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HomeMy WebLinkAbout1997-01-21 TranscriptionJanuary 21, 1997 Council Budget Session page 1 January 21, 1997 Council Budget Session 4:12 PM Council: Nov, Kubby, Lehman, Norton, Thornberry, Vanderhoef, Baker (4:20 PM). Staff: Atkins, Helling, Karr, Yucuis. Tapes: 97-9, all; 97-11, Side 1. Budvet Presentation 97-9 Sl Nov/ Norton/Do we have another one at~er this yet? Nov/If we need it, yes, we will have another one. Kubby/I hope we will have some time because we just got these tonight. We can't really read these and think about what other council members have been talking about .... Norton/ Council/(All talking). Kubby/We could have gotten the ones that were in on time in our packet on Friday- Atkins/And those were only yours. Kubby/If council members... follow the rules... Norton/ Kubby/Then only mine should have been in the packet. Norton/We will have two sessions I take it .... Nov/We will cope .... Atkins/I have a number of misc. issues ....questions that have been prepared by council .... walk through the list with you. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 2 Lehman/... I think it is terribly important for council to realize that as important this budget is, the budget is a target ..... can and probably will be changed .... A lot of the finite things probably don't deserve the attention it is given. Norton/We won't give them much then .... Atkins/First item is that you should have all received a recommendation from Dean and Karen concerning Human Service Agency Funding... assume this is within the budget appropriation... recommendation.. this is what you will approve. Nov/Do you want to give us any of your rationale? Thornberry/This also continues to maintain a $10,000 contingency fee for any services that may get into a bind .... on foreseen at this time .... Kubby/We looked at who is doing new programming .... Emergency Housing got quite a big percentage increase ..... because they are trying to put more money into the Early Bird Program .... And we looked at... two other things... agencies that already receive a large percentage of their budget from the city .... agencies... at~ermath of welfare reform .... children and food issues .... Norton/What about Rape Victim, they stay at zero? Is there a particular problem there? Kubby/They did not request any additional funding .... Nov/We are not adding Youth Homes? Thornberry/No. Kubby/They have a service for fee .... didn't want to add another agency .... Thornberry/We also kind of combined a few of these ..... A lot of these for the younger people are already getting a lot of money in a total way .... Nov/I concur .... Thornberry/Things like Free Medical Clinic we thought was quite important .... Norton/ ....5% increase on our end of it. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 3 Thomberry/We were unable to get together with Coralville or the county on this as we did last year .... Kubby/We talked to them bluntly... United Way and the County and City of Iowa City did expect them... as they are growing..'.. a bigger percentage... are from Coralville. That they are expected to help Human Services. Norton/ Thomberry/ .... don't know exactly where they are fi'om. Kubby/How do city council members feel at the JCCOG meeting on Wednesday to remind Coralville of the expectation that was leit with them last year7 Norton/... I don't want to embarrass them .... Kubby/Or a letter to their council from us would be great. Thomberry/Because they have not done their thing yet. Norton/I would be all for it. Kubby/A letter could be a spirit of cooperation .... Vanderhoef/And a figure of a percent of increase that we have given last year and this year would be information that we could share with them. Thomberry/Better before they do their recommendations than aiter. Nov/Why don't those who are at ~ICCOG talk to them quietly. Thornberry/Okay. Nov/ Nov/Then we might say okay to a letter. Kubby/ Nov/Is everybody here planning to be at JCCOG7 ... I don't want us to be short .... people ..... This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 4 Norton/ Arkins/Next item was to remind you that is a big vote on the Melrose-West reallocation of STP monies and we need you there to represent us. Kubby/... we should feel free to ask for a break ....at JCCOG. Lehman/I think we all agree. Norton/Do you buy Rick's argument, Dean? Thornberry/Yeah. Arkins/Next item. Dean asked questions about JCCOG cost allocation. You should have gotten that in your packet ..... In your JCCOG packet. Norton/ Arkins/Next item was a request on the size of Engineering staff. We did a quick summary... Iowa City has six full time professional engineers. One of ours is a landfill engineer ....one of the six .....Often traffic engineering is a separate component. We role that into ours .....Ames- 7.5; Cedar Falls- 4; Cedar Rapids-12; Council Bluffs- 4; Davenport- 7; Des Moines- 31; Dubuque- 5; Waterloo- 5. Nov/ Arkins/These are professional engineers .... Council/(All talking). Atkins/Given the fact that we do have some unusual ordinances ..... We also have more aggressive development .... and we run a landfill. Kubby/..Landfill ..... We are having a 3/4 time Assistant Solid Waste Superintendent and 1/2 Dave Elias positions at the landfill. Atkins/Yes, we redistributed all those costs. Kubby/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 5 Arkins/We have an Assistant Superintendent of Streets and Sanitation that will oversee the responsibility of running refuse. Kubby/And you are saying that is a permanent change? Atkins/Yes... also switched a great deal of the promotional work.. that Floyd did over to Brad .... Norton/What page? Arkins/101 is Refuse Collection ....We don't have any more people. We just redistributed. Kubby/ ....recommendation of Waste Advisory Committee... community education .... Arkins/That is Brad's job. That is what we want him to do. Atkins/Next question was the airport levy. Yucuis/A year or two ago.. brought up... Can we levy a $.25 tax on the airport and there are some changes that would need to be done at the city council level. The Airport Commission would have to become an Airport Authority and additional power or rule making is done when that happens. The Authority has more things that they can do. They can levy the tax, the $.25 tax. Kubby/And they have control over spending that, too7 Yucuis/Correct. I don't know if there is anything you can do ahead of time to say it is an authority now .... and still not lose control over it. Norton/Analogous of the library ..... Arkins/The library doesn't have taxing authority. Norton/ Atkins/The levy has to be approve by you and then by the voters... The money still passes through your hands. I understood the airport levy money can go directly to them. Norton/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 6 Kubby/Is it possible to have an airport levy for a set period of time to cover the million dollar cost that we are talking about? Atkins/Sunset provision on it? Have to have a legal opinion on that .... I don't see why you couldn't .... Have Linda .... We will check Kubby/Because we have already said yes to the Airport Master Plan .... Arkins/Let's get you an opinion on that. Kubby/The max is $.27 isn't it? we don't.have to go that high if we don't want .... I don't know if people are interested in exploring the possibility of a short term airport levy to pay for those improvements. Nov/Does an airport levy require a citizen vote? Arkins/I don't know. Arkins/We will find out for you. Norton/...ought to think about that tort liability thing, too. Atkins/That doesn't require a vote. Norton ...that can be introduced ....look like tax increases .... Atkins/ Kubby/Are there other people interested in that question? Norton/I am. Thomberry/I am not. You mean to do the sunset? Kubby/..possibility of doing it a few years to get some money to implement the plan and then take it off. Thornberry/We could look at it .... Atkins/It says it is non-voted under the Authority .... This represents only a reasonably accurate transcription of the Iowa City council meetingof January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 7 Nov/And who has the authority? Do we have the authority? Atkins/You have the authority to levy it but you also create the Airport Authority which is a whole other bag of law. An authority is different than a commission. Nov/If we do not create an authority, we then cannot levy this? Atkins/That is what I understand, yes. Kubby/Are there different ways of creating the Authority that give them different levels of control? Atkins/Usually an authority involve two communities getting together. Norton/If there is no interest of creating an Authority with independent power, then no point in doing the level ..... Nov/I would like to see the state law. I would like to see the difference between the current airport and the airport authority. Atkins/I don't think that involves a lot of work. Nov/I need some real information. Atkins/We will put something together real quick. Okay. Next thing. Council questions and I gave them to you ..... First question. Reserves. (Kubby 1.) Just a quick history of the thing. We started this 6-7 years ago .... we had to eliminate it... has worked very very well for us... was truly to set aside cash. Kubby/And we have started doing it for computers. Atkins/And we are doing it on a number of other things .... You may tie this reserve position into an End of Year balance. If we end up the year in a favorable cash position, that would be the mechanism to trigger putting money into the Fire and Transit Reserves .... Lehman/...like $400,000. Atkins/We put it on the front end this time. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997' WS012197 ~ January 21, 1997 Council Budget Session page 8 Council/(All talking). Lehman/I have not problem with putting it on the back end. Norton/ Atkins/If you like the reserve idea .....then we can move to some ideas on how to finance the thing. Norton/We have got so many reserves already. Lehman/Fiscally sound. Vanderhoef/I see it as a good idea to do it up from... constantly putting ourselves in the position of bonding... costs us more .... Lehman/ Atkins/ .... General Fund moneys .... borrowing cost you. For every dollar you borrow, you pay two. This is intended to be a cash set aside ....It was just difficult for budget balancing. Lehman/ Atkins/We borrow for all of our reserves for cash flow. Lehman/I think... I would like to see us earmark this money .... Atkins/From end or back end is what you need to ask yourself. Vanderhoef/But it will save us bonding for something else perhaps .... Norton/... Why not take something out of health insurance?... What was the magic of $200,000 out of there? Atkins/We did some calculations .... cautious about that, how much money to recommend coming out of there?... these are General Fund moneys. What you need to ask ..... Do you want a reserve? If the answer is yes, do you want to do it on the front end,. do you want to do it on the back end? ....It is cash, it is not like it has been spent. It is set aside. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 9 Kubby/We have already gained $18,500, right? Norton/ Kubby/We use to do $100,000 per year... I wouldn't feel bad about not doing it for Transit this year because we have slated to buy new buses and to retrofit. So we really are okay... But with fire vehicles we know that we are going to either in the next ten years need a new fire station or need to replace a big piece of equipment .... Lehman/... I am not at all sure that it wouldn't be just as prudent on the back end .... Council/(All talking). Vanderhoef/... if we end up with the money at the end, then we can put it in the reserve .... Atkins/... If you got into a terrible cash crunch at the end of the year, you can go back to the reserve you created at the front end and say it didn't work, we are going to · need the money to meet some cash needs .... Front end is more of a direct admission to what you want to do as policy. Norton/Let's put $50- in there then. Kubby/I want to front end, too ..... Vanderhoef/I am okay either way, front or back. Nov/What I don't like is the other front end system .... I think the only way to do that is to put it into a reserve fund. I don't like the idea that we are putting it into the operating budget from that source. Kubby/Does that mean we are $450,000 in the red? Atkins/You would show your budget out of balance by that amount ..... our experience... If you got into the habit of that every year and using it .... If you want it on the front end .... that is fine... we can amend the budget accordingly. Nov/But you always