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Home My WebLink AboutMN-B&A-2001-10-09- Budget Meeting BUDGET MEETING MINUTES OCTOBER 9, 2001 - 3 vacant positions were not funded: '-i� time GIAC Youth Development Program Leader Garage Auto Mechanic Supervisor Deputy Police Chief - $84 , 000 was cut from City Staff Development - $500, 000 is appropriated from Health & Retirement Fund Balance accounts - Operating items were capitalized to close the budget gap - 17% increase in health care costs - Trash tags remain the same - Parking rates remain the same - Water rates up 6% - Sewer rates up 10% - Assessed property value up to $841, 039, 515 (Fall Creek area hottest market in the County) The Mayor explained that the budget is very tight and is on the edge of including many layoffs . He included at least eight layoffs and an 8% property tax increase prior to some improved news on revenue projections . There is no room for adjustment to the budget for unforeseen expenditures . Controller Cafferillo further explained some of the budget and revenue numbers as follows : - Each 1% of property tax increase generates $82 , 778 in tax revenue . - Investment rates are much lower, resulting in much lower interest earnings for the City - Town Fire Contract remains the same - Sales tax revenue has been kept flat - State Aid remains flat - Increase revenues in the following areas: Payments in lieu of taxes $ 22, 000 Interest & penalty on taxes 71, 000 Franchises 30, 000 Parking revenue 15, 000 Culture and recreation 38, 000 Site development fees 156, 000 (Cornell project) IURA Building Dept . Reimbursement 30, 000 2 BUDGET MEETING MINUTES OCTOBER 9, 2001 Cornell contribution 50, 000 Interfund transfers 567, 078 Revenues decreased in the following areas : Utility receipts tax 63, 000 Interest earnings 53, 000 In addition, Cafferillo noted the following, relating to the 2002 Budget : - Due to the attacks on New York City, the State stands to lose $9 billion over the next 18 months - No early retirement incentive from the State possible in 2002 - City will have local retirement incentive - Health insurance increase could have been 42% as requested by BC/BS, but was negotiated to 20% A discussion regarding the Position Review Committee followed. Mayor Cohen explained that he plans on leaving positions open unless they affect programs and services . If the position affects programs and services, it will go to Council for approval . Currently, the Mayor, the Controller and the Human Resources Director sit on the Position Review Committee . Alderperson Farrell suggested that two Council members sit on the committee. She recommended that the B & A chair and the H. R. chair be the two on the committee. After a discussion, no changes were made to the committee. 3 . Public Hearing The Committee voted, 9-0, to open the 2002 Budget Public Hearing. The following individual spoke: Fay Gougakis spoke to the committee regarding the following: - Feels the Common Council and Mayor should have a living wage; jobs should be full time - Thinks Commons fountain project was a waste of taxpayer dollars 3 BUDGET MEETING MINUTES OCTOBER 9, 2001 Need to hire the two open positions in the Building Department Ithaca College and Cornell need to contribute their fair share to City Cornell Chemical Lab is dangerous to the community No other member of the public spoke . The Committee voted, 9-0, to close the public hearing and move back into regular session. 4 . Mayor' s Office Budget Review The Mayor proposed a 2002 Mayor' s Office Budget in the amount of $102 , 980 . Mayor Cohen explained that his budget includes the following: - Contractual salary increase for Administrative Assistant - $2 , 000 cut of Staff Development account - $400 cut in equipment maintenance account - Intern funds are included in contract account After a brief discussion concerning the Staff Development account, the Mayor' s Office budget remained unchanged. 5 . City Attorney' s Budget Review The Mayor proposed a 2002 Attorney' s Office Budget in the amount of $293 , 996 . City Attorney Schwab stated that the Attorney' s budget is realistic, but the following should be pointed out : $1, 965 in Professional Services fees were cut Equipment maintenance cut by $200 Associate Attorney in at 35 hours Schwab explained, in the optional budget, the Associate Attorney was requested at 40 hours, or $5, 296 higher. She explained the need for a 40-hour Associate Attorney. The Committee suggested the increase to 40 hours should be placed on the further discussion/action list . 