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HomeMy WebLinkAboutMN-B&A-1990-11-12 - Budget Meeting r -BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 7: 30 P.M. NOVEMBER 12, 1990 MINUTES PRESENT: COMMITTEE MEMBERS: Booth, Cummings, Peterson, Golder, Romanowski OTHER ALDERPERSONS PRESENT: Johnson, Blanchard, Schroeder OTHERS PRESENT: Mayor - Nichols Controller - Cafferillo Deputy Controller - Thayer Commons Coordinator - Deming Fire Chief - Olmstead Volunteer Coordinator - Lynch City Attorney - Guttman Personnel Administrator - Saul A member of the Media 1. Opening Comments Chairperson Booth opened the meeting by givinc; tb- Committee the revised budget meeting schedule as follows: 11/12/90 7: 30 PM Budget Overview, Commons Advisory, Finance Department 11/15/90 7: 30 PM DPW, Water, Sewer, Joint Activity, Capital Projects, Building Department 11/20/90 7:30 PM Human Services & Other Agencies, Planning Dept. , INHS, Revenues 11/26/90 7: 30 PM Police Dept. , Fire Dept. , City Attorney, City Prosecutor 11/28/90 7: 30 PM Public Hearing on Budget, Youth Bureau, GIAC & Other 11/29/90 7: 30 PM Regular B&A meeting and any budget carryover items 12/5/90 7: 00 PM Regular Common Council meeting; adoption of 1991 budget Chairperson Booth stated that tonight's agenda will be as follows: A. Mayor's Budget Statement and questions by Council members B. Council member's areas of concern for the 1991 budget C. Specific Budget items - Commons Advisory Personnel Dept. BUDGET REVIEW MEETING 11/12/90 Mayors Dept. Finance Dept. Chairperson Booth stated that the following ground rules apply to the budget process: 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 1991 budget on December 5, 1990. D. The vote 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) 2 . Mayor' s Budget Statement - Overview of 1991 Budget Mayor Nichols gave the Committee his 1991 budget statement. Mayor Nichols stated that the budget was developed jointly between himself and the Controller, but all decisions were made by the Mayor. The following are the Mayor's highlights of the 1991 Budget: BUDGET PROCEDURE - Departments submitted request, the Mayor and Controller met with Department Heads and asked for some departments to cut their budgets, the Mayor's budget recommendations were developed. INDIVIDUAL DEPARTMENT BUDGETS do not include employee benefits and debt service costs. Those costs are reflected in separate sections of the budget. STATE AID for 1991 will be decreased by approximately $160, 000 relating to per capita aid and gross utilities tax. SALARY INCREASES have been estimated for the three contracts currently being negotiated (Laborer's Union, Assistant Fire Chief and Executive Unit) and have been included in the 1991 Budget. IN 1991 THERE IS A MAJOR INCREASE IN DEBT SERVICE ($406,000) . This increase represents 23% of the total budget increase for the 1991 budget. Salary increases of existing employees plus benefits ($1, 200, 000) represent 69% of the total budget increase. Together these two items represent 92% of the 1991 budget increase over 1990. The 1991 property tax increase of 8.8% was computed as follows: A. The average property assessment increase for 1989-90 is 2 .77 based on the reassessment. 2 BUDGET REVIEW MEETING 11/12/90 B. Take the 1990 tax increase of $19 per $1, 000 assessed and divide it by the average assessment increase of 2 .77, you arrive at the reassessed tax increase for 1990. C. If you take the 1990 reassessed tax rate of 6.847% and compare it to the 1991 Mayor's recommended tax rate of 7.449% the result is a 8.8% increase from 1990. D. If a property owners property was assessed for more than the average assessment increase of 2 . 77, then the property owner will pay more than the 8.8% increase in taxes for 1991. If a property owners assessment increased less than 2 . 77, then the taxes for 1991 will be less than 1990. The increases in Gas and Oil for 1991 have been estimated at $50, 000. The Human Service Agencies budget is exactly as it was recommended by the Human Service Committee. The city taxpayer is carrying an excessive share of the funding for these agencies. The City taxpayer is paying for these agencies through County and City taxes. The Mayor stated that these agencies deserve increased funding, but they have not asked the Towns of Lansing, Dryden or Ithaca to increase their funding as the City has. In the future, funding for these agencies should be done through the County. The Mayor added $25, 000 to the Human Service Agencies for the seed money for a Youth Employment Coordinator. The Mayor stated that through the Opportunity for Youth Commission employment sub-committee, the businesses, Chamber of Commerce and the schools have been brought together to work jointly on school business relationships and jobs for young people. The need for this program is great and space and funding will be an issue with the County and the City. The Mayor felt that the City should assist in this program which will help the future of our young people. The Mayor stated that the County has turned down the City's request for additional funding for youth services. The County took the City's Youth Bureau contract for last year and increased it by five (5%) percent. The Mayor funded the Community Arts Coalition for their full request of $10, 000. The Mayor cut $1, 000 from the Human Services Coalition, Human Services Committee request. The SPCA contract amount was increased to $38, 000. The mayor cut $1, 000 from the Tompkins County Labor Coalition, Human Services Committee request. Also $250 was deducted from the Dewitt Historical Society's request. The City Prosecutor has requested a half time secretary at $7, 000. The Mayor included this amount in the budget. 