have a carry forward cash balance. Atkins/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session Thornberry/I don't like to go into a year without a balanced budget. Vanderhoef/The perception to explain it to the public is going to be real difficult ..... Council/(All talking). Arkins/Bonding houses... we also can show them historically .... end of year a good cash position... mid-year adjustments... Our history is such that we manage our money wisely. Kubby/Will this decrease our flexibility during the year to have it spent on the front end? Arkins/Yeah... you have appropriated it. Kubby/That keeps us more disciplined. I prefer to have it on the front end. Norton/So do I. Thomberry/Don, what is your- Yucuis/What we normally do...budget amendments formally with the city council in May .... By the end of April we havea good feel of where we think we are going to end up the fiscal year and if things look a lot better... do a budget amendment .... $50,000 allocated on paper is going to cause any problems with the bonding houses or anyone else. Thornberry/Don... front end or back end, what is your feel? Yucuis/Front end is fine. Arkins/IfI sense support for the reserve concept, which is a good one..: then I say let's do it ..... Kubby/ Arkins/I would recommend $50- and $50... a $100,000 commitment. $50- for each fund. Kubby/...zero for Transit but $50- for fire .... Lehman/I really believe in saying. page 10 This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 11 Vanderhoef/I would almost say $100,00 for fire right now .... Atkins/This is the Fire Equipment reserve .... Norton/ Kubby/We have only had one year with the Fire Equipment Fund at zero .... Norton/ Yucuis/The importance of that reserve is shown when Ron Logsdon and Joe Fowler were able to secure five additional buses this year. We had money in our reserve to pay for our portion of that ..... real convenient for us .... funds available .... Thomberry/Could we say fire/transit and then if Transit doesn't use it, put it all over to Fire? Atkins/You have the ability to do that.. for bookkeeping purposes, Fire Reserve pays for 100%. Transit Reserve, we are paying 20% share of cost for a federal project. There are differing applications .... Think you should show one for each of them .... Lehman/Do we want a reserve fund and I think we do. Kubby/We have already answered that. Norton/We are doing it ....How much? You want one for Fire for sure. Do you want one for Transit? Nov/We could have a general equipment reserve. Atkins/We have one of those .... rolling stock we depreciate. Fire is just because of the huge amount for each one .... Nov/Let me finish. If we have a General Equipment Reserve Fund, isn't that fund available .... ? Atkins/The money in any of your reserves is available to you to do anything you want with .....set cash aside... set it at replacement value ....determine life of truck is 7-8 years... operating expenses are also charged against it ....It is like a depreciation reserve. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 12 Norton/... Why not just do the fire .... Nov/Let's do it that way. Thomberry/$50-50-. Norton/Do both of them, $50-50-. Thornberry/Sure. Baker/(Can't hear). Question, when you bond- When you buy bonds, are you obligated to spend that money?... you have to designate where it is going to be spent right away? Arkins/When you do a prospectus on a bond sale, you have to spell out in reasonably detailed terms what you intend to do with it .....you have an amendment capability down the road .... Baker/Do'es it make any financial sense to pass a bond issue for library expansion project but within that bond issue to set aside funds for a branch library in the future? Atkins/Sure, you can do whatever you want ..... problem.. sell debt, you have to spend it within two years. That is an income tax regulation. Nov/I am not fond of deciding we should sell a bond for a someday project ....reserves... I think strongly that the library should have reserves. Atkins/We have not traditionally built in reserves for capital replacing this building. Nov/ .....So we don't have a maintenance fund is what I am trying to say. Lehman/ Nov/...maybe we should call it a maintenance fund .... general idea of having money for various purposes, I would prefer a generic maintenance fund, a generic replacement fund and use it whatever place needs it. Atkins/Principle of accounting.. fix asset, apply its likely life. Certain maintenance projects ... very difficult to determine when that should be replaced... how to prepare some schedule for you .... This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page ! 3 Nov/You can predict a roof will be replaced in 20 years. Lehman/ .... I have no problem with savings. Baker/ .... Library .... If we are going to have a reserve fund for Fire and Transit, why can't... library? ..... Atkins/ Thornberry/You can have a reserve fund for anything .... Baker/Why couldn't we have ... a reserve fund for future library expansion? Council/(All talking). Arkins/ ....remember you are going to take current cash and set it aside and current cash is where you got the problem. $8.10 is where you got the problem and the more you draw down the $8.10 ..... it limits your flexibility although you are setting aside cash .... Council/(All talking). Nov/I would like as little earmarking as possible. Atkins/I only speak from the Parkland Acquisition Fund, used a few bucks to do some positive park projects and got beat up about it ..... and we paid it back. Kubby/...very protective of Parkland Acquisition ..... Atkins/ Nov/That is my point about as little earmarking as possible. Atkins/... we have a Transit Reserve Fund and we are going to do it on the front end ....at $50-50-? Council/(Yes). Atkins/Okay .... City Council Raises. Baker/I want as much as Board of Supervisors. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 14 Kubby/I am looking for something much more moderate than that. It has been since 1983 ..... Courtney .... he was suggesting that every other year we do COLA for the two years .... Biggest argument for it .... very limited kind of lifestyle situation as candidates and some of it I think is because of the pay ....I think it is time that this happens. Norton/ Atkins/ ....I think that you can do it .... Nov/I thought it affects the following January. Atkins/I think that was a policy discussion ....approve it so at least the new council enjoys the benefit of it. Nov/Marian is going to have to look that one up because I think it doesn't take affect immediately. Kubby/My suggestion is that we do it when the rest of the budget takes place .... start July Lehman/What are you suggesting, Karen? Kubby/I am suggesting $1,000 raise per council seat, including the mayor. Lehman/ Norton/So the last raise was when7 Kubby/'83. Atkins/ Nov/We could check some other cities. Nov/I was willing to support this on an election year .... Some council will pay for it in the future .... Daryl Courtney was fight .... Lehman/ .... no one should sit around this table for the money. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 15 Kubby/I don't think this amount of money is going to do that. Lehman/Obviously you are exactly right. Kubby/That is why I am suggesting this amount. Norton/ Kubby/ Norton/It is always going to be a part time. Kubby/But you think of all the expenses a council member has no matter what your own financial situation is in terms of extra driving .... receptions .... Norton/ ....seems like $1,000... substantial jump. Lehman/It is minuscule when you look at the total budget .... Kubby/ Nov/School boards have zero. Norton/Boards and Commissions have zero .... I am very reluctant to go very far .... Kubby/If people agree with this point, how .... It has been 14 years. Lehman/At some point there needs to be a mechanism in place to see to it that salaries are adjusted on a regular basis .... Karr'/We do have a policy that they are reviewed every two years. Lehman/I won't object. Kubby/ Norton/I need a number. Kubby/My number is $1,000. Norton/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 16 Lehman/It is minuscule when you look at the total budget. Kubby/Are there Other people interested in doing this, who support this idea? Baker/I think you are too conservative ..... Quite honestly, up until recently, $5,000 was a big deal to me .... If you take the base salary of $5,000, what we should have done... pay raise every year comparable to other elected officials ....Board of Supervisors... It would be higher than what you are suggesting .....Ernie's point... we can't just give ourselves a raise and then ten years... We also have to have a mechanism .... So it takes it out of our hands .... So let's vote ourselves a raise .... and create a mechanism that takes the raises out of our hands. Lehman/Same amount we give ASCFME folks. Kubby/ Baker/... whatever the Board of Supervisors get, we get .5% less .... Just as long as it keeps on some sort of pace. We can figure out the mechanism later .... Norton/I think mechanism and amount are important. I think something ought to be done .... Karr/Looking at the Charter... notes during the months of November and December, immediately following a regular city council election, the council shall not adopt new salaries. The State Code, again uses that November and December, which is why we changed it. It goes on to say a change in the compensation for all council members becomes effective at the beginning of the term of the council members elected at the next election following the change. Nov/ ....starts in January. Baker/ Karr/ Baker/...It should have been adjusted by now. Kubby/ Lehman/Karen, I not only won't object, I will support you. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 17 Kubby/All right, that is two. Nov/Yourself and Larry and me and- Norton/For $1,0007 Baker/I would do it more. Lehman/No. Nov/You are not going to get more. Lehman/And then we will work on a mechanism later which I think is important to do. Kubby/ Baker/ Nov/I would go for it. Atkins/$1,000 in accordance with the Charter and the law. Council/(All talking). Thornberry/I don't know why they were paid in the first place .... If rationale is to reimburse council member for... transportation... fees... Kubby/And time away from family and work- CHANGE TAPE TO REEL 9%9 SIDE 2 Thornberry/Board... they are not paid at all ..... Baker/ Thornberry/Maybe, if that is the rational for increasing the salary... have expense account that you would have to justify .... Lehman/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session Nov/You are allowed to turn in mileage .... Lehman/...We do the sorts of things that we feel we should .... Nov/Sometimes we do... Iowa League of Cities meeting Des Moines, we did turn in on our mileage. Baker/... The difference between this job now and .... 1983 is about 15 hours a week. Nov/There is no question that we are spending more time than we did .... Norton/I have no objection to a raise... too big ..... Council/(All talking). Kubby/Sometime during the next year we need to think about a mechanism .... Lehman/Steve, tell us .... Kubby/I am saying bring that issue back to us. Nov/Think about doing something like that before next year. Kubby/... Additional way of approaching this... someone on council who had some kind of transportation needs that costs a'lot of money or special childcare needs, to somehow ..... reimburse people for childcare at the time they are at the meeting .... page 18 Thornberry/I don't think that is necessary. Lehman/Same thing is true of any other job .... If they are not able to'serve on council because of special needs, they are not able to serve .... That is a part of life. Norton/Wow, we got four votes for $1,000. Atkins/Four votes for $1,000. Mechanism issues for approval in the future to be developed, spit it to you for review. #3 Welfare Reform. Karen, you are going to have to help me on this .... This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 19 Kubby/I just wanted to bring this out. We are going to be really challenged in next five years ..... I want us to somehow keep an eye out for what are the affects and how can we be a little bit proactive .... Tow big things are jobs that pay a livable wage and childcare issues .... I don't know what is appropriate .... Lehman/We need to be aware of this ..... keep track of what is happening ....Your concerns are valid. Kubby/...CDBG Money to help people start their businesses who are currently receiving public assistance... at a certain income level .... UDAG .... targeting at least some of those moneys... businesses started by lower income individuals. Thomberry/I don't think it is the city's