HomeMy WebLinkAbout03.30.1992March 30, 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 30, 1992. Mayor Albert C. Manning, Jr.
in the Chair. Roll Call: Dell, Fox, Angel, Buck, Wright, Budak, Brown.
99079 - Moved by Dell, seconded by Angel
that the Agenda, as proposed, for the Special Session on March 30, 1992, at 5:00
p.m., be accepted and approved. Motion carried.
99080 - Moved by Angel, seconded by Wright
that the calls for Special Session for the F.Y. 1993 Budget at 5:00 p.m. on Monday,
March 30, 1992 be received and placed on file. Motion carried.
99081 - Moved by Wright, seconded by Budak
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 24,
1992, be received and placed on file. Motion carried.
99082 - HOLD HEARING --This being the time and place of public hearing, the Mayor called for
written and oral objections.
Mayor Manning stated that the purpose of the hearing was to discuss the proposed
F.Y. 1993 Budget. He stated that comments from the public would be taken for
approximately 2 1/2 hours, at which time the Council would break for ten minutes
and then come back and deliberate. The published budget for this hearing was
$19.94 per thousand dollars of valuation and allows the Council to make any
decision, either to maintain service or cut as necessary. The Council must
appropriately balance the tax levy with an acceptable level of service.
Larry P. Burger, City Clerk/Auditor, presented an optional proposal for Council
consideration that would set the tax levy at $19.07. This levy rate would require
the influx of principle from the remaining pension fund monies of $350,000 (or 28(
decrease in the levy), cash from the General Fund of $135,000 (or 114 decrease in
the levy), and a salary and wage freeze or a reduction in each department's budget
for a total of $600,000 (reduction of 48(). This formula also includes an
additional 204 per thousand dollars to support the Metropolitan Transit Authority
without authorizing money for salary increases. This proposal would increase
actual out-of-pocket taxes on a $50,000 home approximately $63.60. Mr. Burger
clearly stated that he strongly opposed the use of cash from the Police and Fire
Pension Fund or General Fund carryover to be used to fund the 93 Budget. Mr.
Burger pointed out that this levy rate included a reduction in the Mayor and City
Council's salary.
Councilperson Dell questioned why only 10 percent of the funds was used from the
Pension Fund. Mr. Burger stated that his proposal only recommended 10 percent, but
the Council was free to do as they saw necessary.
Councilperson Wright questioned how this proposal would affect the letter presented
by the City's five bargaining units stating that they will not agree to concede or
change any terms or conditions of their current contracts, newly negotiated or
ratified contracts, or contracts currently in the mandated impasse procedure.
It was stated that if the union was not willing to make cuts in personnel, the
$19.07 Budget would require an approximate 3 percent across-the-board cut from each
department.
Councilperson Buck pointed out that the 3 percent reduction would either mean
concessions by employees or layoffs, based on the Department Heads'
recommendations.
Councilperson Wright questioned whether the City could provide any financial
assistance to low-income seniors. Mr. Burger stated that the State of Iowa
provides assistance through the Black Hawk County Treasurer's office for low-income
citizens. In reference to the City's garbage and sewer exemption program, Mr.
Burger stated that this is a City program, but the costs are borne by other users
of the sewer and garbage system.
March 30, 1992 Page 2
Hearing- continued
Councilperson Dell stated that he did not necessarily agree with the $19.07 Budget
and supported the use of additional principle from the Pension Fund. He stated
that remaining money may not be used most efficiently, and that the situation now
warrants its use.
Mayor Manning stated that the budget already includes the use of $250,000 of
interest generated from the Pension Fund and cautioned that the State of Iowa will
soon legislate allowable uses of left -over funds. Mr. Burger clarified that the
$19.07 Budget would use $250,000 of interest income from the Pension Fund and
principle of $350,000.
Councilperson Dell urged the use of Pension Funds prior to the State of Iowa
dictating its use. Again, Mr. Burger reiterated his recommendation not to spend
principle from the Pension Fund.
Councilperson Fox stated that he did not advocate layoffs or reduction in services.
