HomeMy WebLinkAbout02.05.2003• •
COUNCIL WORK SESSION
February 5, 2003
4:00 p.m.
Council Chambers
Members present: Mayor Rooff, Welper, Greenwood, Clark, Jordan, Hurley, Getty.
Members absent: Kincaid.
Moved by Jordan, seconded by Greenwood that the Agenda, as proposed, be approved. Ayes:
Five. Absent: Kincaid, Getty. Motion carried.
Michelle Weidner, Chief Financial Officer, gave a power point presentation on the FYE2004
Budget. Ms. Weidner reviewed the following: the city's mission statement, the top strategic
priorities of the mayor and council, how to accomplish the strategic priorities, how to fund to
accomplish the strategic priorities, how property taxes are calculated, how the tax levy is set,
what special tax levies are used by the city, how the city provides services, who pays property
taxes, how a tax bill is determined, where do property tax dollars go, what does the city use
property tax dollars for, and do property taxes pay all the city's expenses.
Councilperson Getty now present at 4:15 p.m.
Mayor Rooff reported that Ms. Weidner sent a letter to each department head to provide three
options for budgeting purposes: same level as last year, a three percent cut and a list of critical
needs. Mayor Rooff stated department heads submitted their budgets with those options and
very little twigging was required. Mayor Rooff stated that today he will talk about the $8.10
general levy and debt levy. The sewer and sanitation levy will be discussed next week, and the
council will need to make decisions on yard waste. Mayor Rooff reported that the Road Use Tax
is within $50,000 of the state's projection and the local option sales tax is stable. Mayor Rooff
stated there is very little general fund levy to raise taxes as the city has reached the $8.10 levy.
Mayor Rooff stated the work the council did last year made this year's budget easier. The
structural problems the city has had have been cleaned up in the budget. Mayor Rooff stated that
the city has signed four year contracts with the bargaining units. There is $500,000 increase to
fund the Fire and Police pension. Mayor Rooff stated that City of Cedar Falls wants to
participate in the airport.
Mayor Rooff stated there are some increases in revenue in the proposed budget. There is a
proposed $45,000 increase in parking revenue, and $50,000 increase in permit fees. Leisure
Services is looking at some changes and there are some other small adjustments such as the
Center for The Arts charging for rooms. Mayor Rooff reported that one building maintenance
position will be reduced through attrition and some part-time positions have been reduced.
Mayor Rooff reported that wages and benefits increased $635,000, police and fire pension
increased $500,000 and $500,000 increase in property and liability insurance.
Mayor Rooff presented the FY2004 Budget with a proposed rate increase of 2.37 percent in
property taxes. Commercial property would see 2.28 percent increase and industrial property
would see 2.93 percent increase in property taxes.
Councilperson Hurley asked if the airport levy is a step to creating an Airport Authority. Mayor
Rooff responded that it was, and that Cedar Falls would like to participate if the airport had its
own authority and had the authority to bond. Mayor Rooff stated his proposed budget contains
.5 in the airport levy.
Mayor Rooff reported his proposed budget includes 122 police officers and 117 firemen. Mayor
Rooff stated that there will be a lot of turnover in the Police and Fire Departments, and we need
to help them in any way we can to keep their strength.
Mayor Rooff stated the city needs to increase its tax base. Ms. Weidner reported that the
proposed budget includes about $1 million increase in property taxes.
Council Work Session
February 5, 2003
Page 2
Mayor Rooff stated that those departments that submitted a 3 percent reduction in their budgets
left a drastic picture. Ms. Weidner and he met with all departments and went from losing seven
to ten employees to losing only one. Mayor Rooff stated that he did not cut any department 3
percent, but some departments had to make cuts.
Councilperson Jordan stated he has never seen so good of a budget off the starting block and he
is very impressed.
Councilperson Hurley applauded the degree of preparation and stated he will need some time to
absorb the information.
Councilperson Jordan asked what would happen if we had zero percent increase in tax askings.
Ms. Weidner responded that would reduce the city's income by just a little over $1 million.
Mayor Rooff reported that his budget increased as the former Administrative Secretary's salary
was moved from the Personnel Budget to the Mayor's Office.
Ms. Weidner reported that the notice of public hearing will need to be published by February 18
in order to hold the budget hearing on March 3, 2003.
Ms. Weidner explained the $8.10 levy. Ms. Weidner stated there may be some rate adjustments
in Leisure Services and Cultural and Arts Commission budgets.
Mayor Rooff reported that Cedar Falls and Waverly are having discussions with him regarding
the airport. Mayor Rooff stated that he is finalizing discussions with Northwest.
Ms. Weidner stated that the city lost $16 million in machinery and equipment taxes. Mayor
Rooff stated that the utility companies were forced to pay the equivalent of what they would pay
for property taxes and now it goes to an excise tax.
With no further business before the council, it was moved by Getty, seconded by Jordan that that
the meeting be adjourned at 5:03 p.m. Ayes: Six. Absent: Kincaid. Motion carried.
Nancy Eckert
City Clerk
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