HomeMy WebLinkAbout1997-01-06 Minutes numberedCity of Iowa City
MEM'ORANDUM
Date: January 14, 1997
To: Mayor and City Council
From: City Clerk
Re: Council Budget Session, January 6, 1997 - 7:00 p.m. in the Council Chambers.
Mayor Naomi J. Novick presiding. Council present: Novick, Baker, Kubby, Lehman, Norton,
Thornberry, Vanderhoef. Staff present: Atkins, Helling, Yucuis, Karr. Tapes: Reel 97-2, All; 97-3, Side
1.
LIBRARY ARTICLE DISCUSSION
Reel 97-2, Side I ..z~
Lehman stated the Press-Citizen is publishing a special Iowa City Public Library 100 year anniversary
insert. Lehman asked Council asked if they were interested in sharing costs for the back cover of the
insert with the Library Board. Majority of Council Members agreed to share the cost pending approval
by the City Attorney.
BUDGET DISCUSSION
Reel 97-2, Side 1
City Manager Atkins and Finance Director Yucuis presented a budget overview of the financial plan
FY98 through 2000.
Atkins stated the budget has been balanced for three years in accordance with the City's practices and
current state laws. Atkins noted corrections to the financial plan:
Page 15/page 71 -- addition of Human Rights half-time investigator
Page 74 -- the PIN grant projects related to road use are charged to the road use tax fund.
Atkins reviewed general budget principles including payroll, IPERS, and pension funds. Atkins state
the City budgets 98.5% of personnel costs, taking into account approximately 4% turnover rate. Atkins
noted the City is in the second year of a three year contract with AFCSME and administrative employ-
ees and we are currently negotiating police and fire contracts. Atkins reported that health insurance
costs are leveling off and will be inflation adjusted only. Atkins stated that $200,000 will be transferred
from the Health Insurance Reserve to the General Fund (page 29 and 129) for the next three years.
In response to Norton, Atkins explained the employees benefitSlevy does cover health insurance.
Atkins noted there is no limit on employee benefits levied.
Atkins' reviewed police and fire pension funds and explained that reserve is being drawn down
$500,000 per year. Atkins stated that reserve should last another seven years. Atkins explained a
lawsuit is pending whereby police and fire are wanting those monies returned to them personally.
Atkins reminded Council that police and fire pensions are regulated by state law. Atkins reviewed the
General Fund revenues and said he anticipates no change in state aid. Atkins noted the federal police
grant will expire in the year 2000; interest income is budgeted at $450,000; and miscellaneous revenue
is budgeted at $487,000. Atkins explained that traditionally, the City ends the year from all budgeted
categories with approximately $500,000 and the City should show those funds up front as opposed
to the end of the year carry over. In response to Baker, Atkins explained the City maintains a cash
balance at i5-20% of expenditures.
Atkins reviewed $25,000 HUD grant monies to finance the half-time Human Rights Investigator. Atkins
stated that by ordinance City Council expanded the Human Rights ordinance to include housing and
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that ordinance has been sent to HUD for certification. Once HUD certifies that, the City will become
the investigating agency for housing complaints and HUD can provide up to approximately $200,000
in grant monies.
Baker inquired about parking fines transferred to the general fund. Yucuis explained the $5 City Code
violation fines are combined with the parking violations for a total of $890,000 of fine revenue collect-
ed.
Atkins explained under sale of land, the sale of peninsula property is shown at 1.25 million dollars in
FY99. Kubby stated the figure should be 1.3 million dollars. Atkins stated he will check on that figure.
Kubby asked about the $200,000 transfer from Health Insurance Reserve into the General Fund.
Atkins explained the City pays the premiums into that account on behalf of the employees, that
account is projected out actuarily, and coverage does not change for the employee. Atkins explained
the City is getting the same coverage at a lower increasing cost. Thornberry inquired about insurance
coverage for retired employees. Atkins stated COBRA law requires that the City offer insurance to
an employee for up to 18 months after termination. Helling noted the cost is paid for by the employee.
Kubby asked if the projected three year budget anticipate large settlements. Atkins stated there is a
liability insurance $100,000 stop loss and a health insurance stop loss at $50,000 per person. In
response to Kubby, Atkins said the budget included $11,400 cost for police accreditation process.
Kubby asked if there budget line items for the library architect, library referendum, increased fire
fighters, and a fire station. Atkins stated no. Atkins said Council will get information about the new
Fire Master Plan at a later date. Kubby inquired about Airport Master Plan expenses. Atkins stated
those expenses are in the CIP and he will get information regarding use of Airport levy.
Thornberry asked about funding a downtown maintenance person. Atkins said he did not recommend
that budget item.
Atkins reviewed debt service, including general obligation debt. Atkins noted the City has a 25%
policy, whereby the debt service property levy should not exceed 25% of the total property tax levy.
Norton inquired about the total property valuations (page 24 and 37). Yucuis explained the totals on
page 24 do not include ag-land which is a separate levy, Yucuis also explained the property tax
revenue (page 22) will directly go into the employee benefits fund (page 113) and the money is
transferred out of there into the General Fund which is shown as a revenue transfer employee benefits
fund.
Atkins pointed out to Council that the PCRB is not funded in this financial plan. In response to Kubby,
Atkins explained the police officer for the accreditation process is budgeted throughout the whole
three-year plan.
Baker asked when the half-time Human Rights Investigator will start work. Atkins said July I unless
Council decides to authorize the position earlier. Baker asked if the PCRB will be connected to
Human Rights. Atkins stated the PCRB will be independent.
Baker requested that Council schedule discussion regarding the City's participation in the D.A.R.E.
program. Atkins noted that Community Motors may fund the D.A.R.E. vehicle budget item (page 16).
Council inquired about funding CSO's and police patrol. Atkins explained a CSO can be used to
handle internal evidence control, lab and field work, and bad check duties. In response to Council,
Atkins said two CSO's and two police patrol officers are being proposed (page 56). Atkins noted that
one position in communications was added during the course of the year.
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In response to Kubby, Yucuis explained that a planning position was moved to Engineering. In
response to Vanderhoef, Atkins stated that he can prepare a chart demonstrating the reassignments,
mid-year add ons and new funded positions.
Norton asked about funding for the "green machine." Atkins said he did not budget for the "green
machine" but other similar new equipment is budgeted for.
In response to Norton, Atkins said land acquisition for industrial purposes was not budgeted. Atkins
noted the ability to sell debt up to $700,000 would not require a referendum and there are many ways
the City can finance property acquisition. Atkins suggested that if Council wants to budget for
industrial property acquisition to add it to the CIP.
Baker asked when Council can discuss adding a maintenance worker for downtown. Atkins said
Council should make a list for discussion.
Thornberry inquired about staffing in the Finance Department, Streets and Engineering. Yucuis said
Finance covers Accounting, Treasury, Document Services, Purchasing and Finance. Atkins stated that
he will obtain information regarding the number of engineers in other cities such Cedar Rapids or Des
Moines. Atkins stated Iowa City engineers are all assigned to one department and charge backs are
done for engineering services to other departments. Thornberry inquired about staffing in JCCOG.
Yucuis stated he will prepare a chart showing how JCCOG positions are funded and shared.
Norton asked about funding comprehensive planning projects. Atkins reviewed status of downtown
strategy, urban renewal parcel, peninsula and South Riverside Drive.
Norton inquired about tort liability. Atkins explained Council has to approve. State Law allows Council
to levy tort liability for its insurance in an unlimited amount. Atkins explained the City has to be at
$8.10 levy before the City can use the employee benefits levy, Atkins explained that once the City
begins levying tort liability it becomes earmarked specifically for that and cannot be used for anything
other than that.
In response to Council, Atkins reviewed transit information. Atkins noted the body mechanic was
reassigned as body mechanic and sign maker and the transit fixed over time was eliminated, and the
Transit Division rolling stock is in real good shape. Atkins stated that it is understood that local tax
monies will increase to support transit during the three year budget.
Kubby asked Council to consider building the Transit Reserve Fund and Fire Reserve Fund. Atkins
suggested that Council could make it a policy that at the end of the year if the City has a cash reserve
balance it would make those reserve funds a priority.
Novick suggested that Council Members prepare a list of budget items for January 21 discussion by
January 15. City Clerk Karr noted the next budget discussion is scheduled January 21,4 p.m. to 6
p.m.
Meeting adjourned at 8:45 p.m.
clerk\ccl-6,inf