HomeMy WebLinkAbout02.21.2005COUNCIL WORK SESSION
February 21, 2005
4:10 p.m.
Council Chambers
Members present: Mayor Hurley, Kincaid, Cole, Greenwood, Clark, Schmitt, Gunderson,
Welper.
Moved by Welper, seconded by Kincaid that the Agenda, as proposed, be approved. Ayes:
Seven. Motion carried.
Mayor Hurley reviewed the proposed FY06 Budget.
Mayor Hurley discussed the contractual 3.5 percent salary increases, 14 percent increase in
health premiums, $400,000 state -mandated increase in police and fire pension. The city lost
some property valuation brought on by decisions made at the County Assessor's office. Mayor
Hurley stated he met with most all of the department heads to review each budget, and most
department heads are just trying to hang on. The city has been at the $8.10 levy for some time.
We needed to cut $1.4 million from the budgets submitted by department heads. Mayor Hurley
stated he started making cuts to the budgets to try to get to the $8.10 levy and was concerned that
to get to the $8.10 levy it would include using the emergency levy of $0.27 per thousand dollars.
Mayor Hurley reported that 74 percent of the General Fund Budget is public safety, and 78 to 80
percent of the total General Fund is people cost, with 90 percent people cost in public safety.
Mayor Hurley stated the original projection to cut $1.4 million would have meant a 6.8 percent
tax increase, but within the last hour Michelle Weidner rechecked the figure, and if we get to the
$19.33 levy it would mean a 1.83 percent increase for residential.
Michelle Weidner, Chief Financial Officer, reviewed the FYE2006 General Fund change in cost
using FYE05 dollar amounts. Ms. Weidner explained that the FYE2006 General Fund budget
funds the same number of employees as the FYE2005 Budget. There is a slight increase in
IPERS because it is likely the legislature will approve an increase in that pension. Ms. Weidner
explained the VEBA. The FYE2006 Budget will include the fourth and final year for VEBA.
Each employee received an amount of $500 the first year, $750 the second year, $1,000 the
fourth year and $1,250 the fourth year. The VEBA contribution was part of negotiation with the
unions to accept a new health insurance carrier. The contribution rate for cities in the Municipal
Fire and Police Retirement System will increase to 28.21 percent in FY06, and in 2002 it was 17
percent. The total property taxes required is $27,696,562, but the city can only tax $26,258,106
so we will need to cut $1,438,456.
Ms. Weidner reviewed the historical trend of changes in property valuation in the city.
Residential property increased 1.07 percent, commercial property decreased 1.43 percent,
industrial increased 1.94 percent, utilities and railroads increased 3.55 percent and ag. land
decreased 0.70 percent.
Ms. Weidner reviewed the FYE2005 Amended and FYE2006 Proposed Budget Comparison.
Mayor Hurley reviewed his ideas to get to the $19.33489 levy:
1. Cap non -bargaining raises at 2 percent.
2. Release $100,000 from TIF.
3. Ask retirees to pay a small amount of the health insurance premium.
4. Decrease MIS budget by $18,000.
5. Decrease funding to KBBG.
6. Decrease funding to Fairview Cemetery.
7. Increase council travel line item, reduce mayor's travel line item.
8. Look for more revenue from the Airport.
9. Increase attorney's budget.
10. Building Department —Look at permit fees. Lou Cutwright has authorization to
add permit writer position to increase revenue.
11. Look for additional revenue from parking, Cultural & Arts rentals.
Council Work Session
February 21, 2005
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12. Ask Cultural & Arts to drop a couple of programs that serve a small number of
people.
13. Fie Department —Delay replacing retirees for saving of $269,000. Look for more
revenue in self -inspection program. May require closing a fire station at times.
14. Human Rights Department requested additional funding for Fair Housing but they
will have to get by with the grant.
15. Leisure Services —Supplement Forestry with Road Use Tax.
16. Police Department —Delay filling four retiree position and reduce a few line items
to save $70,000 or $80,000.
Mayor Hurley noted that Police Chief Tom Jennings is concerned that some of the positions not
being filled are tied to grants, and the city could owe the federal government money.
With no further business before the council, it was moved by Welper, seconded by Clark that the
meeting be adjourned at 4:42 p.m. Ayes: Seven. Motion carried.
Nancy Eckert
City Clerk