responsibility to finance start up companies of any sort ..... Baker/Then we shouldn't be in the economic development business period. Thornberry/Not to the extent, Larry, that you loan people money to start up a business that are low income. That is n~t a good bet .... Kubby/So wh~ are you willing to give tax abatement to certain people... when the banks won't loan them that amount of money .... Thornberry/I don't think it is comparable .... The loss ratio is much much higher on individuals starting a business than an existing business that is growing. Norton/Does the Small Business Authority pay some attention to persons circumstance when they look for support to start up a business? Nov/Yes. Norton/ Lehman/SBA Loans. Nov/I don't see that we need to subsidize or compete with SBA. Thornberry/There are also agencies that have retired businessmen .... Baked This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 20 Kubby/I am just thinking, what are the things that we can do to help people who are going to be in a better way because of welfare reform or have a great idea, that with some help, can become self sufficient .... What are the roles that we can play in this because there is going to be more competition for grant moneys... state and federal money and more people in need falling through the cracks? Thornberry/There are people out there who can help, like... organization of retired businesses people .... When somebody has a good idea .... the banks were calling individuals and saying you have expertise in this area... financial partner and a partner in getting them started .... businessmen in town who do that all of the time. Kubby/ Norton/Haven't we asked ICAD to give special consideration to this? .... Nov/ Norton/ Lehman/I think Karen your observation is a valid one. If we are willing to give $50,000 to ICAD .... If we can help somebody... Your observation is very good. That we need to be aware of this. Norton/What is the mechanism, Ernie? Lehman/I don't know if there is a mechanism. Nov/I don't think we are going to need to decide that today. Kubby/ Nov/ ....I don't think we should start thinking about how we are going to put general funds into low income- Vanderhoef/ Atkins/Transit. I think I understand this to be somewhat of a suggestion/efficiency program whereby we take their budget, reduce it by a certain amount of money and encourage them to find ways to meet that particular financial reduction goal. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Coundl Budget Session page 21 Kubby/ ....when we reconfigure routes ....same group of people, give them a challenge.. decrease budget by $25,000? .... Lehman/Isn't this exactly what we asked Joe to do at the last meeting? Norton/ Kubby/We talked about routes. Lehman/..he not only will look at reconfigudng the routes but he will look at costs ....at same time maintain the kind of service .... Norton/ Baker/...some sort of incentive program for employees .... to say us any amount of money, that there is some sort of reward for you. Didn't we talk about that? Norton/I don't understand how you can anticipate cutting Transit when we are recognizing growth .... very difficult for ask at the same time to give good coverage... and still reduce it. Baker/... have that program in place for every department... give them some bonus. Lehman/I hear what you are saying ....It certainly shouldn't be limited for Transit. Baker/ Thomberry/ Atkins/I have no trouble with it if you like. Nov/ Norton/What do we give them in the way of a reward? Atkins/Normally it would be some sort of a cash bonus. You would have to have a top end on it .... Okay, an incentive program city wide. Nov/Yeah, without numbers. Atkins/#5. Parking Meter Art .... This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 22 Nov/I don't want to pay people for that. If they want a parking meter on which to create their art, we will give them a dead parking meter. But I certainly don't think we ought to pay them for doing it. Atkins/Another community, we sold old parking meters .... Baker/ Kubby/Low cost, low space, fun way of creating public art that is owned by the city .... Nov/ Kubby/I am talking about a decommissioned parking meter ..... hung some place .... Nov/Where are you going to put them? Kubby/They can be anywhere .... Lehman/As much as you hate cars, why would you want to epitomize parking meters? Kubby/Because it is part of our culture. Norton/ ....we have got to look at overall question of contribution to the arts in general .... Atkins/I am assuming there is no magic to the $500. Kubby/ Norton/I am looking for an arts thing .... difficult to consider all of these individual ways... big commitment to art in this community .... We are struggling to put anything into it in a systematic way .... Question that Dee raised about funding the Arts Festival, Jazz festival and so forth. I think we need a much more systematic way to do this .... Lehman/I absolutely agree .... all sorts of things.... look at this more comprehensively than limiting it to parking meters. Norton/Dee... more systematic funding for some of these matters. Nov/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 23 Norton/ Atkins/You want us to have some fun with this. Norton/Let's do.. Council/(All talking). Atkins/Labor management council meeting about health care cost. Karen brought to your attention.. I failed to prepare a memo... We did have a meeting. I am going to ask Dale to comment .... issue of health care costs. Helling/Health insurance issues... It was talked about- The current contract was negotiated a year ago. There was some discussion about a variety of things then... Also in labor management committee meetings:.. brought up specifically about things prescriptions .... another element of that is requiring individuals to purchase them there .... There was not disinterest on part of the bargaining representatives .... indicate they are pretty satisfied with the health care program we have .... In general not a great deal of enthusiasm to put together committees and work out these kinds of things ....Just as not as great as interest because costs are going up .... Kubby/Four years ago where the union approached the city with some specific ideas about prescription drugs .... They kind of initiated this conversation ..... It may be that times have changes or some