Loading...
HomeMy WebLinkAboutMN-B&A-1998-10-05 $kCh:t ‘"12M14 BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 7:30 P.M. OCTOBER 5, 1998 MINUTES Present: Committee Members: Marcham, Vaughan, Manos, Farrell, Taylor, Hershey, Sams, Spielholz, Blumenthal, Shenk Others Present: Mayor Cohen City Controller Cafferillo Deputy Controller Thayer Fire Chief Wilbur Director of Economic Development McDonald Members of the media 1 . Opening Comments Chairperson Marcham explained that the main Public Hearings will be tonight and October 22nd, but public comment is encouraged at every budget meeting. Chairperson Marcham stated that the agenda for this meeting is ` as follows: A. Mayor' s Budget Message and Overview; B.. _ . Public Hearing; C Council's response to Mayor's Budget; D. Specific Budget Item: General F d Ra enues 2 . Mayor's Budget Message Mayor Cohen gave his budget message to Common Council. The following are some of the Mayor's 1999 Budget highlights: - No reduction in City staff or hours for 1999; - New York State Retirement charged the City only a fraction of what was budgeted for 1998, and 1999 rates are far less than originally estimated; - For the first time in eight years, our property tax base is actually increasing by 1/2%; - The property tax base increase is a good sign, but not a trend yet; 1 B & A COMMITTEE - BUDGET MEETING OCTOBER 5, 1998 The 1999 Budget basic components are as follows: 4 - A tax rate increase of 1.5% to $9 .2637 per $1,000; - a $36,203,996 total Spending Plan; - Total spending will increase by 1.5%; P. - Budget is adjusted to reflect the new TCAT agreement, reducing both related revenues and expenditures; - No sewer rate increase; - Water. rates to increase by 10% reflecting the City's future expenditures in the Water Treatment Plant; - Trash tag increase from $1.70 per tag to $2.00 per tag; - Most departments are budgeted at the zero percent budget; - Only Human Resources will see significant budget increases over the zero percent budget request; - Close to $100,000 worth of DPW equipment has been moved back into the Operating Budget from the Capital Fund; - Unrestricted Contingency account increased from $100,000. ='' to $150,000 allowing Council more latitude on unexpected expenditures; - Restricted Contingency includes funds for the Work Environment Task Force, promotions in management at GIAC, and the\possible change from part-time/seasonal positions to permanent positions at GIAC; - There are $2.268 million Capital Funds, including $1.1 million- for structural -renovations -of the Seneca. Street parking garage. I 3. Public Hearing The Committee voted, 9-0, to open the Public Hearing on the 1 1999 Budget. No members of the public spoke. The Co t Tested, 9-0, to close the Public Hearing. y 4. Alderperson's Concerns/Comments on the 1999 Budget The following items represent the areas of concern or comments which were raised by alderpersons in relation to the 1999 Budget. If an alderperson did not give concerns or comments, their name was not listed. Alderperson Vaughan presented her concern: A. Need to examine trash tag increase while tonnage of garbage has decreased from 8, 600 tons to 2,500 tons, and the workforce has remained.the same. 2 B & A COMMITTEE - BUDGET MEETING OCTOBER 5, 1998 Alderperson Farrell presented her concern: A. Was hopeful that the 1999 Budget would be presented in the program budget format established during Program Analysis Committee meetings. Alderperson Blumenthal presented her concerns: A. Zero percent budget and how it affects the various City departments. B. Need to examine the large amount of funds earmarked for the Seneca Street parking garage. Need to examine the possibility of building a new parking garage vs putting upgrade dollars into an old parking garage. C. Fire Department's two in/two out policy. Alderperson Shenk presented her concern: A. Capital Project traffic issues in the Six Mile Creek area. Chairperson Marcham presented her concerns: A. City is fortunate to see a 1998 increase in sales tax; revenue, which still has yet to be audited by New York State. B. Small increase in property tax base does not have that much of an impact on the. 1999 Budget. C. NYS Retirement windfall might be a short-term item - the impact of the current situation on Wall Street will have to be monitored. D. Unrestricted Contingency account increase of $50,000 may be too large and needs to be reviewed. E. Explain increases in real property and non-property tax items, and decreases in State/Federal Aid. F. Explain Fund Balance usage. G. Explain large Capital Project funding and its impact on future debt load. 3 B & A COMMITTEE - BUDGET MEETING OCTOBER 5, 1998 5 . General Fund Revenues A discussion concerning the City's General Fund revenue s , accounts followed. City Controller Cafferillo explained that the total 1999 General Fund revenue proposal is at vt . ° $20,036,269, exclusive of Fund Balance appropriation and property tax. Controller• Cafferillo explained that the TCAT change impacts • both Revenues and Expenditures. The TCAT overall net impact to the City has been proposed at a 10% increase over 1998. The payment due, as requested by TCAT, is $470,362. However, the Mayor has proposed in his 1999 Budget a $450,362 payment. Included in the 1999 Budget are the impacts on both revenues and expenditures from the TCAT agreement as follows: • «< k'.4:"t Revenue decreases: Fare box, State Aid and Federal Aid accounts A1750, A1751, A3589 and A4589 All funds now in TCAT Budget $1,010,540 Revenue increase: Payment from TCAT to cover City employees involved with TCAT payroll and fringe expense account A2261 $739, 618: Expenditure decreases : Deletion of all expenditures which are now in TCAT's Budget, except for debt, Gadabout Contract, and $450,362 Contract _= payment to TCAT $357,748 s The overall