He commented that everyone must tighten their belts and compromise to address this
budget issue.
Councilperson Dell stated that we must begin looking at overall reorganization of
City Government and begin to downsize.
Mayor Manning stated that the City will begin working immediately on next year's
budget to address these concerns.
Mayor Manning asked for public comments and asked that each speaker clearly state
their name and address for the record.
Kathy Oberle, 710 Forest Avenue, stated that as a member of the Citizen's Budget
Review Committee, their recommendations were not a part of the budget proposal.
Suggestions made by the Budget Review Committee include: not filling the position
of Human Rights Director for a savings of $73,000, elimination of funding of Cedar
Valley Lakes for a savings of $15,000 and deletion of funding for the Cedar Valley
Partnership for a savings of $10,000. She stated that the latter agency could be
privately funded. She also commented that the Iowa Northland Regional Council of
Governments (INRCOG) is still being paid the same per capita, but the City's
population has decreased. Mayor Manning pointed out that dues paid by the City to
INRCOG are less than in the past.
Councilperson Angel questioned the savings of $73,000 by not filling the position
of the Human Rights Director, since the position pays much less.
Ms. Oberle also suggested that the General Obligation Bond List be trimmed. She
urged the Council to trim the budget to $18.63 and commented that it was not
necessary to cut services to attain this level of expenditure.
Councilperson Fox asked for clarification from Mr. Burger concerning the levy of
$19.94. Mr. Burger commented that this would allow full funding for each of the
City's departments and include a 204 levy for the Metropolitan Transit Authority.
Ms. Oberle questioned the impact of the $19.07 Budget. Mr. Burger commented that
in addition to the use of General Fund Cash Carryover and principle from the Police
and Fire Pension Fund, each department would be asked to take an approximate 3
percent across-the-board decrease to attain this budget level.
A resident of 712 Colorado Street reported that his wages have decreased by 35
percent but yet taxes keep increasing. He suggested that City employees with
salaries over $35,000 take an automatic 10 percent pay cut.
Bridget Hartmann, a user of Adults Inc., urged that the Council consider full
funding for transportation since she values their services. She urged the
Council's support of an increase in the transit levy as she could not afford any
increase in fares.
Another user of the Transit System urged the Council's funding of MET as he depends
on it for a paycheck.
March 30, 1992
Page 3
Hearing - continued
Barbarella Moore, 637 West Third Street, Apartment 6; Edith Clark, 233 Center
Street; and William Bradford, 4040 Crossway, clients of Operation Threshold's
Family Development Program, urged the Council not to cut funding to Operation
Threshold. This is a much needed service for many people.
Edgar Donahoe, 2741 Fairlang Avenue, agreed with the higher tax levy to support the
existing level of services. He supported funding of the public library as it is
heavily used and contributes to the overall quality of life in this community. A
6 1/2 percent decrease would translate into major cuts for the library.
Ken Davenport, 219 Courtland, presented a prepared position statement concerning
increased funding levels for the Waterloo Public Library. He commented that
Waterloo citizens paid $16.67 per person last year for library services but
received $220.33 worth of services. In addition to being a resource center, the
library is used for economic development and provides current information for the
unemployed. Costs continue to increase for the library including the cost of
books. He urged that rather than a 30 percent cut in funds for the library, the
City consider a 30 percent increase in funding.
Jerry Shatzer, 1829 W. 7th Street, stated that he represented the silent majority.
He questioned Councilperson Angel's earlier comments that the Human Rights Director
made only $42,000. He questioned how the City got into this state of affairs and
alluded to similar budget problems with the Federal and State Governments. He
suggested the elimination of the use of City vehicles by employees driving to and
from work. He also suggested that parents be fined when their teenage child breaks
the law. He also questioned where the money is going that is confiscated by the
Police Department. He questioned what would happen if 30 percent of the people in
Waterloo would refuse to pay their taxes. He stated that the City is working hard
but obviously not working hard enough.
A resident of 1139 Lindner Drive stated that of the many persons he has spoken to
only three have spoken in favor of a tax increase. He also questioned Police
Department personnel driving their vehicles home, including to Gilbertville.
