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HomeMy WebLinkAbout1997-06-13 TranscriptionJune 13, 1997 Special Council Work Session page 1 June 13, 1997 Special Council Work Session 8:30 AM Council: Nov, Baker, Kubby, Lehman, Norton, Thomberry, Vanderhoef. Staff: Atkins, Helling, Karr, Yucuis, Franklin. Tapes: 97-89, Side 2; 97-92, all; 97-93, Side 1. City Finances Discussion 97-89 S2 Nov/Kind of move along and stick to the agenda ..... Discussion Outline. 1. A balanced budget. Nov/Do we have any problem with maintaining this as a formal policy? Council/(No). Norton/It would be hard to do otherwise .... 2. Continue operating budget plan on a 3- year basis; 4-year? 5-year? Nov/We are doing our planning for operating budgets on a three year basis... Do we want to change this to 4 years or 5 years? .... Norton/When something like loss ofM & E... you have to take some kind of quick look ahead .... Nov/...policy for year after year planning. Does this document satisfy us with a three year budget plan? Lehman/Sure. Nov/Okay. Kubby/Things change too much after that. Thomberry/ Atkins/... when you get beyond three years, all the regulatory factors associated with the state exemption, freezes and rollbacks .....numbers are real real soft in that 4th & 5th years. Nov/I think we tend to agree on that. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 2 3. Continue capital budget plan on a 7-year basis; 5-year? 10-year? Nov/Do we want our capital budget plan to continue on a 7 year basis? .... Kubby/It changes every year anyway .... I wouldn't want to extend it past 7. Baker/5 years is fine .... Norton/ Vanderhoef/Because we aren't ready to prioritize some of those projects. Atkins/I see a couple of policy things .... I think we need to commit ourselves to an annual review .... 2- Our capital planning process does require lots of lead time because of the way we do business .... talking at least two years to make a project happen... other issue is debt management. I think the annual review is particularly important because of market fluctuations .... I don't have a strong opinion... I think 10 is too long and 5 to 7 is not a problem. You have traditionally bunched them in the first three years .... We do have a big commitment of time and resources for putting together capital projects. Nov/Would there be a savings... put 5 years ....? Atkins/I am not sure there would be .....because of process ....Inevitably they go beyond 3, 5 is okay. I am back to 5 or 7 .....I just think that reviewing annually. You should set a policy that we will do this annually. And by reviewing that means a matter of priority. Lehman/ Atkins/Example .... First Avenue, this council changed First Avenue .... Thomberry/... I think 7 is okay. Nov/Anybody else? Lehman/5 or 7, either one is fine with me... annual review. Nov/I heard a couple of 5's .... Norton/I am a 5. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 3 Council/(All talking). Nov/Let's try it... do it once at 5 years .....see if... okay .... Atkins/Okay. 4. Maintain reserve levels. Increase? Decrease? Percentage? Nov/What do we want to do about reserve levels? ..... Steve, what is the current percentage? Atkins/The current percentage is dictated by outside sources as much as it is by us .... 20% is a number... available cash as a ratio to our operating expenditures. That allows us to meet our obligations in the course of the year... taxes... 26 payrolls... There is a variety of ways to approach it .... We really don't name specifically a percentage but we do indicate the importance of maintaining our credit rating and we do need current cash just simply to meet our obligations. Kubby/Steve, within any 7 year period you have to average a percentage... flexibility .... So that it averages out. Atkins/I think if we can show .... a history that we don't go rock bottom .... Our current 3 year plan is 21/20/16. Those are reasonable good numbers ..... We are only talking right now about the General Fund .... I wouldn't mindeven having something like a don't go below number ..... an average over a couple of years. Lehman/If you had a requirement that the average over 5 years needs to be in the 20% range. In no event can it drop less than 10. Council/(All talking). Norton/Which reserve are you talking about, Steve? General Fund, okay. Vanderhoef/ Lehman/It has to average 20% over any 5 year period .... Atkins/I also think... probably want to say... let's not go above .... Norton/... We have a lot of places where we are sticking the current generation for not only the current expenditures but considerable more future. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 4 Atkins/I want to briefly talk about that. Kubby/How is that? ..... Norton/Landfill we are doing, too. Atkins/The General Fund is the one we have problems with. I have no trouble with the average .... 10 is out of the question .... Nov/... I don't want to see 10 as a policy ....cannot pay your bills... Atkins/Creditors see how promptly you pay your bills, too. That has a bearing on our credit rating. Nov/... I want to see what kind of minimum percentage we need to pay our bills on time without short term borrowing .... Kubby/Do we know the answer to Naomi's question? Lehman/ ....credit rating is a result of what Naomi is asking. Thomberry/ Atkins/Credit rating is important. You wish to maintain AAA bond rating .... no short term borrowing as well as the long term borrowing ..... 20% as some sort of an average over a number of years .... I am okay with that policy .... Norton/But that has nothing to do with parkland reserves and things like that ..... Yucuis/We are talking just cash balance. Norton/Okay .... Yucuis/ Nov/Don, on your level, what would be a minimum for operating expenses? Yucuis/I was just looking at first three months of the FY, we dipped down. I was looking at the last 5 FY's. We had a shortfall between revenue and expenses of $3.2 million. We had $4 million the previous year... $2 million .....That number plus $1 This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 5 million or two would be good. 20% is real good. Anything that doesn't dip below probably 15% would be a good. Atkins/You have to meet the cash needs .... This time of year your expenses go way up because of capital projects .... Yucuis/10% is about $3.3- ... coming close on your cash .... I believe we need something above that in the $5 million range at least. Norton/That would cover the shortfalls that we see. Nov/Is that around the 20% we have been talking about? Yucuis/20% is more like $6- Council/ Baker/We all agree on the advantages of a healthy reserve fund. Achieving that.. downside .... Atkins/You may have to make certain expenditure changes ..... need to have spending and taxing policies that maintain that cash position .... One of the targets that we work for. Downside is spending. You may have to bump a project .... planned expenditure to a future year .... You can get dinged on certain expenses during the course of the year. The big upside is the credit rating, we can meet our cash needs and also it responds to a crisis ..... flood ..... in '84 or '85 we got hit with insurance .... beyond our control. And that is part of the need to have a healthy reserve as well as meet your bills. Baker/ Atkins/Maintain a credit rating. Baker/That effort to maintain the rating, does that inhibit your ability to provide services? Atkins/Sure. It inhibits the ability because you may have to make some choices ..... difficult choices .... average .... Nov/I am hearing a range between 15% to 20% is an acceptable range. Do we want to say it is acceptable to go to 22% or something than 20%? This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 6 Norton/15% is plenty. Thornberry/20% .... Arkins/That is very sound. Thornberry/You can fluctuate ..... Norton/15% is well over $5 million. I would think that would be quite adequate. Kubby/What would happen to our credit rating is we said that we wanted our average over 5 years 18% versus 20%? Does that put us in any kind of risk? Atkins/ Yucuis/I don't believe so because you have got a plan in place to say you are not going to go below that and they look at how you manage it and do you achieve it ..... Kubby/Do they look at we used to say 20% and now we are saying 18%. Does that create a problem? Atkins/I think they will question us... look at our operating budgets .... Norton/ ....15 % .... Thornberry/ Nov/ Vanderhoef/ Atkins/If it is true