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HomeMy WebLinkAbout1994-01-06 Council minutes i ;.; I': .."",.". - ----"" ---, --......... ~ -'-, -- - ~ ~""---,..-.---- _. .... .....------,~..... ....-- ... ----- ~ . t,' ,,"t-I,'.i '/71' " ,,-I,' /:t . . . : ,: '. . .' ," . ,../: '.. " ..' .' ",' " . .. _. ._ ~. I '-"".' ", I t' / J ,'/ \ . 1 ,(..' ~.------- -. COMPLETE DESCRIPTION OF COUNCIL ACTIVITIES JANUARY 6, 1994 , I I, I , r f ! I Iowa City City Council, special mtg., 7:00 p.m. et the Civic Center. Mayor Horowitz presiding. Council Members present: Baker, Horowitz, Kubby, Lehman, Novick, Pigott, Throgmorton. Absent: None. Staffmembers present: Atkins, Helling, Bormann, Karr, Fosse, Mansfield, Yucuis, O'Malley. Council minutes tape recorded on Tapes 94.4. Moved by Novick, seconded by Baker, to edopt RES. 94-10, Bk. 111, p. 10, AUTHORIZING EXECUTION OF A CHAPTER 28E AGREEMENT BETWEEN THE CITY OF CORALVILLE AND THE CITY OF IOWA CITY REGARDING CERTAIN FINANCIAL OBLIGATIONS INVOLVING THE RECONSTRUCTION OF U.S. HIGHWAY 6 FROM FIRST AVENUE IN CORALVILLE EASTERLY TO ROCKY SHORE DRIVE IN IOWA CITY. City Engr. Fosse present for discussion, Affirmative roll call vote unanimous, 7/0, all Council Members present. The Mayor declared the resolution adopted. Moved by Novick, seconded by Throgmorton, to adopt RES. 94-9, Bk. 111, p. 9, AUTHORIZING EXECUTION OF AN ADDENDUM TO THE PRECONSTRUCTION AGREEMENT FORTHE IOWA HIGHWAY 6 PAVING IMPROVEMENT PROJECT FROM ROCKY SHORE DRIVE TO FIRST AVENUE WITH THE IOWA DEPARTMENT OF TRANSPORTATION AND THE CITY OF CORALVILLE. Affirmative roll call vote unanimous, 7/0, all Council Members present. The Mayor declared the resolution adopted. The Mayor noted thet a conflict existed with the regularly scheduled meeting 3/14 and 3/15 with the National League of Cities and requested Council Members check their calendars for possible re-scheduling a week ahead (3/7 & 3/8) or back (3/21 & 3/22 spring break); and stated she would be contacting Members regarding serving with the City Manager end herself on the School Safety Committee. Kubby requested Council consider waiving the second reading of the pesticide ordinance on 1/18. Six members agreed to waive second consideration on 1/18. Moved by Lehman, seconded by Kubby, to adjourn 7:15 p.m. The Mayor declared the motion carried unanimously, 7/0, all Council Members present. 4wa-~ 'n,. &.:otJ Susan M. Horowitz, Mayor 7t~~y t: K,~ Mar n K. Karr, City Clerk sharadlcclarklccl.0,mln , , \ !: , , , I,: " , ' - -- - - I ' , , . i ' , . ... i [,' j i' , Iii ] I Ii! \ " :' ., " I :i ': , il . I I :1 I , I , I I . , I ~ I i Il " Ii (~ 'I':i '(. 'hI ! ,i " , ,I - ~"'" ~ - ~-- ~ -..-, ...... -- ~ -. ........ .. , " Jt , .' . . ,.' ; I ~ ' n ..,h ":h' .:;t. :".", ,,' , . -. - - - . .' , , " d, --'-- City of Iowa City MEMORANDUM Date: January 27, 1994 To: Mayor and City Council From: City Clerk Re: Council Work Session, January 6, 1994 - 7:00 p.m. in the Council Chambers Mayor Susan Horowitz presiding. Council Members: Horowitz, Novick, Kubby, Pigott, Throgmorton, Baker, Lehman. Staff present: Atkins, Helling, Karr, Yuculs, Mansfield, Tape recorded on Tapes 94-3, Side 2; 94.8, Ail; 94.9, Side 1. . BUDGET PRESENTATION AND DISCUSSION: Reel 94-3, Side 2 Atkins stated there are format changes In the budget and it Is again a three-year plan. Atkins stated that revenue and expenditure projections were based on the property tax freeze continuing. Atkins noted that by law the City Council can appropriate the budget annuaily, and the budget Is due by March 15. Atkins explained that the property tax freeze reduces local revenues that Council should have the discretion to use and aid in decision making. Atkins stated that current budget projections are based on the machinery and equipment tax exemption not occurring, and if It were to occur, there would be a loss of $700,000 annuaily in revenues. Atkins stated that he would like to see a simplification of the property tax code as it affects ~.~ ' Atkins raised concems about further reduction of state aid and replacement monies. Atkins stated that In the current budget projections staff has reduced state aid and replacement monies by 5% in the first year and then f1alllned the state aid In future years. Atkins noted that the state controls approximately 82% of the revenues that are available to the City and Iowa City Is much more severely restricted In its ability to invest Its money. The state has also capped the bank franchise money. Atkins presented Information regarding property values and the roil back factor. Atkins explained that the statewlil add more mandates and reduce the City's Involvement In programs that the City has traditlonaily managed. A year ago Iowa