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HomeMy WebLinkAboutMN-B&A-1999-10-07 - Budget Meeting e BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 7:30 P.M. OCTOBER 7, 1999 MINUTES Present: Committee Members : Marcham, Vaughan, Hershey, Shenk, Spielholz, Taylor, Sams, Manos, Blumenthal ' Committee Members Excused: Farrell Others Present: Mayor Cohen City Controller Cafferillo Police Chief Basile Members of City Staff Community Police Board Members Members of the public Members of the media 1 . Opening Comments Chairperson Marcham stated that the agenda for this meeting ' was as follows: A. Public Hearing on Budget B. Overview of the 2000 Budget C. General Fund Revenue Review D. Departmental Budget Reviews • Mayor' s Office • Police Department • Community Police Board • Building Department Members of the public were asked to speak on the budget; no individuals spoke. 2 . Mayor' s Budget Overview See attached Fiscal Year 2000 Mayor' s Budget Message for key points of the Year 2000 Mayor' s Budget. 1 XVDGET MEETING MINUTES w - OCTOBER 7, 1999 3 . Revenue Review The Mayor proposed General Fund Revenues in the amount of $20, 486, 454, not including property tax. The Committee discussed various revenues in the 2000 Budget. City Controller Cafferillo explained that the 2000 sales tax revenue amount is $7, 669, 894 . This amount is $10, 000 less than the 1999 amount. Cafferillo explained that he is recommending a flat sales tax amount for 2000 because it appears that the 1999 estimate will not be met. A discussion concerning Southwest Park followed. Sales tax may increase in future years with the appropriate development of Southwest Park. Many Council members suggested they are encouraged by the prospect of development in Southwest Park, but stressed that the development has to be done carefully. Mayor Cohen stated that the current design plan for Southwest Park is a good plan and he looks forward to controlled development in the area. Controller Cafferillo explained the sales tax revenue estimates and prior year receipts to the Committee. Other General Fund revenue areas were discussed by the Committee. It was noted that parking lot permit and ramp fees will not be increased in 2000. The Mayor proposed a parking lot and ramp revenue for 2000 of $770, 000 and a parking meter revenue of $425, 000. These are the same levels as 1999. It was noted that building permit fees were reduced by $581, 500 to $150, 000 for the year 2000. In 1999, large building projects at Cornell increased permit fees. The $150, 000 amount budgeted for 2000 is the normal level of revenue. It was noted that fines were budgeted at 1999 levels of $800, 000. Fine revenue needs to be monitored closely along with ticket issuance and fine collection. In 1998, $557, 000 in fine revenue was collected. To date, in 1999, $530, 000 has been collected in fine revenue. Other revenue areas of the 2000 budget discussed were: Gifts and donations; Fire Protection Services; State and Federal Aid and Youth charges . After a discussion concerning revenues, no changes were made. 2 5 BWGET MEET-ING,-MINUTES ---- OCTOBER 7, 1999 4 . Mayor' s Office Budget Review The Mayor proposed a 2000 Mayor' s Budget in the amount of $107, 853 . Mayor Cohen stated his budget has been reduced from 1999 for the following items: • System Administrator position deleted; • Citywide Computer Network Project back in the Capital Fund (many General Fund equipment items that were put back in the operating fund in 1999 are now back in the Capital Fund) A discussion concerning the Mayor' s salary followed. Mayor Cohen explained that the Mayor' s salary should remain the same and a City Administrator position should be created in the near future. The Mayor further explained that the 2000 budget could not include new funding for the Information Services Department and a City Administrator funding in the same year. The financial impact on the budget would be too great. He stated he would look to include the City Administrator position in the 2001 Budget. A discussion regarding a full-time Mayor position and the City Administrator followed. After discussions concerning the Mayor' s Office Budget, no changes were made. 5. Police Department Budget Review The Mayor proposed a 2000 Police Department Budget in the amount of $6, 660, 511 . Police Chief Basile explained that the main differences from the 1999 Police Budget are the following: the addition of two Deputy Police Chiefs and the corresponding unfunded Captain positions (it was noted that most of the decrease in the unfunded Captains positions was made up by the contractual salary increases of the Police Officers) ; the overtime was increased from $134, 000 to $150, 000; the acquisition of vehicles has been moved to the Capital Fund. The overtime account was discussed. The Mayor and the Chief stated that the overtime amount is not a solid number because in most years the account is overdrawn. Chief Basile explained that many items come up during the year which are not planned for. The Chief also explained that with the addition of two deputies it is hoped that the administrative portion of overtime will be better controlled. The overtime account for 1999 will probably end up at $200, 000 over budget. 3 BUDGET MEETING MINUTES __ OCTOBER 7, 1999 7 . Building Department Budget Review The Mayor proposed a 2000 Building Department Budget in the amount of $639, 653. Mayor Cohen explained that the 2000 Building Department Budget had the following changes: • Eliminated overtime for the year 2000. In 1999, $8, 000 was put in overtime for Building Department staff to assist with Cornell University building projects. • Reduced the Contracts account to $1, 179. In 1999, funds were included in the Contract account for the Department' s database project. The project is complete. A discussion concerning the Building Department Budget followed; no changes were made to the proposed budget. The meeting adjourned at 10: 30 P.M. 5 BUDGET- MEETING MINUTES OCTOBER 7, 1999 The Captains positions were briefly discussed. Chief Basile stated that there will be a meeting next week concerning the issue in an attempt to work out an accommodation. He stated that they do not intend to fill the positions in 2000 . A discussion regarding the Clothing and Parts and Supplies accounts followed. Chief Basile explained that due to the contractual settlement additional clothing will be purchased in 2000. The account was increased by $27, 900. He also explained that the Parts and Supply account was decreased by $21, 720, which reflects a hope that parts purchases will be decreased because the police vehicles are now being purchased with a bumper-to-bumper warranty. Chief Basile explained that the decrease in the account may take time as only 10 vehicles will have the warranties by mid-year 2000. A discussion regarding Police Dispatchers and School Crossing Guards followed. No changes were made to the Police Department Budget. 