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HomeMy WebLinkAbout03.10.2005March 10, 2005 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 5:30 p.m., on Thursday, March 10, 2005. Mayor Timothy J. Hurley in the Chair. Roll Call: Kincaid, Cole, Greenwood, Clark, Schmitt, Gunderson, Welper. 121271 - Welper/Kincaid that the Agenda, as proposed, for the Special Session on Thursday, March 10, 2005, at 5:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. 121272 - Welper/Kincaid that copies of Call for Special Session on Thursday, March 10, 2005, at 5:30 p.m., be received and placed on file. Ayes: Seven. Motion carried. BUDGET HEARING 121273 - Greenwood/Schmitt that proof of publication of notice of public hearing on the FYE2006 Budget, as published in the Waterloo Courier on February 25, 2005, be received and placed on file. Ayes: Seven. Motion carried. 121274 - Michelle Weidner, Chief Financial Officer, presented "Building the Budget FYE06". Some of the items included in the presentation were: Mayor and Council's Top Strategic Priorities, Where Property Tax Dollars Go, How The Tax Levy is Set, Special Tax Levies, State Impact on the Tax Levy, Long -Term State Impacts, How Property Taxes Are Calculated, Who Pays Property Taxes in Waterloo, Property Values Type Compared to Taxes Paid, Valuation Trends, Assessed Values FYE06, Taxable Values FYE06, Property Taxes Collected, Property Tax Trends, How the City of Waterloo Provides Services, How Garbage User Fees Are Spent, How Road Use Tax Funds, Local Option Tax Funds, Federal Block Grant Funds, Federal Housing Funds, Capital Project Funds, and Debt Service Funds Are Used, the General Fund, Comparison of Waterloo With Other Iowa Cities, Revenue Source Comparison With Other Cities, Cost of Living Comparison, Items Impacting the FYE06 Budget, and Proposal to Balance the FYE06 Budget. Councilperson Welper stated that one of the most misunderstood business transaction is when the city gives away land for $1.00, and he asked if the city is close to receiving money back from these sales. Ms. Weidner responded for FYE06 we are releasing TIF funds in the amount of $30,000.00 to the General Fund, and we should start see increased money from the sale of these properties. Ms. Weidner stated that when the city sells property for $1, the buyer usually pays us back in five to ten years in tax revenue. Councilperson Greenwood stated he wished we had a fully funded budget so we wouldn't have to cut Police and Fire personnel. Ms. Weidner responded that $2.2 million would need to be identified in some other fund other than the general fund because we are at the $8.10 levy. Ms. Weidner stated we must cut something, and that gaming could help. Mayor Hurley stated the $0.27 emergency levy is included in the proposed budget. Councilperson Clark asked about the $3 million received from the Black Hawk Solid Waste Commission. Ms. Weidner responded the city has received $3.3 million from the commission, and we have spent $750,000.00 for engineering and design of the Downtown Riverfront Renaissance Plan. Ms. Weidner reported the city expects to spend $6 million for the project in 06, with $3 million from the Solid Waste Commission and $3 million from Vision Iowa funds. Ms. Weidner reported that interest on the money received from the Black Hawk Solid Waste Commission is going into the general fund. Councilperson Gunderson asked how many positions would it mean with delaying replacement of Police and Fire retirees. Ms. Weidner responded the Police Department will have five positions by the end of 06, but two of those position do not come out of the budget until the end of May 2006. Ms. Weidner stated they think they can get the number of positions in the Fire Department down to five. Welper/Kincaid that the meeting be recessed at 6:33 p.m. Ayes: Seven. Motion carried. RECESS March 10, 2005 Page 2 Budget Hearing Continued 121275 - Welper/Schmitt that the meeting be reconvened at 6:40 p.m. Ayes: Seven. Motion carried. 121276 - Mayor Hurley distributed copies of the proposed Adoption of Budget and Certification of Taxes form. Mayor Hurley explained that the estimated tax levy per $1,000.00 of valuation was published at $19.33488, and we have since then come up with a little lower levy of $19.15566. Mayor Hurley distributed copies of the FYE2005 Amended and FYE2006 Proposed Budget Comparison form. Mayor Hurley reported that the proposed levy rate would mean a 0.91 percent increase for residential property, 2.71 percent increase for commercial property and 1.95 percent increase for industrial property for FYE06. Mayor Hurley reviewed his FYE06 General Fund Budget Adjustments form. Mayor Hurley stated that when General Fund departments submitted their budgets, we needed to find $1,438,456.00 because we were at our limit. Mayor Hurley identified how he came up with $1,476,613.00 in reduction from the original department askings, which will give a cushion of $38,157.00. Councilperson Clark applauded Mayor Hurley for his well, thought-out plan. Councilperson Clark noted that only the Police and Fire Departments will see a reduction in personnel, except for one position in Central Garage. Councilperson Clark asked if the funds from the Black Hawk Solid Waste Commission and from Black Hawk County could be used to cover these positions. Mayor Hurley responded those funds have been designated for the downtown plan. Don Temeyer, Community Planning and Development Director, reported that the city expects to received $750,000.00 from Black Hawk County for the downtown plan, and they will pay the city as we need it. Councilperson Clark stated it is possible good things would happen before July and maybe we could use the funds from Solid Waste rather than shorting the Police and Fire Departments. Mayor Hurley stated we have until June to wait for a White Knight to help us. Mayor Hurley noted that Public Safety is 75 percent of the General Fund budget and 90 percent of Public