Mary Bahl, 3040 West 9th Street, stated that she lives on a Social Security
disability pension and received $606 per month. She questioned the recent article
in the Waterloo Courier concerning the proposed tax on a home assessed at $50,000.
She stated that her tax bill was much higher than this and her value was much less
than $50,000. She questioned the need for continued tax increases.
John Blitsch, 1110 Forest Avenue, stated that many of the City's problems were
brought on by the trickle -down effect of the 1980s. He suggested that wage freezes
for bargaining units is not a good idea nor is it fair or equitable. He questioned
the legality of union concessions in light of the collective bargaining agreements
in full force and effect with the City.
Mayor Manning stated that any concessions by the unions would need to be done on
a volunteer basis and with the consensus of both parties.
Doug Hieber, Chairman of the Metropolitan Transit Authority, asked for the
Council's support of an increase in the Transit Levy from 514 per thousand to 731
per thousand to avoid any major service cuts. This 22(t increase includes 84 that
would replace federal assistance that has been lost and an additional 144 increase
to avoid essential service cuts and fare increases. MET has carefully reviewed its
expenditures and made drastic cuts, including the elimination of non -essential
expenditures and non -bargaining unit salary freezes.
Gene Redmon, 346 Clough Street, thanked the Council for the opportunity for public
input into the budget process. Mr. Redmon asked that the Council look at the total
picture of what is important in the community, including safety and quality of
life. Every citizen has an obligation to maintain that quality and asked that the
Council carefully review any cuts as it relates to this total quality picture. Any
layoffs would severely impact this quality of life. He commented that a more
equitable system of taxing would be based upon "ability to pay" although this may
be some time in the future. He stated that this is a community rich in diversity
and asked the Council to do the right thing so that we may continue to have a
community we are proud of.
March 30, 1992 Page 4
Hearings - continued
Sally Blitsch, 637 Kingsley, stated that the budget problem is much more intrinsic
than just money. Its based upon values and what is important to an individual.
She suggested that the City look at some non -salary expenses and challenged staff
members to come up with savings. She also urged that no salaries be cut unless
everyone is cut. She stated that cuts in City services is only a band -aid approach
to the problem, and that we must look at the problems more analytically and over
time more money would be saved.
Merlin Biretz, 123 Prospect Circle, made reference to a petition presented by
members of the Board of Realtors with unanimous support of a no tax increase
position. Mr. Biretz commented that he has received many calls and none want taxes
increased. He urged the Mayor and Council to hold the line on spending at $18.63.
He also suggested that the Mayor was elected to cut taxes and show some leadership
and live within a budget. He suggested that the City should consider an internal
audit. As a realtor, he expressed that people are not moving back to Waterloo and
that the people who reside here are tired of paying property taxes.
Jim Kacher, 1858 Carriage Hill Drive, stated that as a member of last year's
Citizen's Budget Review Committee, there was conversation of cutbacks and layoffs
of City personnel and that balancing the budget on the backs of union employees was
not fair. He suggested that it should be the City's goal to bring unorganized
labor up. He also commented that percentage increases have a disparate affect upon
individuals who make less per hour than a higher paid hourly employee. He stated
that there are other ways to accomplish the same goal and favored Mr. Dell's
comments to move forward with a financial plan for the City. He also commented
that when the Citizen's Budget Review Committee reviewed the number of City
employees, there are approximately 1.5 management employees for every laborer. He
stated that this is ridiculous.
Jim Rodemeyer, Personnel Director, stated that there are 125 employees not
represented by a bargaining unit compared with 475 bargaining unit employees. Mr.
Rodemeyer questioned the numbers referenced by Mr. Kacher.
Duane Wee, 327 Longview Drive, stated that the solution is not cutting police, fire
or library, or even increasing taxes. The City must look at the high
administrative costs.