City lost the Poilce and Fire pension. Atkins stated that additional revenue options that exist now are sales and a wheeltax. In response to Throgmorton, Atkins explained a wheel tax Is a vehicle tax whereby a person must have a sticker to have a car and you would have to buy a new sticker each year. Atkins stated the Intent of the vehicle tax would be to earmark funds speclflcaily for street and road Improvements. Throgmorton asked If It would be possible for Iowa City to enact a gasoilne sales tax. Atkins stated no, and explained the sales tax In Iowa ailows the City to enact a sales tax on the same Items the state taxes, lUll!lI ndJ, I-;L ...... , I: Iii I I I I 'I . I Ii 1/, II , " Ii 'i " i f: : , " , " I ~ I I' I; " I,] I I I I 1.;'- I ,I . I' " . i! i' i' .,........."IlIIIf",. -- --~---. ~...... ~ ;' ....... -- ~ -- ,....-..--,.........---- / ' '.' .'! , .' ,_ " J' . , t 1 ' L" L 121'. ,~, . ,I'.' FI,. r-:i ' "';'""JJ.' , ,"',,' " - - -' '''' " . '1 2 Atkins explained that the budget includes a number of operational unknowns such as social security taxes, pension rate and benefits, and health insurance, Atkins explained that the employee benefits levy is not frozen and the City "does an annual profile of its employees, Atkins noted that the City of Iowa City has very low turnover rate and the City Is seeing more career employees. Atkins reviewed expenditures. He stated disbursements in FY95 were $79 million and are projected FY95 $80.2 million; noted the substantial change is because of the assisted housing funding; stated that general fund expenditures In FY94 were $25.635 million and are projected $26.60 million in FY95. Atkins stated that the budget reflects a cautious spending pattern and the general pattem of spending and meeting service requirements should run fairly consistent year to year. Kubby requested some information regarding the inflationary index, Finance Director Yucuis stated that last year the inflation factor was 1.72%; for each 1 % of the inflation factor the City could add about $128,000 to the general fund that would affect the general levy, library levy and the transit levy. Atkins stated that the Inflation factor is needs-based and is controlled by the state, Atkins presented Information about budget balancing. Atkins stated a goal is to have a consistent sustainable budget policy. Atkins stated that there is very little elasticity In the City's revenue package because the revenue base Is controlled by the state. Atkins stated he tries to calculate the available revenues and calculate into that a growth factor. Atkins stated that if the University of Iowa buys the Thomas and Betts building the City would need to subtract $21,000 in tax revenues. Atkins reviewed overailtaxable values (budget, page 8), Atkins reviewed disbursements and noted that general fund Is 30.6% of the budget; debt 4,8%, parking 5.1%, wastewater 16%, water 4%, landfill 4%, housing 10%, road use 4%, and CDBG 2%. Within the general fund property tax Is about 66% of the revenue. Atkins explained that the City's debt levy Is up but overall tax rate Is down and the reason it Is down Is because of the arithmetic associated with the property tax freeze and the City's growth. Atkins explained the budget preparation process. He stated that payroll remains a priority and that payroil is the largest portion of the operating budget. Atkins stated those figures can be predicted quite accurately. Atkins stated health costs are a fixed number, life Insurance Is a percentage of payroll, social security Is a percent of payroll, and that payroll Is bUdgeted at 99%. Atkins reviewed the Police and Fire pension. Atkins stated the state took over the pension system and are now choosing not to contribute. Atkins explained that the City ended up with money after the Pollee and Fire pension was transferred to state, but stated that money can only be used to reduce the City's liabilities for Pollee and Fire pension. Atkins explained that the budget reflects using $500,000 from that reserve to pay the Pollee and Fire pension and then continue to utilize those monies over the following 7.10 year period. Atkins reviewed a summary of the employees' benefit general fund (budget, page 108). Kubby suggested that the $192,000' budgeted from the general fund $8.10 levy used for employee benefits be taken out of the employee benefits levy so that the general fund monies could be used for other programs. Yuculs cautioned that the state manipulates the rates so that if the City Increases the general levy up to $8.10 the state will then decrease the employee benefits down. Atkins reviewed reserve fund transfers. Atkins explained that last year the $65,000 transfer to transit and $100,000 transfer for the purchase of fire equipment was not made. Atkins noted that last year the City did transfer $60,000 to the library's audio visual computer replacement fund. , " Ij I Iii I I , . ;i Ii ,,, " 'i' , I :, I. I h r: , 1'1 , , i i I,! i I , I I I, ., I , I. I I , I :j " I. , i I I'. " .:r <1. . , . ~-:----""W\.... . r " cl ki'.' .t. ':, ,171-,: . ...,.,:",. . '. ". , .17:"1 ", ,I " . : . . - ,- ',~I \ " . ,-- . -.' .' 