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HomeMy WebLinkAbout03.12.1992March 12, 1992 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 5:00 p.m., on March 12, 1992. Mayor Albert C. Manning, Jr. in the Chair. Roll Call: Dell, Fox, Angel, Buck, Wright, Budak, Brown. 99004 - Moved by Wright, seconded by Angel that the Agenda, as proposed, for the Special Session on March 12, 1992, at 5:00 p.m., be accepted and approved. Motion carried. 99005 - Moved by Wright, seconded by Angel that proof of publication of notice of public hearing on the proposed F.Y. 1993 Budget for the City of Waterloo, as published in the Waterloo Courier on March 6, 1992, be received and placed on file. Motion carried. 99006 - HOLD HEARING --This being the time and place of public hearing, the Mayor called for written and oral objections. Bruce Meisinger, Budget Analyst, stated that this hearing is on a tax levy of $18.63 per thousand dollars of valuation, which is the current tax rate. The F.Y. 1992-93 budget was compared by program area with current year budget. The proposal would generate taxes in the amount of $23,382,151 for a net increase of 3.63 percent. The F.Y. 1993 Budget includes revenues of $66,173,330 with property taxes comprising 35.3 percent of revenue. Budget expenditures by program area include the following: Community Protection--20.4 percent, Human Development--7.6 percent, Community Environment--51.8 percent, Administration--4.3 percent, and Debt Service- -15.9 percent. A chart showing the taxable valuation of property by classification was reviewed. The proposed budget would generate city taxes for a house valued at $42,340 (with roll back) of $788.79. Larry P. Burger, Clerk/Auditor, presented six options for Council perusal with tax rates of $18.63 per thousand dollars of valuation to $19.84 per thousand dollars of valuation. The lower tax rate includes a 12 percent increase for Metropolitan Transit Authority but would require a 6.5 percent across-the-board cut including an infusion of cash of $150,000. Option 6, the highest option with $19.84 per thousand dollars of valuation, would keep staffing at current levels, allow negotiated increases, require no layoffs, an infusion of $150,000 in cash and includes a 12 percent increase for MET. Councilperson Fox questioned Mayor Manning as to his preference of tax levy rate. The Mayor responded by stating that he would await public input into the process and then determine the appropriate level to be levied. Mayor Manning asked for public comments. Citizens were asked to clearly state their name and address for the record. Kip Knox, 303 Home Park Boulevard, presented a letter from Mothers Against Drunk Driving (MADD) strongly urging the Council to reconsider budget cuts that would eliminate liaison officers from the schools. A letter from the Waterloo Education Association supporting the police liaison program was also presented. John Murphy, speaking on behalf of the Black Hawk Union Council AFL-CIO and residing at 125 Devonshire, opposed the lay off of police, fire and other city workers. As a last resort, the Council should support reasonable tax proposals to provide basic city services. Doug Heiber, Chairperson of the Metropolitan Transit Authority, asked the Council's consideration of a 22t increase in the Transit Levy which would replace loss of federal assistance of 8¢ and 144 to fund ongoing operational increases. If federal funds are granted, the 84 would go towards reducing next year's levy. Walt Stephenson, Manager of MET Transit, spoke in support of the increased transit levy and presented a letter from Raymond Burfeind, President of Covenant Medical Center, requesting adequate funding of MET. It provides services for the elderly and disabled to their facility. B. J. Furgerson, Human Rights Director, stated with her 18 plus years of tenure with the City, her salary is now commensurate with the rest of City staff, although a salary study still shows Waterloo's salary lower than most. She stated that the Human Rights Office could use an office receptionist as well as a community outreach person. Since most of the Human Rights Budget is devoted to personnel, very little remains to be cut. This presentation was intended to place on public record the additional needs of the department. March 12, 1992 Page 2 Hearing - continued Donna Epps, 1721 Franklin Street, often listens to the police scanner and has noticed a marked increase in calls for service. Between January 1, 1991 and March 12, 1991, 6,854 calls for service were made contrasting with the same time period during 1992 when a total of 7,816 calls were answered. Likewise, the Fire Department has experienced an increase in the number of calls for the same time period from 2,997 to 3,879. She reiterated that the Police and Fire Departments should not be cut adding that the location