Saul Herskovici, 2558 Saratoga Drive, spoke as Chief Executive Officer of Powers
Engineering & Manufacturing Company. He stated that this is the third increase in
taxes in one year, including the imposition of the local option sales tax. He
stated that the City now charges for garbage collection fees, and that this
community is one of the highest taxed areas he has seen in his travels within the
United States. He stated that we should work as hard to decrease the cost of
government as we work to increase taxes. Mr. Herskovici stated that the City
should have been reviewing its expenditures over the last years. As population
decreased so should the number of City employees. He urged the Council to look at
middle management and stated that the City should reduce its tax askings by 5
percent per year. He stated that his business has recently moved out of the
downtown area to a larger location, but he has not accepted three types of
assistance that have been offered him.
Mayor Manning questioned Mr. Herskovici as to whether or not he had received any
tax money as a part of the relocation. Mr. Herskovici stated that he had received
money for the access road and industrial tax abatement as is required by law.
Mayor Manning stated that it is very difficult to reduce the costs of services even
though the population decreases because City services are largely related to the
geographical area that the City must continue to maintain. Mr. Herskovici urged
the Council to find a solution without raising taxes and urged possible salary
concessions.
Mike Henny, representing the Landlords Association of
in taxes.
John Woods, representing Landlords Association of
presented visual aids to show the increases in user
increases in base water rates, sewer rates and garbage
City's increasing debt service levy, together with the
Iowa, opposed any increase
Iowa, 126 Leland Avenue,
fees since 1980 including
rates. He also showed the
increases in taxes for the
March 30, 1992
Page 5
Hearings - continued
school system in Black Hawk County. Mr. Woods urged the Council to lower the levy
rate and look at several potential savings, including increasing the minimum sewer
charges for commercial structures such as hotels, nursing home and hospitals. He
also noted that the General Fund receives revenues from the Sewer Revenue Fund via
an annual transfer that he questioned.
Bruce Meisinger, Budget Analyst, stated that this transfer of funds will occur in
June 1992, which will denote expenses to the General Fund for maintenance of
vehicles in the various enterprise funds.
Councilperson Dell again stated his frustration with the budget process and the
proposed tax levy of $19.07. Mr. Burger commented that sewer and garbage funds
cannot be transferred to the General Fund to balance the budget. These funds can
only be used for the purposes for which the fees are collected.
John Meyer, Public Works Director, stated that he and Mr. Woods have talked on
occasion to discuss the status of the sewer and garbage accounts. The monthly
operational statements provided by Mr. Meyer to Mr. Woods did not indicate the
transfers alluded to above. He assured Mr. Woods that these will be made at the
end of the year as is normal practice.
Roxanne Ash, 913 Lynda Road, spoke against a tax increase. She questioned the
rollback of assessed valuations. Ms. Ash also commented and compared the Cedar
Rapids residential tax rates to ours. She spoke against the recently completed 4th
Street Lighting Project and reported that her residential property taxes have
doubled in the last six years.
Barb Sharp, 1165 Dixon Drive, urged the Council to levy taxes to support needed
City services. She questioned why anyone would want to live here without basic
City services.
Chuck Adams, 3720 West Ninth Street, stated that as a retiree, he is scared of the
many problems in our community and is very grateful of the services of the Police
and Fire Departments. He stated that he would be willing to volunteer his services
to prevent layoffs in the Police and Fire Departments.
Iola Adams, wife of Chuck Adams, urged the Council to keep funding of the Police
and Library at current levels.
Countice Lehman, 215 Arden Street and a realtor, stated that she has been a
resident of Waterloo for 31 years. One of the first questioned she is asked as a
realtor concerns the City's crime rate and quality of life. She urged the Council
to create incentives to have a salable community and not to cut City services.
William Smith, 2260 Ashland Avenue, stated that although Mayor Manning had walked
into a difficult situation, he urged that the police and fire budgets not be cut.
Donna Jones, representing Iowa Citizens for Community Improvement and resident at
3205 Ryan Street, urged the Council to extend the public input session of the
hearing until everyone has spoken. She commented that the City cannot afford to
cut its police and fire budgets because down the road, the City will pay for such
an action.
