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HomeMy WebLinkAboutMN-B&A-1992-11-05 - Budget Meeting BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 7 : 30 P.M. NOVEMBER 5, 1992 MINUTES PRESENT• COMMITTEE MEMBERS: Booth, Johnson, Berg, Romanowski, Daley OTHER ALDERPERSONS PRESENT: Golder, Schroeder, Hoffman, Efroymson, Blanchard (late) OTHERS PRESENT• Mayor - Nichols City Controller - Cafferillo Deputy Controller - Thayer Superintendent of Public Works - Gray City Chamberlain - Parsons BPW Commissioner - Gerard 1 . Opening Comments Chairperson Booth stated that the 1993 budget ground rules will be the same as in past years, which are as follows : A. A motion will be made to accept the Mayor' s budget subject to all amendments . B. Five members of Council will represent a quorum. C. All department budgets will have the possibility to be amended until the adoption of the final 1993 budget on December 2, 1992 . D. The votes on department budgets will be passed by the majority of those members in attendance (i.e. , if ten members are present, it would take six votes for a majority) . Chairperson Booth stated that the agenda for this meeting is as follows : A. Mayor/Controller Budget Overview B. Council ' s areas of concern for the 1993 budget. C. Specific Budget Items : - Finance Department (including, Traffic Violations, Personnel, Purchasing) - Elections - Records Management - Legislative - Mayors - Commons Advisory 2 . Mayor' s Budget Statement - Overview of 1993 Budget Mayor Nichols stated that his 1993 Budget includes the following: A. A General Fund of $23, 733, 364 B. A total Budget of $31, 112,512 (including Water B&A BUDGET MEETING - 11/5/92 Fund $1, 965,255, Sewer Fund $2,507,253, Joint Activity Fund $1, 887, 762, and a Solid Waste Fund of $1, 018,878) . C. No layoffs D. A 3% property tax increase ( $7 . 92 per $1, 000 assessed value) Mayor Nichols pointed out that the total 1993 Budget is increased by 1 .97% over the 1992 Budget and the General Fund Budget is up 3 . 6% from the General Fund Budget of 1992 . He stated that the budget includes $500, 000 in additional sales tax Revenue as a result of the County' s 1% increase in sales tax to 8% . He noted that if the sales tax were not increased to 8% the possible property tax increase might be as much as 10% or there would have had to be major cuts to department budgets . Mayor Nichols highlighted the Major points of his 1993 Budget proposal as follows : A. Capitalized DPW Street Work/Heavy Equipment Acquisitions of $1, 000,000 . B. Trash tag fees remain at $3 . 00 per tag. C. Human Services funding was increased by 13 . 9% . D. The net cost of the new Transit Facility to the City is $200, 000 . E. State Aid was maintained at 1992 levels . F. Employees not covered by Unions have been recommended a 4% increase as a whole - the Mayor recommended varying increases for each of the 19 employees not covered by a Union. Mayor Nichols stated that even though the County was lowering the tipping fee to $95 . per ton, the City' s trash tags were not going to change from the 1992 rates. He explained that the City did not charge enough for the trash tags in 1992 which will result in a shortfall in the Solid Waste Fund for 1992 . He stated that this shortfall will have to be made up in 1993. He noted that in 1992 the City was charging 50% to 80% less for trash tags than haulers outside the City were charging. Mayor Nichols also explained that the City is currently reducing costs in the Solid Waste Fund by: not picking up large commercial entities cardboard, and rescheduling their staff. 3 . Alderpersons Concerns for the 1993 Budget The following items represent the areas of concern that each of the Alderperson ' s raised in relation to the 1993 Budget: Alderperson Berg presented his concern as follows: A. Salary increases for Employees not covered by a Union. 