of railroad tracks could cause additional response problems. In response, Councilperson Brown then questioned who should be cut. Ms. Epps stated that she has seen idle Street Department personnel and suggested cutting City Council's salary. It was noted that any cuts in personnel would need to be a joint decision with the bargaining units. Mayor Manning noted that without cuts in police and fire, drastic and significant cuts would be necessary. Councilperson Fox stated that all options are being reviewed and noted that he was advocating freezes for all city employees. Councilperson Dell asked that the public keep in mind that the Council has not yet decided on whether cuts will be made and also noted that City Council Members give twice what they are paid. It was noted that the Council's salary is 10 percent of the Mayor's annual salary. Bill Webber, President of the Association for Retarded Citizens, reiterated the need for MET for employment, shopping and leisure activities. He noted that the public had already absorbed rate increases in the past. Tony Kremer stated his support of funding for MET as he needed transportation for employment at Wal-Mart. Tempest Woock, 2009 Coachman, stated that he needed transportation to Cedar Falls. Joy Lowe, 130 Webster Street, asked that the Council consider raising taxes due to the anticipated loss of vital City services, including police and fire. As the community continues to hear about crime and the City's image, a positive change is needed. Gale Quirk, 245 Alta Vista and a member of the Human Rights Commission, supported a tax increase since these vital City services contribute to human dignity. Jerome Wiley, owner of the West Coast Connection, 535 Logan Avenue, reported the need for more police at his club due to the increase in drug traffic. He supported a tax increase. Jack Dunlevy, representing the Waterloo Municipal Band and residing at 82 Mulberry Street, stated that the Municipal Band Budget has been cut by 50 percent in the last ten years, and that the current year's allocation is insufficient to meet operating expenses. He supported a tax increase. Dave Burman, 1103 Vine Street, asked that the Council look at the budget in terms of long-range goals and visions and not to look at it on a year -by -year basis. He supported an increase in property taxes but also stressed the need for accountability of expenditures. The public must know where the money is spent. Merlin Biertz, 123 Prospect Circle, stated that any increase in employees' salaries should be from the departmental budget. As a realtor, the sale of homes could be greatly affected with an increase in property taxes, coupled with a 16 percent increase in property values. The City must live within its budget, and that the current system of taxation is unfair. Mayor Manning stressed the need for the City to live within its budget, but yet the public does not want services cut. He stressed that if Waterloo is to grow, we need to lower our property tax rate. Elaine Jacquith reminded Mayor Manning of his campaign brochure stating that the administration would reduce taxes, have higher paying jobs, put a higher priority for police and fire protection, and make City government more responsive. She stated that a decision to cut expenditures is March 12, 1992 Page 3 Hearing - continued one that must be looked at over time. She also noted that it was not inconsistent to fully fund police and fire and raise taxes. She urged the Council to find the money to maintain police and fire services and to "work something out in the spirit of cooperation." Councilperson Fox alluded to the recently adopted FY 1993 Budget of the Waterloo Community School noting that the levy was increased. Councilperson Dell noted that the City's budget dilemma did not happen over night but will require diligent work over the next few years. Larry Peters, 115 Amity Drive, was not against an increase in taxes for police and fire but against the continued reduction in services and increase in taxes. He blamed the individuals running the City for this dilemma. He suggested that the City needs more good paying jobs or the City will become a home only for the elderly. Councilperson Brown stated that it is very difficult to bring in good paying jobs and keep the tax rate stable. Barb Sharp spoke to the continual need for police and fire protection. Kathy Oberle, 710 Forest Avenue and a member of the Citizens Budget Review Committee, stated that the Iowa Legislature is debating a bill that will determine the use of excess pension money currently in the hands of the City. (Waterloo has a pension fund reserve of $3.5 million.) Larry P. Burger, Clerk/Auditor, reported that when the State of Iowa took over the pension fund for all municipalities, the City of Waterloo was required to pay $40 million to the state fund leaving an