A resident of 316 Prospect Boulevard stated that the City in the past has been
"just getting along" and appears nothing will be better in the future. He stated
it would be much cheaper to live in Cedar Rapids and drive to Waterloo. Garbage
pick up has been reduced to one time per week and taxes have been raised 33 percent
in the last ten years. He urged the Council to get their act together and practice
fiscal restraint. He also noted that a percentage increase for a $50,000 manager
translates into a higher increase than the same percentage increase for a common
worker.
The Mayor called a recess at 7:40 p.m.
The Mayor called the meeting to order at 8:02 p.m. with all members present.
March 30, 1992 Page 6
Hearing - continued
Chuck Mattson, 702 Baltimore Street, applauded the public for the input provided
to the Council at tonight's meeting. He stated that it was the City Council's
responsibility to provide essential City services to its residents, and that cuts
should be made in services outside this realm. He asked the Mayor and Council to
cut non -essential city services. He also expressed disappointment in the manner
in which Mr. Saul Herskovici was addressed. He stated that funding for the access
road to the property through the Revitalize Iowa's Sound Economy (RISE) funding is
not property tax money and Mr. Herskovici had to give up some property for
construction of the access road. The Mayor stated that even though RISE money may
not be local tax dollars, it is money contributed by taxpayers.
Leo Leonard, 1701 Carriage Hill Drive, questioned the sewer rate paid by Iowa Beef
Processors. John Meyer, Public Works Director, stated that IBP is paying $500,000
per year and will be paying 1/6 of the lagoon cost. He stated that cutting the
budget by $1.5 million will be a true test for the new Mayor. He stated that
water, sewer, and garbage fees continue to increase but services decline and urged
the Council to cut wasteful funding by looking at all levels of government
immediately.
Du Wayne Wessels, 574 Sheridan Road, reported that the Board of Realtors had
distributed an unofficial straw poll concerning the proposed FY 1993 Budget. One
hundred percent of those surveyed asked that the Council hold the line on taxes.
As realtors, they are on the front line of the property tax issue. He questioned
why the cost of City government is so high. Councilperson Buck stated that even
though we have the highest millage rate in the community, the property value is
much lower than most other Iowa cities. The Mayor stated that the large
geographical area of the community contributes to high cost. Councilperson Budak
stated that the City is trying to recover from layoffs at John Deere and the
closing of Rath Packing, with both contributing to a decrease in the taxable value
of property within the City. Mr. Wessels stated that if the City increases taxes
this year, how will it be stopped in future years. Councilperson Brown stated that
85 percent of the City's Budget is related to employees' cost. Councilperson Dell
stated that the Council has not in the last few years listened to what the people
in the community are saying. Now they have the City's attention, and appropriate
action can be taken. Mr. Wessels stated that whatever it takes, the City should
hold the line on taxes. He also stated that the City should not always rely on its
employees to reduce the cost of City government. Mayor Manning stated that budget
increases this year are due mainly to the increased levy for the pension funds and
increasing debt service. He stated that hopefully the City will not be in a
similar situation next year.
Jackie Stalberger, 441 Woodcrest Drive, asked that the Council appeal to their
common sense and not increase taxes because money does not always solve the
problem. She suggested that perhaps the entire City governmental structure needs
revamping and urged the Council to utilize the services of citizen's review
committees and to begin earlier in the budget process to make efficiencies.
Lois Rieger, 1821 Winter Ridge Road, Cedar Falls, noted that as a realtor, many
people have not moved to this community because of high property taxes. She asked
that the Council manage the money better because it is their job. Many moved to
this community because of the quality of life and the benefits of the welfare
system. As a mother of three sons who currently live in the community, they may
not be able to afford to continue to live here. She urged the Council to properly
manage the City budget.
Reverend Robert Johnson, 323 Alta Vista Avenue, stated that as a parish pastor,
many of his parishioners do not want taxes increased. He urged the Council to
think of the budget in terms of the type of community we want to live in. He urged
the Council to encourage building the community rather than tearing it down.
