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HomeMy WebLinkAbout03.02.2004• • COUNCIL WORK SESSION March 2, 2004 6:00 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. The purpose of the work session was to discuss the proposed FYE05 Budget. Mayor Hurley reviewed the target area discussed by the council on March 1, 2004. The council is leaning toward level 4, which is a levy rate of 18.90914, an increase of 5.64 percent for residential property and 17.11 for commercial property. At the 18.90914 rate, we need to find cuts totaling $1,031,154 from requests from departments. Mayor Hurley shared comments he has received from citizens, most of them not wanting any more increases in taxes. Mayor Hurley reviewed his list of FY 2005 Budget Cuts — General Fund 8.10 levy. The target area is $1.1 million out of $17.1 million in the 8.10 levy, which equals 5.64 percent increase in taxes for a residential home and 17.11 percent increase for commercial property. Mayor Hurley's proposed cuts include imposing 27 cents emergency levy, using the aviation authority levy and using the civic center levy. Mayor Hurley reviewed his proposed Phase I policy driven cuts and operating cuts totaling $859,605, which includes maintaining 119 police officers, adding two firefighters not 3, moving CJIS and Building Inspection radio equipment purchase to the CIP, issuance of short-term notes for retirements, and funding $40,000 police overtime using discretionary hotel/motel tax funds, for a total of $859,605. Mayor Hurley presented his cafeteria cuts which are policy driven for a total of $988,500 and operating cuts of $44,500. The total cuts for both Phase I and cafeteria cuts equals $1,892,605. The proposed cuts in Mayor Hurley's proposal contain no layoffs. Michelle Weidner, Chief Financial Officer, presented reductions to reduce services to post -state budget cut level for FYE04. The net reductions equal $972,746, which preserves departments as they are in FYE04. Councilperson Clark stated we are still identifying for department heads where they should cut, and he asked if a percentage could be given to each department and let the department heads make the decision where to cut their budgets. Mayor Hurley responded that the department heads submitted three versions of their budgets and he discussed each budget. Mayor Hurley stated he feels if the council turns the cuts to the department heads they would be making policy decisions, and this body should make those decisions. Councilperson Schmitt stated he talked with Ms. Weidner, and he would like to go with Option 2, which is the published levy and sets the rate at 19.06902. Councilperson Schmitt stated if the state comes back with $1.4 million reduction, the city's levy would be set and the city would have to find additional cuts. Councilperson Schmitt favored this levy because we will be looking at 40 positions if we have to cut an additional $1.4 million from the budget. Ms. Weidner stated the issue is $1.4 million is all general fund money, and to get to $1.4 million we can only use cash from the general fund. Councilperson Greenwood stated he doesn't know how we can afford all of this, with increase in police/fire pension, health insurance, VEBA and raises, and we haven't even budgeted for next year. Councilperson Greenwood stated he thinks the city may have too many union based employees with good benefits. Councilperson Greenwood stated that someone suggested to him to bring in non -union employees to do some of the things police officers do. Councilperson Greenwood stated that our spending may be in line with other cities, but the council may have to make huge policy making decisions. Councilperson Greenwood stated he has a hard time Council Work Session March 2, 2004 Page 2 increasing commercial property taxes 17 percent, but the council will need to let the citizens know our hands are tied and we have mandates to follow. Councilperson Welper stated Waterloo is not the only city maxed out on the 8.10 levy, but cities all over Iowa. Councilperson Welper stated he wants to focus on the budget and worry about the state cuts if they happen. Councilperson Cole stated that citizens expect public safety and public works. Councilperson Cole sated she has a problem with the 8.10 rate allowed under Iowa law and is concerned about what will happen in June. The council may want to look at cushioning the next round. Councilperson Gunderson stated we need to look at the history over ten years and the average tax increase would equate to 2.10 percent each year. For ten years, the taxes were kept down and it cost us. Councilperson Gunderson stated citizens need to understand not raising taxes caught