6. Community Police Board The Mayor proposed a 2000 Community Police Board Budget of $6, 217 . The funds are located in the legislative account, ` A1010-5435. Pat Pryor, Chair of the Community Police Board, was present to discuss the Budget. Pryor explained that their total 2000 request is as follows : Requested $11, 000 Surplus from 1999 <4, 783> (estimated) Funds needed $ 6, 217 A discussion concerning the Police Board' s programs and budget followed. It was noted that Nancy Falconer is the Police Board' s staff person and is working on a contract basis at $11 . 00 per hour. The 2000 budget includes an hourly increase of $ . 33 in the contract services, starting in March, 2000. After a discussion, no changes were made on the Budget. 4 OF ITN,q r CITY OF ITHACA .) 108 East Green Street Ithaca, New York 14850-5690 40 OFFICE OF THE MAYOR - ALAN J.COHEN O�p�RA7E0`0 Telephone: 607/274-6501 Far: 607/274-6526 Fiscal Year 2000 Budget Message The fiscal year 2000 budget is not a complicated or controversial budget. It attempts to maintain program expenses close to their 1999 levels. I am recommending a 27o property tax increase and a fund balance appropriation of $667,000. I will comment more on this in a moment. New initiatives in the budget include the establishment of an Information Services department and increasing the position of city attorney from half-time to full-time. The engineering budget has been reworked to create an engineering aide position. The Dryden Road garage budget has been adjusted to increase hours at that facility. The advertising budget for outreach recruitment has been increased, and there are monies in the budget to fund new crossing guards at BJM, Fall Creek and South Hill schools. I have reserved monies for additional support for the Ithaca Drug Court, the new midnight basketball program that is starting this month and for translators and other expenses related to Census 2000. That's about it for noteworthy changes. Aside from police and fire, which received their 1999 budgets plus their 2000 contractual increases, most departments experienced some cuts of various sizes, all without any loss of programs. The general fund capital project budget exactly follows the recommendations of the Capital Improvement Review Committee with exception of the Commons improvement project. Even that project is not the full amount I wanted to fund, as I attempted to keep our new capital project funding in line with our scheduled debt payments for the next fiscal year. Projects include a greatly expanded sidewalk program, a traffic light at Cornell and Giles Streets and roadwork for West State, Tioga and First Streets. There is a project to continue funding Inlet Island improvement and one to fund the development of a paln for the neva natural area in the Southwest. There is also of course monies for computer networking and equipment purchases. -An Equal Opportunity Etnploycr with an Affirmativc Action Program' �« The water and sewer funds would both see fee increases of 107o. Those increase are largely reflected in the capital projects budgets for those two areas. There is one $6 million project solely for the expansion of the Bolton Point water treatment plant. Our negotiations are going well to consolidate water services and we expect them to reach a successful conclusion in the near future. There are also several large sewer projects totaling $1.5 million. These are for upgrades to the wastewater treatment plant and several interceptors. This is work that must be done regardless of the succees of our wastewater treatment services consolidation negotiations. These negotiations are also moving along quite well, but on a slower track as we will be participating in an environmental review process that must be completed prior to our signing onto any new agreement. The solid waste budget has been scaled back to reflect actual revenues. To accomplish this, one position is being eliminated, but that employee will be transferred to another DPW position. With some additional cost cutting, we were able to maintain trash tag fees at their current level. That about wraps up the particulars of my spending plan. I need to make a few comments on revenues. The city is at a critical point in its fiscal history. All of our attempts '~r at stemming the rise in costs have still not made up for the lack of revenue increases. While the tax base has stabilized, we do not forecast growth that we can book for our next fiscal year. And while retail based sales tax revenues have remained strong, our gains in that area have been wiped out by a loss of sales tax revenue on energy sales. This is due to the deregulation of the energy market and an exemption from sales tax for many energy sales. While a new law taking effect on April 1 of next year addresses this situation, it will not restore the full revenue stream we have enjoyed in this area in the past. We are also forecasting flat revenue in the fines and forfeitures line despite our inability to reach this year's projected target. Next year's projection is predicated on fines being increased, as was discussed at last month's B&A meeting. On the positive side, we are forecasting significant growth in sales tax starting in the year 2001 and in property tax starting the year 2002. These numbers are not reflected in the projections you have tonight, but will be in revised projections you will receive next week. The numbers are being finalized by the consultant working on the Generic Environmental Impact Statement for the Southwest Area Land Use Plan. I am not happy that we are appropriating another $667,000 in fund balance for next year. But I am willing to do so in lieu of laying off employees who we would then be able to hire back a year later. That would not make sense from an organizational perspective. It would greatly damage employee morale and needlessly cut services. The caveat to all this is what happens if these projected revenues do not materialize in fiscal year 2001. That could happen if our plans are unreasonably held up by forces determined to stop our plans for rational, balanced growth in our community. If those forces prevail, the city will have no choice a year from now but to raise property taxes 15-2070 or to laygff 30-40 employees. I do not want to see that happen, and I will continue to work with the Common Council on our plans for community improvement and prosperity. We have come a long way in turning things around for our community. I look forward to seeing us reap the benefits and investing our returns wisely in the years ahead.