Doug Ward, 632 West Mullan Avenue, urged the Mayor to make reforms as necessary in
the City Budget. He also suggested a seven hour work day instead of eight, and
that the City look at employees' health insurance costs. He also questioned the
Mayor's budget increase of $20,000. He also questioned the increase in the Risk
Management line item. Mr. Burger stated that this line item includes the cost of
liability and building insurance. The increase is due to actual projected
increases in cost to the City. Mr. Ward also questioned the increase in cost of
debt service and when the current debt would be paid off. Mr. Burger stated that
depending on the type of project funded, the debt is structured accordingly. He
March 30, 1992
Page 7
Hearing - continued
also stated that some of the debt service money is used to match federal funding,
ie., the Airport improvements were paid with 90 percent federal funds. Mr. Ward
also urged the consolidation of City and County governmental services. He
questioned why the City is so reliant on real estate taxes, as in Richmond,
Virginia, property taxes are much lower.
Mary Lichty, 535 West Wellington, stated that the City has continued to increase
taxes and assessments to property owners. She urged the Council to look at
management salaries and cited an example of a $14,690 increase in a management
person's salary between 1986 and 1992, not including insurance benefits. She also
commented on the increasing sewer rates and referred to a 1988 article in the
Waterloo Courier concerning the cost to IBP's sewer charges. She also stated that
the Interstate Substitution Program has cost the City dearly and has contributed
to the escalating debt service. In response, Bob Stevenson, City Planner, stated
that the Interstate Substitution Program has been matched with federal funds. Ms.
Lichty urged the Council to put the Interstate Substitution Program on hold,
including the Sixth Street Extension. She stated that we cannot spend our way to
prosperity.
Shirley Koslowski, 816 Archer Avenue, critiqued tonight's audience and stated that
she was somewhat unhappy with some of the comments that had been made this evening.
She stated that the recession and budget problems the City is experiencing is not
the City's fault but the result of a decrease in the tax base. In light of these
problems, the quality of life must go on, and we must be a part of the solution and
not the problem. She stated that the responsibility of government rests upon those
governed including those who pay for the services.
Mike Cuvelier, 971 West 7th Street and a realtor, stated that he thought the
Waterloo economy was in great shape and liked what the City was doing. He stated
that it was scary for him to hear the management -to -employee ratio and urged
Council reassessment of this matter. He asked that the Council do their job and
respond to the needs of the community.
Deb Boike, owner of rental property in the Waterloo area, questioned whether bids
were obtained for liability insurance. Mr. Burger responded that the City is in
a second year of a three year retroactive plan and has received refunds in the past
based upon our claims' history. We anticipate increased cost due to several
accidents and that the City intends to rebid at the end of the three year plan.
Ms. Boike also stated that City employees could be responsible for payment or
partial payment of their insurance costs. She asked that the Council get back to
the old ethic of not spending before you have the money.
Donna Epps, 1721 Franklin Street, urged the Council to cut the budget by
discontinuing the delivery of agenda packets to Council Members. She also
questioned why City vehicles do not plug the meters. Councilperson Dell responded
that delivery of his packet to his home keeps strange calls to a minimum. Mr.
Burger explained that the delivery of agenda packets is done by ward cars that are
in the area of the Councilperson's home and are delivered when time permits.
With no further public comments, it was moved by Brown, seconded by Buck that the
hearing be closed and petitions received from the Waterloo Board of Realtors, MET
Transit Authority, and Ken Davenport be received and placed on file. Motion
carried.
The following discussion was heard.
Councilperson Brown stated that the management employees are constantly getting
raked over the coals and expressed his support for the job they do for this
community.
Councilperson Buck reported that the Council is dealing with the economic problems
of the City as best as possible. There are fewer to pay taxes and that
property
valuation have decreased significantly. We must deal with this loss of value and
move forward. Some situations, including the pension fund and increases in health
insurance, make our options limited. In the past, the City has saved money by
combining services such as the City and County Assessor's Office and closing the
City jail. Mr. Buck proposed several decreases from the $19.07 Budget. Those
March 30, 1992
Page 8
Hearing - continued
included an across-the-board travel cut of 50 percent, freeze on all new hires,
elimination of Animal Control, combining the Civil Defense office with the Fire
Department, and reducing the Risk Management Budget by higher deductibles or co -
pays. Several questions must be answered including the legality of eliminating the
Civil Defense Department or the Animal Control Department.