up with us, and we will need to raise taxes to keep services. Councilperson Kincaid stated citizens don't want to be taxed any more, but how do we provide services and maintain a low tax rate. Councilperson Schmitt stated he would rather cut two Human Rights positions and keep the Financial Analyst position in the budget. Councilperson Gunderson stated he has a problem with cutting the DARE program when we receive funds from the Waterloo School District. Councilperson Gunderson suggested that we talk with Dr. Dewitt Jones to see if the schools could help with this program. Mayor Hurley stated that cutting the DARE program just means officers could be called to the schools rather than responding to calls. Councilperson Clark stated he does not want to use hotel/motel funds for police overtime and business owners are being hammered at 17 percent increase in taxes. Mayor Hurley stated that the City of Cedar Falls adopted a 2.2 percent increase for residential property and 13 percent increase for commercial property. Barb Price stated she is 20 years old and the budget cuts affect the younger generation. Ms. Price stated that the council is talking about cutting six officers from the DARE program, and she does not agree with that. Ms. Price explained that she is a police science student. Ms. Price suggested that there be no pay increase. Ms. Price stated that she understands the city paid for a new shed at the Iry Warren Golf Course using taxes, and she doesn't feel the city should use tax money for park expenditures, and then cutting police officers and firefighters. Ms. Price stated she feels the city needs to add more officers. Ms. Price stated raising taxes is a better idea than reducing public safety positions. Mayor Hurley stated the council discretionary funds comes to about $72,000 per year. The council just committed $30,000 of that amount for two years to build the pot. The Municipal Band receives about $20,000, so there would only be $20,000 left for police overtime. An informal poll was taken of the council to see where everyone is at concerning the levy rate. Councilpersons Cole and Gunderson favor 19.06992, Councilperson Schmitt favors 18.93402 and Councilpersons Welper, Greenwood, Kincaid and Clark favor 18.90914 levy rate. Councilperson Welper questioned the contract for animal control. Mayor Hurley responded that they have asked for an increase to provide this service, and the council will need to look at the contract. Councilperson Welper stated if a homeowner has a problem with an animal why can't the homeowner pay for that service. Sandie Greco, Superintendent of Traffic Operations, stated animal control answers barking dog complaints. Mayor Hurley stated if we have no animal control then the Police Department would have to answer those calls. Councilperson Gunderson asked if the city gets its money's worth for what we pay for animal control. • • Council Work Session March 2, 2004 Page 3 • • Councilperson Greenwood asked if we have looked as hard at the revenue side as the expense side. Mayor Hurley responded he feels we did. Some department heads were a little conservative and they were asked to increase those revenues to be more realistic. Councilperson Cole stated that she is looking at Ms. Weidner's suggestions as she is an expert in finance, and her suggestions are very reasonable. Councilperson Cole stated Ms. Weidner has offered an option the council should look at very strongly. Councilperson Welper reported he has been looking at parking fees for events held at Young Arena and Riverfront Stadium, but he has been informed that their contracts say any parking revenues would go to them. Paul Huting, Leisure Services Director, reported that the baseball contract is in its first year of a five year contract, but perhaps that could be negotiated with the new owner. Mr. Huting stated that the contract with the Black Hawks is coming up for renewal. Mr. Huting stated that the hockey owners tried charging a fee for parking, but they abandoned it because it costs more to collect the fees than the fees collected. Mr. Huting stated that charging a fee for parking for baseball and hockey is the same as a net increase in the ticket cost, which could reduce the number of people attending and reduce our revenues. An informal poll was taken of the council to see where they were at concerning the levy. Councilpersons Gunderson, Schmitt and Cole are at 18.93402 levy, and Councilpersons Clark, Welper, Kincaid and Greenwood are at 18.90914 levy. With no further business before the counci},,it was moved by Gunderson, seconded by Welper that the meeting be adjourned at 7:38 p.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk