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HomeMy WebLinkAboutMN-B&A-1989-11-29 - Budget Meeting i BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 7: 00 P.M. NOVEMBER 29, 1989 PRESENT: Committee Members: Schlather, Hoffman, Killeen, Romanowski, Cummings Other Alderpersons Present: Lytel, Nichols, Peterson, Booth, Johnson Others Present: City Controller - Cafferillo Deputy Controller - Thayer Commissioner - Daley Commissioner - Reeves Fire Chief - Olmstead Acting Superintendent of Public Works - Fabbroni City Engineer - Gray Director of Planning and Development - Van Cort Members of the Media 1 . Agenda for Tonight's Meeting Chairperson Schlather noted tonight's Budget discussion meeting includes Capital Projects, Capital Reserves, Revenues and the 1990 Tax Rate. Chairperson Schlather noted that presently the Committee is $199,000 over the Mayor's Budget which does not include the projected $140,000 in revenue that could be generated by eliminating the first hour free parking and instead charging a $.25 per hour fee for the first hour of parking. This $140,000 has not been formally done, if it were approved the Committee would only be $59,000 over the Mayor's Budget. A brief discussion on parking, restricted, unrestricted contingency, the sale of Fire Stations #5, #6, and the City Hall Annex followed before the Committee went into executive session. 2. Report from Executive Session After a brief executive session Chairperson Schlather noted the following items took place in executive session: 1 . The Committee voted to transfer $40,000 from unrestricted contingency to restricted contingency for the 1990 budget. Passed 10-0. 2. Apprised the Committee of a $300,000+ possible litigation settlement to increase revenue for 1990. 3. Restricted Contingency The current 1989 restricted contingency amounts were discussed to determine which items will be put back into the 1990 budget and which items will be voted out of the 1990 budget. The following is a summary of each item discussed: 1 . Albany-Elmira-Spencer Intersection (D.P.W.) $4,500. Vote 2-7, to transfer to 1990 restricted contingency. Fails. 2. Elmira Road Drainage Study (D.P.W.) $30,000. Vote 9-0, to transfer to 1990 restricted contingency, passes. BUDGET MEETING - PAGE 2 NOVEMBER 29, 1989 3. Bikeway R.O.W. and Bridge (Council) $40,000. Vote 9-0, to transfer to 1990 restricted contingency, passes. 4. Dental Plan (Council) $19,000. Vote 0-9, to transfer to 1990 restricted contingency. Fails. 5. Southwest Access (Council) $50,000. Vote 7-2, to transfer to 1990 restricted contingency, passes. 6. Day Care (Council) $12,000. Vote 0-9, to transfer to 1990 restricted contingency, fails. 7. Hydropower (Council) $22,500, hold until discussion on Capital Projects. 8. Hazardous Material Control (Fire) $15,000. Vote 0-9, to transfer to 1990 restricted contingency, fails. 9. Planning Contractual Services (Planning) $2,141, hold until discussion on November 30, 1989. 10. Development Impact Fee Consultant (Planning) $16,500. Vote 8-1, to transfer to 1990 restricted contingency, passes. Chairperson Schlather noted after the votes on the restricted contingency amounts that there was a net savings of $60,500. 4. Revenues A revised spreadsheet for the 1990 Budget revenues which includes the changes by the Committee to date was presented. A discussion on revenue account A2350 Youth Services followed. It was noted that only $35,000 of the $50,000 included in the 1990 Budget would actually be received by Tompkins County. The follow- ing motion was put on the floor: Remove $15,000 from revenue account A2350 Youth Services reducing the amount received from the County to $35,000. Motion passes 10-0. Discussion on individual revenue accounts for the 1990 Budget followed. The City Chamberlain proposed changes in the current fee structure. The changes would generate another $5,000 in revenue. The following motion was made: Increase revenue account A1230 by $5,000 to a total of $37,000. Motion passes 10-0. It was noted that the Committee wanted to include the increased tax search fees put on the December Common Council Agenda as a C 8 O item. A discussion on the sales tax revenue followed. City Controller Cafferillo stated that the sales tax revenue could be raised by an additional $100,000, but increases beyond this amount would be risky. If the City economy slows in 1990 the sales tax revenue generated would be less. All forecasts suggest that BUDGET MEETING - PAGE 3 NOVEMBER 29, 1989 the overall economy will slow down somewhat