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HomeMy WebLinkAboutMN-B&A-1989-11-15 - Budget Meeting E _ BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 7:00 P.M. NOVEMBER 15, 1989 PRESENT: Committee Members: Schlather, Hoffman, Killeen, Romanowski (late) Other Alderpersons Present: Nichols, Lytel, Peterson, Booth (late) Excused: Johnson, Cummings Others Present: City Controller - Cafferillo Deputy Controller - Thayer Commissioner - Reeves Commissioner - Daley Acting Superintendent of Public Works - Fabbroni City Engineer - Gray Representatives of Public Works Members of the Media 1 . Agenda for Tonight's meeting Chairperson Schlather presented tonight's budget discussion agenda. We will review the budgets of the Department of Public Works Water and Sewer operations, Joint Activity and Energy Commission. Chairperson Schlather gave a list of other items to be discussed during this budget meeting. 1 . Consolidation Discussion 2. Bus Operation - Consolidation Tomtran 3. DPW Equipment 4. Recycling Program 5. Garbage Disposal Fees 6. Revenue Parking, Garages 7. Reduction of DPW Personnel 2. Water and Sewer Budget Request Chairperson Schlather asked Acting Superintendent of DPW Fabbroni to give his most important Budget items for 1990. Acting Superintendent Fabbroni noted that the Streets and Facilities budget was thoroughly reviewed by his staff to determine what items they could reduce to narrow the gap between the Department request and the Mayor's recommendation. The Department went through the budget line by line in an attempt to get close to the Mayor's recommendation. The Department came within $135,000 of the Mayor's Budget and the Mayor's Budget does not include $130,000 from the County that should be included. If that $130,000 is put into the budget, the department will be within $5,000 of the Mayor's recommended Budget. Currently the County has $150,000 set aside in restricted contingency for 1990 to be paid to the City of Ithaca for recycling. Acting Superintendent Fabbroni noted that he felt $130,000 was a good number based on his conversations with the County. City Engineer Gray presented the Water and Sewer budget request for 1990. It was noted that the Water and Sewer Departments request and the Mayor's request were the same. City Engineer Gray noted that the 1990 request for the Water Fund was approximately a $226,000 increase from 1989. This increase was primarily due to a salary increase of $67,000 which represents BUDGET MEETING - PAGE 2 NOVEMBER 15, 1989 a request for a construction crew and a mechanic's helper, an increase of $92,000 in contractual services due to an increase in the City's General Fund reimbursement, and a $50,500 increase in property maintenance reflecting an increase for standpipes. The Sewer Fund 1990 request is approximately $257,000 over the 1989 budget. The increase reflects a contractual services increase which is a result of a preliminary increase in the cost of sewage treatment. Commissioner Reeves noted that the Board of Public Works has the following areas of concern: 1 . Deferred Maintenance - 10 year replacement program 2. Tipping Fees 3. Reorganization and Staff reduction 4. Capital Projects 5. Parking and Parking Garage issue 6. Recycling Chairperson Schlather stated it was good to see that this Committee and the Board of Public Works have the same areas of concern. A discussion on the consolidation of the Department of Public Works followed. Chairperson Schlather noted that if the Department were to look at a possible consolidation it should not look at adding personnel, but reducing personnel referring to the six new requests for personnel by the Water Department. The Department should look at its budgets more carefully and reduce equipment purchases and make more efficient use of their personnel. Acting Superintendent Fabbroni noted that with a possible consolidation of the Department that the following issues are concern areas: 1 . Money issues 2. Safe Construction Projects 3. Space issue - could phase out the space over a period of time 4. Consolidation of offices and accounting - better source of knowledge A discussion on the consolidation issue, equipment and current operations followed. Chairperson Schlather stated that the consolidation should be a efficiency increase and the six new requests for personnel should not be done this year, instead add $100,000 to 150,000 in the capital accounts for capital improvements. A discussion and examples followed with City Engineer Gray and the Committee on Water Main replacement needed in the City. Engineer Gray stated that ten years of water main needed to be replaced in the City. Engineer Gray dis- played examples of the current shape of some sections of the City's water and sewer mains. It was noted that since 1985 that money has been in the budget for water main replacement but not used. Therefore a rather large fund balance has been building up. BUDGET MEETING - PAGE 3 NOVEMBER 15, 1989 A lengthy discussion on contracting the water main work out instead of per- forming the work in-house followed. Based on the discussion it was the consensus of the Committee that a operational consolidation of the DPW should be done in 1990, with the physical