result is a net increase to the City, as proposed by the Mayor, of $24,583 or a 6% increase from the 1998 Budget as best determined by the Controller' s Office. Account A1101 Sales Tax Revenue was discussed. The Mayor recommended a 1999 sales tax revenue amount of $7, 679,864. This reflects a 1% increase from the 1998 Budget. Cafferillo stated that in 1997, we did not realize our sales tax budget amount. In 1998, the sales tax revenue is up, and we should realize our budget. However, it appears the increase is too high, and the State's tax _department has been asked by the City to examine the reason -:f-or the increase. • 4 B & A COMMITTEE - BUDGET MEETING OCTOBER 5, 1998 Cafferillo stated he has budgeted sales tax based on current and previous audited activity, and the 1999 amount includes the loss of textbook sales tax. He stated that the City's loss from the deletion of textbook sales tax could be between $150,000 and $200,000. A discussion regarding sales tax revenue and the elimination of sales tax on clothing followed. Cafferillo explained other revenue accounts to the Committee including the following: A1131 Utility Gross Receipts tax A1720 Parking lots and garages - discussed effects of Woolworth closing and new parking equipment on revenue. It was noted that the parking lot revenue was proposed at $770,000, the same level as 1998. There were no proposed increases in parking rates for 1999. It appears that the City will meet its budget for 1998. It was noted that both the Youth Bureau and the Building Department budget their own revenue accounts. A2262 Fire Protection Services -. the Mayor proposed • a 1999 Fire Protection Service revenue of / . $1,861,802, which represents a 5.5% increase, according to the current contract. This is the Town Fire Contract amount. Cafferillo explained that the Town Fire Contract expires at the end of 1999•. Negotiations will begin in 1999 for a new contract. A2300 Public Work Services - the Mayor increased this account to $128,000 in 1999, from $99,000 in 1998. The increase relates to a NYS DoT square footage increase in the maintenance area as a result of the Octopus project. Revenue Accounts A2401 Interest, A2555 Building Permits, A2610 Fines, A2680 Insurance Recoveries, A2705 Gifts and Donations, A2706 Contribution to low income housing, A2800 Transfers from other funds, State Aid and Federal Aid were all discussed by the Committee. No changes were made to the-.Mayor's proposed Budget related to General Fund Revenues. 5 B & A COMMITTEE - BUDGET MEETING OCTOBER 5, 1998 6. Fund Balance A discussion regarding the City's Fund Balance followed. It was noted that the Mayor is proposing to use $510,237 of appropriated Fund Balance to balance the 1999 Budget. It was E s noted that in 1998, $536, 623 was budgeted to be used from the Fund Balance. In 1997, we actually used only $113,506 of the $426,575 appropriated Fund Balance. Our current Fund Balance is greater. than $2,000,000. The 1998 Fund Balance actually used has yet to be. determined because we still have three months of activity remaining. Previous years' Fund Balance activity is as follows: Year Appropriated Actually (used) added 1996 $557,264 $1,262,693 1995 $248,280 $ 84,263 1994 $581,467 $ 141, 160 1993 $146,008 $ 33,889 1992 $ 19,793 $ 436,204 1991 $850,538 $( 317,556) It was noted that in 1996 the State moved one per capita payment ahead, which appears to inflate the Fund Balance amount. The future Fund Balance was also discussed. / Cafferillo stated the Fund Balance could be depleted in about five bad financial years. The objective is to balance the budget without the use of Fund Balance. • 7 . Capital Project The Committee discussed the—Mayor's proposed Capital Project list of $2,718, 155. There is $450,000 of the $2,718,155 to be derived from CHIPS funding or sewer debt. Cafferillo explained that in the Final Budget draft, the three previously approved projects: Computer Y2K Acquisition $230, 000, Voice Mail Upgrade $60,000, and Parking Garage lighting/security $210,000, will be footnoted in the budget to reflect these amounts in the total authorization. A discussion concerning previous years' Capital Projects authorization amounts followed. Cafferillo explained that we are attempting to maintain a level overall debt load. The Committee is concerned over the amount of debt authorized in 1998 and 1999, and its affect on future budgets. 6 B & A COMMITTEE - BUDGET MEETING OCTOBER 5, 1998 A discussion concerning the Seneca Street Parking Garage project for $1,100,000 followed. Alderperson Blumenthal suggested that the City look at building a new garage at about $5,400,000 instead of putting $1,000,000 into the existing garage every five years. It was noted that the City Engineers should examine this issue and make a recommendation. Cafferillo stated that the impact of $5,400,000 on the City's debt load would be extensive. The Committee discussed two computer projects; $9,500 for the Building Department and $22,500 for the Fire Department, which the Mayor did not include in his Capital Project authorized amount. The Mayor understood that these items were in the Year 2000 Computer Project. Alderperson Vaughan stated that she did not think these items were in the Y2K Computer Project. The Mayor stated that these items are not in the 1999 Budget and would need to be added. Vaughan explained that she will investigate the problem. Mayor Cohen discussed the other projects he included in his budget. He stated that he followed the CIRC rankings except for the previously discussed computer projects and the DPW equipment amount. He also mentioned that the City has $400, 000 in multi-modal funds that can be used for traffic calming in the Six Mile Creek area. No changes were made to the Capital Authorization at this time. The meeting adjourned at 10:35 P.M. 7