HomeMy WebLinkAbout02.11.2002•
COUNCIL WORK SESSION
February 11, 2002
2:00 p.m.
Council Chambers
Members present: Mayor Rooff, Welper, Greenwood, Clark, Jordan, Hurley, Getty, Berry.
Moved by Jordan, seconded by Getty that the Agenda, as proposed, be approved. Ayes: Six.
Absent: Berry. Motion carried.
Mayor Rooff reviewed the budget process. Department Heads are asked to put together a budget
reflecting their needs. Cuts were not specified for FY03 due to union contract negotiations. The
Chief Financial Officer used zero based budgeting for personal services. Each Department Head
will present his/her budget to the council. Mayor Rooff presented the following options to the
council: consolidation of services, increased user fees, increased taxes and lay off employees.
Mayor Rooff commented each Councilperson will have a philosophy on how the city should
budget based on what is important to him/her. Once the council has reviewed each department, a
budget is published and the council holds a public hearing on adoption of the budget.
Michelle Weidner, Chief Financial Officer, reviewed zero based budgeting for personal services.
Ms. Weidner calculates salaries, insurance and all benefits using staffing levels requested by the
departments. Some departments have requested new positions not currently budgeted in FY02.
The following departments have requested new positions: Central Garage an assistant, Human
Resources an education coordinator, Airport an administrative secretary and three new
maintenance positions. Leisure Services has included three positions not filled last year, Police
Department has included five positions not filled last year and the Fire Department has included
four positions not filled last year.
Mayor Rooff stated that the following items have a high impact on the budget: health insurance,
and salary increases for bargaining and non bargaining employees. Ms. Weidner stated that she
used a 2.5 percent increase in salary for budgeting purposes. Ms. Weidner stated that if the
council decides no increase in the levy, $5.8 million must be cut from the proposed budget, and
if a 3.5 percent increase is proposed, $900,000 must be cut from the proposed budget.
Councilperson Hurley asked if the city stays at its current levy rate, with the rollback figure and
equalization order, what would the amount of increase in dollars be for city operations. Ms.
Weidner responded we would receive about $775,000.00 in additional taxes.
Ms. Weidner reported that the following items have increased in the FY03 Budget: $800,000 for
health insurance coverage, last year we budgeted $520,000 for the sale of city property, which is
not included in the FY03 Budget, Consolidated Dispatch will increase $100,000 due to changing
the way cost is calculating by calls for service, and $610,000 in retirement costs.
The current levy is $17.80, the proposed budget would put the levy at $20.35, which is a 14
percent increase from FY02, the Library Levy at .27 totals $433,000 and 2.5 percent salary
increase of $900,000, for a total increase of $3.1 million over last year. The $17.80 levy rate
generated $28 million for FY02 Budget.
Ms. Weidner stated the Fire Department has asked for 20 percent increase, and Leisure Services
has four positions, two which were not filled in FY02.
Berry now present at 2:27 p.m.
Mayor Rooff stated the City of Cedar Falls has other options to keep their levy down such as
Cedar Falls Utilities contributes to the city, and Cedar Falls has reserved funds. Mediacom pays
the City of Waterloo approximately $450,000 per year and an additional $85,000 in PEG funds.
Ms. Weidner reported that the city uses eight levies such as Met Transit Levy, General Fund
Levy, Liability Levy, special levy for the Library, Employee Benefits Levy, SSMID and Debt
Service Levy. At June 30, 2001, the city had $1.5 million in unreserved, undesignated funds,
Council Work Session
February 11, 2002
Page 2
and $2 million in restricted funds such as hotel/motel, grants, PEG, etc. Ms. Weidner stated that
$15,085 adds one cent to the levy rate.
Ms. Weidner stated that revenue includes fees such as inspection, sewer, garbage, golf, recreation
classes, ambulance, licensing, meter and ramp revenue, library fines, etc. Ms. Weidner stated
that $5 million in revenue is added to the budget in the General Fund. Fire Chief Ned DeBerg
stated that we are reimbursed only 68 to 71 percent for ambulance services for Medicaid and
Medicare patients. Chief DeBerg stated that mutual aid fees and Medicare fees are set fees.
Councilperson Jordan asked if the city should look at increasing user fees, and Councilperson
Buck asked if raising fees will help enough. Councilperson Hurley stated that we may not be
able to increase the fees for the FY03 Budget, but we should start talking about the fees in April
or May. Councilperson Hurley stated he feels we should be competitive with our fees and also
charge for the services we provide. Councilperson Greenwood suggested listing all our fees and
how increasing the fees would affect the General Fund. Councilperson Greenwood stated the
city needs to look at charging for services provided. Some things are revenue generated and the
city should not lose money on the services we provide. Councilperson Greenwood stated we
should look at fees charged by other cities, such as garbage, water, sewer and inspection fees.
Michelle Weidner stated that the fees charged for ambulance breaks even, golf makes a little
profit, Young Arena makes a little profit, Cultural & Arts does not quite break even, inspection
fees raise revenue for the city, airport does not cover its budget.
Councilperson Jordan stated it would be hard for the city to bring in new businesses in if we raise
taxes and fees. Councilperson Greenwood stated that according to the people he has spoken with
higher taxes would drive people out of town rather than higher fees.
Chief DeBerg stated that the rental housing inspection fees are the lowest in the area. Chief
DeBerg noted that we tried to raise the rental housing inspection fees for FY02, but the city was
not successful.
Councilperson Clark asked why ambulance fees are only breaking even, and that if ambulance
services does not bring in revenue, we could look at privatization. Chief DeBerg commented the
city provides a better service than a private company due to our response time. Ms. Weidner
noted that 75 percent of the ambulance fees are used for personnel costs.
Councilperson Jordan stated that we can continue to provide the services and raise taxes or cut
services. Councilperson Welper stated he would rather increase the fees and give a break to
those who cannot afford the fees such as low-income citizens or those on fixed income rather
than raising taxes.
Ms. Weidner reported that 19 positions have been requested by the departments. Ms. Weidner
reported that the Human Rights Commission has requested a new Education Coordinator
position to be funded with Community Development Block Grant funds. The Airport is
requesting three new maintenance positions. There are some vacant positions funded in FY02,
but not filled, such as Personnel Director, Airport Director, Associate Planner, two positions for
the Public Access Studio, Financial Analyst, and Leisure Services has one 7-month Park
Maintenance I and Golf Maintenance I, and a Forestry Foreman position.
Councilperson Hurley stated that citizens do not want the city to raise taxes, but they don't want
the city to reduce services, and, hopefully, the council can look at a balance. There are many
overworked people, and buildings in deplorable conditions.
Councilperson Berry stated that the council needs to look at what areas we are losing money,
look at the Haz Mat Center, the meter maid.
Councilperson Hurley asked if the council directs the levy rate to the Mayor and Department
Head, and Department Heads have to adjust their budgets accordingly. Ms. Weidner responded
that cutting service is a policy decision and the council needs to be involved as ultimately it is
their decision.
Council Work Session II°
February 11, 2002
Page 3
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Moved by Getty, seconded by Jordan that the meeting be adjourned at 3:50 p.m. and be
reconvened directly after the council meeting to discuss the Cultural & Arts, Library and Leisure
Services budgets. Ayes: Seven. Motion carried.
Mayor Rooff reconvened the meeting at 6:10 p.m. with the following council members present:
Berry, Greenwood, Clark, Hurley, Getty.
Members absent: Welper, Jordan.
The council reviewed the Library Budget with Carol French -Johnson, Library Director. The
Library has very few changes, and personnel numbers have been going down. The Library is
looking at ways to use technology so as to not fill positions through attrition. The Library is
using the Self -Help Checking program and hopes to have 80 percent check out by machine. The
machine cost $20,000. The Library has 12 work stations for the Internet Management System
and they are busy all the time. The Library shares three positions with City of Cedar Falls, the
Library Director, Youth Services and Technical System Administrator. A Library staff person
manages the city's web site, working approximately ten hours per week. The Library shares on-
line resources with Cedar Falls.
The council reviewed the line items for the Library. Line Item 1371 (Building Maintenance)
increased $12,000 and it was decided to lower that amount by $3,000. The Library Levy is set at
.27, and the levy was created to help with staffing to increase the Library hours to 68 hours per
week. The total budget increase for the FY03 Budget for the Library is 5.53 percent. The only
place to reduce cost is reference materials. The Library receives funding through the County and
Regional Library. If asked to reduce the budget by 3.5 percent, that would impact reference
materials by about $20,000.
The council reviewed the Cultural & Arts Commission Budget with Cammie Scully, Director of
Cultural & Arts Commission. The Center for the Arts is open seven days per week and has eight
full time staff members. The Center served 29,000 people last year. The Community Playhouse
is housed at the Center. The budget shows an increase in part-time staff. The Senior Program is
used for desk services, and the Center used 578 volunteers last year. The new After School
Coordinator position is fully funded by the Schools. The budget includes a new part-time
Education Assistant and Website Designer. An increase of $3,000 per employee is proposed for
the professional positions. The revenues were conservatively projected at 36 percent lower than
FY02. The Center -is slated to receive $9,000 of hotel/motel funds to be used for marketing. If
asked to lower the Center's budget by 3.5 percent, the $36,000 requested in part-time salaries
would be impacted. State funding projected for FY02 will probably not be received until after
July 1, 2002. A total of $56,000 was found in the FY03 Budget by reducing expenses by
$36,000 and increasing revenues by $20,000.
Greenwood now absent at 7:40 p.m.
The council reviewed the Leisure Services Budget with Paul Huting, Leisure Services Director.
The following items were discussed:
1. Campground revenue is increased by $2,000.
2. An increase in payroll of $140,000 for Leisure Services that is not in the computer sheets.
3. Construction area is suffering.
4. Major renovation at both pools.
5. New restroom in Furgerson Park.
6. The Construction II position is critical and adds $50,000 to the budget.
7. Forestry Foreman is funded in FY02 Budget.
8. ROW mowing is contracted using RUT funds in the amount of $100,000.
9. The proposed budget increases by $175,687, for a 5 percent increase.
Young Arena Budget
1. Beer sales revenue reduced by $10,000.
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February 11, 2002
Page 4
2. Gifts and donations reduced by $2,500.
3. Committees will be making recommendation to the Leisure Services Board on fee increases.
Golf fees are expected to increase between $5,000 and $8,000, Young Area fees about $8,000
increase and Sports fees are expected to be increased about $3,000.
4. The Golf Budget breaks even.
5. Proposing that 50 cents of each round of golf be used for maintenance. The Leisure Services
Board wishes to keep $1.50 of each round of golf for course improvements.
The meeting adjourned at 8:27 p.m.
Nancy Eckert
City Clerk