consolidation done at a later date. It was also the Committee's consensus that the DPW should contract out the water main work for 1990 during which time the Department heads should evaluate the Department and decide on possible space and personnel consolidation. The request for six new positions should be put on hold until the evaluation is com- plete. Then, if the evaluation is complete and it is still apparent that new positions are needed, request them for 1991 . Engineer Gray stated that if the six new positions were to be approved for 1990 that they could obtain significant knowledge from the older personnel that will be retiring in 1990-1991. A discussion on personnel, operations, and contracting followed. It was noted that a capital project should be set up in 1990 to upgrade the City's water and sewer collection system and consolidate buildings at the DPW. A brief discussion on the water and sewer fund rate increases for 1990 followed. It was noted that water rates would increase in 1990 to $1 .00 from $.90 per 100 cf. The sewer rates would increase to $1 .16 from $.90 per 100 cf. A - comparison of the proposed 5.3% tax increase to the proposed water and sewer rate increases was presented. A brief discussion on the surplus fund balance in the water and sewer fund followed. The following motion was put on the floor: To strike the six new position requests from the water and sewer budget request and keep the remaining water and sewer budget as is. The City Engineer must also strongly develop a capital project for the implementation of a capital program for upgrades to the water and sewer collection system with use of monies from available capital reserves. Motion passed 7-1 . A discussion on equipment for the Water and Sewer Department 1990 Budget request followed. The following motion was put on the floor: Approve the 1990 Water and Sewer Budget as amended. Motion passed 8-0. A discussion on sludge followed. It was noted that $600,000 for sludge dis- posal was included in the Joint Activity Contingency account. This reflects the increase in sludge tipping fees adopted by the County. The following motion was put on the floor: Approve the Joint Activity Fund 1990 Budget as recommended by the Mayor. Motion passed 8-0. BUDGET MEETING - PAGE 4 NOVEMBER 15, 1989 3. DPW - Streets and Facilities Budget Request Chairperson Schlather noted that other items to be discussed with this budget include Tipping Fees, Revenues, recycling and Equipment Funding. Acting Superintendent Fabbroni presented an update on the Recycling program. A discussion on the tipping fee and the sticker recycling program followed. Acting Superintendent Fabbroni noted that the 1990 Mayor's Budget does not include the tipping fee of approximately $320,000 and must be put into the budget to cover the tipping fee cost. A discussion on the sticker system followed. Also, the revenue that will be produced by the sale of these stickers must go into the 1990 budget. The sticker cost must be sufficient to cover all of the City's cost related to recycling and the cost of the public that does not comply with the sticker system. The 1990 budget revenue lines must be amended for a sticker program with specifics and mechanics to be worked out before March 1st, the County's date for implementation of the sticker system. Discussion on the sticker price followed. It was noted that the County will charge $.85 for the sticker. The City needs to charge an additional $.15 on the sticker to cover all the costs related to the program. The following motion was put on the floor: Increase revenues by $350,000 in the established Revenue account, established by City Controller, and increase the established expenditure accounts by $350,000 broken out in two amounts $320,000 for tipping fees and $30,000 for administration and enforcement. Motion passed 7-1 . Acting Superintendent Fabbroni discussed the DPW Streets and Facilities budget. Acting Superintendent Fabbroni noted that he cut $1,000,000 out of the B.P.W. recommendation to come within $135,000 of the Mayor's recom- mendation. The D.P.W. request in total was $5,970,307 and the Mayor recommended $5,835,538. However, Superintendent Fabbroni noted that an additional $130,000, which represents the County contract with City for recycling, needs to be added to the Mayor's Budget. With this amount added, the D.P.W. is within $5,000 of the Mayor's budget. Following a discussion on the County's contract, the following motion was made: To amend Revenue Account A2350 by an additional $130,000. Motion passed 8-0. It was noted that the County has set aside $150,000 in their contingency for recycling, however at this time, Superintendent Fabbroni feels the $130,000 is the realistic amount. If the City receives the entire $150,000 it would be put into the budget as extra Revenue. A discussion on the equipment items in the Streets and Facilities budget followed, particularly, the recycling equipment items. Following the dis- cussion a motion was made as follows: Approve the D.P.W. Streets and Facilities Budget as amended with a total amount of $5,970,307. No vote, further discussion followed. BUDGET MEETING - PAGE 5 NOVEMBER 15, 1989 It was noted that it was the consensus of the Committee