Safety is people. Mayor Hurley stated that if the city finds revenues, he feels it would be fair that Public Safety is the first place we give remedial relief. Councilperson Clark stated he is not asking for the council to make a commitment to use the Solid Waste funds, but as we get close to keep an open mind This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Brian Becker, 812 Clough Drive and President of International Association of Fire Fighters Local No. 66, stated he feels not replacing the positions will have an impact on the citizens of Waterloo. Mr. Becker stated lowering these positions will increase response time because at some point the Fire Department could have a truck out of service which is the same as closing a station. Mr. Becker stated a reduction in staff not only affects the citizens but firefighters who respond will be fully doing their jobs not knowing how many firefighters will come. Mr. Becker noted that a firefighter's job is very labor intensive, and not replacing these positions could put them at risk and injuries could happen if there aren't enough firefighters to back each other up. Mr. Becker stated they feel staffing right now is at a minimum. Mr. Becker stated that it is very labor intensive, and they need personnel for house fires or a cardiac arrest, and that other cities have 30 firefighters responding to a house fire, but Waterloo has about 10. Mayor Hurley stated he appreciated Mr. Becker's comments, and told him the city is looking for ideas to bring in dollars and is open to suggestions. Welper/Kincaid that the hearing be closed and oral and written comments be received and placed on file. Ayes: Seven. Motion carried. 121277 - Welper/Schmitt that "Resolution approving FYE2006 budget at a levy rate of $19.15566", be adopted. Prior to a vote on the above motion, the following comments were heard. Councilperson Welper thanked Mayor Hurley, Michelle Weidner and Department Heads. Councilperson Welper stated we keep asking Department Heads to do more with less and less all the time and have asked them to reduce their budgets year 110 • March 10, 2005 • • Page 3 Budget Hearing Continued after year. Councilperson Welper stated the only choice is bodies because the money is not there. Councilperson Welper stated he is on Public Safety's side, but the money is not there. Councilperson Gunderson stated he is concerned for the Police Department, but really for the Fire Department because they are taking the higher hit. Councilperson Greenwood asked if there is any money left over from the end of the year. Michelle Weidner, Chief Financial Officer, responded she is just now reviewing a draft copy of the 2004 audit, and that the departments did hold costs down; the Police Department did not use all of its budget, but the Fire Department used all of its budget. Ms. Weidner reported there will be a fund balance for 2004 because department heads spent wisely. Ms. Weidner stated we are improving from a slim fund balance, and the year before she started with the city, there was a very slim fund balance. Ms. Weidner stated that the city has to have an unrestricted fund balance to use prior to receiving our share of the tax money. Ms. Weidner stated the fund balance is improving, will continue to improve, and we need to try to reserve some fund balance for cash flow. In response to a question from Councilperson Greenwood, Ms. Weidner reported that we lowered the published levy as a result of lowering departments' requests, and most of that was from the employee benefit levy which was about $300,000.00. Ms. Weidner stated she also built in an increase for the city's portion of the IPERS pension because she heard the legislature was going to increase our share, but as of today there is a 50/50 chance of it passing. Ms. Weidner stated if the IPERS contribution is increased the city has a little bit of balance from 05 to help fund the increase. In addition, the city will use a little from the debt service as we had some refinancing savings which we will use in 06. Councilperson Greenwood commented if the city found a source to more timely fill the Public Safety position, we would have to fund employee benefits. Councilperson Greenwood stated it bothers him to cut the Public and not hire Police and Fire personnel in a timely fashion. Greenwood stated he received comments from some elderly citizens a quick response time from Fire Rescue. Councilperson Greenwood quality of living in Waterloo is tied to the quality of Councilperson Greenwood stated the city needs to do whatever we Public Safety funds. Safety budgets Councilperson that they want stated that the Public Safety. can to restore Following comments a vote was taken on the above motion, with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2005-194. 121278 - Mayor Hurley stated that he thinks council should be, if not pleased, at least comforted with what they approved and feel some sense of accomplishment. Mayor Hurley noted this budget is good news for our residents, and commercial and industrial businesses, but there are still some tough choices to be made. Mayor Hurley stated there are things that will need to be done for the FY06 Budget such as fees for the Building Department and Fire Rescue, and there is still work to be done on the sewer and garbage budgets. Mayor Hurley commented that we all agree we need to put pressure on our state legislators to fix the tax code. Mayor Hurley thanked Michelle Weidner and the Finance Department staff for the long hours and for working weekends to put this budget together. Mayor Hurley stated he met with all the General Fund department heads, and those discussions were open and collaborative, and he appreciates all the work they do in representing their entire department of employees who are loyal and skilled and doing so much for our citizens. Welper/Kincaid that the meeting be adjourned at 7:12 p.m. Ayes: Seven. Motion carried. Nancy Eckert, CMC City Clerk