Councilperson Fox questioned the impact of a freeze on all City positions. Mr.
Rodemeyer reported that several positions have been put on hold depending on the
outcome of the budget, including two operator trainees at the Water Pollution
Control Plant, two police officer vacancies and the Human Rights Director vacancy.
It is anticipated that approximately 15 to 20 employees will leave City employment
by the end of the calendar year, and 20 to 30 will leave during the fiscal year.
Councilperson Dell questioned the need to out -source engineering services now
costing approximately $700,000 per year. He also questioned whether the payout of
unused sick leave to non -bargaining personnel could be a possible savings. Mr.
Rodemeyer commented that all employees are paid 25 percent of their unused sick
leave at a total City cost last year of $125,000. He noted that this is a
negotiated item and cannot unilaterally be deleted without approval from the
bargaining units. In response to Mr. Dell's comments concerning the out -sourcing
of engineering services, Eric Thorson, City Engineer, stated that engineering is
a very specialized field and would require the employment of individuals who could
not be used by the City on a full time basis. In addition, employment of
specialized engineering individuals would require office space, vehicles and other
related costs. He commented that if the capital improvement program is reduced in
the future, proportionate reductions in engineering services would be experienced.
Councilperson Angel questioned whether the new budget included any new vehicle
purchases. Mr. Burger stated that vehicle purchases totaling $500,000 are budgeted
under a lease/purchase program which would allow purchase of police cars,
ambulance, inspector vehicles and several others.
Councilperson Wright questioned reducing the bond sale scheduled for spring 1992.
Mr. Burger reported that the FY. 1993 Budget includes the first year's interest
payment and not principle, thus reducing the first year cost of the bond issuance.
Councilperson Buck stated that the West 4th Street Lighting Project may have been
a mistake but the cost also includes the brickwork associated with the project.
Councilperson Fox suggested certifying the budget at a levy of $18.63 and that the
Council continue to work on specific cuts. Mr. Burger stated that the Council
could certify it at whatever levy they desire, although specific cuts would need
to be identified soon thereafter.
Councilperson Dell stated that the City may need to look at the combination of its
Police and Fire Departments into a Public Safety Department as well as combining
the Parks and Recreation Departments. He also urged review of administration
reductions. Councilperson Buck also suggested the combination of police and fire
dispatch.
The use of pension fund balances was discussed by noting that spending of the
reserves may solve the problem today but creates problems for the future.
Councilperson Budak commented that certifying at the $19.04 level may require the
lay off of police and fire personnel down the road which is something he is not in
favor of. Councilperson Brown stated that the funding of outside agencies should
be reviewed.
Councilmembers discussed the proposed levy rate and the amount of principle from
the pension fund and cash carryover to reduce the tax levy. Again, Mr. Burger
cautioned the Council concerning the use of pension funds or cash carryover
balances.
Jimmie Porter, 332 Saxon Street, disagreed with not replacing the Human Rights
Director upon her retirement.
Mayor Manning declared that no more public comments would be allowed as the Council
deliberated on the Budget.
Discussion continued among Councilmembers.
March 30, 1992
Page 9
Hearing - continued
99083 - Moved by Brown, seconded by Fox
that the Budget Levy for the F.Y. 1993 Budget be set at $18.63 per thousand dollars
of valuation and that in order to achieve this tax levy, money from the Pension
Fund totalling $750,000 be infused into the Budget as well as $240,000 out of
general fund cash, with the remaining from an across-the-board reduction in
departmental budgets (it was noted that this levy includes a .71 per thousand levy
for the Metropolitan Transit Authority) and that "Resolution approving the F.Y.
1993 Budget at a levy rate of $18.63", be adopted. Ayes: Seven.
Resolution adopted and upon approval by Mayor assigned No. 1992-143.
99084 - Moved by Buck, seconded by Angel
that the Council adjourn at 9:40 p.m. Motion carried.
Larry P. Burger
City Clerk/Auditor