HomeMy WebLinkAboutMn-B&A-1991-11-25 - Budget Meeting BUDGET AND ADMINISTRATION COMMITTEE
BUDGET MEETING 7 : 30 PM NOVEMBER 25, 1991
MINUTES
PRESENT:
COMMITTEE MEMBERS: Booth, Golder, Peterson, Cummings,
Romanowski
OTHER ALDERPERSONS PRESENT: Schroeder, Hoffman, Johnson,
Blanchard ( late)
ALDERPERSONS EXCUSED: Daley
OTHERS PRESENT:
Mayor - Nichols
City Controller - Cafferillo
Deputy Controller - Thayer
Fire Chief - Olmstead
Youth Bureau Director - Cohen
Acting Superintendent of Public Works - Gray
Assistant Superintendent of Public Works - Ferrel
Assistant Superintendent for Water & Sewer - Shimer
Ithaca Transit Consultant - Carpenter
BPW Commissioners - Reeves, Berg, Tripp, Rusoff, Brandford,
Cox
Alderperson Elect - Efroymson
GIAC Director - Fort
Deputy Building Commissioner - Dieterich
City Attorney - Guttman
Deputy Fire Chief - Dorman
Acting Building Commissioner - Eckstrom
1 . Opening Comments
Chairperson Booth stated that the agenda for this meeting
will be as follows :
A. A report on the status of the 1992 Budget to date
B. New Municipal Pool fees
C. Building Department Budget
D. Ithaca Festival Overtime Funds
E. DPW Budget items
F. Debt Service and Special Items
G. Contingency Account
H. 1992 Tax Rate
Members of the public were asked to speak on any topics; no
individuals spoke.
Council members did not raise any further concerns regarding
the 1992 Budget.
A brief discussion followed on the January 1992 Common
Council meeting. The consensus of the Committee was that
only one Common Council meeting will be held in January.
The date will be January 1, 1992 at 11 : 00 AM.
B&A BUDGET MEETING MINUTES 11/25/91
2 . 1992 Budget Status
Deputy Controller Thayer reported that prior to this meeting
the Committee had increased the Mayor' s recommended 1992
Budget by a net of $3, 301 .
3 . Municipal Pool Fees
Youth Bureau Director Cohen and GIAC Director Fort presented
the Committee with a memo regarding fees for the new
municipal pool near GIAC.
Mayor Nichols stated that he met with the GIAC and Youth
Bureau Board and they agreed upon the recommended fees to be
charged at the new pool. He stated that compared to the
Cass Park Swimming Pool rates, th new pool rates are less
than the Cass Park rates. The new pool rates are less
because public usage will be decreased based on the fact
that hours available for public usage are less and the pool
is smaller than Cass Park.
Mayor Nichols stated that currently the 1992 proposed GIAC
Budget has $2,475 in revenue expected from this new pool.
He stated that he recommended that the $2,475 revenue amount
should be deleted from the budget until a pool budget with
solid financial numbers can be established. He stated that
the 1992 Budget can be adjusted in 1992 for pool revenues
and related expenses when the pool opens .
The following fee information relates to the new municipal
pool:
Fees : 12 and under $ . 50
13 - 17 & seniors $ 1 .00
Adults $ 2 .00
Projected use of operation is eight weeks June - August.
Camp usage of the pool will be Monday - Friday, 9 :00 AM - 4
PM. Public usage of the pool will be Monday - Friday, 4 :00
PM - 8 : 00 PM. Saturday and Sunday 12 :00 PM - 5:00 PM.
Youth Bureau Director Cohen stated that currently many of
the camps do not pay the City for pool and City facility
usage. The Committee stated that the Youth Bureau and GIAC
Board should look at a possible charge to these camps . The
following motion was made:
RESOLVED, that $2,475 be deleted from revenue account A2025
Pool charges in the 1992 Budget for the purposes of deleting
the estimated revenue for the new municipal pool, and, be it
further
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B&A BUDGET MEETING MINUTES 11/25/91
RESOLVED, that the fees for the new municipal pool be set by
Council at: 12 and under $ .50
13 - 17 & Seniors $ 1.00
Adults $ 2.00
The motion passed 8 - 0 .
4. DPW Budget
It was noted that this is a continuation of the budget
discussion from November 19 .