2 B&A BUDGET MEETING - 11/5/92 Alderperson Hoffman presented his concerns as follows: A. Public Transportation Budget B. Thanked the Mayor for the recommended 3% property tax increase. C. Would like to see Council ' s annual salaries increased. D. Health Insurance costs E. Clarify goal for Human Services Coalition Alderperson Schroeder presented his concerns as follows: A. Would like to see an annual cost of living increase in salaries for the Mayor and Common Council B. Quality of DPW Ground Maintenance in cemetery C. Would like adequate DPW Grounds Personnel for minimum maintenance performed. Alderperson Golder presented his concerns as follows: A. Public Transit Budget increase B. Thanked Mayor for recommending $20, 000 in funds for Bicycle activity C. Pedestrian safety concerns D. Increase Police Officers due to Community action. E. Enforcement Officer for City Grounds and Building Department codes . F. Revenues from Federal and State sources. Alderperson Romanowski had no specific concerns at this time. Alderperson Daley presented his concern as follows : A. Sales Tax Revenue allocation. Alderperson Efroymson presented his concerns as follows : A. Add Police personnel B. Police Enforcement C. Concern over Human Services Funding recommendations D. Revenue from selling City property E. General policy of Vacancy Committee F. Increase in Golf Course expense. Alderperson Johnson presented his concerns as follows: A. Thanked Mayor for 3% property tax increase B. Will not support salary increase for employees not covered by Unions C. Public Transit - Vacant buses - utilization study needed D. Cemetery maintenance 3 B&A BUDGET MEETING - 11/5/92 Chairperson Booth presented his concerns as follows: A. Increase in new positions B. Capitalization of items C. Employees not covered by Union salary increases D. Trash Tag costs E. New bus drivers F. Sales Tax projections G. Health Insurance - Stop Loss limits H. Capital Project listing from CIRC I . DPW Infrastructure costs J. Transit Facility cost increases K. Vacancies and related P/T & Seasonal Funds L. Vacancy Committee continuation 4 . City Controller Statement of 1993 Budget City Controller Cafferillo discussed several major items with the Committee including the following: A. Sales Tax Cafferillo explained that the sales tax projection is very difficult to estimate. The 1992 Budget had a 2-1/2% increase from 1991 . He explained that due to a flat economy and adjustments from prior years the City is currently behind its 1992 projection. Cafferillo stated that the one percent increase in sales tax relates to a $500, 000 increase in sales tax revenues for 1993 . He stated that the City currently receives 1-1/2% of the 7% charged for sales tax for items sold within the City. He explained in 1993 the City will receive 1-3/4% of the 8% charged for sales tax for items sold within the City, but in 1993 there will be a six month delay in receiving the revenue. Cafferillo stated that the 1993 sales tax projection is a 2 . 9% increase from 1992 . He felt the projection was not unrealistic. B. Police/Fire/State Retirement Cafferillo explained that the retirement rates will probably increase in 1993 because of the current suit brought against the State regarding the new retirement method. He stated he will encumber payments that were not needed in 1992, to 1993, to help offset any possible rate increase. C. Health Insurance Cafferillo stated 1992 has been a good health insurance year, however 1991 was a bad year. He explained that BC/BS 4 B&A BUDGET MEETING - 11/5/92 uses the last 12 months to determine the 1993 health insurance rates and because of the good year the rate has decreased. He explained that he has recommended that the health insurance reserves be increased to reflect our change to being totally self-insured in health insurance. He noted in the past we have paid BC/BS $60, 000 for the stop loss limit and we have never reached it. He stated by increasing the reserve we will have a security reserve in case of a bad year. D. Workers Compensation Insurance Cafferillo stated the 1993 Workers Compensation rates have increased 18. 4% from 1992 rates . E. Fund Balance Cafferillo stated our current fund balance is $1,500,000 which seems large, but is a minimum amount. He explained that the 1993 budget appropriates $557, 141 of Fund Balance with the largest portion being derived from the Water Fund balance, $221, 899 . The following motion was made: Adopt the 1993 Mayor' s Budget of $31,112,512 for discussion purposes only. The motion passed 10-0 . 5 . Finance Department - Traffic Violations Budget The Mayor recommended a Traffic Violations Budget for 1993 in the amount of $53,234 . City Controller Cafferillo explained that the only major change to the Traffic Violations Budget was that the office expense line was increased by $9, 000 to reflect the purchase of parking tickets . He stated that in previous years these purchases were located in the DPW and Police Department budgets . A discussion on parking tickets and related revenue followed. It was noted that about $800, 000 in revenue is received annually from parking tickets . The following motion was made: RESOLVED, that the 1993 Traffic Violations Budget be approved in the amount of $53,234. , The motion passed 10-0 . 