excess reserve of $3.5 million. The state is now requiring that the City levy taxes equal to 17 percent of the total gross salaries of the Police and Fire Departments, which is considerably more than when the City of Waterloo managed the fund. The increased cost to the City for this higher levy was approximately $650,000. It was Mr. Burger's recommendation that $250,000 of anticipated interest from the pension reserve be utilized to lower the levy and that the principle not be used. Ms. Oberle also noted that taxes are increasing due to increasing demands upon the Debt Service Levy. She stated that the City needs to change the way it is doing business and consider deleting capital projects in the future. She also supported a levy of 12 per thousand dollars of valuation for more youth activities. She also stated that citizens do not mind paying more for taxes if they know what they are getting. Jody Neidert, 815 1/2 Randolph Street, stated that although he was not a property owner, he supported funding for the Police Department and MET Transit. Randy Chapman noted that as a police officer and a homeowner in the community, he could have chosen to purchase a home somewhere other than Waterloo. He stated that police, fire and MET Transit are critical services and are needed to enhance the quality of life. He stated that he was willing to pay additional taxes to avoid service cuts. In his opinion, some past spending of the City has been ridiculous, including the West Fourth Street Lighting Project. He asked for full funding of the police budget and urged the Council to spend tax dollars wisely. Mayor Manning stated that departmental budgets have been cut to the limit and that public input is now being requested for additional cuts if there is apprehensive to raise taxes. Stephen Chamberlin, 1327 Clark Drive, Cedar Falls, spoke in support of ice hockey and the Waterloo Warriors. He asked for the Council's leadership in making the right decisions. Many ice users in the audience represented a similar opinion. Donna Jones, representing the Iowa Citizens for Community Improvement, stated that as a neighborhood representative, the public is taking the issue of service cuts very seriously. Most citizens will pay more for police and fire protection. She suggested the initiation of a wheel tax and questioned the use of the local option sales tax. March 12, 1992 Page 4 Hearing - continued Don Temeyer, Planning and Development Director, stated that the tax was approved by the electorate on January 27, 1992, generating approximately $5 million per year. On April 1, 1991, the additional penny was collected with the first payment received by the City of Waterloo on August 8, 1991. A small overlay program was let and partially constructed but not completed due to weather conditions. Streets included in last year's local option sales tax program included: Idaho Street, Newell Street, and Ridgeway Avenue. The City will soon be letting additional contracts utilizing the local option sales tax. George Meeks, 609 East Donald Street, spoke in favor of a tax increase, but warned the Council to be responsible in spending tax dollars. Mayor Manning called for a recess at 7:15 p.m. RECESS The Mayor reconvened the meeting at 7:40 p.m. with all members present. William Smith, 2260 Ashland Avenue, stated that the Mayor had inherited a big problem, and that the public is not against a tax increase but the City must be accountable for the use of these funds. He asked that the current level of services be maintained without serious service cuts. He urged the Council not to do away with safety to save tax dollars. He also asked that the local option sales tax be used wisely. Vonnie Jackson, 1838 Howard Avenue, questioned insurance costs for City employees. Mr. Burger stated that each employee is afforded an opportunity to be covered either by National Heritage Health Plan or Blue Cross/Blue Shield. The City is self -insured for Blue Cross/Blue Shield and pays a premium for Heritage coverage. A family policy under the Heritage Plan costs the City approximately $450 per month. Coverage is offered to the employee and family with the Blue Cross/Blue Shield Plan being an 80/20 deductible with the employee paying the first $100 of cost for himself and $300 for a family. The plan also includes a maximum $750 Delta Dental policy with a $5 prescription deductible. In response to Ms. Jackson's questions concerning longevity pay, Mr. Rodemeyer stated that the annual cost to the City for this benefit is $405,000. Ms. Jackson also commented on the large payouts to City employees upon retirement. These payments are for unused sick leave and vacation pay and is a negotiated item in the bargaining unit agreements. Councilperson Dell asked for a clarification of the sick leave pay outs. Mr. Rodemeyer noted that effective July 1, 1984, employees