people have changed .... Even though we are self insured .... just because there is not a crisis doesn't mean there are not potential costs savings there without decreasing choices. But you are saying during that meeting there wasn't enthusiasm to spend time on it? Helling/A couple of things... conceptual kinds of things and challenging the city to put them together rather than to work together as a group. I do think that you are not going to realize substantial or significant savings unless you do have choices .... They would have to be joint efforts... a lot of work .... I really don't think we ought to spend the time and effort to put programs together unless there is some commitment head of time on parts of everybody involved... interest just hasn't been that strong. Kubby/We have a side letter of agreement with our bargaining unit about talking about 'childcare. Have those discussions started? This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 24 Helling/That was raised as well... idea was see what we can put together .... We talked about essentially was just the idea of something of convenience to the city, either put together a daycare program or contract or something like that. There was interested, but nothing that would prompt me to say to you that we should go out and do a feasibility study on that particular issue ....If that is a priority for the council tO try and do that, we can certainly do that ....costs are going to be comparable to what folks pay not for daycare elsewhere in the community .... Nov/Are University employees reimbursed for prescriptions? Helling/I don't know. Our coverage is there is $100 deductible annually on prescriptions and once the employee gets $100, then the prescriptions are. paid for 90% by insurance and 10% by the employee. Norton/University is different depending on which plan .... Nov/University has some pharmacies listed .... You do not have to fill out any paperwork .... Helling/We have the same thing... send it in electronically .... Nov/ Helling/Most pharmacies do that... they have to submit it one way or the other .... Nov/ Atkins/Moving on. More questions. Dee Vanderhoef's questions. Arts/Cultural Festival Funding. CVB Funding .... Dee asked the council to consider some form of a longer term agreement with a. specified dollar mount for CVB... putting together some sort of brainstorming session to determine what the general limits are going to be. Nov/A dollar amount rather than a percentage is the basic philosophy here. Vanderhoef/I am talking about long term... how they can budget, knowing for sure .... I am looking for a contrait with the CVD and I have visited with some of the arts and cultural folks. They are real open to having a brainstorming session and figure out how we can all work together... They would. like to know also what their funding could be, if any. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 25 Norton/I would like to propose .... that we get out of taking the money out for the CVB .... (Take it) out of this budget .... $5,000 for Jazz festival and $5,000 for the Arts Festival and $5,000 Friday night concert .... Criterion... Hospice Road Races .... Talking about community stimulation activities... ought to be putting some serious money into this .... Have some mechanism where we don't have to decide the merits of these various proposals directly .... committee that ranks them and doX, X, X .... We need to get serious about funding arts. Baker Lehman/I agree with you 100% except .... I look at the number of folks... July 4 Jazz Festival... Arts Fest... Friday Night Concert Series... If we have a Hotel Motel Tax to attract tourists to this committee, at least two of those events brought large number of folks to this community... appropriate expenditure of their money. Norton/It is a general expense, too .... Lehman/...Folks come here.. significant economic contribution .... Norton/ Baker/Why don't we change the formula for CVB? Norton/Why take it away from them .... .9 Baker/ Lehman/Come up with some sort of agreement with them .... We give the Free Medical Clinic... $5,000... You tell me, where does the $5,000 do the most good? Norton/If you put it that way, you go crazy, Ernie .... Let me tell you. $5,000 will get lost in the water project and you will never notice ..... Let's talk real here .... Nov/We all understand $5,000 .... We need to make some decisions .... CVB, if we are going to say your allotment is a specific amount, rather than a percentage, it is time to say it now. They are planning and budget meeting is this week, this Thursday... I would like us to say something firmly one way or another. Baker/... have to change the formula .... Nov/ This represents only a reasonably accurate transcription of the Iowa City council' meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 26 Baker/How much did they get last year from the formula? Norton/$440,000 .... $110,000. Baker/Just give them $100,000. Kubby/Last year, Steve, we gave them our full percentage from our regular formula and did the three arts things from the General Fund? Norton/We took it away last year .... Council/(All talking). Vanderhoef/Let's give them a set amount so they can budget for five years out and know what they are going to get. ~ Nov/Are you suggesting that we take the amount and give it to them? Vanderhoef/... a lot of ways you can design a contract with them. Lehman/CVB ..various events.. based on hotel reservations.. they determine which ones they want to support to a heavier extent than others .... I don't think they supported the Jazz Fest to any great degree or the Arts Fest. That was their choice. We disagreed with that .... We said... to support these events... $5,000 a piece and we are going to take that money.. I don't agree with that either... Their Convention Board should be able to make that determination .... What we are talking about is sitting down with their board and coming up with a contract that says we will support the following... and it will be out of our laps. We wouldn't have to deal with it .... Norton/I don't understand. The contract is going to say where the money is spent, too? Nov/ Kubby/The other thing is to say that we have been doing it as a percentage of the amount of money that comes in from Hotel Motel Tax and we can either change that percentage... supporting