A. DPW - Water and Sewer Budgets
Acting Superintendent of Public Works Gray and Assistant
Superintendent of Water & Sewer Shimer presented the 1992
Water Budget. The Mayor recommended a 1992 water fund
budget in the amount of $1, 877, 019 . Gray stated that this
budget was funded by user fees . The BPW has approved a 1992
water rate in the amount of $1 .21 per 100 cubic feet. This
represents a $ . 05 increase from 1991 or 4. 3% increase.
It was noted that a portion of a crane $40, 000 was taken out
of the water fund. The Department had requested a crane to
be purchased from Water and Sewer funds . After a brief
discussion the following motion was made:
RESOLVED, that the 1992 Water Fund Budget be approved as
recommended by the Mayor in the amount of $1,877,019; and be
it further
RESOLVED, that the 1992 water rate be set in the amount of
$1.21 per 100 cubic feet.
The motion passed 8-0 .
B. Sewer Fund
The Mayor recommended a 1992 Sewer Fund Budget in the amount
of $2, 366, 824 . Gray again stated that the Sewer Budget is
funded by user fees . The BPW has approved a 1992 Sewer rate
in the amount of $1 .40 per 100 cubic feet. This represents
a $ . 15 increase from 1991 or 12% increase.
Gray stated that the sewer rate increase is larger than the
water rate increase because of the lower fund balance in the
sewer fund. The sewer fund also has a large capital reserve
for sewer construction. Gray stated that the project loss
for the sewer fund in 1991 may be $110, 000 . This loss,
combined with an already low fund balance produces the need
for a larger fund balance. It was noted that the Capital
Reserve money can not be used in the sewer fund operation
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B&A BUDGET MEETING MINUTES 11/25/91
budget. The reserve can only be used for capital projects
related to sewer system repair and/or replacement.
Gray also stated that there is a good possibility that the
sewer fund may receive $125, 000 from the Town of Ithaca for
a sewer collection system agreement that has been in the
works for a number of years . The $125, 000 was not included
in the 1992 revenue because there is no signed agreement
with the Town at this time.
The Committee and the BPW had concerns over the large
general fund service reimbursement in 1992 . City Controller
Cafferillo stated that the general fund reimbursement has
been increasing steadily over the past few years. He stated
that the reimbursement includes costs which were not
reimbursed in the past, such as :
1 . O & M costs for operation of facilities
2 . Overhead costs
3 . Salary and benefits
4 . Insurance
Cafferillo stated he will meet with the BPW to discuss these
costs in detail at a later date.
After a brief discussion the following motion was made:
RESOLVED, that the 1992 Sewer Fund Budget be approved as
recommended by the Mayor in the amount of $2,366,824; and be
it further
RESOLVED, that the 1992 sewer rate be set in the amount of
$1.40 per 100 cubic feet.
The motion passed 8-0 .
C. Transit Items
A discussion on the A5630 Bus Operations account followed.
The Committee ' s concern was if the $8, 000 cut made to P/T
and Seasonal would affect the Bus routes. Transit
Consultant Carpenter stated that the $8, 000 was put into the
1992 Budget to support a possible expanded bus service. The
$8, 000 cut would not affect the current bus routes or bus
driver positions . He stated that if the $8, 000 was left in
the 1992 Budget the City would have to purchase new buses .
Carpenter also stated that the $49, 000 in overtime is locked
in by contract and can not be changed. He stated that the
$71, 112 in contractual expenditures in account A5630 is a
portion of his contract with the City. After a brief
discussion, the following motion was made:
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B&A BUDGET MEETING MINUTES 11/25/91
RESOLVED, that the 1992 Bus Operations Budget be approved as
recommended by the Mayor in the amount of $728,455.
The motion passed 8-0 . It was noted that Alderperson
Blanchard arrived during the discussion and voted for the
resolution. Alderperson Cummings was out of the room at the
time of the vote.
D. DPW Garage Position
A discussion followed on the Supervisor position in account
A5132-105 in the amount of $31, 631 which was not in the 1992
proposed Budget. It was noted that the BPW wanted this
position in the 1992 Budget, but they could not find a
corresponding amount to cut from another DPW area.
Controller Cafferillo suggested that the Committee should
carefully determine all budget priorities before voting on
this issue. After a brief discussion the following motion
was made:
RESOLVED, that the Supervisor position be funded in the 1992
Budget in the amount of $31,631 in account A5132-105.
Voting results on the motion were as follows :
Ayes (2 ) Blanchard, Romanowski
Nays (7 ) Johnson, Booth, Peterson, Cummings,
Hoffman, Golder, Schroeder
The motion failed 7-2 .
