Loading...
HomeMy WebLinkAboutMN-B&A-1996-11-07 - Budget Meeting BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 8:30 P.M. NOVEMBER 7, 1996 MINUTES Present: Committee Members : Shenk, Thorpe, Efroymson, Marcham, Mackesey Other Alderpersons Present: Sams, Johnson, Blumenthal, Gray, Hanna (late) Others Present: Mayor Cohen City Controller Cafferillo Deputy Controller Thayer Supt. of Public Works Gray Youth Bureau Director Cohen Fire Chief Wilbur Deputy Fire Chief Dorman Planning Director VanCort Building Commissioner Eckstrom City Clerk Holcomb Assistant City Attorney Kennedy Members of the public Members of the media 1 . Opening Comments Chairperson Shenk stated that the B & A Committee will be asking for public comment every budget meeting. Shenk stated that a running list of additions to- the Mayor' s budget will be made without vote until the last budget meeting so that all additions are discussed and acted upon on an equal playing field. She explained that reductions from the Mayor' s Budget can be voted on during each meeting. The Committee agreed that the additions list can only be added to if the consensus of Council agrees . Chairperson Shenk stated that the agenda for this meeting is as follows : 1 . Public Hearing on 1997 Mayor' s Proposed Budget; 2 . Mayor' s Budget overview; 3 . Council ' s areas of concern for the 1997 Budget; 4 . Specific Budget Item: General Fund Revenues . 1 ' a B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 It was noted that the 1997 Budget discussions will be held on the following dates : November 7th November 12th November 14th November 19th November 20th November 25th 2 . Public Hearing The Committee voted, 9-0, to open the public hearing on the 1997 Budget. The following members of the public spoke: 1 . Creig Hebdon, CSEA Admin. Unit President, spoke to the Committee regarding the proposed layoffs . He was concerned over reducing the current City workforce with increasing workloads City-wide and impacts on employees who are being proposed for layoffs . 2 . Art Pearce, M&T Bank, spoke to the Committee regarding the employee cuts in the Planning Department. He stated that with these cuts in services, the Planning Department would not be able to maintain its current workload. The Planning Department is critical to the city. He also stated that the priority to Economic Development and Drugs is good to see. 3 . Mike Koplinka-Loehr, DeWitt Historical Society, urged the Council to maintain the 1977 DeWitt Historical Society funding at the B & A recommendation of $10,000 . He also discussed various DeWitt Historical Society exhibits . . 4 . Ed Franquemont, Historic Ithaca, Inc. and Natural Bone Builders, discussed his concerns over the 1997 Budget including layoffs in the Building Department and the Planning Department. He stated that the CityyIs declining property values are the biggest problem, and a solution to correct the property values must be addressed. 5 . Mark Larkin, DeWitt Historical Society, urged Council to restore the 1997 DeWitt Historical Society funding to the $10, 000 amount that was recommended by the B & A Committee. 2 B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 6 . Andy Ruing spoke to Council regarding the problem of eliminating the bicycle coordinator position in the Planning Department. He stated if this position is eliminated, the City should designate another individual to become the bicycle coordinator with an annual City cost of $5,000 - $10, 000. 7 . David Nutter urged Council to be sure that the 1997 Budget has a bicycle coordinator position included to handle all the current traffic/bicycle projects on the table. 8 . Robert Harris urged Council to support the $10, 000 B & A recommendation regarding the DeWitt Historical Society. 9 . Joe Maratea, CSEA representative, spoke to Council regarding the Mayor' s proposed budget. He stated he is reviewing the City' s budget and financial position to determine if the proposed layoffs are needed. He stated that the lives and morale of City employees must be considered when discussing layoffs. He also stated concern over the fact that the layoffs are allowing the creation of eight new positions . 10 . Jim Young, skateboard shop owner on the Commons, asked Council to support the Skateboard Park Capital Project, and discussed current fundraising activity related to the skateboard park. 11 . Tom West, Executive Association President, urged Council not to support the proposed layoffs by the Mayor. He was particularly concerned over the Deputy Building Commissioners positions in the Building Department. He stated that if these positions were deleted there would be no middle management in the Building Department, and also a loss of experience in the department. 12 . Sue Akers, Parking Meter Checker for the City, was concerned over the layoffs in the Police Department, including her position. She explained that without the meter checker positions, the City' s revenue related to parking would be decreased substantially. She asked Council to consider her position and its ability to make the City revenue. The Committee voted, 9-0, to close the public hearing on the 1997 Budget. 3 B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 3. Mayor's Budget Overview of the 1997 Budget Mayor Cohen stated that the 1997 Budget was a difficult budget to produce, and he is uncomfortable with the layoffs, but feels they are necessary based on the City' s current financial position. Mayor Cohen made the following points regarding the proposed 1997 Budget: A proposed property rate tax increase of 2 .75%. - He met with City staff on a vast majority of the changes with some agreement and some disagreement. Current fiscal times require various budget cuts . Looking for alternatives to some of his budget proposals . Currently working with staff in the Planning Department and with the Commons Coordinator on various alternatives to layoffs and personnel changes. Committed to the priorities of Common Council and . the community, and does not want to continue property tax increases to fund the budget. The City costs must be reduced. - Proposed parking lot attendant position deletions . - Rearrange bus routes to maintain level of service, but delete requested bus driver position. - Transfer of a maintainer position within DPW. - Eliminate Working Supervisor position in Parks - Add $40,000 in tree contract line for removal of 154 trees in the city that pose danger to the community. Increase Youth Bureau revenues for increase of recreation fees . - Delete Cafe Cayuga Program in the Youth Bureau. - A 5% decrease of Part-time/Seasonal funds in the Youth Bureau to allow for the standardization of rates of pay for seasonal employees. - The following changes to the Community Services agencies funding from the B & A recommendation: Delete DeWitt Historical Society by $5, 000 Delete Finger Lakes Association by 600 Delete Sciencenter Program by 600 Delete Tompkins Cortland Labor Coalition by 8,500 No 1997 salary increases for management not covered. - A $20,000 Total Quality Management program for the City. $10,000 in Affirmative Action funds in the Personnel budget. 4 B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 - A proposed reorganization of the Personnel Department including new positions of Director and Deputy Director of Personnel and a 1/2 Senior Typist floater. The reorganization will allow much of the labor law activity to be transferred from the Attorney' s Office to the Personnel Department. - Reduction in hours for Deputy City Clerk. - Domestic Violence Software to be purchased out of the City Prosecutor' s budget. - Employee benefits for laid off workers in the amount of $39,500, includes unemployment insurance. - Deletion of positions in the Building Department, including two Deputy Building Commissioners and a Rental Housing Specialist, for department reorganization. - Deletion of positions in the Planning Department, including two Planner II positions, Landscape Planner, and a reduction of hours for the Director of Planning, for department reorganization. Establishment of an Historic Preservation Planner in the Planning Department. The following changes to the Police Department: Delete two P/T meter checkers Delete a Community Service Officer Add two Police Officers and transfer two officers to the investigation of drug activity - A salary adjustment for the Deputy Police Chief of $4, 000 to increase the salary difference between the Police Captains and the Deputy Chief. A promotion of two Police Officers to Sergeants. $45,000 in funds for diversity training programs. A new Administrative Assistant at the Fire Department. - Increase of clothing contractual for volunteers . A disability retirement in the Fire Department. Establishment of an Economic .Development Department, including a Director of Economic Development and related office expenditures . - Increase in Mayor' s Office Administrative Assistant hours from 35 to 40 to provide support to System Administrator. A reduction in Mayor' s Office temporary staff line of $3, 113, and an increase in Contractual Services line of $4, 800. A reduction in Mayor' s Office accounts including: Office Expense $700; Staff Development $600, and Travel Account $600 . The reductions reflect a Mayor' s salary decrease to show commitment to management and City staff of avoiding layoffs . The Mayor will pay for these travel and office expenses himself. 5 B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 4. Alderpersons Concerns for the 1997 Budget The following items represent the areas of concern which were raised by Alderpersons in relation to the 1997 Budget. If an alderperson did give concerns at this time, their name was not listed. Alderperson Mackesey presented her concerns : A. Layoff theme from the beginning of the administration without a great deal of analysis of where layoffs should be derived from. B. Employee morale and support at an all-time low in City Hall. C. Will look at all layoffs and additions carefully. D. Changing the Building Department will create more problems for the citizens of this city. The Building Department is currently working well. E. Planning Department cuts will also be devastating to the Department. Alderperson Efroymson presented his concerns : A. Feels that based on his discussions with various departments, there was a lack of dialogue between the Mayor and Department Heads regarding the MayorrIs proposed department reorganizations . B. The Budget is not the time for department reorganization. C. Change the commonly-used word "layoffs" to firing employees . The word firing may have a greater impact on individuals . Alderperson Johnson presented his concerns: A. Never remembers a budget with this much public and City employee involvement. B. Difficult to break the chain of doing business as usual as it relates to the firing of employees from City staff . C. Look at different ways of government to provide services. 6 B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 D. Council needs to get involved in department activity to determine if the Mayor' s changes are appropriate. Alderperson Blumenthal presented her concerns: A. Unhappy with layoffs of City workers . B. Find ways to bridge the gap between revenues and expenses . Alderperson Hanna presented his concerns : A. Updated Council on Youth Bureau funding from the County - the picture is not good. If the funds for the Youth Bureau activity are not in the County Budget then they should not be in the City' s Budget. B. Little decision time for Council changes and adjustments. C. Budget process needs to start earlier. D. In past budgets, the Mayor' s budget for the most part reflected the Departments ' budgets . This year, not sure that Department Heads are comfortable with Mayor' s Budget. E. What was the process in making the major budget changes. F. Are the budget changes measurable, and are- there long-term implications of the changes described. G. The various personnel cuts in the budget must be examined carefully to determine if they are legal, secure, and what services will be lost to the citizens of the city as a result of the cuts . H. The County needs to pay for the $200,000. in Youth Bureau activity. I . A serious option for Council is to accept the Mayor' s Budget as presented. J. Examine