3 BUDGET REVIEW MEETING 11/12/90 In the Law Budget, the Mayor recommended that the assistant attorney become a full time staff member and that the City Attorney position be moved from a 15 hour per week position to a 20 hour per week position. No increase in salary costs are requested. The Board of Public Works made cuts to the DPW budget and came in with a requested budget of above six (6%) percent including salary increases. The budget was then cut by Bernie Carpenter and Bill Gray and the BPW approved the final cuts which came in below six percent. The Police Department budget includes one additional police officer for traffic enforcement. This position is reflected in an increase in fines. The Fire Department budget includes the addition of four firefighters. These four firefighters would help put two career firefighters at each of the two new stations. The Mayor also recommended that there shall be no more increases in the Fire Department' s personnel for at least the next three years. The Board of Fire Commissioners has agreed to the personnel freeze for the next three years as long as four new firefighters are approved for 1991. The four new firefighters would be phased in during 1991. The Building Department budget includes the addition of a Building Inspector which should assist in speeding up the building permit process. The Mayor suggested that an improved relationship with the public is needed in the Building Department. In the GIAC budget an additional youth worker position was included. This position would have a major role in developing a recreation program for teens. The Planning Department budget includes a minor change in bookkeeping which does not effect any increases for costs of salaries. The Planning Director Van Cort was previously paid in part by the IURA. In 1991, this will no longer occur. The City will pay for all of his salary, but will bill the IURA for a portion of his salary. The Commons Coordinator budget does not include the new position requested. Alderperson Cummings was excused for the remaining portion of the meeting. The Mayor suggested that there is a possibility of savings in State Retirements Benefits per the State, however, he has been convinced by the Controller that the costs should remain in the budget at the same level as in prior years because the possibility exists that in the future this 4 BUDGET REVIEW MEETING 11/12/90 payment, to the State Retirement System, would increase and if the money was deleted for 1991 it would make it that much more difficult to raise money to put back into a future budget. The account, Transfer to Capital Projects, has been increased to $101,800. This amount represents the five (5%) percent down payments needed to fund each of the eight projects recommended by the Capital Improvement Review Committee. It also includes a five (5%) percent down payment for the possibility of the acquisition of a building for Daycare purposes. It was noted that no changes were made to the Capital Improvement Review Committee's recommendations of projects to be funded. The Mayor estimated the sales tax increase for 1991 to be about five (5%) percent which is consistent with prior years. The Mayor stated that one of the reasons the tax rate was kept down was by deleting various 1990 Restricted Contingency items. The total amount of $148, 641 will not be carried over to 1991. The restricted contingency items to be deleted are as follows: Elmira Road Drainage $12, 500 Bikeway R.O.W. & Bridge 40, 000 Southwest Access 75, 000 Development Impact Fee Consultant 16, 500 Planning Contractual Services 2, 141 Other Service Agency Allocation 2, 500 $148, 641 An item that was not included in the budget is the possibility of a grant to perform Architectural studies for downtown. The matching grant portion of this grant may be as much as $20, 000. This item was overlooked and may need to be added to the 1991 budget. In the DPW Water and Sewer portion of the 1991 budget there are funds for hiring a new Director for Water and Sewer. This position is equivalent to the Assistant Superintendent to Streets and Facilities. The Mayor stated that there is no allocation of money for a Superintendent of Public Works in the 1991 Budget. However, there is money allocated to supplement a salary of either the City Engineer or Water/Sewer Director to act as the Superintendent of Public Works. A study will be performed to examine the DPW management as a whole. This study is also including the possibility of a DPW consolidation at some point in the future. 