E. Ithaca Festival
A discussion followed on the DPW funding portion of the
Ithaca Festival. Mayor Nichols stated that he has not yet
met with the DPW and the Ithaca Festival Committee to
determine if an agreement can be reached. It was determined
that the Ithaca Festival needs approximately $10,000 from
the City to assist in funding of the Ithaca Festival.
Currently, the funds for this purpose are not in the Mayor' s
recommended Budget.
The Mayor stated he was hopeful some agreement could be
worked out so that the City' s budget would not have to be
increased for this purpose. He stated he hoped that the BPW
could reduce their amount of cost to the Festival. The BPW
felt that the cost could not be reduced at this time.
No motion was made to increase the 1992 DPW Budget to
reflect the Ithaca Festival costs . The DPW funds needed for
the Festival remain out of the 1992 Budget.
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B&A BUDGET MEETING MINUTES 11/25/91
F. Remaining DPW Items
The Committee discussed the remaining DPW accounts
individually and only the following two motions were made:
RESOLVED, that $5,000 be reduced from account A5142-125 Snow
Removal overtime leaving a 125 account total in the amount
of $22,000.
Voting results on the motion were as follows:
Ayes (5) Schroeder, Booth, Hoffman, Cummings,
Golder
Nays ( 3) Peterson, Romanowski, Blanchard
The motion passed 5-3 .
RESOLVED, that $2,000 be reduced from account A8745-125
Flood and Erosion Control overtime leaving a 125 account
total in the amount of $1,200.
Voting results on the motion were as follows :
Ayes (4) Schroeder, Booth, Golder, Hoffman
Nays (5) Cummings, Blanchard, Peterson, Johnson,
Romanowski
The motion failed 5-4 .
The following motion was made:
RESOLVED, that the 1992 DPW Budget be approved as amended.
The motion passed 9-0 .
5 . Building Department Budget
The Mayor has recommended a Building Department Budget in
the amount of $420, 352 . This amount includes funding for a
Deputy Building Commissioner position. The following motion
was made:
RESOLVED, that the Deputy Building Commissioner position be
eliminated from the 1992 Building Department Budget
effective May 1, 1992.
Mayor Nichols stated that the Mayor' s Budget includes :
1 Building Commissioner/Plan Review Officer
1 Deputy Building Commissioner
1 Plan Review Officer
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B&A BUDGET MEETING MINUTES 11/25/91
Nichols stated that the Building Department is currently top
heavy and that he feels the Department should have a
Building Commissioner and two Plan Review Officers. He
stated that revenues for 1991 are well under the budget and
the amount of work in the Building Department has decreased.
Nichols stated that Acting Building Commissioner Eckstrom
thought the Building Department could work without a Deputy
if the following items were done:
A. A plan review officer could get out of title
pay for Building Commissioner work when the
Commissioner was gone.
B. A part-time Clerk/Typist is needed in the amount
of $10, 000 .
Mayor Nichols stated that the Building Department Budget
needs to be a workable amount and still allow the Department
to perform its function.
Alderperson Cummings stated that in the past she has argued
to increase the size of the Building Department because of
the increasing workload. She stated that now because the
workload is decreasing she feels the staff should also
decrease. It was noted that almost all Building Department
revenue has decreased and is below the 1991 Budget.
The following members of the public and City staff spoke on
this issue of eliminating the Deputy Building Department
position:
Tom Hoard - former Building Commissioner. He stated that
Peter Dieterich is a very effective Deputy Building
Commissioner. He stated that Peter knows the code and
applies his skills per his job description. He stated that
if this position is cut it will send a bad message to other
City employees .
Fire Chief Olmstead - He stated that Peter was a very
competent City employee. He stated that because the Fire
Department and the Building Department work close on many
issues, he knows that Peter has a great knowledge and
expertise in the Building Department field. He stated that
it would be a great loss to the City if Peter' s position was
cut. He stated that it is not the position that is being
targeted for a cut, but it is the individual.
Deputy Fire Chief Dorman - He stated that the City needs to
look at the resources it has on the City Staff. He stated
that Peter is a great resource and value to the City.
The following are comments regarding the Deputy Building
Commissioner position from Council members :
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B&A BUDGET MEETING MINUTES 11/25/91
Alderperson Blanchard stated that she supports this cut and
that it will be the first in number of positions to be cut
from the top level because the City cannot get all the fat
out of the budget by cutting the bottom positions.
