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HomeMy WebLinkAbout01.30.2006• COUNCIL WORK SESSION January 30, 2006 5:00 p.m. Council Chambers Members present: Mayor Hurley, Kincaid, Welper, Gunderson, Greenwood, Getty, Cole, Schmitt. Moved by Schmitt, seconded by Kincaid that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. Mayor Hurley updated council members on the FY 2007 Budget. Mayor Hurley has met with Department Heads who have requested items be placed on the Capital Improvement Plan (CIP). There are dollars left over from previous years' bonding that have not been spent. Mayor Hurley asked Don Temeyer, Community Planning & Development Director, to bring the CIP back with reduced requests. Mayor Hurley reviewed the budget calendar for Fiscal Year Ending June 30, 2007 Budget. The notice of public hearing on the FY 2007 Budget is scheduled to be published on February 16, 2006, with the public hearing scheduled for March 6, 2006. The adopted budget must be certified with the Black Hawk County Auditor by March 15, 2006. Mayor Hurley reported he has been meeting with each Department Head reviewing budget requests. The bottom line for each budget is looked at and Department Heads are required to make any necessary adjustments. All budgets have been prepared with no increase in wages. The health insurance costs were put in the budget using 37 percent projected increase. Mayor Hurley noted there is still a significant gap in the $8.10 levy to stay legal in terms of levying abilities. Last year, the Police and Fire Departments budgets did not allow them to replace retirees. When the city received funding from the Isle of Capri, public safety was allowed to fill in the gaps. Mayor Hurley stated that there is about $2.5 million in valuation loss due to apartments being changed to condos. Apartments are taxed at 100 percent and condos are taxed at 46 percent of assessed valuation. Mayor Hurley noted the total property evaluation is up, but not all of it is captured in the $8.10 levy. Mayor Hurley explained that about 80 percent of the budget is people, and there are many unknowns which will make it hard to publish the budget. There are five bargaining unit contracts to negotiate. There will be a new health insurance plan that will almost certainly be more costly to the city. The city will get a slight break on the city's contribution to the Police & Fire pension in FYE07. Mayor Hurley reviewed his FYEO7 Budget instructions to Department Heads, which included: maintaining FYE06 year-end staffing levels, no new programs, and using historical 3-year average as a guideline in estimating expenses. Michelle Weidner, Chief Financial Officer, explained that reducing the CIP will reduce the long- term debt levy. There is a little over $10 million setting in the bank that was previously budgeted and not spent. Mayor Hurley stated he sees no reason to continue to borrow at the same level if departments cannot get the bond funds spent. The reasoning was to keep the debt levy from going up and down. Mayor Hurley reported that the taxable valuation for 2007 has increased about $1.5 million. Ms. Weidner stated the evaluation is up but it is primarily on the taxpayers not because of new growth. Councilperson Greenwood stated he doesn't understand that there is no new growth as the paper shows the largest building in Waterloo in years. Mayor Hurley explained that part of that is eaten up by the state's rollover, and some of that new growth is apartments moving to condos which are then considered as new residential units. Lantern Square Apartments went from apartments to condos and is now considered a new residential unit. Mayor Hurley stated the growth is better than last year. As far as industrial growth with the agreements that were made, Council Work Session January 30, 2006 Page 2 the city won't see those dollars for a number of years. Ms. Weidner stated that the Black Hawk County Assessor arbitrarily raised the valuation 12 percent and is now reducing those down for 2007. Mayor Hurley stated a reduction in the number of apartments will also reduce the rental inspection fees for the Fire Department. Mayor Hurley asked council members to get with him or Ms. Weidner if they have questions on the budget or if they are interested in setting in on the meetings to let him know. With no further business before the council, it was moved by Schmitt, seconded by Kincaid that the meeting be adjourned at 5:27 p.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk •