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HomeMy WebLinkAbout03.08.2002COUNCIL WORK SESSION March 8, 2002 8:00 a.m. First Floor Conference Room Members present: Mayor Rooff, Berry, Welper, Greenwood, Clark, Jordan, Hurley and Getty. Moved by Jordan, seconded by Welper that the Agenda as proposed be approved. Ayes: Seven. Motion Carried. Michelle Weidner, Chief Financial Officer stated that at the beginning of tonight's Budget Hearing she would be making a power point presentation highlighting the following points: • Who pays taxes. • How taxes are determined. • Where do my taxes go? • What does the City of Waterloo use my tax dollars for? • How does the City provide services? • Tax Levy trends. • Validation trends. • Property Taxes collected. • Employment numbers. Ms. Weidner reviewed each chart asking the Council and Mayor for suggestions of other possible charts to show. Mayor Rooff stated that giving out as much information as possible would help the citizens to have a better understanding of the tax levy and budget process. Discussion was held regarding Health Insurance costs. Health insurance costs are increasing and have to be paid, the options discussed regarding cost sharing will be addressed in future contract negotiations as well as looking at other possible programs. Ms. Weidner passed out an updated budget reflecting previous requested changes. Ms. Weidner reviewed the changes. Discussion was held regarding changes that Ms. Weidner had made in certain departments. Ms. Weidner stated that the current budget at the airport, as proposed, would have a deficit of $83,000.00. Ms. Weidner further stated that revenue projections have been adjusted because of the events of September 11`" and with the expected impact a major remodel will have on parking and restaurant revenues. Discussion was made regarding the importance of the Airport and some things that were being done to increase revenue. Cedar Falls Mayor Jon Crews stated that his council has expressed an interest in appointing a representative to the Airport Board and that there might be a possibility of future co -funding. Ms. Weidner stated that using the tax levy to cover the deficit would add an additional $.055. Ms. Weidner stated that Met Transit has asked for a 19 percent increase. Discussion was held regarding the importance of the Met Transit Program and the citizens that it serves, many of which have no other means of transportation. Ms. Weidner stated that Met Transit would add an additional $0.11 to the tax levy. Mayor Rooff stated that with the currently proposed budget the Tax Levy would be at $18.76 or about an 8 percent tax increase. Airport and Met Transit make up $0.165 of the proposed Tax Levy. Adjusting those two items would make the Tax Levy $18.60 or about a 7 percent tax increase. Councilperson Jordan asked what each councilperson was thinking for a tax rate. The following was stated: Jordan 4% Welper 8% Clark 6% Greenwood 6% Hurley 8-8.4% Berry 8-8.4% Getty 8% Council Work Session March 8, 2002 Page 2 Jordan now absent at 9:00. Discussion was held concerning Road Use and that $500,000 needs to be cut. Previously it was estimated that 10 employees might need to be laid off. Ms. Weidner stated that after doing some research she has identified some additional cuts that could be made to reduce the deficit to $250,000; this would mean only 5-6 employees may need to be laid off. Ms. Weidner stated that there are currently nineteen unfilled positions, with an additional proposed 5-6 in Road Use and the possibility of one more in Building Inspections. Councilperson Getty stated that he was approached with concerns regarding cutting a department that costs the taxpayers nothing. Mayor Rooff asked each Councilperson if they would consider employee layoffs with the following answers: Welper Yes Clark Unsure Greenwood No Hurley Yes Berry No Getty Yes Getty now absent at 9:30. Councilperson Hurley stated that budgeting Hotel/Motel monies to do the maintenance at the Five Sullivan Brothers is just a band aid and questioned what would be done to budget a year from now. Discussion occurred regarding the proposed needs at the Convention Center. Councilperson Welper asked how members of the Council who are proposing only a 6 percent increase plan to get there. There was discussion about moving money from one fund to another to cover expenses. Mayor Rooff stated that even though moving money is legal they have found from past experience that citizens don't like it. Councilperson Greenwood stated that they don't like high taxes either and if we continue to raise the Levy that we are pricing ourselves out of new business coming here. Councilperson Hurley stated that everyone has worked extremely hard to get to a close consensus on this budget. Hurley further stated that there is much to learn and that this year the council needs to work on identifying efficiencies that once implemented could reduce the taxes in the future, but moving funds can often disguise efficiencies. Mayor Rooff stated that policies should be established regarding movement of funds. Mayor Rooff further stated that a rainy day fund needs to be established for the lean years as well as having a fund balance that helps our bond rating. Mayor Rooff stated that the goal is to make every department stand on its own and stay within its budget. It is necessary to look at all city fees on an annual basis and make adjustments that allow programs to fund themselves. Berry now absent at 9:50. Councilperson Welper shared some information that he had gathered regarding property taxes in other cities. Mayor Rooff shared some information that he had received from the City of Indianola. Councilperson Clark asked the Mayor to review the process that will take place tonight. Mayor Rooff stated that the meeting would start with a short welcome, Ms. Weidner would show the power point display, Mayor would then ask for citizen comments. Once everyone had an opportunity to comment he would close comments from citizens and open it up to the council for discussion. After Council has had the opportunity to discuss a motion would come from a councilperson on a recommended Tax Levy. The Council will deliberate until a passing vote. Mayor Rooff thanked everyone for all of their time and what has been accomplished. With no further business, it was moved by Welper, seconded by Clark that the meeting be adjourned at 10:05 a.m. Ayes: Four. Motion carried. Marge Hirdler Deputy City Clerk