5 B&A BUDGET MEETING - 11/5/92 6 . Finance Department/Personnel and Purchasing Budgets The Mayor recommended a Finance Department Budget for 1993 in the amount of $435,417 . Controller Cafferillo explained that there were no major changes to the Finance Department Budget. He stated that the department has cut as many positions as possible and has distributed those responsibilities within existing staff levels. It was noted that because of position cuts during 1992, the total budget was reduced by $11, 189 . The Mayor recommended a Purchasing Department Budget for 1993 in the amount of $30,821 . Controller Cafferillo stated that there are no major changes to the Purchasing Budget for 1993 . He explained that the purchasing duties are now being shared by the City Buyer, Deputy Controller and the Controller' s Secretary. The Mayor recommended a Personnel Budget for 1993 in the amount of $182, 805 . City Controller Cafferillo explained that the position of Senior Stenographer with a salary of $13,755 has been eliminated in the 1993 budget. He stated that the position was open due to Bonnie Fiorille moving up to Personnel Associate, Trainee. Cafferillo also stated that the contract line in Personnel was also increased to reflect the hiring of an outside labor consultant for the contracts currently under negotiation. He stated the contracts under negotiations are the CSEA contract, the Fire Contract and the Police Contract. He explained that Pat Kennedy will be receiving training from the Labor Consultant during this period of negotiations to become the City' s primary contract negotiator. Currently, Kennedy is heading the negotiations in the Fire Department and CSEA and is secondary on the Police Contract negotiations . Mayor Nichols distributed his recommendations for the 19 employees not covered by a Union, some of which are reflected in the above budgets . The Committee voted 10-0, to move into executive session to discuss the proposed salary list of employees not covered by a Union. After the Committee voted 10-0 to move back into regular session, the following motion was made: RESOLVED, that the 1993 Finance Department, Purchasing and Personnel Budgets be approved in the amounts of $435,417, $30,821 and $182,805, respectively, and be it further RESOLVED, that the salaries for the 19 employees not covered by a Union may be revisited in later Budget discussions. 6 B&A BUDGET MEETING - 11/5/92 The motion passed 10-0 . Alderperson Golder was excused for the remaining portion of the meeting. 7 . Elections Budget The Mayor recommended an Elections Budget for 1993 in the amount of $71,434 . City Controller Cafferillo explained that the major change to this Budget includes a $53,000 amount due to the County for election expenditures . The Committee reviewed documentation presented on the $53, 000 election expense due to the County. The Committee discussed the direct and indirect costs associated with the expense. After a discussion on the costs, the following motion was made: RESOLVED, that the 1993 Elections Budget be approved in the amount of $71,434. Voting results on the motion were as follows : Ayes ( 6) Booth, Blanchard, Romanowski, Berg, Hoffman and Efroymson Nays (3) Schroeder, Daley, Johnson The motion passed 6-3. 8 . Records Management Budget The Mayor recommended a Records Management Budget for 1993 in the amount of $5, 402 . City Controller Cafferillo stated this budget is based solely on a State Grant. It was noted that the Grant is in its final phase in 1993 . After a brief discussion, the following motion was made: RESOLVED, that the 1993 Records Management Budget be approved in the amount of $5,402. Motion passed 10-0 . 9 . Legislative Budget The Mayor recommended a Legislative Budget for 1993 in the amount of $67, 300 . City Controller Cafferillo stated that the recodification payment was completed in 1992, which results in a reduction of $13, 000 to the 1993 Legislative Budget. A discussion on the Staff Development account followed. It was noted that the Mayor did not recommend any funding for this account. The Committee felt they needed some funding for seminars . The following motion was made: 7 B&A BUDGET MEETING - 11/5/92 RESOLVED, that the Legislative Budget account A1O1O-440 Staff Development be increased by $1,000. Voting results on the motion were as follows : Ayes ( 6) Booth, Hoffman, Efroymson, Schroeder, Daley, Johnson Nay ( 1 ) Blanchard Abstain (2 ) Berg, Romanowski The motion passed 