A question on the possibility of going into executive
session to discuss this issue was raised. Chairperson Booth
stated that, based on the City Attorney' s recommendation,
Council should not go into executive session to make this
decision. City Attorney Guttman stated that if the decision
is based on the person it should be made in executive
session, if the decision is based on the position it should
be made in public. The Committee agreed the decision will
be based on the position.
Alderperson Cummings stated that she supports this cut and
that all upper level management costs need to be examined
for possible cuts .
Alderperson Peterson stated that she was not in support of
this cut and that she would not be able to make a decision
on this issue until a full examination is made.
Alderperson Romanowski stated he will not support the
motion, but he could support the possibility that the Deputy
Building Commissioner position be funded through June 1,
1992 and that a Building Commissioner be named at the same
time. He stated that the funds needed could be put into
restricted contingency.
Alderperson Hoffman stated that he has a problem with the
process of this cut and that he would like to listen to all
the elements regarding this decision in executive session.
Chairperson Booth stated because of the nature of this
question the possibility of litigation does exist and for
that reason the discussion and decision should be made in
public session.
Eckstrom stated that the Building Department could probably
work and function without a Deputy Building Commissioner,
but that there may be future implications to City staff if
this decision is made.
Alderperson Cummings stated that this is a budget decision
and that the City cannot afford to continue increasing staff
levels .
Chairperson Booth stated that he tries to save the City
money in every possible instance and he strongly agrees that
in the future the City will have to eliminate high and low
level positions and Council has that power. He also stated
that he feels the proposal to eliminate this position is
because of personality problems based on complaints to the
City regarding the individual currently in the position. He
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B&A BUDGET MEETING MINUTES 11/25/91
stated it is possible that many of these complaints are
valid and many are not valid. He stated that the Council
should not vote for this resolution and he does not support
the proposed resolution. Booth stated that this decision
will leave a bad message with the rest of the City staff.
He stated he does believe in the elimination of a
position/individual if the person deserves it because of
poor behavior. However, in this case the individual does
not deserve this .
Mayor Nichols stated that the Deputy Building Commissioner
is funded for 1992 . A Building Commissioner or a Plan
Review Officer is not funded for 1992 and if Council wants
to have a Building Commissioner they will have to add
$36,000 to the 1992 Budget.
Alderperson Johnson stated that Common Council has to face
the reality that the City will have to lay off some high
level positions in the near future. He stated he is in
support of the motion.
Alderperson Cummings stated that she will withdraw the
motion and that it may come up again when all Council
members are present.
Because the Building Department Budget did not change the
Council did not vote on the Department ' s Budget. The
Building Department Budget will remain as recommended by the
Mayor in the amount of $420, 352 . The Mayor also stated that
he has made no nomination for the Building Commissioner
position.
6 . Special Budget Items
A. Debt Service
A discussion on the City' s Debt Service followed. No
changes were made to the Mayor' s Budget. It was noted that
the debt service costs are increasing because many of the
1991 projects have been bonded.
Alderperson Romanowski was excused for the remaining portion
of the meeting.
B. Contingency Account
The contingency account was discussed. Unrestricted
Contingency has been established at $100, 000 . Restricted
contingency has been set at $299, 100 . The Restricted
Contingency account includes $20, 000 for Police overtime and
the remaining portion for salary contract adjustments. The
Restricted Contingency also includes $35, 000 for 1992 salary
increases for individuals not covered by a Union. These
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B&A BUDGET MEETING MINUTES 11/25/91
department head increases will be discussed at the B&A
meeting in December as has been done in prior years .
C. Insurance
City Controller Cafferillo stated that the City is currently
looking into its insurance coverages . He stated that the
total amount for insurance will be about the same as 1991 or
lower.
D. Employee Benefits
Cafferillo stated that he has been working on the workers
compensation insurance and has recently received $50, 000
audit adjustment in the City' s favor. He stated he expects
another $50, 000 adjustment for 1991 . It was noted that the
State sets the Workers Compensation rate.
Cafferillo stated that Police and Fire Retirement costs have
increased substantially over 1991 . The 1992 Budget estimate
is $1, 010, 000 which is $457, 104 over the 1991 budget
estimate. The employees retirement payment has been reduced
by $220, 000 from 1991 . The $220, 000 was put into the Police
and Fire Retirement account. Cafferillo stated that the
employee retirement payment has been decreasing, but its
just a matter of time before this annual payment increases
significantly, probably 1993 .
