Loading...
HomeMy WebLinkAboutMN-B&A-1993-11-16 - Budget Meeting BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 7 :30 P.M. NOVEMBER 16, 1993 MINUTES Present: Committee Members: Booth, Berg, Romanowski Committee Members Excused: Daley, Johnson Other Alderpersons Present: Blanchard, Schroeder, Hoffman, Efroymson Alderpersons Excused: Golder Others Present: Mayor - Nichols City Controller - Cafferillo Deputy Controller - Thayer Building Commissioner - Eckstrom Deputy Building Commissioner - Radke Planning Director - VanCort BPW Chairperson - Reeves Members of the Council Elect Members of the media Members of the public 1 . Opening Comments Chairperson Booth stated that the agenda for this meeting is as follows : A. Building Department B. Revenues C. Planning Department D. Other Items ( Insurance, benefits, miscellaneous) Members of the public were asked to speak on the budget; no members spoke. Members of the Council were asked to address additional concerns on the 1994 Budget; no members spoke. 1 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 The Committee briefly discussed the continuance of the Vacancy Review Committee for 1994 . The Committee agreed to continue the Vacancy Review Committee for 1994 with the same format it has operated with since its inception. 2 . Building Department Budget The Mayor recommended a Building Department Budget for 1994 in the amount of $423, 642 . Building Commissioner Eckstrom explained that his 400 account lines have stayed the same or lowered as compared to 1993, with the exception of the advertising account, which increased $100 and the telephone account, which was increased by $350 . He explained that there was an error in the 110 Staff Salaries account. City Controller Cafferillo agreed and stated that the A3620-110 account will be increased by $10, 482 for a total of $321, 718 to reflect the calculation error. Cafferillo stated that the fund balance will be appropriately adjusted by $10, 482 . The Committee agreed to the change. Eckstrom continued to explain that the Building Department would like to consolidate the positions of Housing Inspector and Building Inspector into one position with the title of Inspector. Deputy Building Commissioner Radke stated that this change would allow the department to become more efficient and effective. She explained that currently the Housing and Building Inspectors are limited in the scope of duties that can be performed. She stated that if the positions were combined into a general inspector position, the position could perform both Building Inspector and Housing Inspector tasks . Eckstrom stated that he recommended this to the Mayor for inclusion in his budget for 1994, but the Mayor did not include this consolidation of positions in his budget. Mayor Nichols stated that the duties were not written and Civil Service had not acted on the position consolidation, and to place an unknown position in the budget would not be correct. He stated that the principal of the idea is good. A discussion concerning the position consolidation continued. Eckstrom stated that salary adjustments for four possible inspectors would cost the City $10, 300 for one year. He felt that the position would pay for itself by the increase in revenue generated by the inspector positions . Cafferillo explained that currently the Building Department is not meeting its 1993 estimated revenue projections, and may be off by $15,000 . Eckstrom explained that the revenue projections were not being reached because inspectors ' time has been 2 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 billed out at 10%. He stated that within the last two months, the department has made accounting changes and the bill-out rate has increased to 25% . He felt the bill-out rate would reach between 25% and 50% A discussion regarding the position followed. The Committee stated that a portion of the $10, 300 salary increases should be placed in the 1994 budget for the purposes of funding the inspector positions for a part of 1994 . After a discussion concerning the amount, the following motion was made: RESOLVED, That Account A1990 Restricted Contingency be increased by $6, 000 to fund the consolidation of the Housing Inspectors and the Building Inspectors into a General Inspector title for a portion of 1994 . Eckstrom agreed that the position would take some time to be created and approved by Civil Service. Voting results on the motion were as follows : Ayes (5) - Blanchard, Hoffman, Booth, Efroymson, Romanowski Nays (2 ) - Berg, Schroeder The motion passed 5-2 . Chairperson Booth suggested that the open housing inspector position funding in the Building Department be deleted for 1994 . He explained that the position should be left unfunded for 1994 . He made a motion to delete the funding for the vacant housing inspector position of $23, 740 . The motion failed for lack of a second. Other elements of the Building Department' s budget were discussed, and the following motion was made: RESOLVED, That the 1994 Building Department Budget be approved, as amended, in the amount of $434, 124 . The motion passed 7-0 . 3 . Revenues A discussion concerning the City General Fund Revenue Accounts followed. 3 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 Account A1560 Safety Inspection Fees was discussed. The Mayor recommended an amount of $63, 000 for this account in 1994 . It was noted that this represented a $19, 000 increase from 1993 . It was also noted, to date, only $21, 000 has been received of the 1993 budget amount of $44, 000 . Building Commissioner Eckstrom stated that the bill-out rate for his inspectors was too low, and that has caused the lower than expected revenues . He explained that accounting changes have already increased the bill-out rate to 25%, and he expects that the bill-out rate will ultimately be between 25% and 50% . He expects the 1993 revenue to be a $30, 000 by the end of the year, and he expects the $63, 000 to be obtained for 1994 . A discussion regarding this revenue account continued. Chairperson Booth stated that the revenue projection was too high, and made the following motion: RESOLVED, That Account A1560 Safety Inspection Fees be reduced by $13, 000 to a total of $50, 000 . Voting results on the motion were as follows : Ayes ( 1 ) - Booth Nays ( 6) - Blanchard, Romanowski, Berg, �./ Schroeder, Efroymson, Hoffman The motion failed 6-1 . The Committee stated that as part of their regular duties, the department should be able to attain the $63, 000 projected revenue. Cafferillo stated that the revenue will be monitored on a monthly basis, and if changes are necessary, they will be made in 1994 . Account A1101 Sales Tax Revenue was discussed. The Mayor recommended an amount of $7, 096, 890 for this account in 1994 . City Controller Cafferillo explained to the Committee how the sales tax amount was derived, as follows : A. Total of the last (4) Audited Sales Tax Revenue Quarters $5,401, 620 B. Average 1/4% based on last 4 Audited Quarters, or 1/6 of $5, 401, 620 900, 270 C. Contract with County ( $825, 000) less Human Services funding now with the County ( $165, 000) 660, 000 4 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 D. Inflation factor of 2% 135, 000 $7 , 096, 890 Cafferillo stated that the City is now receiving its percentage of the new 1% Sales Tax from the County, and it amounted to $199, 005 for the period from July, 1993 to September, 1993 . He also explained that the City/County contract for sales tax revenue will be shown as revenue in the City's Sales Tax Revenue account. He explained that the money related to the City/County contract of $660, 000 is funding the following areas in the 1994 budget: Southside Center $ 25, 000 Transit Operations $435, 000 Youth Development $200, 000 Cafferillo explained that the only amount to adjust on the sales tax revenue is the 2% inflation factor. He stated that this was derived by using the current CPI rate 2 . 7% - 3 . 0% and the overall sales tax rate state-wide of 1% . He also stated that this year' s 1993 Sales Tax Revenue projection of $6, 147, 327 will not be reached because of the following items: A. $180, 000 of negative prior period sales tax adjustments B. $100, 000 delay of impact on 1% increase in sales tax C. A . 7% inflation factor increase instead of 2 . 7% as projected for 1993 The Committee discussed the sales tax revenue. The following motion was made: RESOLVED, That the 1994 Sales Tax Account A1101 be reduced by $33, 750 to reflect a .5% decrease in the inflation factor used to derive the 1994 Sales Tax Revenue. A motion to substitute was made: Substitute "a reduction of $67,500 in the Sales Tax Account" instead of $33, 750 . Voting results on the substitute motion were as follows : Ayes (4) - Booth, Blanchard, Berg, Efroymson Nays (3) - Schroeder, Romanowski, Hoffman The motion to substitute passed 4-3 . 5 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 The original motion with the amendment was made: RESOLVED, That the 1994 Sales Tax Account A1101 be reduced by $67,500 to a total of $7, 029, 390 to reflect a 1% decrease in the original inflation factor of 2% . Voting results on the motion were as follows : Ayes (4) - Booth, Blanchard, Berg, Efroymson Nays ( 3) - Schroeder, Romanowski, Hoffman The motion passed 4-3 . A discussion concerning Revenue Accounts A1220 Parking Lots & Garages, A1750 Bus Operations, and A2110 Zoning Fees followed. Deputy Controller Thayer stated that A1750 could be increased by $3, 600 to reflect the original projections by the Transit Supervisor, Nancy Oltz . It was also noted that the zoning fees account could be increased by $300 to reflect the original projections of the Building Department. The Committee agreed on the changes . Account A2012 Recreation Concessions was discussed. The Mayor recommended a revenue amount of $140, 500, the same as 1993 . The 1993 estimated receipts are $130, 000 . A motion to delete $10,500 from this account was made. The motion failed for lack of a second. Account A2262 Fire Protection Services was discussed. Cafferillo explained that the $1, 311, 675 amount represented the City' s contract with the Town for fire services . He explained that because the 1993 purchase of fire vehicles by the City will not be made until 1994, the contract amount may reduce by approximately $10, 000 . He stated he will examine this further and report back to the Committee before the budget is adopted. Account A2660 Sale of Property was discussed. Cafferillo explained that the net sale of the Strand will be accrued in the 1993 budget at $220, 000, but will be shown in the 1994 budget as part of the fund balance appropriations amount of $481,563 . Account A2705 Gift & Donations was discussed. It was noted that this account reflected the Cornell payment of fire protection to the City. Alderperson Berg strongly suggested that the City renew its intent and committee with Cornell to pay for its fair share of City fire protection services . � 6 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 Interfund Revenue Accounts were discussed. Cafferillo explained that the amounts reflect an increase to allow for the use of City Hall finance collections charge-backs to various funds . Other revenue accounts were discussed, including State and Federal Aid revenue. It was noted that there were no large- scale reductions in State Aid as was the case in 1991 and 1992 . The following motion was made: RESOLVED, That the General Fund Revenues be approved, as amended, in the amount of $17, 847, 958 . Voting results on the motion were as follows : Ayes ( 6) - Booth, Efroymson, Berg, Blanchard, Romanowski, Hoffman Nays ( 1) - Schroeder The motion passed 6-1 . 4 . I.N.H.S. Budget The Mayor recommended an I .N.H. S. Budget for 1994 in the amount of $83, 000. This represents a zero increase from 1993 . The Director of I .N.H. S. , Paul Mazzarella, stated that I .N.H. S. and Mutual Housing have consolidated to improve low- income housing services to the City. He explained that I .N.H. S. invests over $2, 000, 000 into the Ithaca community during an average year. The Committee asked Mazzarella to send a memo on how the $2,000, 000 is spent in the community. It was noted that I .N.H. S. requested $85, 000 in funding for 1994. Alderperson Efroymson stated that I .N.H. S. does a lot for the low-income housing problem in Ithaca, and they should be rewarded by increasing their budget to $85, 000 . He made the motion to increase the I .N.H.S. Budget to $85, 000 . The motion failed for lack of a second. A motion to accept the budget was made: RESOLVED, That the I .N.H. S. Budget for 1994 be approved as recommended by the Mayor in the amount of $83, 000 . 7 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 Voting results on the motion were as follows : Ayes ( 6) - Booth, Berg, Blanchard, Schroeder, Romanowski, Hoffman Nays ( 1 ) - Efroymson The motion passed 6-1 . 5 . Planning Department Budget The Mayor recommended a Planning Department Budget for 1994 in the amount of $321, 797 . Planning Director VanCort stated that the Mayor's recommendation for his budget were the same as his request. He noted that the department reduced its hourly personnel costs by $9, 997 as a result of a personnel resignation during 1993 . VanCort explained that the Planning Department will work within the recommended funds . A discussion followed with Alderperson Efroymson relating to a staff person in City Hall to improve outreach to the Ithaca community. He stated that a staff person needs to notify the community on certain meetings and various projects currently ongoing in the city. Mayor Nichols stated that the City is not in the position to add such a person at this time. The following motion was made: RESOLVED, That the Planning Department Budget for 1994 be approved in the amount of $321, 797 . The motion passed 7-0 . 