announcements, such as the stormwater letters. Mayor Hurley explained he has budgeted $96,000 for the non -bargaining salary gap, which would be in addition to the 4 percent wage increase. Councilperson Cole stated she supports the increase and doesn't feel we should penalize people for not being a part of a bargaining unit. Councilperson Cole stated she feels the non -bargaining salaries are embarrassingly low. Mayor Hurley explained he has budgeted $44,000 for Pathways as that was the amount of their request. Pathways requested this amount to be used to subsidize support staff and outreach staff, so it would be used to subsidize salaries. Councilperson Greenwood stated he would have a hard time giving city money for this organization, it is a great organization but not a good use of city funds. Councilperson Cole stated she feels it is not the city's core mission to support social services, and she does not want to add another organization that would come year after year asking for funding. Councilperson Cole stated she feels Pathways does good work, but she does Council Work Session March 6, 2008 Page 2 not feel the $8.10 levy should support social services. Councilperson Cole noted that citizens expect the following for their tax dollars: sewer, sanitation, police and fire, and she does not think the city should be in the business of funding social services. Councilperson Cole noted she would not support funding Pathways or EMA, but would agree to $25,000 for YES program and $3,000 to KBBG. Councilperson Hart stated he feels the council has an obligation to take care of staff, but he believes there are areas that we can help from time to time, there is a huge drug problem, and he feels Pathways is as important to the community as other social services. Councilperson Hart noted that the city helped establish the EMA and we have a good partnership. Councilperson Hart stated he feels the city needs to help these two organizations, and he would agree to $44,000 to Pathways and $12,000 to EMA. Councilperson Welper stated he agrees with Councilpersons Cole and Greenwood, and that it is difficult to say no to organizations that need help, but if we do these two our list can only grow. Councilperson Welper stated he feels there are other places for these types of organizations, not through the taxpayers. Councilperson Getty asked if the city should spend $25,000 for a newsletter when there are so many organizations needing help, so many falling through the cracks, that whatever funding the city can do helps them along with other funds to make these organizations work. Councilperson Cole stated she could support $10,000 funding for EMA with the understanding that the city will require financial accountability and that they submit to the city monthly financial reports, and that our funds are not to be used to support duplicate services. Councilperson Cole stated she will not support any funds for Pathways as she does not want to add another organization that the city is funding. Councilperson Cole stated she can support additional funding for safety and she agrees with funding for library security. Councilperson Greenwood stated he can support the YES Program, KBBG, Safety, Library, newsletter and salary gap, but cannot support funding for Pathways. Councilperson Greenwood stated he could support some funding for the EMA, with the stipulation that the city funds not be used for duplicate services and the requirement of financial reporting. Councilperson Steve Schmitt noted he and Councilperson Getty have been on a number of boards, and he fears that if we start funding these two we will have all organizations requesting city funding. Councilperson Steve Schmitt stated he agrees with taking these organizations out of the budget so there is no appearance of playing favoritism. Councilperson Steve Schmitt noted that our stewardship needs to be to the taxpayers, and he does not see the city's role in funding non -profits. Council recessed at 9:25 a.m. Council reconvened at 9:35 a.m. Councilperson Steve Schmitt noted that he has been looking at the proposed budget versus last year's budget. As he looked at the proposed budget, taxes will go up for residential property, down for industrial property and a substantial increase for commercial property. Councilperson Steve Schmitt stated he understands the state's role in the rollbacks and equalization order, but at the end of the day anywhere council can reduce the budget will help. Mayor Hurley explained that a house valued at $100,000 in 2003 is now valued at $154,000 and will pay $28 more for 09, or 2.3 percent increase. Mayor Hurley noted that in order for council to get to zero tax increase, we would have to cut a lot of people. Mayor Hurley noted that it would be 7.34 percent increase for commercial and 1.17 percent decrease for industrial property. Councilperson Reggie Schmitt proposed the following: YES $25,000 KBBG $ 3,000 f • • • • Council Work Session March 6, 2008 Page 3 Newsletter $25,000 EMA $ 6,000 Pathways $ 0 Councilperson Greenwood and Cole stated they would support the above items. Greenwood and Cole now absent at 8:40 a.m. Mayor Hurley explained that the budget contains $512,000 in employee health costs to pay for early retirement benefits per GASB 45. The city has always paid 100 percent for the retirees' health insurance for employees with 28 years of service. GASB 45 says the city must recognize $36 million in future costs for retiree health insurance. Mayor Hurley stated on Monday night he is proposing a budget that would incorporate a co -pay for those retirees which would mean the city could start building a reserve. The co -pay would reduce the $512,000 by $183,000. Mayor Hurley stated he will be prepared to give details on Monday night. With no further business before the council, it was moved by Reggie Schmitt, seconded by Hart that the meeting be adjourned at 8:46 a.m. Ayes: Five. Absent: Cole, Greenwood. Motion carried. Nancy Eckert City Clerk