in 1990. City Controller Cafferillo presented a history of the sales tax revenue for the past few years. A dis- cussion on the City's economy followed. It was noted the current recommendation for sales tax revenue is $4,850,000. Alderperson's Killeen and Lytel felt the sales tax revenue could be increased by $150,000 instead of the $100,000 proposed by the Controller. The following motion was made: Increase Account A1101 sales and use tax by an additional $150,000 giving a total of $5,000,000 in sales tax revenue for 1990. Motion fails 3-7. Further discussion on sales tax revenue followed. The following motion was made: Increase Account A1101 sales and use tax by an additional $100,000 giving a total of $4,950,000 in sales tax revenue for 1990. Motion passes 10-0. A discussion on parking lot and garage revenue followed. It was noted that the proposed $140,000 increase in parking lot revenue, by eliminating the first hour free, was now included in account A1720. A proposal by the Controller's Office was presented which would raise parking lot permit fees. City Controller Cafferillo stated that he had presented the same information to the Board of Public Works and that Board recommended a $45,000 increase in account A1720 which represented the increase in parking permit fees. The B.P.W. would then raise individual permit fees as needed effective January 1, 1990. Further dis- cussion on parking followed. The following motion was then made: Increase Account A1720 by an additional $45,000 reflecting the proposed increases in the parking permit fees. Motion passes 10-0. A brief discussion on complaints by Downtown Merchants on the proposed elimination of the first hour free policy took place. A brief discussion on Golf Course charges followed. It was noted that there is approximately a $20,000 deficit in Golf Course operations currently. A motion was put on the floor: To increase the Golf Course revenue account, A2050, by $10,000 representing increased Golf Course Fees. Passes 10-0. A discussion on the Ice Rink charges took place. Acting Superintendent Fabbroni stated that the rehabilitation of the ice making system at the ice rink could be reduced from $250,000 to $100,000, including Zamboni, if approved as a capital project, because the entire system does not need to be replaced as originally thought. John Doyle noted that ice rink charges could be increased by an additional amount. The increase in fees could pay for the amortization of the debt for the $100,000 capital project. The increased fees could produce approximately $25,000 a year. A discussion on Cass Rink Fees followed. A motion was made as follows: BUDGET MEETING - PAGE 4 NOVEMBER 29, 1989 Increase Account A2065 Ice Rink Charges by $11,500 and corresponding approval of the $100,000 Capital Project for the Zamboni purchase and repairs to the ice making system to be financed over a five year term. The increased rink fees would pay for the amortization of the debt over the five year period. The funding of the project would come from the General Fund $11,500 and a BAN $88,500. An amendment motion was made by Alderperson Booth: Move to reduce the $.75 for children skating to $.50, but retaining the same revenue total of $11,500, motion fails 3-7. Main motion passes 9-1 . A discussion on the Site Development Fees account followed. City Controller Cafferillo noted that the revenue amount of $27,000 will not be received by the Planning Department. Director of Planning Van Cort noted that the revenue amount should be reduced. Discussion on Site Development fees followed. The following motion was made: Reduce Account A2111 Site Development Fees by $7,000. Motion dies for the lack of a second. Another motion was put on the floor. Reduce Account A2111 Site Development Fees by $12,000, giving a remaining total balance of $15,000. Motion passes 6-3. A discussion on account A2410 Rental of Public Property followed. It was the consensus of the Committee that this figure of $30,000 was too low. A motion was put on the floor as follows: To increase Account A2410 by $15,000, giving a total balance of $45,000. Motion passes 9-0. Account A2555, Building and Alteration Permits, was discussed. The account was already increased by $35,000 reflecting the proposed increases in permit fees recommended by Building Commissioner Datz. Building Commissioner Datz proposed further increases of $10,000 and felt that the extra $45,000 could be realistically met. A motion was put on the floor: To increase Account A2555 Building and Alteration