Cafferillo explained that Social Security payments increased
$21, 000 from 1991 because of the new social security changes
which require that all PT and Seasonal employees also have
7 . 65% taken out of their paychecks .
Cafferillo stated that the Health Insurance 1992 Budget
amount is increased about $400, 000 from 1991 . He explained
Health Insurance costs have increased over the past few
years . He stated that the City has a 1992 proposed Health
Insurance contract. He stated that he analyzed the
possibility of the City going to a straight premium base
instead of the current self funded policy. Cafferillo
recommended that the City continue to be self funded with a
stop loss . The Health Insurance contract for 1992 will be
finalized within the next month.
E. Other Items
After a brief discussion regarding the CAC ' s 1992 expense,
the following motion was made:
RESOLVED, that account A8020-425 Planning Office Expense be
increased by $200 to reflect the CAC funding for 1992.
The motion passed 8-0 . Alderpersons Romanowski and Daley
were excused from the meeting.
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B&A BUDGET MEETING MINUTES 11/25/91
A discussion followed on the payment to the City from the
land under the Green Street Ramp and the Center Ithaca
reorganization. The City has received its first payment in
two years . It was determined that the land under the ramp
issue should be put on the January B&A Agenda for
discussion.
Chairperson Booth suggested that a dollar amount should be
put in restricted contingency for purposes of the possible
1992 State Aid Cut. No motion was made at this time. The
Committee will deal with this when the cuts are made.
7 . 1992 Tax Rate
Deputy Controller Thayer stated that the Mayor' s 1992 Budget
has been increased by $976 . Currently, the tax rate is at a
4 . 9% increase. The following motion was made:
RESOLVED, that the 1992 tax rate be established at $7 .70 per
$1,000 reflecting a 5-1/2% increase from 1991. This
represents a $44,190 increase in property taxes from the
Mayor' s Proposed 1992 Budget.
Voting results on the motion were as follows:
Ayes (3) Booth, Cummings, Peterson
Nays (5) Johnson, Golder, Schroeder, Blanchard,
Hoffman
The motion failed 5-3 .
The following motion was made:
RESOLVED, that the 1992 tax rate be established at $7.65 per
$1,000 reflecting a 4.9% increase from 1991.
Voting results on the motion were as follows :
Ayes (5) Johnson, Golder, Schroeder, Blanchard,
Hoffman
Nays (3) Booth, Cummings, Peterson
The motion passed 5-3 .
The meeting was adjourned at 11 :50 P.M.
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B&A BUDGET MEETING MINUTES 11/25/91
REVENUES
Mayor' s Recommendation $22,820,436
Net increase in Revenues through 11/21/91 : 44,442
Mayor' s Adjusted Revenues prior to
Budget meetings of 11/25/91 : $22, 864, 878
Action Taken Durin Meeting of 11/25/91 :
Reduce account A2025 Beach & Pool charges
to reflect elimination of Municipal Pool
Revenue included in GIAC Budget ( 2,475)
Mayor' s Adjusted Revenues as of conclusion
of 11/25/91 B&A/COW meeting: $22,862,403
Net reduction in revenues from 11/25/91
meeting: ( 2,475)
Summary
Combined net increase in Revenues after
11/7, 11/12, 11/13, 11/19, 11/21 and
11/25/91 meetings : $ 41, 967
Appropriated Fund Balance adjustments
through 11/25/91 meeting: $ 20, 000
Combined net increase in Mayor ' s Budget
through 11/25/91 : $ 976
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B&A BUDGET MEETING MINUTES 11/25/91
APPROPRIATIONS
Mayor ' s Recommendation $22, 820,436
Net increase in Mayor' s Budget through
11/21/91 : $ 67, 743
Balance Mayor' s Recommendation prior to
Budget meeting of 11/21/91 : $22, 888, 179
Action Taken During Meeting of 11/25/91 :
DPW
Reduction in A5142-125 Snow Removal
Overtime - to reduce overtime ( 5, 000)
Planning Department
Increase in A8020-425 Office Expense
to reflect the CAC funding for 1992 200
Mayor' s Adjusted recommendation as of
conclusion of 11/25/91 B&A/COW meeting $22, 883, 379
Net decrease in Mayor' s Appropriations
from 11/25/91 meeting: ($ 4, 800)
Combined net increase in Mayor' s
Appropriations after 11/7, 11/12,
11/13, 11/19, 11/21 and 11/25/91 meetings : $ 62,943
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