external items affecting the City, such as State and Federal Aid. K. Timing of some of the budget changes are questionable and should not be done. 7 B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 L. Be aware of Council priorities in the budget process; economic development and community safety, including funding in economic enhancement, neighborhood policing and increasing seasonal employment for youth. Alderperson Marcham presented her concerns : A. Budget has certainly given the public something to comment about. B. Even with the City' s current financial position, the solutions are too drastic and many changes to the Mayor' s Budget are needed. Alderperson Gray presented his concern: A. Budget has too many changes that should be addressed at a different time and changes to the Mayor' s Budget are probable. Alderperson Thorpe presented her concerns : A. Supporting Skateboard Park - concerned that the park is constructed in such a way that it can be used as many times as possible with the city' s weather conditions . Design to accommodate the city' s weather. B. Would like to see City Council pledge that we will keep all City employees and work together to implement cost savings to balance the budget. C. City should provide incentives for cost saving ideas. D. The Budget is based on five-year projections with assumptions from the Controller' s Office. The assumptions need to be examined and changed to see how it would effect future financial activity. E. The Department reorganizations take time and should be examined next year, not during the budget. F. Not sold on the fact that the bottom line numbers are as bad as Mayor projects . G. Firing employees should be the last resort. Chairperson Shenk presented her concerns: A. The City is in a financial pinch and Council should examine the Mayor' s proposed additions to the budget. 8 B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 B. Will not be supporting the department reorganizations of the Building Department and Planning Department. C. The five-year projection is useful as a long-term tool. D. Be aware of County' s recommendation not to include the $200, 000 in Youth Bureau funding in their 1997 Budget. E. Keep the property tax increase at a minimum. Mayor Cohen stated that he sent a memo out to City employees in August, in which he stated that layoffs were a possibility, and he encouraged City employees to make cost savings suggestions . The Mayor explained that he incorporated some of the employee suggestions into his 1997 City Budget. Chairperson Shenk stated that Department Heads should be prepared to discuss during the 1997 Budget meetings the following two items: 1. How is the department' s 1997 budget different from the 1996 approved budget; 2 . How is the department' s zero percent budget different from the Mayor' s proposed budget. Dick Booth discussed with Council the following items : A. Thanked them for the book they gave him. B. The City' s financial health is important to keep in mind during the budget discussions. C. Honorable compromise is an essential part of good politics . The following motion was made: RESOLVED, That the 1997 Mayor' s Budget of $27,464, 296 is placed on the floor for discussion purposes only. The motion passed 10-0. Youth Bureau Funding Update Mayor Cohen stated that he placed a $200,000 funding amount in the 1997 Budget for the Youth Development Program. The funds represent the City' s subsidy of youth who do not live in the city. Cohen stated that the City has taken the funding request for this issue to the County Youth Board. The Youth Board has recommended to 9 B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 the Board of Representatives not to fund the City' s request. Youth Bureau Director Cohen discussed with the Committee the fact that the funding request will be difficult to get approved, but that Council should do what they can to get this funding request passed by the County. No action was taken. 5 . Revenues A discussion concerning the City General Fund Revenue followed. City Controller Cafferillo stated that the revenues have been examined carefully and adjusted where needed (i.e. : Sales Tax, State Aid, Bus Operations, and Federal Aid) . He stated that the total 1997 General Fund Revenues of $19,722, 146 are reasonable and fairly presented. He explained that if revenue estimates change during the budget process, we will make the appropriate adjustments . Property Tax The Committee discussed the current property tax problem the City is having. Cafferillo stated the taxable assessment roll in the city is being devalued. If we were to maintain the same tax rate as 1996, the property tax raised would decrease by $99,231 due to devaluation of the city tax roll. He stated that between 1991 and 1997, the city' s assessed value has dropped by a net amount of $76, 050,000 . A summary of the changes in the roll between 1991 and 1995 are as follows : Increases from new construction $19, 000,000 Demolition of existing property $15,300,000 Net increase of new property $3, 700, 000 Increases from revaluation of property $13,000, 000 Reduction from revaluation of property $88, 000, 000 A new revalue will take place in the year 2000. In the meantime, more reductions and increases to the tax roll will occur. A one percent increase in the City property tax rate will raise $72, 142 in revenue. Account A1101 Sales Tax Revenue was discussed. The Mayor recommended a 1997 sales tax revenue amount of $7, 603, 826 . Cafferillo stated that he used the last four quarters of audited amounts from New York State. He carefully explained the complicated calculation of establishing the 1997 sales tax amount. The calculation was made as follows : 10 B & A COMMITTEE - BUDGET MEETING NOVEMBER 7, 1996 Last four adjusted quarters of sales tax received in total $5, 661, 273 Additional applicable to Statler Hotel total 58, 000 County new 1/4 of 1% total 919, 714 County Contract 731, 204 Growth Factor (3 . 17$) 233, 635 Total Projected Sales Tax Revenue $7 , 603, 826 A discussion of sales tax adjustments followed. No changes were made. The meeting adjourned at 12 : 15 A.M. 11