Permits by an additional $10,000, giving a balance of $125,000. Motion passes 9-0. A brief discussion on Account A2610 Fines and Forfeited Bail took place. No motion was made. A discussion on Street Opening Permits followed. It was felt that the Street Opening Permit Fees could be increased. A motion to increase the account was made: To increase Account A2560 by an additional $1,800 giving a balance of $3,000. Also, along with this motion, the BUDGET MEETING - PAGE 5 NOVEMBER 29, 1989 Committee requests the Board of Public Works to revise the Street Opening rates and make a recommendation to the C 8 O Committee on their proposed new rates. Motion passes 8-1 . A lengthy discussion on the possible building sale of Fire Station #6 took place. The amount of the sale could not publicly be announced, but the amount was included in the A2660, Sale of Property, account. Alderperson Peterson discussed the possibility of this building being used for a Homeless Shelter. Many concerns over the sale of this building were put forward, including the following: 1 . Could sell building for a Homeless Shelter as long as the City gets the dollars from the County. 2. Fire Department was going to use the building for offices and storage. 3. The Fire Department will not be able to get out of the building until June 1990. 4. The City is selling a major capital asset, the City should not sell capital. 5. Selling process could take many months based on prior City experience with the sale of City property. The following motion was made: To remove the anticipated proceeds of the sale of Fire Station #6 from Account A2660, Sale of Property. Motion fails, 3-7. Further discussion on the sale of Fire Station #6 followed. After all discussion, the anticipated revenue from the sale of Fire Station #6 remained in the 1990 Budget. Chairperson Schlather noted the status of the Committee's budget in relation to the Mayor's proposed Budget. Chairperson Schlather noted that the Mayor currently has $160,000 in unrestricted contingency and that it should be decreased to $100,000 for 1990. The following motion was made: To remove $60,000 from the Mayor's Budget Unrestricted Contingency account. Motion passes 10-0. The current status is approximately $220,000 to the good, over and above the Mayor's Budget. Chairperson Schlather felt at least $100,000 of the $220,000 should be put into the parking reserve account to fund a down payment for a possible new parking facility. The following motion was made: To transfer $100,000 into the Parking Reserve, Capital Reserve #14 for the funding of the down payment for a new parking facility. Motion passes 8-2. BUDGET MEETING - PAGE 6 NOVEMBER 29, 1989 Following the $100,000 motion, the current status of the Committee's Budget is $120,000 to the good of the Mayor's proposed Budget. 5. Capital Projects Director of Planning Van Cort, Acting Superintendent of Public Works Fabbroni, and City Engineer Gray were present to discuss the capital projects. The following is a summary of the capital projects acted on by the Committee: 1 . After a discussion on the Six Mile Creek Management Plan, a motion to transfer $100,000 to the Land Bank Capital Reserve, #26, including Six Mile Creek land acquisition and fund the Six Mile Creek comprehensive management plan by $10,000 was made. The $110,000 will be transferred from the water fund surplus. Motion passes 9-1 . 2. After a discussion on Asbestos removal for City Hall, GIAC and the Hall of Justice, the following motion was made. Establish a $150,000 Capital Project for Asbestos removal with funding of $10,000 from the General Fund and the remaining $140,000 funding from a BAN. Motion passes 9-1 . 3. After a discussion on City Hall - HVAC and windows, a motion to transfer $10,000 from the Energy Program Improvements, Capital Reserve #24 was made. Motion passes 10-0. Defer the set up of this Capital Project. 4. After a discussion on a Telephone System for City Hall, the following motion was made: Establish a Capital Project for the telephone system for $50,000, fund the $5,000 down payment from the General Fund with the remaining $45,000 funded from a BAN. Motion passes 6-2-1 . Romanowski abstains (conflict of interest) . 5. After a discussion on Hydropower the following motion was made: Transfer the Restricted Contingency Hydropower amount of $22,500 into 1990. Motion passes 10-0. 6. After a discussion on City Court Construction, the following motion was made: Transfer $20,000 into Capital Improvements, Capital Reserve #25, with funding from General Fund Revenue. Motion passes 9-1 . 