3 . Atkins informed Council that the FY95 budget represents the transit transfer, a $50,000 transfer for fire equipment, a $30,000 transfer for library, Atkins stated this budget represents a rather significant reduction in travel and education and that levels were cut back to FY94 levels. Atkins stated that new position requests In the budget amount to approximately $450,000. Atkins cautioned Council that many of the capital expenditures proposed, such as library addition, airports, and conference centers, all require staff. Atkins stated that when new Initiatives are established they can cause Increased operational costs. Atkins noted the library Is actively Involved in putting together expansion plans and are going to come to Council for additional staff. Atkins stated the budget represents selective capital equipment reductions. Atkins reviewed that $270,000 In general fund and about $120,000 in various enterprise funds were taken out. Atkins stated that CDBG monies and assisted housing programs show dramatic increases and those programs operate strictly on the revenues that are generated by the programs. Atkins. stated that there is a general fund contribution to CDBG because the CDBG staff does other things beyond CDBG. Horowitz raised concerns that agencies utilizing CDBG funds now need larger facilities and companion operating funds. Atkins stated that it becomes a political question for Council to respond to these additional funding requests. Horowitz stated that the City needs to find the money for the increased operating costs. Atkins reviewed major changes in the budget. Atkins explained that under risk management (budget, page 122) th'e City did en actuarial study which demonstrated the City should maintain its lost reserve at approximately $1.3 million per year. Atkins noted that the actual insurance expense decreased dramatically (budget, page 54), and the City increased its exposure from. $50,000 to $100,000. Atkins noted that the Assistant Finance Director and the Administrative Secretary within the Department of Finance now charge a portion of their time against that fund to save the general fund money. Yucuis noted that the Administrative Secretary and the Assistant Finance Director are charged In three areas: fixed 55% finance administration, a portion to risk management, and a portion In employee benefits. Atkins stated that the City has gone to self. Insurance on workers compensation and In the last couple of years the City has received an $80,000 rebate. In response to Horowitz, Atkins stated that different departments are continually evaluated with risk management. Atkins stated that the City may wish to hire safety risk management employee. Atkins pointed out some noticeable Increases In the budget, Atkins stated that the proposed budget shows general fund contributions for parks projects at FY95 $139,000, FY96 $167,000, and FY97 $165,000. Atkins stated that City has an obligation by state law to balance the budget and In FY95 the budget Is balanced. For FY96 and 97 the budget is balanced by using cash from the reserves. Atkins stated that he believes that the City needs a reserve posllion In the general fund of approximately 10% which Is $2.5 million Inflation adjusted. In response to I<ubby, Atkins stated that If grant monies do come In lower and commflments have been made to human service agencies, that difference comes from the general fund. Atkins stated that aid to agencies is funded from CDBG $105,000 and $240,000 to $250,000 from general funds, Baker asked how the City's reserve funds compare to other cities, Atkins stated he didn't know. Atkins stated that .....umllll!l - .~ .AI J r-2 : : , ! " I Ii: I ! i ;, ii " I ii' I': /, I ~ I I. Ii 1: I I,i I! , I ! II ~: '. I , 'I "......... ~,.. - --~ ---.. ----~ qa;- ."-'..,,.. ..... -....-------..,~.. -,..--- ,..----. -,--,,--. ... .-- \ I '.: ,'" , '. " ".', ': ',,'n' h ..',h" b;-v,..'..': : '., :;0.: .' . ' -. - -,.