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HomeMy WebLinkAbout1993-01-12 Council minutes 'I 1 , COMPLETE DESCRIPTION OF COUNCIL ACfIVITIES January 12, 1993 Iowa City City Council, special mccting, at 5:30 p.m. in thc Civic Ccntcr. Mayor Courtncy presiding. Councilmcmbers prcscnt: Ambrisco, Courtncy, Horowitz, Kubby, Larson, McDonald (5:42), Novick (5:45). Abscnt: Nonc. Staffmcmbers prescnt: Atkins, Hclling, Gcntry, Karr, Boothroy, Yucuis. Council minutes tape recordcd on Tape 93-4, both sidcs, Movcd by Ambrisco, sccondcd by Horowitz, to adjourn into cxccutive scssion to discuss stratcgy with counscl in mattcrs that are prescntly in litigation or whcrc litigation is immincnt wherc its disclosure woutd be likcly to prcjudicc or disadvantagc the position of thc govcrnmcntal body in that litigation. Thc Mayor dcclared the motion carricd unanimously, 5/0, McDonald, Novick abscnt. Rcturned to spcciat fonnal mccting 5:53 p,m. Movcd by Ambrisco, secondcd by Horowitz, to adopt RES, 93-4, Bk. 109, p. 4, DIRECfING SALE OF 37,300,000 SEWER REVENUE BONDS to Lchman Brothcrs of Ncw York City at NIR of 6.04374 and NIC of $2,157,213.61. Dave Dirks, Evcnsen Dodge, Inc., briefcd Council on the bond salc, ,Affinnativc roll call votc unanimous, 7/0, a1t Councilmcmbers prescnt The Mayor dcclared the resolution 'adoptcd, Movcd by Kubby, scconded by Larson, that the ordinancc amcnding Chapter 34, by adding a new Articlc IV, Division I cntitled "Commcrcial Pcsticide Application," which shall provide for regulating commcrcial application of pesticidcs and the enforccment thcreof, be givcn first vote for considcration. HIS Dircctor Boothroy prcsent for discussion, After discussion, movcd by Kubby, scconded by Larson, that Scction 34-79a, (Notification Sigu Requirements) be amended as follows: I) delctc "Iargc, bold Icttering on a brightly colored background" and replacc it with "bright ycllow background witll black Ictters"; 2) incorporation of a univcrsal statc cautionary statcmcnt "Keep off this property has becn chcmically treatcd with pesticides" and the dcletion of" ..,for cxamplc, "This property chemically treated with,,,,",,."; 3) inclusion of a statcmcnt "Such signs shall include a logo." and to specify the logo as in Ule state law; and 4) space be provided for a date of treatment on the sign. The Mayor declared the motion to amcnd carried unanimously, 7/0, all CouncUmembers prescnt. Council directed thc City Attorney to amcnd the ordinancc, Movcd by Horowitz Umt SecUon 34.79a, be amcndcd to read that thc minimum slzc of thc sigu should be 7x7. Thc Mayor dcclared thc motion dcad for lack of a sccond. Movcd by Larson, scconded by Kubby, to amcnd thc ordinancc to includc languagc Ulat anyonc commcrcially applying pesticidcs in Iowa City registcr wiUI thc City. The Mayor dcclared thc motion carricd, 4/3, Horowitz, Novick, Kubby, Larson voting in thc affirnlativc. Thc Mayor declared thc first considcration on thc ordinancc as anlcndcd carried, 4/3, with the following division of roll call votc: Aycs: Horowitz, Kubby, Larson, Novick. Nays: McDonald, Ambrisco, Courtncy. The Mayor statcd a special mccting would be hcld 1/14 at 5:30 (prior to the budgct work scssion) for sccond considcration of tllC ordlnancc, Movcd by Ambrisco, sccondcd by McDonald, to adjourn 6:43 p.m. Thc Mayor dcclared UIC motion carricd unanimously, 7/0, all Councilmcmbers prescnt, 7Jr~ J: -du/ Marian K, Karr, City Clcrk ),12spc,min . . ~ - ~ City of Iowa City MEMORANDUM Date: January 12, 1993 To: Mayor and City Council From: City Clerk Re: Council Work Session. Budget, January 12, 1993.6:30 p.m. In the Council Chambers, Mayor Darrel Courtney presiding. Councllmembers: Ambrisco, Horowitz, Novick, Larson, Kubby, McDonald. Staff present: Atkins, Helling, Yuculs, Karr, Franklin (S:40 p.m.). Tape recorded on Tape 93-5, Sides 1 and 2, 93,6, Side 1. Council reviewed the League of Munlclpalltles video 'Nightmare On Main Street.' City Manager Steve Atkins and Finance Department Director Don Yuculs presented an overview of the FY94 budget and proposed CIP. Atkins stated that the budget as presented Is balanced for a two year period. Atkins reminded Council the State has Imposed a property tax freeze. Atkins stated the current program of service for the next two years Is not dramatically altered. In response to Kubby, Atkins stated that a copy of the comp plan and a large city map could be made available during budget sessions. Atkins emphasized that health Insurance costs continue t~ be a concern and $2.37 million