7. After a discussion on Elmira Road sidewalks, the following motion was made: Establish a $250,000 Capital Project for the Elmira Road sidewalks with funding from Benefit Assessments. Motion passes 9-1 . 8. After a lengthy discussion on the possibility of a Capital Project for Traffic Signal Upgrade, it was the consensus of the Committee to defer action on the said project until the December 28, 1989 B 6 A meeting. 9. After a discussion on the North Cayuga at Cascadilla Creek bridge, the following motion was made: Establish a $380,000 Capital Project for the North Cayuga at Cascadilla Creek bridge project with $50,000 funded from C.H. I.P.S. monies and $330,000 funded by a BAN. Motion was approved 10-0. BUDGET MEETING - PAGE 7 NOVEMBER 29, 1989 10. After a brief discussion on the possibility of funding the City Signage and Graphics Capital Project, the following motion was made: To establish and fund the City Signage and Grapics Capital Project. Motion fails 2-8. 11 . After a discussion on the Ithaca Industrial Park, the following motion was made: Establish a $580,000 capital project for the Ithaca Industrial Park Improvements with funding of $150,000 from Federal Funds (ARC Grant), $15,000 from the water fund, $15,000 from the Sewer Fund and the remaining $400,000 funded by a BAN. Motion passes 8-2. 12. After a discussion on the Commons Power Project, the following motion was made: Establish a $20,000 Capital Project for Commons Power to be funded from the General Fund. Motion passes 8-2. 13. After a discussion on the Southwest Access Plan Project, the following motion was made: Increase the amount in restricted contingency, Southwest Access, by $25,000. Funds to be derived from the General Fund. Motion passes 7-3. 14. After a discussion on the possibility of funding a Reroofing Capital Project for the Streets and Facilities building at the D.P.W. because of current leaking problems, the following motion was made: Establish a $40,000 capital Project for the said project. Motion passed 8-2. An amendment was made, to fund the project with $20,000 from Capital Reserve #24, Energy Program Improvements, and $20,000 from the General Fund. Motion as amended passes 10-0. Chairperson Schlather noted that because of the time, the discussion on the 1990 Tax Rate be deferred until November 30, 1989. The Committee agreed. Meeting adjourned at 12:40 A.M. REVENUE 803 , 917 Overall Increase in Revenue through meeting of November 20 , 1989 21 , 073, 613 100, 000 Increase Sales Tax A1101 5, 000 Increase Chamberlain Fees 45, 000 Increase Parking Fees 10 , 000 Increase Golf Course Charges 11, 500 Increase Ice Rink Charges ( 12 , 000) Reduced Site Development Fees ( 15 , 000) Decrease Youth Services Contract with County Mental Health 15 , 000 Increase Real Property Rental 10 , 000 Increase Building and Alteration Permit Fees 1 , 800 Increase Street Opening Permits $21, 244, 913 121 , 300 Net Increase in Revenues , Meeting of November 29 , 1989 975 , 217 Overall Increase in Revenues through Meeting of November 29 , 1989 40, 149 Net Increase in Mayor' s Budget ( 60, 500) Less Increase in Appropriated Fund Balance from Unneeded 1989 Restricted Contingency Items $ 20,351 Net Reduction in Mayor' s Budget APPROPRIATIONS 593, 949 Balance Forward - Overall Increase in Mayor ' s Budget 21 , 753, 562 Appropriation through meeting of November 20, 1989 Capital Projects 10 , 000 Transfer $10 , 000 (Down Payment) for Asbestos Removal Capital Project 5 , 000 Transfer $5 , 000 (Down Payment) for City Hall Phone System Capital Project 20 , 000 Transfer $20 , 000 to a Capital Project for Commons Power Improvements 20, 000 Transfer $20 , 000 to a Capital Project for the Roof Replacement at DPW Facility 11 , 500 Transfer $11, 500 (Down Payment) for Cass Park Rink Renovations $ Equipment Capital Reserves 100 , 000 Transfer $100 , 000 to Capital Reserve #14 for Parking Plaza Improvements 20 , 000 Transfer $20 , 000 to Capital Reserve #25 for Design of Future Projects Contingency ( 40 , 000) Reduce Unrestricted Contingency 40 , 000 Increase Restricted Contingency (Executive Session Item 11/29/89) ( 60 , 000) Reduce Unrestricted Contingency (Used for Various Budget Funding Items) 25 , 000 Increase Restricted Contingency (Southwest Master Plan) 151, 500 Net Increase in Mayor' s Budgeted Appropriations from November 29 , 1989 meeting 1 , 015, 366 Overall Increase in Mayor ' s Budgeted Appropriations through meeting of November 29 , 1989 $ 21 , 905 , 062