-.. . \ 1 4 for the capital plan one of the important things that impacts bond ratings is credit worthiness and the ability to use cash to fund capital projects. Atkins presented information comparing 13 fiscal years, FY83-FY95. Atkins informed Council that the property tax bill is split approximately 40%-City, 40%-schools and 20%-County. Atkins explained that at one time the City Council had a 6% policy - that taxes could not grow more than 6% each year. Atkins noted that beginning around FY90 the growth has averaged 2.7%. A Council Member asked what the average would be if water and sewer rates were factored in. Atkins stated there is no doubt that water and sewer rates are like an alternate form of taxation. Kubby asked about the possibility of using general fund monies versus user fees for sewer and water. Atkins stated there are many options and one option staff considered was passing a sales tax and using it to subsidize utility rates. Atkins stated he is going to ask Council about the creation of a stormwater management account whereby a portion of the water and sewer revenues is set aside annualiy to create a reserve account to pay for stormwater. Atkins presented information regarding major operational changes. Atkins stated the City Attorney has requested an additional position and proposed changing the City Attorney departmental billing system. Atkins explained that the City Attorney's proposal to operate like a private iaw office and bill the different City departments for services will save general fund money. Concerns were raised that it may create increased user fees for water and sewer and landfill. Information was requested regarding the impact of user fees created by the City Attorney's office billing each department. Atkins stated the more Council can unburden the general fund the greater discretionary spending they have. 'Atkins presented information about government buildings (budget, page 52). Atkins stated the City has about $200,000,000 of fixed assets that should be preserved. Atkins raised concerns about the need for repairs at the Senior Center. Lehman asked if the City has people qualified to Inspect City facilities on an annual or semi-annual basis. Atkins complimented Steve Roberts, Senior Maintenance Worker. Horowitz asked if there will be increased monies available under ADA for civil rights. Atkins stated the budget Is basically for Coordinator Harris and her supplies. Assistant City Manager Helling stated there is some money budgeted for outreach commissions' activities. Atkins stated the non-operational administration (budget, page 54) are expenses not easily assignable to some program within the budget. Atkins stated that the aid to agencies budget was increased by a factor of 3% over last year. Kubby noted that there is a half million dollar difference between the 'Departmental Request" column and the "City Manager Proposed." Finance Director Yuculs explained that when there is a difference between "Department Request" and 'City Manager Proposed" columns, the adjustment probably should have been put In the 'Department Request" column rather than the 'City Manager Proposed," Yuculs said the other adjustments are decreased amounts needed to subsidize JCCOG, transit and airport, The adjustments were In there and less was needed so he did the adjustment in that column. Kubby stated she would like addlllonallnformatlon when there are large differences, Atkins stated he would like Council Members to consider the growing needs in the Housing Inspection Services department and issues related to parking and transit. Atkins stated that currently Council has a policy on transit that says 40% of the revenue must come from the fare box. Atkins also slated that he will present Council a reorganization plan for that department. Hlli.tl .L .1 ~;L ..... ---.--~ ; , , , " i j' I' II II, Iii I I:: 'I \" iI " (' Ii' r I: \' I,' I I,i r.to , I I I II 11 i i ":":~,.....". _ --~ ------...~ ""W\....~ .' -- - --- ..........-..--..- --... -. ~ ...., - ~. ....' , ;1 -./ Oi , , 'J /. , . \! ;', "f" .. ~ , . , , . . '" .... n hi,.. h ,';-l' '.~ .': ' ' , . ': : _~, _ _ 1 .. / / , , FJ 1.., _.{ '-,' -. . _.H__ ----.. 5 Atkins stated the third issue regarding transit that Council should consider is a resolution #83-17 establishing a fare policy for Iowa City and approving the transfer of surplus funds from parking operations to transit operations. Atkins asked Council to finally consider the Issue of SEATS. Atkins distributed the handout: draft letter to Johnson County regarding SEATS. Atkins noted that the City has been contacted by Great Alver Bend Transit to provide transit service. Council and staff discussed transit service. Council decided to review the draflletter and directed City Manager Atkins to contact Johnson County Board of Supervisor Chair Lacina. Meeting adjourned at 9:40 p.m. ccl-ll,lnl \ i ,.' I \ ----. --- I i :):: - ;t..l ...LI. . I; , I ; , I. .Ii /: " I i il , I ., f' Iii II ,I It! Ii! I' - ,il'._ ! . il . I I i Ir I,;' , p " I " Ii" ...,'.{ ....,J I "./1... ","'.," ";::'11.' :,/. I, I " it