local festivals... have a special fund for these and setting up a committee .... make that'decision for us... I like that idea better .... This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 27 Norton/CVB... I think they ought to have their resources to do their thing .... Let's put something out of general expense and put it in a separate kitty and say we are serious about art. Baker/CVB wants to know how much they are getting... which is fine.. alter their percentage... Nov/Sign a contract for a dollar amount without worrying about percentage .... Vanderhoeff I would rather see a dollar amount. Kubby/ Vanderhoef/And their other income comes from a dollar amount from Coralville. Thomberry/...if we are in there for a dollar amount:.. that is going to be a bigger deduction from our city budget than a percentage .... what they are suppose to rely on is the increase from the Hotel Motel Tax .... tying it to the Hotel Motel Tax .... it is a perpetuating thing as opposed to a line amount. Kubby/Dee, your memo is to do what we have been doing for one more year and that we commit to resolving this before the next budget time .... Lehman/We have discussions like this every year.' Nov/ Kubby/The first year we committed to find a way to deal with this differently. Lehman/I think we agreed that this wasn't the right way to do it .... Norton/Either cut their percentage and then take the rest and throw some with it and set up a art gig. Let's go. Thomberry/ ' Norton/If you want to take something out of their hide, do it, change the percentage and move on. Vanderhoef/That is why I am looking at contracts with all of these people so they have an idea and they don't have to sit back and wait every year .... This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 28 Kubby/ Thomberry/ Vanderhoef/... Let's get it done... Lehman/Let's do it at a different fashion than what we have been doing it. Vanderhoef/ · Norton/Change the percentage .... Vanderhoef/I want to come forward and say hey, these are the things that we really want to do and these are the dollars that we have to do it. Norton/CVB is one and arts is the other. Vanderhoef/ Kubby/... really talking about the city being involved in a different way with non-profit community groups .... figure out a new way that we interact with the community .... Nov/Let's just make a decision .... change the percentage ....or $100,000 .... Norton/What is the percentage right now? Nov/25% minus $10,000 and it has been that for a long time. Thornberry/But the Hotel Motel Tax has gone up. Norton/Let's give them 20%. Lehman/Let's work on this... Nov/Why can we not decide tonight that we are going to say 24%? Lehman/I would like to hear their reaction..., Nov/I am going to get it Thursday .... This represents only a reasonably accurate t~'anscription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 29 Kubby/... status quo.. come together to talk' about all of this. Lehman/... talk to Wendy... Council/(All talking) ..... Norton/If they stay where it is... roughly $110,000 .... Nov/ .... Norton/... we don't need to take anymore time. Atkins/Let me give you something you can work from. Don looked it up. FY96 Hotel Motel Tax brought in $460,000 total. CVB gets 25%, $115,000. Subtracting out Arts Fest/Jazz Fest of $10,00. Net $105,000 goes to CVB. For each 1%... is about $4,000 .... just have something in mind .... Council/(All talking). Arkins/ Kubby/Sounds like there are three people to change the percentage. Lehman/I wouldn't touch it until we have had more time to look at it. Vanderhoef/I don't want to touch it until we talk ....other figures .... Baker/Maybe that could be the proposal that Naomi takes to the CVB... 20% and get their reaction .... Council/(All talking). Nov/I don't think 20% is reasonable... they might prefer a dollar amount... I will find out. Arkins/ ....Schedule your Boards and Commissions meetings... on the 3rd... You can certainly have them here up in front of you as early as that evening. That is your next budget meeting. Lehman/I would really really like a comment from that board .... Atkins/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 30 Council/(All talking). Atkins/On the 3rd .... Council/(All talking). Norton/I still want to convey to the CVB that I am not interested in cutting their budget at all. I would rather have them fully funded and go for something else for the Lehman/I think I support you. Vanderhoef/I know I do. Lehman/I think what they do with that money... incredible. Council/(All talking). Baker/Dee, you want a $25,000 budget for arts and culture. Norton/Yes. Baker/And leave the CVB alone? Norton/Yes. Lehman/Let's do it. Vanderhoef/ Norton/... kitty to support the arts... Baker/Leave them alone and find $20,000 for somewhere else. Atkins/ Norton/Are there four people that want to leave them alone budget wise? Lehman/.. leave them alone until the 3rd when they appear before us and talk to us ....I would like to hear what they have to say. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 31 Baker/Agree on the other end that we want to have a $20,000 budget for arts and culture.9 Kubby/ CHANGE TAPE TO REEL 97-11 SIDE 1 Council/(All talking). Thomberry/An additional $25,000. You got to find that .... Vanderhoef/... we are funding $15,000 right now... all we are funding is $10-... He is trying to move it up. Norton/We will come back on the 3rd. Lehman/I would like to hear what they say. Kubby/Bring this conversation back to us. Thomberry/ Council/(All talking). Atkins/General Fund CIP and Dee brings to attention the bonding capacity for building and repair projects. Page 1 of 8, CIP, lists the major repair projects (reviews list) ....The $475- to do the library's project should now read $678- Council/(All talking). Atkins/They are approximately $200,000 each, roof, carpeting, I-IVAC .... heating, ventilating and air conditioning... HVAC... The library just gave us these new numbers. Thomberry/ Atkins/I am assuming that it isa complete renovation... Roof repair is $215-, carpet is $238-; and VA... remainder .... Thomberry/I just put in a 6 1/2 toil unit for $2500. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 32 Atkins/The proposal involves replacing one air conditioning unit, followed by two others. each of those units about $65,000 a piece. ! have not had a chance to check this out in detail .... You needed to know that number. It would require cash. Thornberry/I would like a little more detail on who the suppliers are and all kinds of stuff. Atkins/...I wanted to get it flagged tonight .... Next item is HVAC renovation for Senior Center... maintenance.. airport... Major capital physical plant fix up we have got to do .... IfI was going to rank them .... HVAC at the Senior Center... source of complaint .... We have not engineered this, bid this .... Lehman/What is the size of the Senior Center compared to the size of the library? Atkins/Square footage. I don't know. We will find out and make a note for you. Lehman/ Atkins/Several major building repairs that ....proposed all at once... I think the HVAC is a one time.. roof repair... piece mill .....Animal Shelter... we never replaced the old portion of it .... Thomberry/Does Coralville participate in the update? Atkins/Yes, they will. Baker/If this $160-, how much of it is for air conditioning? Atkins/I couldn't tell you. We will break that up for you. Dee.. those are the major CIP... For the library, the question is what do we invest in light of the fact that you are investing in a major CIP of expanding the thing ....If you decide not to do a library project, I think they are flagging for you .... Vanderhoef/ Atkins/ Vanderhoef/A roof needs to be done. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 33 Atkins/If you are going to be up'there doing construction activity, I am not sure- The roof... very fragile... Remember all the fussing we went through with the Senior Center roof in trying to get it fixed. Kubby/...roof... we had to do a roof. Atkins/That is some of the things we need to confirm for you. Nov/Can't wait for it to rain on the books. Vanderhoef/...They are popping out right now... all be done by bonding .... Haven't even talked about sewer .... Atkins/Senior Center, a portion of that will be paid by the county ....internal loan... we would fund it up front .... Baker/Steve, I haven't had a chance to read this memo on a_multi-purpose building project... is part of this, the architects and consultants, going to be looking at what is the cost of maximizing space at present location .... Atkins/I don't think so. Our question was 64-1A. Vanderhoef/In the previous plan .... how many square feet do you get... if you complete the second floor? Atkins/20,000 some odd square feet. Norton/I thought about 10- Arkins/About 8,000 square feet .... small job .... Vanderhoef/Just the available space to complete the second floor. Atkins/The space on the second floor was about 8,000. Vanderhoef/ Nov/Back to the architect's proposal. They were asked to include the Old Library in the whole idea. The cultural center, the expanded library, the conference space could include the Old Library Space. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 34 Atkins/I have to talk to Karin about that. Nov/I read it. Arkins/I haven't read the memo. Nov/Not this memo, I am talking about the additional request said they could include that space. Atkins/The letter that was prepared by the library .... Nov/It was Karin's letter to various architects .... Atkins/That is fine .... Nov/ Thomberry/Karin Franklin told me we could use that old existing library as a conference space but it is not necessarily included in 64-1A. Nov/But the architect could include it if they wanted to ....It is available for use ....They don't have to connect it. Atkins/Dee's original question... Is there borrowing involved in this? I can tell you fight now, the size of the library project, if you were to do that, almost absolutely. Renovation of the animal shelter, the replacement of roof, HVAC. Depending on how we schedule those projects, they could be internal loans,.. recommend internal loan on the Senior Center so we can have 20% of that money returned to us. Maintenance building at the airport is pretty straight forward .... I have yet to put all those together for you .... I think we are pretty well renovated after these things have been taken care of.... There are some expansion plans... other capital... Nov/How urgent is the Civic Center roof?. Arkins/Saturday ....big hole fell out of the thing ....It heeds to be done .... Lehman/I think maintenance of our buildings is absolutely a top priority .... Atkins/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 35 Thornberry/One of the civic buildings in this town is the 'airport ....council chambers, does that include that light system. Just a thought. Vanderhoef/Ought to be sure that we have got everything taken care of. Atkins/Generally I have always felt the council is very very supportive of maintenance projects on public buildings ....good shape ....Public Works is eventually going to have to have to move .... Lehman/Thank city folks who are over there at Walk of the Stars. I thought that we were so well represented .... Nov/ Atkins/We are all set for the 3rd. I will contact Boards and Commissions and other folks .... pick up budget after that ..... Road Race has asked for $5,000. That is not budgeted. The peninsula is not $1.25 million. It is $1.30 million. That will be corrected an that is it. Vanderhoef/What time is the 3rd? Arkins/7:00 PM. Nov/If you are in anyway seriously considering money for Road Races, we have to see a complete budget. Arkins/I am not. Nov/I am not either. Atkins/We did contribute substantially in-kind. Lehman/ Atkins/Remember I have pretty intimate knowledge of the Road Race budget after two years ago... United Way that I think I can help you out on the thing .... given the way they are running the program now, they need the money. The program is going to have to be amended. They are going to have to change. Kubby/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197 January 21, 1997 Council Budget Session page 36 Arkins/Extravagant is the word I was going to use... They can still run a good race without some of the things they do. United Way Board, we felt very strongly about that. Nov/And they also charge fees. Norton/Many of my questions are ones I can discuss with Steve. I will give you very promptly a very truncated list .... I want to give them a truncated list of 5-6 key items. I will give that out to you tomorrow. Atkins/Thank you. Council/(All talking). Adjourned: 6:03 PM. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 21, 1997 WS012197