crisis .... we can establish credit fairly quickly ..... almost like a line of credit for a business ..... Nov/Okay, are you satisfied? We will move on. Council/(All talking). Atkins/I want to confirm something with you. This is the General Fund. It is with the understanding that water, sewer, parking have some unique requirements because This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 7 of bond requirements .... Parking starts to take a dip and then moves back up again in a few years .... Then on water and sewer, you made a deliberate decision to expand the cash position by accumulating cash .... That cash is earmarked for projects .... here is what we are doing... accumulate this amount of money to do these kinds of things .... Final point... We can go to those other reserves also. By law, you have the ability to transfer water moneys to the General Fund, sewer moneys to the General- You can do that .... You can supplement the General Fund... by any of those revenues... Landfill requires to accumulate... extraordinary reserves .... huge amounts of money because the state law says you have an obligation after the landfill closes... have to have cash .... That money can be used by us for projects... we always pay it back, too. That is clearly a formula driven number .... have to have the reserves there. Kubby/I don't think we have settled on a percentage or number of years .... Okay about not going below 15%. Nov/I heard 20% average over 5 year period. Kubby/... I would be interested in maybe going down 1% or 2. Norton/I would like to go down a bit. I think we got other options... Atkins/... I don't find 15% out of the question as long as it is associated clearly with a plan. Nov/That clearly is a minimum. Norton/That would be fine. Kubby/Is anyone else interested in going down a percent or two?.. for the average. Norton/ ....average 18 and minimum 15%. Nov/Okay ..... I see three (Baker, Kubby, Norton). Guess not. Kubby/Okay, so we are at 20% at 5 years. Nov/We are at 20% over 5 years. Lehman/With a minimum of 15%. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session Thomberry/Yeah. Atkins/15% minimum, 20% average. Nov/I would go for a 20% average over three years. Atkins/That is a good sound policy. Norton/Appropriately conservative. Nov/I think I heard people say 5. Kubby/Yes. It gives us more flexibility to have it 5. Nov/ Kubby/ Nov/20% General Fund Reserves average in a 5 year period and a minimum of 15%. 5. Maintain reasonable flexibility without our budget to permit amendments during the year. Nov/In terms of flexibility, we have about 1% now? Atkins/We have a 1% contingency account on the General Fund. Kubby/ Atkins/We did that back in the late 80's .... we do do some unique expenditures ..... comfort within your budget. Amounts to about $280,000 to $300,000 a year. I personally find 1% comfortable .... We don't hit that contingency for big amounts of money .... Kubby/That is plus our reserves .... Atkins/We go to the contingency. We do not go to the fund balance. The fund balance sits there and we use that for working capital .... political question... match a grant... do that right away with cash .... immediate source of funds to do that. Kubby/Do we lmow how much of that we have used the last five years? page 8 This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 9 Yucuis/We have traditionally used it all. Atkins/A lot of little things. Norton/ Yucuis/On the quarterly report that I send out, I try to highlight what has been used for contingency specifically ..... Atkins/We do keep a running account. Yucuis/ Atkins/As a matter of budget policy, I really think the most important thing is that you do need, as a council, reasonable flexibility with the understanding that we try to do as many one time expenses out of contingency .... I am comfortable with the 1%. I think Don is. Norton/Okay, let's go with it. Lehman/... reserve... if you are at the 20% level, you don't call it your contingency ..... boils down to a contingency if you have to have it. _ Atkins/If you have to have it. The contingency account is a good budgeting practice, as well as a good financial. Nov/I hear 1%. Okay. 6. AAA bond rating for G. O. debt. Nov/The bond rating .... We need a little bit further discussion about exactly how the bond rating operates. We have some numbers. We ne_ed some idea as to how people rate bonds .... Atkins/Bottom line is only they know. AAA is the best you can get for General Obligation. A bond rating is the best you can get for your revenues. We enjoy both. Recently the bond rating houses have changed the A rating to A1, 2 or 3 ..... Our bonds are rated at A2 .... When it comes to General Obligation, when you say we are going to sell a GO bond, you are pledging you will levy an irrevocable tax to pay that bond no matter what happens .... That is the most solid financial foundation that a perspective bond buyer can have. They rate us based upon how This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 10 we manage our money. And they also rate us on the local economy .... State government .... Cedar Rapids... have 70% tax base made up on industry and commercial... Des Moines .... AA ..... they have the underpinning of the economy .... all sorts of factors .... Norton/We saw your recent letter that outlined these considerations .... about our rating .... made exactly the points you are talking about. Atkins/The bond buyers... pay Moody's ..... to rate the bond issue. One of the other things... We usually use short term debt... show the speed in which we retire our debt... to our advantage ....If they see us retire in a short term, that is to our advantage. Kubby/This chart that you gave us that shows the amount of additional interest that we might pay going from AAA to AA .... number.. reduced substantially if we pay things off in 10 .... Arkins/A quick estimate is about $25,000 a year in interest charges on an issue that size .... Nov/It isn't spread out that way ....difference in the first year .....much less as you go down. Atkins/As you retire the debt, the number will change .... net interest ....the whole issue .... Lehman/Realistically, items #1-5 probably have more to do with our bond issue .... Atkins/When you look at it comprehensively .... operating and capital budget... most major policy documents .... Capital plan is an interpretation of the Comp Plan .... Kubby/That's our agenda. Atkins/I would encourage you to pursue aggressively maintaining your bond ratings as high as you possibly can... excellent discipline .... we do save money. Thomberry/Dee Vanderhoef and I went down to the FAA .... Kansas City .... After 2 1/2 or 3 hours, I mentioned the fact that Iowa City .... I wasn't getting anything out of these people .... mentioned that the council had voted for this and the city was maintaining a AAA bond rating .... That rang their bell .... They don't see that very often... With that we got the strongest commitment from the FAA that the Airport This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 11 Commission had ever heard .... It was a commitment that we would get our money. Atkins/Make sure you remind the Airport Commission of that .... Kubby/Depends on what Congress says, too. Vanderhoef/...saw us as a good sound city .... Atkins/If I read it correctly, President Clinton's proposal for FAA funding was a billion dollars ..... It is all that Aviation Fuel Tax Trust Fund which has mountains of money in it .... They are using those trust funds for their own cash needs .... Thomberry/... The FAA people were very impressed with the fact that we had a AAA bond rating .... Norton/I would like to try to stay with the AAA .... as a goal. Thomberry/ Norton/I would like to try policies that will keep us there .... Vanderhoef/Historically, how long would it take to get back? Atkins/Couple of years .... Vanderhoef/That is the concern. How long it would take to get back... if it slips ....? Nov/We slip regularly for revenue bonds. This is only for GO bonds. Atkins/Not regularly ....We slipped. Nov/...We often have less than AAA if we are selling a parking revenue bond. Atkins/A is the best rating you can get for revenue. Nov/ Kubby/... They made finer distinctions between A1, 2, and 3. We just fell in A2 .... They evaluate it differently now ..... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 12 Atkins/The A1, 2 and 3, this is the first time we got that rating ....They are really splitting hairs .... Nov/A1 is better than A2 .... Norton/This is only GO fight here. Nov/But we have single A ratings for things like revenue bonds. Atkins/That is correct. That is the highest you can get. Nov/In terms of this 1, 2, and 3, how are they going to rate revenue bonds? Atkins/They will rate your revenue bonds either A1, 2, or 3. Our last issue was A2 .... middle .... You need to settle on we will maximize our current rating with respect to all of our debt .... We will get a bond rating in days .... unheard of.... Kubby/Stick with AAA. Norton/Let's try. Nov/Okay. 7. Review comprehensive plans. Nov/ .... We need to do better in terms of review of comprehensive plans .... We have in the past had a study or hired a consultant and come up with a plan and then that is it. We never looked at it again .... Kubby/What plan did that happen to? Nov/I am not saying after a particular plan. I know it has happened. Kubby/Oh, because I don't really know a plan that we don't look at that the budget is based upon. What plan do we have that is sitting on the shelf besides the bicycle plan? .... Norton/Near Southside maybe. Kubby/We amend that plan every year. What do you mean? Council/(All talking). This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 13 Nov/We don't review the entire plan .... We have not reviewed the entire plan. Kubby/What was the plan review date of that plan because it is not that old? Nov/Let's say it is '92. Do we want a policy that says if this plan is 3 years old or 5... we will review it .... We need to...set a schedule for reviewing plans such as that .... Kubby/ Baker/Can I get a clarification on review and update? ....workload that the staff is doing now .... Atkins/I think there is both a behavior change as well as a status quo change .... Let me deal with the status quo to begin with. These comprehensive plans... represent your policy direction .... staged... increments... There is an expression from council .... comprehensive plans that we have in place are satisfactory. We may have to make some staging and incremental adjustments... most of which are reflected in the CIP. I want to know that these plans are still okay. Secondly, I really believe we need collectively to set aside a time ....we will bring back to you 5-6 of these plans ....That needs to be done every year .....Annually we are just kind of go through these .... Karin .... Chuck .... Norton/What does that literally mean? ....Airport Master Plan, how often are we going to take a look at that? Atkins/I think the Airport Master Plan should be looked at annually .... several elements to the Airport Master Plan... 1-1and acquisition... 2-schedule of capital construction... 3-capital construction... closure .... You need to reaffirm .... Norton/If we did that, would that mean a meeting? .... Atkins/I think as a council you should re-bless these capital projects. Norton/ Atkins/Every two years .... First Avenue... I think you need to take the time to review these periodically. It is more work for Karin .... Baker/When I think of a review and update... big Comp Plan .... this is not what we are talking about? This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 14 Atkins/No, I believe it is a review. If you choose to update it ..... 965 decision .... kicked off a new agenda... landfill will become much more important... list of issues that you just need to periodically .... Franklin/Isn't a part of this also .... looking at what the fiscal implications are of these plans and we have not done that traditionally .... policy statements that you have tied to the plans and what those simply in terms of the money that you are going to spend. Kubby/ ....tradeoffs as part of the decision. Norton/But we have 16 plans here .... some of them are subsets of others .... I do think it would help us to have a schedule of when we are going to look at what .... when we are going to do it. Vanderhoef/As a new council person it would have been useful to have some of these old Comp Plans brought forward and then moved on into CIP. Kubby/... budget... Vanderhoef/We did not hit CIP for over a year after I came on council ..... Norton/How do you get 16 meetings in, folks? Atkins/I am not sure they are as involved .... Example... Historic Preservation... 10 year history .... package it together .... Arterial Street Plan... tied to Capital Plan. Some of these will go rather quickly... Comp Plan... will take more time ....This is a review .... CHANGE TAPE TO REEL 97-92 SIDE 1 Atkins/You choose to update it. Update means to amend, change, different direction. Lehman/The review then is telling us a current status. Atkins/Absolutely. Lehman/The word review... opportunity to make changes .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 15 Atkins/Is there any plan that you want to do faster .... change a priority in spending or come up with a new revenue .... About three years ago, we accelerated bike paths .... You have to come up with new money .... Nov/... It was not brought up on a regular basis like every two years .... Atkins/That is my point. You should be afforded the opportunity to say we like the direction or say no. Thornberry/The question before us on 7 ..... I can see regular basis. I can see reviewing .... But on existing projects that are ongoing, i.e. Airport Master Plan, Wastewater .... Water Plant. I would like to see an update more quickly like every six months on those things that are ongoing .... maybe we need to be... updated... every six months as opposed to waiting for a whole year. Atkins/ ....I asked Rick to tell me where we are on the FY98 CIP ....that is the kind of thing you want to know. Kubby/And knowing if there is money spent .... projected cost ....real cost was .... Thomberry/ Atkins/I hear two things .... 1-. .... Comprehensive Plan review is a good idea and needs to be scheduled and done comprehensively .... 2-A more frequent update of these projects .... know what is going on. Nov/Those status reports could happen quarterly? What are we asking for? Kubby/I think twice a year ....every six months .... Atkins/I am heating Karin and Don saying quarterly .... Kubby/...Every six months .... Atkins/Okay, we will consider that direction. Norton/The problem... I look at the projects .... If you take that list and then look at where the money is year by year and where it is coming from, it is very hard to hook the money with those projects ..... to tell where it is planned to come from .... grants, transfers .... That is the thing we need. In that plan you are talking about, I think This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 16 you need to tie the money to it and the timing of that money and the source of that money. Kubby/The CIP Plan does that. It has columns of where- Franklin/It is hard to see the connection between the CIP... and the policy statement that made that happen. Kubby/So connecting the CIP, the money and the Comp Plan. Norton/ Atkins/Example, Hwy 6 left turn lanes .... Norton/ Atkins/... informal policy... federal or state grant, we go after it .... Norton/ Franklin/That decision to do those left tum lanes was based having certain level of service for traffic congestion. If you decide you will tolerate more congestion, we would do fewer of these projects. Nov/I have looked at CIP, what if we did this road improvement later? ..... Kubby/Unless you are going to eliminate a whole department... you are not going to find it in all one place ..... Nov/... have to delay five different road projects rather than one before we could make a real difference ..... Kubby/The other part of these Comp Plan reviews and updates is what about the public process? .... I am not interested in having public meetings.. every year.. When we do a big 5 or 7 year update on it, I want us to do the public kind of process we did for this last one. Franklin/When you are reviewing them... that is one step. Your decision to open it back up to potential policy change, is where you would then bring in the public process again. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session Kubby/I like having that schedule, too ....Charter Review ....Comp Plan ....Maybe not for every little plan. Franklin/It is a standard operating procedure now that if we are going to do a change in a plan ..... a change in those policies or plans, then we do a public process. No question about it. Kubby/ Franklin/It is automatic for the Comp Plan .... Historic Preservation... Arterial Street Plan .... Bike Plan .... Transit Plan .... Kubby/ Franklin/Everything that I am aware of here has gone through a public process. Nov/We are just talking about how often should the council remind ourselves what is going on here. Kubby/...then we know how to vote and behave during budget time .... Franklin/So, is the review of the general plans annually and you have a semi-annual progress report on major projects such as the water. Norton/With financial aspects. Nov/I heard Steve say he wants to review things like the Airport planning document .... on a yearly basis. I am not sure I heard the council say that. Does the council want to do every plan on a yearly basis or some of them deserve a yearly review or not? Kubby/I think we should try to stagger them... all of them within two years .... Nov/ ....Every plan on a two year basis .... Thomberry/Some of them need to be looked at a little more often than others .... Airport Master Plan I don't think every two years is enough. Nov/You will get the six month progress report. Atkins/Remember .... see something in progress report .... page 17 This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session Norton/ Kubby/Some of them have some laws .... Get a list of all the plans... Nov/I am thinking less about the mandated plans... Plans we have generated ourselves .... plan to review on a more regular basis. Norton/ Nov/ Vanderhoef/It is our self-generated plans that sometimes get- Thomberry/I think you are right .... Norton/ Nov/Some of these things are automatically thrown in our laps every year. There are others where we have to decide to look at it again... Southside Plan .... Kubby/Are we saying that we do self generated plans once every two years? Norton/Downtown Strategy certainly ought be every year ..... Near Southside... every year .... Nov/I see Karin Franklin nodding. Is every year acceptable? Franklin/For some of them, yes. Downtown Plan... every year .... Comp Plan... I am thinking.. overview .... annual action plan with it .... Atkins/The way I read it is we have a review on the Comp Plans on a periodic basis .... review these with a greater frequency than what we have in the past. 2- You wish to have some sort of a staff update prepared periodically... every six months .... Wherever practical, we incorporate as much financial information as we feasibly can to kind of help you track it. The self generated plans appear to have some different set of rules ....! am not sure exactly what to do on that. We need to get that back to you also .... Franklin/...these reviews... is to understand the fiscal implications of the plans. page 18 This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 19 Atkins/And .... growth policies .... telling memo .... new emphasis this direction as opposed to that direction. Nov/ Lehman/One other thing I personally would like to see .... I would like to see periodical updates on... really big projects... sewer and water... We all know what we started out with ....estimates ....I would like to see kind of a rundown on what has been spent .... Atkins/Got one sitting there...schedule it for you... I thought that is what I heard you say to me... Vanderhoef/Suggest... If every other year on the Comp Plan, that is be in the year following the seating of a new council .... Karr/I made a note, Dee, to talk to Steve about possibly incorporating that into a year ender orientation because we know in November... scheduling it for the new .... Atkins/We do our workshop with council candidates... intended for information .... Nov/ 8. Continue our growth and development policies within the framework of existing regulations, standards, growth boundaries. Nov/We will continue growth and development policies .... We can change the existing growth boundaries standards if we choose to do that. I am heating no comments and seeing heads nodding. Thornberry/We have a lot of latitude when it says within the framework .... pace can change .... east side... sunset date .... We still have a lot of flexibility in there .... I don't think this needs to be changed .... Baker/One of my questions... We talked about cutting costs, increasing revenues, or expanding our tax base. Continue our growth and development policies, regulations, standards ..... does that preclude an expansion of the tax base? Atkins/You have sort of asked my question. I view this- Franklin/No. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 20 Atkins/Karin says no it doesn't. Thomberry/... It may be//16, Larry. I thought this was just for physical growth. Atkins/It is .... but has fiscal implications .... Chamber.. discussed some of these financial issues... Couple of theories .... Do you wish to promote one aspect of our economy over another? We are 60% residential, 30% commercial industrial .... If you were to choose to do this... this is the undeq~inning of our finances .... I envision this far bigger .... Criticism is are our growth and development policies constraining? .... This has tremendous fiscal implications, particularly the amount of property tax moneys that would be generated to run this local government. Norton/Some additional growth... might be in order ..... might have a little bit of change in boundary. Franklin/This need not be spatial, outward... can be a growth in economy versus development in the growth boundaries that we have. Norton/Seems to me that we have to be a little bit more aggressive in this area. Franklin/You could choose to be. Vanderhoef/...promoting economic development rather than housing. Kubby/Promoting develop in the industrial and commercial sector has affects on the residential sector... more jobs.. more people .... to live here.. end up expanding your residential base as well ....In terms of our existing policies, it talks about expanding the industrial base ....It is already in there. Atkins/We have for years... informal policy position that if we are going to encourage industrial growth, the people that are going to come to our community and work .... are entitled to live and enjoy all the benefits... affects the housing policy... That we would encourage certain housing opportunities to meet the needs of the very people we are trying to attract to work .... Thomberry/ Atkins/That you as a city council would encourage the type of house that would be likely needed for the very people that you are encouraging to come and work .... I am just re-stating ....The industrial component of this community can grow ....people This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 21 would be afforded the opportunity to live and work in the same community and that there's balances that have to be struck with the type of housing. Norton/... (can't hear) the market will respond to that presumably? Atkins/I'm saying that the market is likely to respond. That there are those who might say, you may need to jump start the market. Kubby/Just like in the industrial side. Atkins/Yeah. Norton/I guess I don't exactly see the need for that unless you're bringing in people for $3.00 an hour jobs. Atkins/If we track housing permits over a number of years and find that we're only building high end, but at the same end we've located two new factories in our community, that tells me something. That tells me that wait a minute, I may be excluding people from housing opportunities and educational opportunities so that they can go to the Iowa City Community School system. Thomberry/I think perhaps, given the market demand, astute entrepreneurs will see that and see hey there's a potential group of people there that are being ignored. Atkins/Urn-huh. Thomberry/I can make some money off of them by building- Kubby/Why don't you use that same argument for the industrial and commercial sector too? That astute entrepreneurs will see that this community has a highly educated labor force. Thomberry/I think they are, Karen. Kubby/Then why are we doing anything to interfere with that free market? Because there's a policy involved here. Thomberry/I don't know why we're doing anything to interfere with that. I would like to- Norton/We're not. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 22 Kubby/No, I mean like giving them money is interfering. Subsidizing businesses or housing is interfering in the free market. Lehman/Karen, there's competition with other cities doing the same thing. If you're going to be in the market, you've got to play with the same rules. Nov/You're competing with Linn County. Kubby/And I'm saying, you've got to do it with housing as well as the other sectors. Norton/Yeah, what we can and where we can, it's hard. Nov/The same entrepreneurs who own property in Iowa City also own property in Coralville or North Liberty or whatever and they're out there using the market facilities. There's no question about that. Atkins/There are other communities that have challenged it, I mean the city of North Liberty went through a resounding process for some multi-family and promptly said no way, we're not having it. Now- That is a community who is experiencing extraordinary growth ....I am having to say we have to balance out housing decisions .... Lehman/... a lot of factors involved in that. Kubby/Decision to do Mormon Trek Village... very tough .... Thornberry/... what is wrong with the statement? Atkins/A critical phrase... within the framework. What I am hearing you say is that what we are doing now is okay? Kubby/Yes. Baker/ .... Within the framework of existing regulations .... are we satisfied with the current expansion of our tax base? .... riscally responsible .... Kubby/Every year... we have had some major expansion of existing industrial .... or new ones. Baker/...Debate out side of this room... expanding its tax base .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 23 Franklin/There is an impression.. also policy.. that our role in economic development is going to be more of a passive or responsive role. We will assist ....when someone comes to us .... Kubby/That is what we give so much money to ICAD. Franklin/...question... Do you want to... a slightly more proactive role in that? We still, if you chose to, could take a more active role in being aggressive about economic development as opposed to responsive ..... Norton/I would like to say to add to this. To be more aggressive within our framework .... I would think we ought to continue to be somewhat more aggressive within the policies that we have and the standards ..... Thornberry/ .... 64-1A... sort of backed off on that .... cut off at the knees when CenterSpace and library expansion was brought into the formula. Then I thought we said go back and look again to see what is available .... Franklin/We have a RFP out now. Vanderhoef/But we stopped the process of the RFP .... Thornberry/ Franklin/Just to clarify this. The first thing that you asked us to do after the resolution was withdrawn in terms of reserving this for CenterSpace and the Library was to put out an RFP to get marketing assistance. We did that, we got one response. When we got the response... library discussion... you said wait .... You then decided on multi-use project and the multi-use project as a RFP out for private development. Nov/Are we getting responses? Franklin/We have some inquiries for the prospectus. The responses aren't due until August 15. Council/ This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 24 Thomberry/Since we have been on the council we have said hey, we want to actively market 64-1A ....then some of us starting talking about expanding the library, CenterSpace, etc ..... Norton/We didn't get many responses .... Kubby/Why are we spending time going over this again and again? Thornberry/Dee thought that we were and I am, too, am hopeful that we are out looking for businesses to come to Iowa City. We are still talking about #8 .... I hate to try to bring companies to Iowa City to have them see how many roadblocks we have got to construction .... I hope that when we do entice companies... we can make it easier for them to do that. Kubby/Another perspective... we have some expectations in our community of businesses coming in... We hope that you meet those community standards that we have here .... Thomberry/Those are roadblocks that are perhaps not in other communities .... Kubby/Looking at #8 .... Nov/ ....get back to physical realities ....Dee Norton... Atkins/Your statement, Naomi .... If you want to review our growth and development policies, I think you need to set yourself down and have a review of growth and development. I didn't sense that there was a majority that was ready to change these dramatically .... We see what our current policies are. We generally like those policies but the Dee Norton position is we need to be more aggressive towards promoting our community within that framework ..... Lehman/Steve, isn't Scott Six and the Willow Creek sewer within the present framework and they are aggressive moves .... We can be aggressive within the framework. Atkins/A north commercial area on the airport I believe is a more aggressive position within the framework. Thomberry/ This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 25 Atkins/If you want to change growth and development policies, you have to change the ordinances and I think that is a whole separate debate ....I hear you saying your framework is okay. Nov/I hear within the general framework we want to promote economic development .... Thornberry/ Franklin/If you say yes but more aggressive .... Thornberry/ Baker/You are still going to have to have the debate .... If you want to expand the tax base beyond what we are expanding now, I would say that you can't do it within the existing framework... you can aggressively pursue it... If you really have a goal of a substantial increase .... you can't do it this way. Kubby/ ....what are the other affects on the community? Baker/Karen .... I am saying that is the debate .... Lehman/I think this is something we need to address. Baker/This language seemed just a little too generic for my tastes .... Atkins/I am making the assumption that you have not come to closure but you have come close. Baker/I am comfortable with existing regulations, standards and growth boundaries. Lehman/I think we need to be aggressive .... Atkins/Being aggressive ....You will bump your head somewhere... framework has not changed. Baker/My view of aggressive is going to come out in a discussion of ICAD. Atkins/The Economic Development Guidelines .... remain in place .....None of that has changed ..... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 26 Lehman/If we try to promote aggressively and we bump our heads, then we have to look at what we are bumping our heads on .... Vanderhoef/I think there is still a possibility that we may have to change policy. Lehman/ Baker/But you have to change your goals .... Kubby/The language .... increasing the tax base is the goal? No, .... make sure... high quality... jobs... Increasing the tax base is one way of reaching those goals ....Our language is making it the goal .... Vanderhoef/ Kubby/ 9. Increase services: more police downtown? 10. Add new services: a downtown shuttle? 11. Reduce services: less downtown cleaning. Nov/We can combine 9, 10, & 11. Are we interested in more services .... reducing services...? Baker/I don't think anybody is really interested in reducing services. We are interested in reducing the cost of services. Council/(All talking). Baker/That is a distinction you can make. Nov/Yes .... Thornberry/We would like garbage pickup once per week .... cut their pay to continue one a week pickup. Norton/There are other ways .... Council/(All talking). Baker/I thought we were coming with ideas... about efficiencies. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 27 Nov/Today is a good time. Right now. Norton/An example .... recycling... every two weeks. I think that would.. meet the demand and cut the total cost. Nov/... it will not help the General Fund. Go back to the General Fund, please. Norton/ Kubby/Steve, if we end up having to do some stormwater management, will money have to come from the General Fund to accommodate whatever those regs? Atkins/As of right now we do the General Fund or GO Debt. Kubby/That is something that may be imposed .... Norton/We know some of those regs are coming on control of stormwater from municipal operations .... Kubby/So we know there are some new services that we are going to have to provide ..... Norton/We are trying to keep these in the different categories .... Arkins/Are we making a list? .... Thomberry/These are the items in the General Fund ....different departments that are affected by the General Fund. Baker/ ....within these categories are more specific operations ..... Norton/Let's talk about #9... is interest in additional policing downtown. Baker/Not just downtown. Norton/ ....in that general area... Baker/ Kubby/We made a commitment to keep the officers that we got with the Crime bill money and pay for them on our own. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 28 Nov/... I was looking for examples of increase in service ....and a reduction in services we already have. Baker/This council has already committed itself to increased services ....We have made a commitment .... Norton/I think we have also made a commitment to more clean up downtown beyond just the ped mall. Baker/I think we have .... led certain.. commitment on increased police staffing for community policing over and above maintaining the six that we just got .... Kubby/We have got the PCRB that we made a commitment to that is not in the budget. Any kind of housing issues? .... Thomberry/Aid to Agency money.. General Fund? Atkins/Aid to Agency money are two sources. One General Fund, $190,000; CDGB, $110,000 in round numbers. Norton/I thought it was more than that. Atkins/About $300,000 that goes to Aid to Agencies. Kubby/ Norton/ ....General Fund is $300,000, Steve. CHANGE TAPE TO REEL 97-92 SIDE 2 Thomberry/ Atkins/There is money proposed in the CIP. What I am assuming- I am trying to get a feel for those issues that are direct relevance to the General Fund, the operating fund. You can add capital projects because we still have sufficient margins ....tax policy question. Your General Fund is very limited .... Nov/Is housing General Fund? Kubby/It matters what we do. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 29 Atkins/ Kubby/Transit... more of an obligation on the General Fund. Thornberry/I said Aid to Agencies. Atkins/ Kubby/Things that we think might increase. Nov/We are talking about increases. Kubby/ Atkins/Aid to Agencies I think is an appropriate program to increase .... 4-5% a year .... Baker/ Atkins/I was most interested in hearing you say this, this (refers to chart). Nov/Downtown shuttle .... Atkins/That is new. Vanderhoef/Shuttle instead of transit. Atkins/What are the new things that we need to be thinking about that you want to do? ..... Thornberry/Why are we putting these all up there for new projects when we are trying to not necessarily cut- Atkins/After you make a list if the things that you are interested in seeing done and you go back and propose to make reductions, I will like wait a minute, you have a conflict ..... Norton/what is the implication of transit on there right now? Kubby/I put it up there because it is just going to be an increased amount from the General Fund even if we keep services the same .... We can take it off.... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 30 Baker/To maintain the status quo, you are going to have to plan on increasing the budget. Atkins/To maintain the status quo, you will have to increase virtually every budget. Baker/Beyond inflation .... Atkins/Stormwater management will be a new service... additional policing is a new service, shuttle is a new service. We don't do it now .... cultural center is a new service... Trying to figure out what is out there that you think is going to require some fiscal commitments from the long pull. Baker/Arts budget ..... Atkins/That is a separate issue. I think you are going to need to consider fire service .... general growth... number of things we might want to do .... may have to had additional response person .... same principle... we can build them .... Norton/Looking at things that are strictly in the General Fund .... Kubby/Environmental inspector, another one .... There are some cost if you want to be more aggressive about our growth issues to make sure that our standards are met and that hills are not sloughing off. Norton/ ....hazardous waste .... Atkins/Hazardous waste... built with capital moneys .... by way of landfill to staff it as a landfill expanse .... Norton/What about trails? .... Atkins/One of the expenditure reduction ideas .... fact that we use cash to pay for a number of our capital projects. You may wish to defer that kind of payment from general operations into debt .... Nov/Is there anything we want to add to this in terms of reducing services? Norton/Still thinking about increases... cemetery service .... Atkins/No .... cemetery services will change if you locate a second cemetery ..... If you move it, it is going to cost you more. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 31 Norton/You don't see anybody in the fiber optics business, anybody in that category? Atkins/I see franchise fees as a revenue issue as well as an enforcement issue .... Thomberry/I am leaving at 11:00. CHART: New Issues For Future Storm water management Additional police Library Cultural Center Airport Mercer gym Downtown cleaning PCRB Housing issues Transit Aid to Agencies Shuttle (downtown) Fire Environmental Sup. Nov/I think we have got a list to spend more money. Let's say we can leave it up here. Now, do we have a list of where we want to reduce services or change services in order to save money. We can follow through #11 to #12 .... we want to reduce the expenditure ..... Atkins/I can tell you what I need to know if that is your plan and I would like to have some general discussion on guidelines... what your thinking is. Kubby/For reducing expenditures, you mean? Atkins/Yes. I gave you in my memo some things to think about with respect to those kinds of changes. Norton/ .... looking for... Coralville about any kind of fire contract .... selling some of our services? This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 32 Atkins/I think there are a number of things we could be doing .... example. City of UH ..... uses Coralville for fire protection... mistake .... There are those kinds of things we can do .... UH already buys a number of services from us anyway. I am more interested in seeing where we can do a service .... meet our growth needs without any major new expenditures .... Coralville, joint response idea ..... Norton/We are pursuing some things... emergency response... serve other areas .... sell those services... I think that the general idea of selling services or consolidating where we can is something we need to look hard at. Atkins/I need to know... of how to go after the issue ..... Hope when we are all finished.. I will have a series of policy positions you want. You will give me some general framework on expense reduction and or revenue increases or both. I will package the thing together and say all fight. Here is what I heard you say... you can then have at it... Nov/I will give you some ideas in terms of cutting ..... equipment replacement ..... We could save some general fund moneys that way. Atkins/Absolutely .... making changes... change internally those things that do not directly affect a public service and we can do a number of those things .... extending those may push up maintenance... I don't have trouble with the principle .... Lehman/Rather than owning .... they rent .... Atkins/We do, too ..... lease agreements with a number of private contractors .... snow removal ....If your direction is you like that idea, let's expand it... not without risk... Thornberry/These are big policy statements that we would probably have to discuss .... Appleton, Wisc. They require off street parking .... Atkins/The Near Northside would become a sea of asphalt .... Thomberry/ .... policy statement of that nature is what we need to be discussing... City owned housing .... we have to discuss our- Atkins/That doesn't directly affect the General Fund, you understand. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 33 Thornberry/It is a policy statement that is money that is expended from the City of Iowa City to something that is off the tax rolls ..... Kubby/You bring this up at least once a month and there aren't four people who want to sell off public housing. Thomberry/ .... this is somebody else's ....Another one that he mentioned is Aid to Agencies ....magnet drawing .....I happen to agree with that .... Atkins/Do you wish us to look at those programs that involve cash contributions? Thornberry/I think we would be remiss if we said no. Atkins/I look at them simply as an opportunity for you to make a service change ..... we will give you some ideas on that ..... Norton/We need to look at those. Kubby/I would say the Aid to Agencies, the PIN grants and CVB are out of the question. Council/(All talking). Thomberry/I don't have any golden handcuffs... cows .... another one is cable TV ..... Atkins/But that doesn't change the General Fund. Thornberry/... It is money expended from the city for services that are not essential. Arkins/But it is not General Fund .... Thornberry/ Nov/Service reductions .... Vanderhoef/Recycling every other week. Norton/Won't... Arkins/Keep in mind... we have as a community .... we have funds... water, sewer, parking... those funds.. we pay for and support themselves. It is not beyond the realm of possibility for you to change water rates and subsidize the General Fund. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 34 But you have chosen not to do that because of a variety of reason... Hotel/Motel Tax. We have chosen to take 25% of it and give it to the CVB... maybe you want to change the standard ..... make your own call .... practically things you want to do... What I am trying to find are those services that are up for the scrutiny ....If you reduce personnel, you have to pay a unemployment compensation .... Nov/That is only if you have dismissed an employee ..... Atkins/If you pay to do away with a public service... unemployment compensation .... Nov/If we say we are going to decrease the number of buses on the street and we wait until a bus driver quits... Atkins/That is attrition .... You can choose to do that ..... If you are going to cut a service, choose the service and then I can tell you what the expense is. Nov/If we decrease the number of buses, then we can decrease by attrition ..... Atkins/If you decrease the number of buses, that is done, you don't need the people ..... Thornberry/ Atkins/Whatever service are you going to put them in. Thomberry/You can offer them another position within the city .... Atkins/Dean, that is creating work. That is just what we don't want to do ....that is just moving them all around. Baker/Attrition is not a- Thomberry/I understand that .... But if they do get a different job within the organization- Atkins/They are entitled to pursue another job... labor contract .... Thornberry/ Council/(All talking). Atkins/They can take a lower paid position. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 35 Thomberry/ ....in lieu of getting unemployment .... Atkins/You are making the assumption that I have something to offer. Norton/Are we still looking for cuts or increases? Kubby/I have two things, questions. In our Engineering division, in our General Fund, are there any further ways that we can fit how people are paid... to Road Use Tax .... ? Are there further shifting that can happen in Public Works? Atkins/Bullet #3-Identify what programs that can be transferred capital to capital from operations .... and the answer is yes. Kubby/I guess I want to know how much. Atkins/And I don't know that. We do try .... Attorney's Office.. charge back system .... Do we need to expand that... yes, I would agree with you. Kubby/Can we do that with Planning? Is there any legitimate way to shift some of the planning costs of the projects? Yucuis/There is no reason why you can't charge time to a project. Kubby/That is something we haven't done before. Council/(All talking). Kubby/It frees up General Fund. Baker/When you shift it into another source of revenue .... Arkins/It is the capital and the operations. Kubby/ Council/ Nov/We still are on reducing expenditures. Baker/We ought to do that. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 36 Atkins/Direct public service.. internal kind of controls that we exercise. We may be able to make some adjustments in that ....That appears to be acceptable... Reducing the General Fund is our target .... Nov/I am still on #12 ....Can we say is there anything else going on in terms of reducing expenditures? Baker/I don't know how specific you want to get .... Airport gets about $126,000 out of General Fund. Atkins/That is operations only, not debt. Baker/ ....I am quite willing to say to the airport manager, I give you a year. Within a year, you got to figure out where your salary is going to come from .... Atkins/You can certainly do that. I would tell you it is impractical .... Baker/Money that we are getting from the rents .... Can we increase the rents? Council/ Atkins/You are going to find... taking my plane out of here. Thornberry/Biggest thing is all we got is 10 T's right now... main source of income from the Airport is the Iowa City Flying Service. He has got four more years in his contract .... Baker/ Thomberry/That is when things can happen. Baker/But when you set the goal that that airport (can't hear). Council/(All talking). Atkins/ Kubby/ Baker/I said a year, give them four. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 37 Thomberry/You can't change in the middle of the road, Larry .... Atkins/He said the goal would be at the end of a date certain in the future, you must be self supporting. Kubby/ Thomberry/Then what happens if it is not? Kubby/Someone takes a cut in pay ..... Thornberry/ Baker/Can we ever get a clear picture of what are the financial consequences to this city if we don't follow through on the Master Plan but want to keep the airport open? What are the dollar figures for the city? Atkins/I don't know the number ..... I am just not sure how to give you the right answer .... Baker/Can you quantify those consequences? .... I am trying to make a decision based upon consequences. Atkins/I am trying to figure out how to get you a good answer. Nov/Let me say that we will try to find that answer .... Atkins/I have tried to find it .... Baker/If somebody can't figure that out... What is the true cost of the airport? Norton/The idea was to keep a modest airport. The question is what is modest now given the new regulations? .... Nov/We understand the question, we will try to come up with an answer. Moving on. Baker/Look at ICAD and this whole question of economic development. We probably need to have a separate discussion just about ICAD .... I have no problems .... to say we spend $50,000 a year for ICAD. I am not convinced that we are getting out money's worth .... General suggestion. Steve, we could increase your salary $20,000 a year and tell you are in charge of economic development for Iowa City .... review your performance .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 38 Atkins/Do I get to say anything about that? Baker/Sure. Norton/ Atkins/It is one I wouldn't agree to. Baker/We could talk about that. Norton/We do need to talk about that. Atkins / Kubby/Have the parameters be the same but reduce the contribution. Baker/ Atkins/The goal could be .... plan accordingly .... Baker/I want to put it on the table. Atkins/Karin has the responsibility now. Folks, I like the goal idea .... Baker/It doesn't have to be you, Steve. Maybe it is somebody on staff. They are the economic development coordinator ..... Norton/Are we still looking for ideas for cuts. Is there anything we can do in the TV domain? .... Baker/How much of the General Fund goes to DARE? Atkins/The DARE Program is basically one full time police officer and the associated costs .... $50,000 to $60,000 a year .... That is the kind of thing... service... costs .... Baker/I am talking about rolling it over into an increased expense of another category for community policing, Atkins/You have to make a policy statement that we will no longer do DARE. We are going to use this person in Community Policing .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 39 Baker/ Atkins/ Baker/Drug intervention is a good goal. Atkins/...managing our package of services... I am fine with that. Crime prevention .... move that resources over. You got to say we are not going to do this anymore. Norton/One aspect of Community Policing is to check in with their school periodically. Atkins/You can frame the program anyway you want. Kubby/ Baker/ Atkins/...service change is clearly your call. Thornberry/What about self insurance? .... Atkins/We are really pretty good about that, Dean. Thornberry/What is our insurance? Has it gone up recently? ..... Self insurance .... Atkins/I thought Linda was wrong... I would have strongly recommended against that .... police liability is $30,000 a year .....We review that all the time... Can we bring those reserves down.. risk .... Thornberry/What is this risk management in here? Atkins/Just what you are suggesting.. We need to re-third( that... Right now we have good sound very solid coverage .... Thornberry/ Baker/ .... how you use the money to provide services .... If the library is going to expand, one of our council policies ought to be or a directive to the library ought to be you have X number of dollars currently for personnel ..... I firmly believe, if you are going to expand your space .... you can design space and use the same personnel .