6 . Other Items A. State Retirement City Controller Cafferillo explained that the payment amount is lower, as it has been for two years, but that the rates are subject to change because of the current litigation involving the NYS funding method. He explained that the City has encumbered some funds if the decision is changed, and the rates begin to increase again. It was noted that Account A9010 State Retirement has an amount of $18, 462 budgeted for 1994 . Account A9015 Police and Fire Retirement has an amount of $825, 904 budgeted for 1994. L 8 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 B. Health Insurance Cafferillo stated that the 1994 budget includes $1, 896, 852 for City Health Insurance in the General Fund. He stated that the rates are somewhat lower in 1994 . He explained that 1993 has been a good year relative to health insurance, and he has used some of the savings to offset the shortfalls in sales tax revenue. A discussion concerning domestic partnerships and its relation to the Health Insurance Program followed. The Controller and the City Attorney will look into the domestic partnership issue. C. Insurance/Contingency Cafferillo explained that the 1994 Budget includes $464, 940 for General Fund Workers' Compensation insurance. He explained that the City has saved about $200, 000 over the past two years in this area, because of a redistribution of various City employees Workers ' Compensation classification. He stated that his office continues to monitor all Workers ' Compensation activity. The Contingency Account was discussed by the Committee. The 1994 Budget has $880, 000 in the Contingency Account for `./ various purposes in 1994 . The following motion was made: RESOLVED, That the various General Fund Special Items and Benefits be approved as recommended by the Mayor in the 1994 Budget. The motion passed 7-0 . The next budget meeting will be November 17, 1993 . The meeting adjourned at 10 :20 P.M. 9 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 Revenues Mayor's Recommendation $24, 869, 204 Increase A2110 Zoning Fees to reflect increase in estimate 300 Increase A1750 Bus Operations to reflect increase in estimate 3, 600 Reduce A1101 Sales Tax to reflect a 1% reduction in the estimated inflation factor ( 67 ,500) Mayor's Adjusted Revenues as of Conclusion of 11/16/93 B&A/COW meeting $24, 805, 604 Net Reduction in Revenues from 11/16/93 meeting $( 63, 600) Combined Net Reduction in Mayor's Revenues after 11/11, 11/16/93 meetings $( 63, 600) Combined Net Increase in Mayor's Budget (Revenues and Appropriations) after 11/11, 11/16/93 L..! meetings $70,550 u 10 B & A COMMITTEE - BUDGET MEETING NOVEMBER 16, 1993 APPROPRIATIONS Mayor's Recommendation $25, 350, 767 Net increase in Mayor's Budget Approprations through 11/11/93 950 Balance Mayor' s Recommendation Prior to Budget Meeting of 11/16/93 $25, 351, 717 Action taken during meeting of 11/16/93: Building Department Increase A3620-110 Building Department Staff Salaries by $10, 482 to reflect calculation error in Mayor' s Budget - Fund balance will be adjusted -0- Contingency Increase A1990 Restricted Contingency to fund Inspector position in Building Department for 1994 6, 000 Mayor's Adjusted Recommendation as of conclusion of 11/16/93 B&A/COW meeting $25, 357 , 717 Net Overall Increase in Mayor's Appropriations from 11/16/93 meeting 6,000 Combined Net Increase in Mayor's Budget Appropriations after 11/11, 11/16/93 meetings $ 6, 950 11 41 CITY OF ITHACA 10B EAST GREEN STREET ITHACA, NEW YORK 14650 OFFICE OF TELEPHONE: (607)274-6576 THE CONTROLLER FAX: (607)272-7348 MEMORANDUM TO: Members of Common Council Department Heads FROM: Steven P. Thayer q-07 Deputy Controller DATE: November 30, 1993 RE: Addition to Budget Meeting Minutes from November 16, 1993 Attached is an additional report, which was omitted, to the minutes from the November 16, 1993 Budget Meeting. I apologize for the omission. SPT:cs n "An Equal Opportunity Employer with an Affirmative Action Program- ri�r Recycled Paper