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HomeMy WebLinkAbout22 - November 11, 2011 COW - Special Meeting SPECIAL COMMITTEE OF THE WHOLE MEETING November 11, 2011 The special Committee of the Whole meeting was called to order by Mayor Kaptain at 1:00 p.m. in the Council Chambers. Present: Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Budgetary Discussion City Manager Sean Stegall gave a brief overview of the meeting’s agenda. The objectives were to finalize the budget schedule, discuss the big picture of the 2012 proposed budget and the 2012-2016 General Fund Financial Plan, discuss how the City compares with other local municipalities and review any questions from the Council. (presentation is on file in City Clerk’s office) Budget Schedule City Manager Stegall reviewed the proposed budget schedule. Included in the schedule was an interactive public hearing on November 19, 2011. It was suggested that questions regarding the budget could be received prior to the meeting date as well as taking questions during the session. Discussion of 2012 Proposed Budget and 2012-2016 General Fund Financial Plan City Manager Stegall reviewed what the City has done over the past five years with regards to budget circumstances. He noted in 2008 and 2009 there were work force reductions and strategic initiatives were put on hold. Mayor Kaptain asked Colleen Lavery, Chief Financial Officer, the impact of a potential decrease to the City’s current AAA Bond Rating. She noted that it would increase the interest rate the City would pay to borrow funds and it would cost more to complete projects. There was discussion regarding how the bond rating agencies determine the ratings. It was noted that there are many factors that are used such as budget, fund balance, and comparisons to peers. City Manager Stegall presented three proposed budgets: balanced, revenue only, expenditures only (outlined in presentation slides). Mr. Stegall noted that the City was the first to cut, the last to tax, and the core services remain intact. Mr. Stegall noted that the budget document is a plan, a statement of intentions and can, and often has, changed after approved. Committee of the Whole November 11, 2011 Page 2 With expenses only proposed budget there would be staff reduction equaling 20% for Fire, Police and Public Works. This would impact snow removal routes, number of officers on the streets, the closure of two fire stations. Also, impact by the expenses only budget would be the elimination of the Parks and Recreation programs. There was a discussion regarding repurposing the Hemmens into a rental facility in 2012. Currently there are building issues, not enough seats and it is hard to compete with other venues in the area. The Hemmens is on a rolling fiscal year, via a performance calendar, this proposed change would not take place until July 2012, The Leaf Removal program has been proposed to be eliminated in the past. There were concerns about the program being inequitable with all residents paying for the areas that allow for the rake out of leaves. There is an option to add a fee for service, $24 per year, to the residents in the rake out areas. Councilmember Powell questioned the value of the program and if there was a better use of the staff’s limited time. David Lawry, Public Services Director, noted that if staff was not picking up the leaves certain street and curb and gutter repairs could continue. Revenue Side The tax levy rate of $1.92 per $100 assessed value has held steady for 19 years. The proposal would be to stabilize the tax levy at $4.2 million dollars as oppose to using a tax rate of $1.92. This means that the property owner’s taxes would remain the same even if there was a fluctuation in the value of the property. There would be further discussion regarding EAV (equalized assessed value) at future budget meetings. A proposed refuse fee of $18 per year would provide a stable revenue source. The fee would also cover the administrative costs of the service. This refuse fee would affect residential property owners as businesses contract their own waster removal service. There was a break from 2:35 p.m.-2:45 p.m. Compare to other municipalities City Manager Stegall presented the Council with a spreadsheet comparing the City to twenty- eight other communities. Areas of comparison were the types of taxes utilized and the property tax rate. Committee of the Whole November 11, 2011 Page 3 Over the last 5 years revenue from the Riverboat has steadily decreased. It was stated that the money should be used to provide the greatest good to the greatest number of people in the community and based on that assumption funding to several community groups would be eliminated. Funding for community programs/groups have in the past come from Riverboat funds. It is proposed to eliminate the funding for 16 different groups and projects, but keep funding for the 4th of July parade and the Public Museum. An alternate to outright funding of these not for profit groups would be to have a program they could apply to for $150,000. Councilmember Gilliam expressed concerns about the impact on these groups in particular the Boys and Girls Club. There was discussion about who the groups serve; residents vs. non residents, what percentage of their budgets come from the City; and the potential to use the community restitution program. A proposed home rule sales tax increase of .50% would bring the total tax to 1.25%. These funds would be dedicated for street and combination sewer repairs. There was a discussion on if this would impact consumers buying habits. It was noted that this funding would be in addition to current MFT (Motor Fuel Tax) funding. Summary and Questions There is a total of $4.8 million in expenditure reductions with $2.8 million from the general fund and $2.0 million from the river boat fund. There is a need to stabilize the levy at $47.3 million. And to enhance current revenue streams there is a proposed refuse fee of $18 would be used for reducing the deficit and the repairs to the 911 system and a proposed home rule sales tax increase would be earmarked for street and combined sewer repairs. Adjournment Councilmember Gilliam made a motion, seconded by Councilmember Steffen, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. The meeting adjourned at 4:17 p.m. s/ Kimberly Dewis 2011 Kimberly Dewis, City Clerk Date Approved