has Is budgeted for health Insurance purposes. Atkins also stated that a number of equipment commitment reductions were made. City Manager Atkins stated that four years ago the City 'conducted a formal actuarial study of the police and fire pension needs to Insure that the City complied with regulations; the City's pension fund was fully funded; and proposed the City schedule out over the next eight years to spend down the reserve In the form of contributions to the police and fire pension. Atkins noted that the City's contribution to the pollee and fire pension will Increase from 17% to 19.66%. Ambrlsco Inquired about each Department Head's participation In the budget process and If any positions could be eliminated. Atkins responded that the Department Directors do a very responsible job of budget preparation, and that as a City Manager, he would prefer to have fewer, better paid employees. Finance Director Don Yuculs, presented Information about the General Fund revenues. Yuculs explained the three major revenue sources In the General Fund are from property taxes, road use tax transfers, which pays for.much of the Public Works Department and Traffic Engineering, and the Employee Benefits transfer. Yuculs also explained the State property tax freeze limited the property tax growth In three areas: general levy, library levy, and transit levy. The freeze did not apply to the Employee Benefits levy and Debt Service levy. Yuculs explained the only growth allowable In the three areas that were restricted were from two areas, either new construction, additional or Imflrovements to existing structures, or annexation or phasing out of tax exemptions. Yuculs explained that the second area In which a City could have an Increase was the Inllatlon factor. Yuculs stated that because Iowa City's assessed value grew due to new construction, Iowa City could use the new construction factor and not the Inflation factor. Courtney referred to page 20 of the Proposed Financial Plan FY94-95, "The City could levy for tort liability but chooses to pay for this out of the generalS, 10 levy." Courtney asked why. Yuculs I-J.... - - .(,.~;"~,\l;:,\?:::'''',':~_'.',,, ., '.: ,....... . ~ ~ _ '. ", "_'" " "':.,;.i.'.! ::;,,~.:~':"',': ~$}7"':':~:'~I~~,:'~'t;~;'?l':~{;:~~"::l~""'" .'.;;~: '..;';', ;~ifh~li~,l~ .~;,.;,,::,';. :t..~ /; :~.:II::)~'I:';:' ,~I -.i, :":'.,1)~." ::':"~.~/I~ ':.!;:.':~'~..'''='':'',,;~,:..., ":"'.\"", ~!",;-,:~.~lfJ,\;::',~.')-".:"':.{:,' ~', .......z..!,<,. ~.,,':, 'f"',' '..,", _,~; ,~.;. >,;::-~,,/,"::,'."'~"':'!' , , January 12, 1993 *REVISEO 2/1/93 Work Sess I on Budget 2 explained It gives the City more flexibility In paying Insurance premiums. If the City levied a separate tort liability, the City would have to segregate those funds In a separate area and keep track of all those expenses separately. Yuculs noted that the City has been able 10 accumulate a certain dollar amount In loss reserve lor a major disaster. City Manager Atkins stated that the City cannot use the unlimited Employee Benefits levy until the City has reached the maximum 8.10 levy. Yuculs reviewed the rollback factor and how It affects residential values, Yuculs noted that there Is 52% residential and 48% commercial Industrial property values In Iowa City, and the commercial Industrial properties within the City of Iowa City are assessed at 100% of value. Yucuis stated that property taxes In the General Fund accounted for about 54% of the total General Fund revenues In FY93, and are projected to be 53% and 52% of the General Fund revues In FY94 and FY95. Yuculs stated tl]e other large source In General Fund revenues Is road use tax transfer. It is a per capita based revenue source and pays for 100% of the cost of the Public Works Street Maintenance Department and 100% of the cost of the Traffic Engineering Department. Yucuis stated the third major area of funding In the General Fund Is from the Employees Benefits Tax levy transfer and It is used to pay for General Fund employer costs that Include the employer's share of social security, IPERS, Yuculs noted that the FY94 and FY95 tax requests of $2,747,000 and $3,640,000 reflect the use of local police and fire retirement funds monies, The budget reflects the City using $344,000 in FY94 from that fund and $408,000 in FY95. Yuculs stated that based on recent Information, those figures will have to be Increased by another $100,000 each. Courtney noted that the Stale has said that the City cannot raise property taxes, but they have