Loading...
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 2 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 3 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: 4 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. 5 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 6 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 : 7 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 8 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 9 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. 10 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. 11 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 12 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 13