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.
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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
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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.
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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
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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 .
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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 .
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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
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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.
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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
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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
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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
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