receive 25 percent of their unused sick leave in a cash payout on an annual basis. Prior to July 1, 1984, employees accruing a sick leave bank will receive 50 or 60 percent of the bank depending on the number of years of service. She asked that the City Council bite the bullet and make changes to this benefit pay out system. She also did not support a tax increase. Jackie Stalberger, 441 Woodcrest Drive, spoke against a tax increase as property taxes have steadily increased over the last ten years. Bill Ramsey, 4 Silver Lake Drive, stated that the City must cut back as he had to do in his real estate business when times were bad. He stated that taxes were too high and that many are avoiding the higher tax rate by living in smaller towns. He asked that the City consider subcontracting or combining public safety areas. Mayor Manning stated that even though there are less people in the community, the public demands the same level of service and the same geographical area must be served. Jeff Miller presented a petition signed by 562 citizens stating in part that they "do not want any of their basic services cut,'especially the Police Department Budget." Forest Dillavou, 1725 Huntington Road, asked that the Council not raise taxes because the people cannot afford to pay more. James Crandall, 1155 Leona Street, spoke against any budget decrease in the Building Department as they are a revenue producing department. As the City continues to build and expand, inspection services are needed. He supported an increase in taxes to support the Building Department operations. March 12, 1992 Page 5 Hearing - continued Mike Henny, RR 1, Dike, and owner of low income rental property in Waterloo, asked that the Police and Fire Departments not be cut. He asked that the City look at efficiencies and cost-effective changes. He supported an increase in taxes to support police and fire services. A wife of a Waterloo police, officer stated that their family had relocated from New Hampton and bought a home in Waterloo intending to start a family here. With the uncertainty of future funding for the Police Department, this may no longer become a reality. A resident at 1216 Westland Avenue questioned how much money had been spent on recent training for new Police Department recruits. Chief Koehrsen stated that the cost is $1,600 per individual plus the lost time of salary for a total cost of $15,000 to $20,000 per officer. She stated if the City laid off these officers and trouble erupted in the City next summer, this money would be lost. She questioned the expenditure for lights on West Fourth Street vs. public safety. Robert Sieglaff, 914 West Third Street, stated that the City is putting too much money in the downtown, that the City does not need so many department heads, including the Airport Director, and that the City is tearing down good tax producing properties for construction of the Black Hawk County jail. He also stated that it was not doing any good to give pay increases and that the hotel/motel tax revenues and the local option sales tax were not of any value. He spoke against a property tax increase. Dee Gray, 1007 1/2 West Third Street and a Union Steward at Iowa Beef Processors (IBP), spoke in support of a property tax increase. John Woods, representing the Landlords of Iowa Association, suggested the City establish a full time reorganization committee which he would like to become involved with. He also suggested an employee suggestion box with the employee receiving a percentage of the savings if implemented. In place of the $97,000 annual expenditure for street cleaning, he suggested volunteers be sought to work in tandem with an "Adopt a Highway" program. He also referenced a $147,000 transfer from the sewer fund to the central garage, noting that the sewer fund is subsidizing the general fund. He questioned whether this transfer would be made and spoke against a tax increase. John Herman, 2036 Casper Avenue, stated that we must spend money to build the future. Roger Crimmins, representing the Black Hawk Children's Theater, stated that although the Children's Theater represents a small part of the budget, he asked that the Council support this program. Bob Molinario, 3545 Augusta Circle, asked that the Council not reduce police and fire protection and not raise taxes. He suggested that the City look at consolidation of services and send a strong message to the employees. He stated that the City cannot continue to build on taxes as the only means of revenue. In response to a question from Councilperson Budak, Mr. Molinario stated that the City must look within itself to begin the consolidation process. Doug Ward, 632 West Mullan Avenue, asked why the City does not look for other means of revenue besides real estate taxes. He also questioned the use of scare tactics when speaking about possible