increased the City's pension liability contribution, Yuculs reviewed other revenue sources InclUding State aid revenue, Yucuis noted that there are five sources of revenue In the General Funds: monies and credit, military credit, personal property replacement tax, municipal assistance, and liquor profits. Yucuis stated that no fee Increases have been factored Into the two'year plan. Yuculs stated the Parks and Recreation Commission may make fee Increase recommendations to City Council in the future, and HIS has ' talked about Increasing their fees, Yucuis stated that the Parking Fund reflects the rate Increase approved on July 1 st, 1992. In response to Ambrisco, Yuculs explained the Capitol Street ramp revenues are slightly down, but the rest of the system has picked up and offset that decrease, Yucuis noted that fines are * considerably higher than anticipated, Courtney stated that he Is interested In receiving Information on the performance of the Capitol Street ramp, Yucuis stated there is no rate Increase proposed in the Transit, Wastewater Treatment, or Water funds In the two-year plan, Yuculs proposed that the Wastewater Treatment and Water fees be increased. Yucuis explained that the Refuse and Recycling fund rales are proposed to be Increased from $11 per month to $12.50 per month In FY94, and $13,50 In FY95. Atkins presented the memo: Citv Manaoer Review. Budoet Reductions from Proposals FY94. Atkins presented Capital Prolects throuoh Year 2000. Atkins explained there are two types of budget policy: operating budget policy, which is a year at a time, and capital budget policy, over a number of years, Atkins stated capital budgets Involve changes In the physical characteristics of the community, and are measured far more by capital assets, Atkins emphasized that the City needs to do a better Job on policy Involving capital budgeting, Atkins slated that in this budget, the City has $3 million of unassigned general obligation debt, which simply means that $3 million .r~~ 3 worth of projects could be proposed and financed within the constraints of the budget. Atkins stated a second Issue In the budget Is that the City anticipates $2 to $2.4 million from ISTEA .. Intermoblle Surface Transporatlon Efficiency Act. Atkins stated the City also has within the current Road Use tax reserves approximately $1 million. Atkins explained that decisions made on sewer refinancing allows the City to sell debt for the sewers of approximately $2 million without Increasing rates. Atkins stated In FY94 the City has general obligation debt service at $2,2 million. Atkins explained that from FY94 to FY02, the City can sell about $1 0 million worth of debt and not Increase taxes If It maintains the debt service at Its current level. Atkins stated that It Is Important for Council to establish priorities on the capital projects. Atkins stated that the City has G.O. debt capacity of $77 million and the City currently carries $13 million of G.O. debt. Atkins stated that staff Is preparing a list of what projects are not eligible for G.O. bonds. Atkins stated Council needs to consider how to appropriate available money Including the period of time, where, what, and how to pay for It. Atkins stated that another element of capital project planning Is that the commitment to the project should be sustained from Council to Council. City Manager Atkins reviewed the following criteria for capital project planning: 1. Mandates. 2. Mandates that are done by community choice. 3. Council's general responsibility relating to health, safety and welfare. 4. Interest group criteria. 5. Is money going to be available. 6. Will the project further some kind of City goal. 7. A capital project that will cause something to occur. 8. Is It representative of some safety concern. 9. Will the capital project affect the operating budget. 10. What are some of the other Interest group factors. 11. Is the project a less costly alternative. 12. Is It a long.standlng commitment. 13. Long.standlng commitments. 14. Do you establish new goals by the capital project planning process. 15. Industrial park .. are you creating employment opportunities. 16. Branch library. 17. All kinds of other mandates, I.e. stormwater, ADA. Larson requested staff Input for each project. Atkins stated staff can prepare Information about the pros and cons of each project. Mayor Courtney announced that another budget work session Is scheduled for January 14th, 1993, 5:30 p.m., following a brief formal meeting. c101k\cc1.12.mln I-.:2... ..