6-1-2 . A discussion on Council ' s salaries followed. It was noted that Council ' s salary has not been adjusted since 1987 . Alderperson Blanchard made the following motion. RESOLVED, that the A1O1O-105 Salary Administration account be decreased by $10,000. The motion died for a lack of a second. Alderperson Hoffman made the following motion: RESOLVED, that the A1O1O-105 Salary Administration account be increased by $2,400 (4%) . Alderperson Schroeder requested to amend the above motion to reflect a $2, 100 increase of 3 .5%, which is the latest CPI index. Voting results on the amendment were as follows: Ayes (4) Schroeder, Hoffman, Efroymson, Berg Nays (5) Booth, Blanchard, Romanowski, Johnson, Daley The amendment failed 4-5 . The main motion was voted on. The voting results were as follows: Ayes (2 ) Hoffman, Efroymson Nays (6) Booth, Blanchard, Romanowski, Johnson, Daley, Schroeder Abstain ( 1 ) Berg The motion failed 2-6-1 . The following motion was made: RESOLVED, that the 1993 Legislative Budget be approved in the amount of $68,300. Voting results on the motion were as follows : Ayes (7) Booth, Daley, Schroeder, Johnson, Berg, Romanowski, Efroymson 8 B&A BUDGET MEETING - 11/5/92 Nays (2 ) Hoffman, Blanchard The motion passed 7-2 . Alderperson Schroeder was excused for the remaining portion of the meeting. 10 . Mayor' s Budget The Mayor recommended a Mayor ' s Budget for 1993 in the amount of $60, 388 . Mayor Nichols stated that his budget is up $18 over 1992 . He stated that there were no major changes to the Budget. It was noted that the Mayor' s salary was recommended at the same level as 1992, $32, 000 . Alderperson Hoffman felt the Mayor' s salary should be increased. After a brief discussion, the following motion was made: RESOLVED, that the 1993 Mayor' s Budget be approved in the amount of $60,388. Voting results on the motion were as follows : Ayes (7 ) Berg, Blanchard, Romanowski, Booth, Daley, Johnson, Efroymson Nay ( 1) Hoffman The motion passed 7-1 . 11 . Commons Advisory Budget The Mayor recommended a Commons Advisory Budget for 1993 in the amount of $36, 979 . Mayor Nichols stated that there were no major changes to this budget in 1993 . A discussion on the proposed 1993 Commons Coordinator events followed. Mayor Nichols stated that he expects to continue the Activities Coordinator position in the budget for years to come. He explained some of the activities that the Activities Coordinator performs and he felt the City needs the department. After a brief discussion, the following motion was made: RESOLVED, that the 1993 Commons Coordinator Budget be approved in the amount of $36,979. The motion passed 8-0 . The meeting adjourned at 11 :25 P.M. 9 B&A BUDGET MEETING - 11/5/92 The following is a summary of Budget Adjustments: Mayor' s Recommendation for Appropriations: $23,733, 364 Increase Account A1010-440 Staff Development for increase of Legislative Staff Development Funds: 1,000 Mayor' s Adjusted Recommendation as of Conclusion of 11/5/92 B&A/COW meeting $23,734, 364 w 10 B&A BUDGET MEETING - 11/5/92 The following is a summary of Budget Adjustments: Mayor' s Recommendation for Appropriations : $23,733,364 Increase Account A1010-440 Staff Development for increase of Legislative Staff Development Funds : 1,000 Mayor' s Adjusted Recommendation as of Conclusion of 11/5/92 B&A/COW meeting $23,734,364 10 r 5. APPROPRIATIONS Mayor's Recommendation: $23,733,364 Net Increase in Mayor's Budget Appropriation through 11/18/92 $ 60,303 Balance Mayor's Recommendation Prior to Budget Meeting 11/19/92 $23,793,667 Action Taken During Meeting of 11/19/92: Restricted Contingency Increase A1990 Restricted Contingency to / Reflect Gadabout ADA Requirement Increases: $ 10,000 Increase A1990 Restrict Contingency to Reflect Increase in Gadabout Contract to City $ 30,000 DPW Reduce A1627-410 Court Facility Utilities to Reflect Reduced Estimate ( $ 10,000) Reduce A5630-435 Bus Operation Contractual to Reflect Discontinuation Transit Consultant Contract ($ 5,000) Reduce A5630-405 Bus Operation Telephone to ✓ �'l Reflect Reduction in Telephone Cost ($ 600) Reduce A5631-435 Northeast Transit Contractual to Reflect Discontinuation of Transit Consultant Contract ($ 1,488) Mayor's Adjusted Recommendation as of Conclusion of 11/19/92 B&A/COW Meeting $23,789,579 Net Overall Increase in Mayor's Appropriations after the 11/5, 11/11, 11/17, 11/18 and 11/19/92 Meetings $ 22,912 Combined Net Increase in Mayor's Appropriations After the 11/5, 11/11, 11/17, 11/18 and 11/19/92 Meetings $ 83,215