police and fire layoffs. He stated that garbage fees have increased tremendously and that his alley has only been graded a few times in the last several years. He spoke in support of consolidation of city and county services. In response to a question from Mr. Ward, Chief Koehrsen stated that the bicycle patrol is a non -taxed program that will be in full swing this spring. Billie Bailey, Executive Director of the Grout Museum, spoke in support of the Citizen's Budget Review Committee for her program. Recent visitors to our City have commented that they envy our quality of life and our cultural activities in the community. She suggested that the City increase taxes if that is what it takes to improve upon our quality of life. March 12, 1992 Page 6 Hearing - continued Roger Dvorak, 1308 Vine Street, spoke to the great health insurance plan for City employees and suggested that there must be other areas to cut instead of personnel. He also stated that the City should be looking at people to run city departments with more business experience. He commented that Cedar Valley Partnership has lacked in the recruitment of high tech jobs. He supported an additional tax levy for programs for kids suggested by Kathy Oberle. He also encouraged parents to spend more time with their children and urged the Council not to raise taxes. A citizen questioned the City's payment of the access road to Waterloo Greyhound Park. He also questioned the expenditure of tax dollars on the county jail. Mr. Burger stated that the City receives one-half of 1 percent of the handle which is then used to amortize the cost of the access road to the facility. Approximately $30,000 has been paid to the City for their share of the road improvements. John Meyer noted that IBP and the Tannery combined pay approximately $1 million annually to the City for sewage charges. Alvin Carrier, 302 Idaho Street, spoke in support of continued police and fire services and supported a tax increase and noted that police and fire personnel should be paid more. Sara Dierks supported an increase in taxes to keep the Police Department at full strength. She also urged continued funding of the DARE and Liaison Program. As a recent homeowner on East Fourth Street, the house has been the subject of arson fires and theft, but she is not willing to give up this home. Moved by Brown, seconded by Dell that the hearing be closed and the above oral comments be received and placed on file and that "Resolution setting a new date of hearing as Monday, March 30, 1992 at 5:00 p.m. in the City Hall Council Chambers on the F.Y. 1993 Budget at a levy limit of $19.84 per thousand dollars of valuation", be adopted and Clerk/Auditor instructed to publish notice of same. Before a vote was taken on this motion, Bill Lemke, a member of the Budget Review Committee, urged that the Council not consider a reduction in services. The City has a top-notch Fire Department, a hazardous training school, an excellent Police Department, a Public Works Department that has made great strides in the areas of street improvement and reconstruction, a good quality of life including recreational opportunities such as golf, a great Library, and a great City staff. He also urged the Council to fund MET at the necessary level to maintain the current level of service. Councilperson Wright expressed appreciation to those who provided public input, noting that of the 43 who spoke, most spoke against raising taxes. She assured them that she would come to their rescue. Councilperson Dell stated he was tired of putting off a decision on the budget, and that the public deserves to know the outcome of the budget. He noted that it is not possible to put an axe to this budget and solve the problems at hand. Mayor Manning suggested that work begin on next year's budget immediately with employee input. Councilperson Fox, as a fifth year Councilperson, urged members to state their opinion on the budget. He stated that tonight's discussion centered around raising taxes or layoffs, which are not desired solutions. He stated that voters have spoken and that taxes are too high so it is the Council's obligation to lower the levy rate. He suggested that future changes may include Metropolitan Government and privatization of City services. The State Pension Fund was briefly revisited noting that take over of the fund by the State has cost the City $650,000 more this year than last. 99007 - Moved by Brown, seconded by Angel that the above motion be amended to include an increase in the tax levy to $19.94 to increase the funding to MET Transit to 221 per thousand dollars of valuation. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 1992-106. March 12, 1992 Hearing - continued 99008 - Moved by Angel, seconded by Buck that the Council adjourn at 9:30 p.m. Motion carried. Larry P. Burger City Clerk/Auditor Page 7