5 BUDGET REVIEW MEETING 11/12/90 Chairperson Booth suggested that a motion to accept the Mayor's Budget should be made. The following motion was made: Move the Mayor's Budget subject to all changes which may be made in the budget discussions. The motion passed 7-0. This motion allows the items not voted on in the Mayor's Budget to remain as they are recommended by the Mayor. 3 . Common Council Members Concerns for the 1991 Budget The following items represent the areas of concern that each of the Common Council members have with the 1991 Budget. Alderperson Blanchard presented her concerns as follows: A. Absence of a Superintendent of Public Works Salary B. Fire Departments additional four firefighters C. Youth Bureau equipment requests D. GIAC's additional youth worker Alderperson Romanowski presented his concerns as follows: A. Youth Bureau equipment requests - computers B. GIAC's additional youth worker C. Human Services budget total Alderperson Johnson presented his concerns as follows: A. Lack of a Superintendent of Public Works B. Fire Departments additional four firefighters Alderperson Schroeder presented his concerns as follows: A. Fire Departments additional four firefighters B. The absence of a Superintendent of Public Works salary C. Capital Projects - Commons capital project - no contingency added to the project/playground concerns/bus shelters not included D. The increase in parking fees E. The matching planning grant not included in the Budget. F. Restricted Contingency - Bikeway Bridge allocation Alderperson Golder presented his concern as follows: A. Restricted Contingency - Development Impact Fee Consultant. Alderperson Golder was excused for the remainder of the meeting. Alderperson Peterson presented her concerns as follows: 6 BUDGET REVIEW MEETING 11/12/90 A. Restricted Contingency - Bikeway Bridge B. Vehicle requests for all Departments C. Capital Projects - the Parking Study and Design project and the Monroe/Marshall bridge Chairperson Booth presented his concerns as follows: A. Tax rate of 8.8% is too high - should be around 5%. B. the Unappropriated Fund balance is lower than it should be C. Fire Departments four additional firefighters D. The number of new positions Citywide. In the last ten years the City has grown by 90 positions E. Recycling Revenue - County revenue in question and there is no contract in place for City recycling F. Reassessments 0- there are many challenges to the reassessments that may change the total property assessment total for the City G. Capital Reserves - no money is being put into these reserves for 1991. H. Sales tax increase of 5% is a good estimate given the current and future economic conditions I. Loss of revenue for capital expenses related to the Youth Bureau J. the closing out of Restricted Contingency items K. The garbage costs being transferred to the trash tag L. Parking fee increase M. No money in water fund for land acquisition N. Overtime in the Youth Bureau and Citywide O. Transit study 4 . Commons Advisory Budget Commons Coordinator Deming presented her 1991 Budget to the Committee. Coordinator Deming stated she understood why the Mayor deleted her request for an additional staff position, but felt that because of this some programs might have to be cut back. She stated she will set priorities for 1991 based on the funding she has available. A discussion on summer workers and possible modification of some of her programs followed. it was noted that the Mayor recommended a $1, 000 increase in the hourly parttime salary line. This money will be used for summer positions. No amendments were made to the Mayor's recommendation for the Commons Advisory Budget. The following motion was made: To approve the Commons Advisory Budget as recommended by the Mayor, of $37,873 . The motion passed 6-0. The following voted in favor of this motion: Booth, Blanchard, Johnson, Schroeder, 7 BUDGET REVIEW MEETING 11/12/90 Romanowski and Peterson 5. Personnel Budget Personnel Administrator Saul discussed the Personnel Budget and stated that the major changes include the following: A. Two positions that were in Finance are now in Personnel (no new salary amounts or positions are added with this move) B. Advertising expense was increased $6, 000 to a total of $14, 000. This reflects the actual cost of advertising. Personnel Administrator Saul reminded the Committee that when firefighter positions are approved it affects the Personnel Budget because physicals and related activity are expensed against the Personnel Budget. It was noted that the Personnel Budget did not account for the possibility of the four additional firefighters that may be hired as a result of the Fire Department's Budget for 1991. A discussion on advertising cost, contracts, affirmative action and civil service items followed. Personnel Administrator Saul stated that the merging of Civil Service with Personnel has worked out well with no complaints thus far. No amendments were made to the Mayor's recommendation for the Personnel Budget. The following motion was made: To approve the Personnel Budget as recommended by the Mayor of $188,719 . The motion passed 6-0. The following voted in favor of this motion: Booth, Blanchard, Johnson, Schroeder, Romanowski and Peterson The Committee voted in favor of going into executive session, 6-0, to discuss the possibility of a building purchase for Daycare. 