that the Department of Public Works did a great job on preparing for and understanding the City's 1990 budget constraints. The Committee's appreciation goes out to the Department of Public Works Board and Staff. A discussion on Collegetown maintenance and D. P.W. Reorganization. Alder- person Killeen noted that $10,000 is in contingency for D. P.W. Reorganization and he would like to see this money encumbered in 1989. A discussion on the fact that the Board of Public Works wanted to wait until a new Superintendent was hired before that money was used followed. A motion was put on the floor as follows: Encumber the $10,000 in restricted contingency for D.P.W. Reorganization in 1989. Motion fails 3-5. Discussion on equipment replacement for the D.P.W. followed. Chairperson Schlather recommended that every other year the City should purchase one large equipment item through bonding or lease purchase agreements for the D.P.W. to put the large equipment on a five or seven year schedule. D.P.W. can select which piece of equipment they want the City to purchase and it can be funded in 1990. The D.P.W. will select a piece of equipment and let Council know in the near future. A discussion on related D.P.W. Revenues followed. Parking revenues and the various City Parking Facilities were discussed. Acting Superintendent Fabbroni stated that the D.P.W. is currently doing a parking study and noted if the one hour free parking is eliminated and, instead, a $.25 charge is im- plemented, just that one hour will produce an additional $150,000 for the City. It was the consensus of the Committee that the parking fees related to the City need to be raised in some manner. After a brief discussion on different rate increases for the parking in the City, the following motion was made: Amend the Mayor's Budget Revenue Account A1720, Parking Lots and Garages, by $140,000 to a total of $500,000 for the increase in parking rates. Motion passed 8-0. It was noted that at the November 29, 1989 meeting, a motion to appropriate $140,000 from increased parking fees to Capital Reserve #14, Account A9951 will be made for Council approval. It was also noted that further study by the D.P.W. and the City Controller's Office, on the Parking rates, Revenues, and Expenditures, will continue until a decision on rates is made and a recommendation is suggested to Council. The following motion was put back on the floow: Approve the D.P.W. Streets and Facilities Budget as amended. Motion passed 8-0. BUDGET MEETING - PAGE 6 NOVEMBER 15, 1989 4. Energy Commission Budget Request The 1990 Energy Commission Budget request was presented. The 1990 request was for $750 and the Mayor's recommendation was for $750. After a brief discussion by the Committee the following motion was made: Approve the 1990 Energy Commission's Budget as is. Motion passed 8-0. Meeting adjourned at 10:40 P.M. GENERAL FUND REVENUES 207,648 Balance Forward - Overall Increase in Mayor's Budget 20,477,344 Revenues through meeting of November 14, 1989 Adjustments approved at November 15, 1989 meeting: 350,000 Increase relating to Sticker Fee Program A2115 140,000 Increase Parking Fees A1720 20,967,344 490,000 Net Increase in Revenue, Meeting of November 15, 1989 697,648 Overall Increase in Revenues through meeting of November 15, 1989 $ 212, 139 Net Change in Mayor's Budget to Date * Increase in Parking Fees of A1720 to be appropriated to Capital Reserve #14 Parking Area Improvements, at meeting of November 29, 1989. GENERAL FUND APPROPRIATIONS Balance Forward - Overall Increase in Mayor's Budget 135,509 Appropriations through meeting of November 14, 1989 $21 ,025,205 Adjustments approved at November 15, 1989 Meeting: Department of Public Works: Increase Refuse and Garbage A8160-436 Tipping Fees 320,000 by estimated Landfill Cost. Increase Refuse and Garbage A160-426 Administration 30,000 and enforcement of sticker fee program. $21,375,205 350,000 Net Increase in Mayor's Budget from November 15, 1989 meeting. $ 485,509 * Overall Increase in Mayor's Budget Appropriation through meeting of November 15, 1989 *Motion to be made at meeting of November 29, 1989, to appropriate $140,000 from increased Parking Fees to Capital Reserve #14 A9951 WATER E SEWER FUND APPROPRIATIONS 1,778,884 Mayor's Budget - Water Fund 1,893,830 Mayor's Budget - Sewer Fund 3,672,714 Total Adjustments approved at the November 15, 1989 meeting: Water Fund: Reduction in Water Fund F8341-115 General Maintenance ( 38,440) Salaries Hourly - Fulltime, Elimination of three new positions. Reduction in Water Fund F-8316-115, elimination of one new shared position (40%) with the Sewer Fund. Reduction ( 4,934) in Sewer Fund G8121-115 General Maintenance. ( 27,998) Salaries Hourly - Fulltime, elimination of two new positions. Reduction in Sewer Fund F8116-115, Elimination of one new ( 7,401) shared position (60%) with the Water Fund. ( 13,626) Reduction in the F9000 Employee Benefit Series. ( 10,601) Reduction in the G9000 Employee Benefit Series. 57,000 Increase F9951 Transfer to Capital Reserves. 46,000 Increase G9951 Transfer to Capital Reserves. 00 Net Increase (Decrease) 1,778,884 Adjusted Mayor's Budget - Water Fund 1,893,830 Adjusted Mayor's Budget - Sewer Fund 3,672,714 Total