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 40 Vanderhoef/How about rent on space? Baker/I am talking about personnel continuing costs .... set your policy upfront ....design space that uses resources available. Atkins/The policy guidelines use is that the last resort is elimination of personnel .... We spend a lot of money training out employees. I just don't want to discard them .... There are a number of other things you can do .... ways of doing what we do now... try to do them differently by either generating income or reducing expense .... Personnel reduction being sort of the last .... Nov/I will give you one more.. changing expenses without reducing services. What about operating the SEATS type buses as a city service rather then contracting? Baker/Does that save us money? Atkins/I don't really know right now ..... Nov/It has been a very high percentage increase for a number of years .... It is at least worth looking at. Kubby/...two year ago, we looked at what it would cost us to run the service and it wasn't that much different.. reduced services .... Nov/ Lehman/Two years ago we really didn't have numbers we could work on. We still don't .... They had to guess .... Nov/Other factor, service for rural area... comes from the County General Fund... comes from urban tax payers .... also paying for the rural areas. Kubby/Another area that we haven't talked about is getting suggestions from employees about how to provide same level of services with more efficiencies .... I would like us to have some goals... We want some help from you... Have a dollar amount ..... Atkins/I agree with that concept wholeheartedly and I intend to implement that very goal. But I still got to give them some direction ..... Okay, folks... give me suggestions .... differently .... Discussions about Public Works building .... We need to do more of that. I need to give them guidelines like your job is not in jeopardy. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 41 Kubby/You will not get full participation unless you have that parameter. People will be scared .... Atkins/ Baker/We have talked about this for a couple of years... program that is in place .... Kubby/ Atkins/Last summer .... school .... This is a mechanism. We do face financial concems, not a crisis. We have a great opportunity to do some very positive things. Baker/It ought to be a program that should never stop .... formalized program. Kubby/I have some suggestions for some specific parameters. One is that we have a goal for employees .... another goal is there is no perceived difference in quantity or quality of services by citizens. That there is no decreases in the workforce. Committee work happen during regularly scheduled work hours .... don't have to volunteer to do it .... Thornberry/Of the 19.5 f.t.e ....FY98, people in the refuse collection operations 18 are garbage collectors ....average per person wage and benefit costs for refuse collection is $42,150 ..... Kubby/It is not General Fund. It is still a point .... Thomberry/I am getting to the point of city expenses. Average per person f.t.e. cost the tax payers of the library staff in wages and benefits exceeds $51,000. Franklin/That is not true. Atkins/ Franklin/I don't know what the number is. Thomberry/What is the average per person personnel cost of the landfill and how many people are there? Atkins/It is easy enough to calculate. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 42 Thomberry/ .... if we privatized a lot of this stuff, we would not have to pay those costs. I think privatization needs to be discussed. Atkins/Fine, it is on the table. Norton/In particular places. Thornberry/ Nov/That is not an expense. Thomberry/Parking operations is not an income when you are paying $37,189 .... users are paying that .... Norton/I want to get- Atkins/I have no idea whether those numbers are right or wrong .... Until I can calculate the numbers for you that I am comfortable with, that is the right number .... Thornberry/Somebody should know what we are paying these people. Atkins/We do. I just don't have them. Kubby/When you take the average... very difficult .... Thornberry/ Atkins/One of the things that we will do is prepare that kind of information .... I cannot give you a recommendation on whether this is a good or a bad increase unless I got it in front of me .... There are things that I think you can privately contract .... things I would strongly recommend don't do this. Thomberry/I am not saying privatize everything .... Garbage collection may be. SEATS may be. Airport may be .... Norton/I want to try.. enterprise projects.. funded under GO .... distinct from revenue which could be switched back at some cost. Could be taken out of the GO? Atkins/We sell GO debt for a variety of projects... We may retire the debt by say water or sewer revenue... GO Debt carries a better credit rating at less cost than a revenue This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 43 bond might. We do that very judiciously .... We do do it when we can... What that does is that the Debt Service Fund is not directly affected. It is pledged .... Norton/Might be some ways to free up some GO. Atkins/We can free up some GO .... Norton/ ....might open up a different source of money. Atkins/Biggest thing on capital projects and the General Fund .... those projects which we finance with General Fund cash and are willing to switch over to debt .... With the understanding that that doesn't change your property tax calculations... bumps it up a tad bit. It just opens the ability within the General Fund. Norton/ Nov/One more... Dean has to leave at ! 1:00. Thomberry/ Kubby/I have to be in Indianapolis at a certain time. Council/ Norton/ ....I think it is time to get ready to look at city county assessor issue .... Baker/ Norton/The one on TV .... and BTC .... I don't know whether there is anything to be saved in that category or not. Atkins/The money to be saved.. if you choose to use cable revenue as a direct revenue to the General Fund .... Not any different from the Hotel Motel Tax .... Thornberry/ CHANGE TAPE TO REEL 97-93 SIDE 1 Thornberry/General expenses. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session page 44 Atkins/What I need to hear from you is what is on your mind with respect to a proposal that you might put forth to reduce expenses and I am hearing that... I also need to hear from you a discussion on what you might choose to pursue in the form of increased revenue .... It all has to be fit together, Dean, in one policy statement. I want to see some changes made in operations .... At the same time you may be saying I want to talk about a sales tax ....franchise... I want to see those things discussed .... CHART: Reductions: Equipment replacement schedule Hotel/Motel tax allocation Identify prog... shift employee costs Airport ICAD DARE Expansion of services with same staff Charge more (or something ) for space SEATS Staff input goal not dif in quantity or quality of service no decrease work hours no overtime or volunteer hours Privatization (explore) City/City Assessor issue TV Nov/We are not getting as far... Atkins/We can pick it up at the next meeting. I have learned a great deal ....I want to take it back and put a package on the table for you .... Thornberry/I am just saying .... you can't say that is not in the General Fund. So what?... I thought the expenses for the city were open for discussion, not just the narrow band of- Atkins/I would say to you our financial trouble is the General Fund .... Council/ This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397 June 13, 1997 Special Council Work Session Lehman/ Norton/ Thomberry/ Atkins/First of all, I want you to know I did not do this. Nov/ Thornberry/I didn't think the General Fund was the only place we could cut- Nov/We never did get to the discussion of moving the expenses or revenues from this fund to that. That is on our agenda but we just never got that far .... Wednesday, folks, is when this discussion continues. 1:00 PM on Wednesday. The discussion on Monday is library/cultural center. Kubby/That's all? Nov/If we get finished with that... we will pick up on general finances .... Council/(All talking). Atkins/Are we adjourned? Nov/We are. page 45 Adjourned: 11:10 AM This represents only a reasonably accurate transcription of the Iowa City council meeting of June 13, 1997 WS061397