HomeMy WebLinkAboutOctober 09, 1986 COW COMMITTEE OF THE WHOLE MEETING
OCTOBER 9, 1986
The Committee of the Whole Meeting was called to order on October
9 , 1986 , in the Council Conference Room of City Hall, at 6 :30
p.m. Members present : Councilmen Gilliam, Moylan, Shales, Van
De Voorde, Waters and Mayor Verbic. Absent: Councilman Andersen.
City Hall remodeling
The City Manager reviewed with the Council the revised cost estimates
for Phases I and II of the City Hall Remodeling Project. The
estimates presented were as follows:
Reception $ 18, 000
City ,Manager 26 , 000
Legal/City Clerk 36 , 000
Building Inspection Services 30 , 000
Planning - Community Development 35 , 000
Credit Union/Unassigned/Conference 17 , 000
Parks and Recreation 11, 000
Council Chambers/Court Room -- includes conference
room and handicapped toilet 54 , 000
Computer center 39, 000
Conference Room 3 , 000
Estimated Construction Cost $ 269, 000
Additional Items :
Furniture (Council/Court millwork) $ 12 , 000
Asbestos removal 40 , 000
Fees - architect/engineer 50 , 000
Contingency 30 , 000
Estimated budget $ 401, 000
Less estimated recovery from Credit Union 9, 000
$ 392 , 000
Councilwoman Shales made a motion, seconded by Councilman Waters
to approve the revised estimates. Yeas: Councilmen Gilliam,
Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays:
None.
Discussion of Integrated Capital Budget .
The City Manager provided the Council with a revised analysis
of the Integrated Capital Budget requirements for 1987 and 1988.
The staff also identified additional funding which can be allocated
to the Capital Budget and include:
Committee of the Whole Meeting
October 9, 1986
Page 2
a) $100,000 estimated additional motor fuel tax savings from
reduced snow removal and delays on Clock Tower Plaza.
b) $400 ,000 estimated one-time sales tax payment recently approved
by the Governor for 1987 to reduce the lag in sales tax distribution
payments .
c) $100 , 000 in revenue sharing interest and additional payments .
d) $300 , 000 in additional surplus from 1986 as a result of
higher than anticipated revenues. This assumes that sales tax
will stay at the 4 . 9 percent levy increase for the operating
budget and not be abated.
The results of the changes, deferrals, reprogramming and revenue
allocations reflect the following:
Total Budget Unfunded
1987 $17 ,402 , 000 $ 3 , 920 , 000
1988 20, 597, 000 4 , 062 , 000
In addition, in later 1986 or early 1987 the permit will be
issued and the bond issue for the bridge will be an estimated
$5 , 700,000, requiring an annual funding between $450 , 000 and
$500 , 000.
Council requested information as to which projects could be
readily funded by bonds and what impacq& that would have on the
property tax rate. In review of the projects, those which could
be funded include:
1987
Route 58 ( including sidewalk vaults ) $1, 300, 000
Randall Road Interchange (releasing
availbale funds for other programming) 250, 000
Aerial ladder fire apparatus 285, 000
Park system improvements
Pavilion renovation $150 , 000
Wing Park restrooms 66 , 000
River bank stabilization 4 , 700
Lord' s Park restrooms 66 , 000
Riverfront acquisition 30, 000
Park development ( Zayre, Kiwanis
or alternative ) 104 , 600
BigTimber sewer interceptor 45 , 000
Committee of the Whole Meeting
October 9, 1986
Page 3
Street resurfacing ( assigning one time sales
tax to alternate program) 940 , 000
$3 ,241, 300
The cost of a bond issue will depend on two variables - the
length and the availability of the IMRF state pool. Assuming
5 .5 percent is available, the annual cost per each one million
dollars would be:
Annual Cost
Dollars Estimated Tax Rate Average House
5 years $234 , 000 . 054 10 . 80
10 132 ,400 . 030 6. 00
15 99, 500 . 023 4 . 60
20 83 , 700 . 019 3 . 80
The estimated revenue which could be raised through the recommended
source is .
Utility tax 1� $ 740, 000 Max. Avail. 5G
Sales tax 1% 4 , 800. 000
Gas tax 1� 350, 000 Max. Avail. 5�
Council requested whether sales tax could be levied excluding
a single category such as new car sales. Corporation Counsel
Jentsch has rendered a legal opinion indicating this does not
appear to be an available option.
Councilman Van De Voorde stated he felt staff should give the
Council a prioritized list of projects, the Council could then
approve as many projects as there was money available for said
projects. Councilman Van De Voorde further stated that this
is a blue collar community and he could not see adding additional
taxes on its citizens.
Councilwoman Shales stated she would only be willing to finance
the Route 58 project , Randall Road Interchange, Aerial Ladder
and Big Timber Sewer Interceptor, in 1987 by means of a GOB
issue.
Councilman Waters stated the Council needed to come up with
additional revenue or they should just forget the recommendations
of the Integrated Capital Budget Committee. Councilman Waters
further stated the staff should not be asked to prioritize the
projects if the Council is not willing to look at other sources
of revenue.
Committee of the Whole Meeting
October 9, 1986
Page 4
Councilman Gilliam stated the votes for further increases was
just not there. Councilman Gilliam further stated that the
equipment purchases, proposed in the subject GOB issue
could be accomplished if the park items were cut .
Councilman Van De Voorde stated that if we could not financially
take care of the parks we already have, we should not be adding
additional park property.
Councilwoman Moylan objected to, the proposed bond financing,
stating in the long run it . would cost the homeowner more, and
she did not think it was prudent financing to include street
resurfacing in a bond issue.
Mayor Verbic stated this is true of any type of financing, but
at least the homeowner would be able to deduct this on his income
tax and get some relief.
Councilwoman Shales made a motion, seconded by Councilman Gilliam
to proceed to issue a $3 ,000, 000 bond issue in 1987, to cover
the following projects, Route 58, Randall Road Interchange,
Aerial Ladder and street resurfacing. The bond is to be a five
year issue. The park improvements are to be reduced to $200 ,000 .
Yeas : Councilmen Gilliam, Moylan, Shales , Van De Voorde and
Mayor Verbic. Nays: Councilman Waters.
Adjournment
Councilman Waters made a motion, seconded by Councilwoman Moylan
to adjourn the meeting. Yeas: Councilmen Gilliam, Moylan, Shales,
Van De Voorde, Waters and Mayor Verbic. Nays: None.
L.
Marie Yearman, City Clerk