6. Report From Executive Session The Committee discussed the acquisition of a building purchase for the purpose of using it as a potential Daycare site. The consensus of the Committee (six votes in favor) was to have the City Attorney make a purchase offer for this building at an amount of $160, 000. 7. Mayor's Budget The Mayor's Department was presented. It was noted that the overall Mayor's Department Budget is down $1, 049 from 1990. 8 BUDGET REVIEW MEETING 11/12/90 The Commissions Expense included in the Mayor's budget is recommended at $5,450. A discussion on the Mayor's Office Expense line followed. The Office Expense was recommended at $3, 500 which is increased from $2, 100 in 1990. It was noted that currently $1, 500 has been spent for office expense in 1990. After a brief discussion, the following motions were made: Delete $1, 000 from the Mayor's office Expense, Line 425, leaving a balance of $2, 500. The amending motion passed 6-0. To approve the Mayor's Department Budget with the amendment of $1, 000 for a new total of $62, 127. The motion passed 6-0. The following voted in favor of this motion: Booth, Blanchard, Johnson, Schroeder, Romanowski and Peterson 8. Legislative Board Budget The Legislative Board Budget was presented. The only change in this budget is an increase in the contracts line of $13 , 000. The $13, 000 increase represents the first payment of the City's Code recodification. The remaining $5, 000 represents the annual maintenance costs to update and maintain the City's Code and Charter. It was noted that the second payment will be made in 1992 for the remaining $13, 000 of the contract. The Committee suggested that an office for the Common Council members needs to be provided somewhere in City Hall. The office should include a telephone and a couple of desks. Chairperson Booth recommended that the Mayor investigate the possibility of getting an office for the Council members in City Hall and report back to the B&A Committee on this issue. The following motion was made: To approve the Legislative Board Budget as recommended by the Mayor of $81, 300. The motion passed 6-0. the following voted in favor of this motion: Booth, Blanchard, Johnson, Schroeder, Romanowski and Peterson 9. Election Budget The Election Budget was presented and after a brief discussion the following motion was made: To approve the Election Budget as recommended by the Mayor, of $18, 065. 9 BUDGET REVIEW MEETING 11/12/90 The motion passed 6-0. The following voted in favor of this motion: Booth, Blanchard, Johnson, Schroeder, Romanowski and Peterson 10. Purchasing Department Budget The Purchasing Budget was presented. A brief discussion on the consolidation of the Purchasing Agent followed. The following motion was made: To approve the Purchasing Department Budget as recommended by the Mayor, of $29, 198. The motion passed 6-0. The following voted in favor of this motion: Booth, Blanchard, Johnson, Schroeder, Romanowski and Peterson 11. Traffic Violations Budget The Traffic Violations Budget was presented. The increase in costs in the office expense account reflects expected increases in postage costs for 1991. It was noted that the hand held computer proposal is separate and is not presented in this budget. The following motion was made: To approve the Traffic violations Budget as recommended by the Mayor, of $63, 472 . The motion passed 6-0. The following voted in favor of this motion: Booth, Blanchard, Johnson, Schroeder, Romanowski and Peterson 12 . Finance Department Budget The Finance Department Budget was presented. It was noted that the overall Finance Department Budget came in at two (2%) percent above last years budget. Controller Cafferillo stated that increases in postage costs for 1991 are reflected in the office expense account and represent the increase in that account from the previous year. A discussion on Staff Development and personnel costs followed. The following motion was made: To approve the Finance Department Budget as recommended by the Mayor, of $443 ,456. The motion passed 6-0. The following voted in favor of this motion: Booth, Blanchard, Johnson, Schroeder, Romanowski and Peterson. The meeting adjourned at 11: 05 P.M. 10 J BUDGET REVIEW MEETING 11/12/90 The following is a summary of budget adjustments: Mayor's Recommendation: $23,873, 211 Reduction in Mayor's Dept. A1210-425 Office Expense Account ( 1, 000) As of conclusion of 11/12/90 B&A/ $23, 872,211 Committee of a Whole Meeting Net Reduction in Mayor's Budget through 11/12/90 ($ 1, 000) 11