4 BUDGET MEETING MINUTES OCTOBER 9, 2001 Schwab also stated with the $1, 965 cut from the fees account, certain outside legal help will not be available. After a discussion concerning the Westlaw activity, the Attorney' s Office budget remained unchanged. 6 . City Clerk/Elections Budget Review The Mayor proposed a 2002 Clerk' s Office Budget in the amount of $173 , 895 and an Elections Budget in the amount of $16, 000 . City Clerk Holcomb explained that Deputy Clerk Korherr has voluntarily reduced her hours to 20 hours, which produces $5, 200 in cost savings for 2001 . The Mayor agreed that the savings could be used for 2002 cuts . She did note that $1, 000 was cut in Staff Development by the Mayor. Holcomb discussed the Elections budget with the Committee. She explained she did request that $7, 500 be added to the budget to purchase three new voting machines to replace 3 ADA non-compliant machines . Mayor Cohen explained that he inadvertently left out the $7, 500 from the Capital Budget . He and the Committee agreed the machines would be put on the further discussion/action list for Capital purposes. Holcomb also discussed the state of the other voting machines . She stated that as a result of the Florida voting problem, voting and election reform would be a hot topic . A discussion concerning renting, repairing and purchasing voting machines followed. The Clerk' s Office and Elections budgets remained unchanged. Alderperson Taylor was excused during the discussion. 7 . Human Resources Budget Review The Mayor proposed a 2002 Human Resources Budget in the amount of $579, 040 . Human Resources Director Michell-Nunn stated the following key points need to be made related to her 2002 budget : Positions included in 2002 Budget include HR Director; HR Associate 25 hrs w/Deputy Stipend; Manager of Organizational Development; Employee Health & Safety Coordinator; Admin. Secretary; Human Resource Clerk and a 13-week Educational and Training Coordinator 5 BUDGET MEETING MINUTES OCTOBER 9, 2001 - Staff Development cut of $16, 000 A discussion concerning the Staff training in the City followed. Michell-Nunn explained that an adverse impact on morale would be felt with the Staff Development cut . She stated the account should be restored to the 2001 amount of $31, 000 . Mayor Cohen explained that he was going to carry over $35, 000 in Restricted Contingency account money for the Work Environment Task Force to supplement the cut in staff development . After a discussion, the Committee agreed to place $16, 000 on the further discussion/action list . Director Michell-Nunn also stated that with the additional staff, a second floor renovation project should be included in the budget . She explained that a design has been done for such a project . It was noted this project would be discussed with other Capital Projects. Also discussed was a CSEA Civil Service salary study, which is currently underway. The Mayor stated that he did not place funds in the 2002 budget for the results of the study because he was confident it would not have an impact until 2003 . Director Michell-Nunn disagreed. She stated the impact, $20, 000 to $50, 000, will be needed in late 2002 . The Mayor stated that he would get a letter from the Civil Service Administration giving a commitment to the study' s completion date . After a discussion, the Human Resources Department 2002 budget remained unchanged. The meeting was adjourned at 9 :30 P.M. 6 2002 Bud et for further DiscussionlAction List., 2002 Pro'ect Cost Account Budget$Impact Meeting Date: Item From 10/9/01 meeting: Attorney: Increase hours of Associate Attorney from 35 to 40 hours A1420-5110 $ 5,296.00 Elections: Acquire 3 voting machines through capital project $ 7,500.00 $ - Human Resources: Increase Training and staff development A1430-5440 $ 16,000.00 Ca ital Pro'ects: Renovations to second floor $ 700,000.00 $ - Total potential net increase(decrease)to Mayor's proposed budget after meetings from 10/9,10/16,10/18,10/25,10/29/01: $ 21,296.00 City of Ithaca Budget Schedule 1 Page 1