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HomeMy WebLinkAbout1997-06-16 Transcription (2)June 16, 1997 Special Council Work Session page 1 June 16, 1997 Special Council Work Session 3:00 PM Council: Nov, Baker, Kubby, Lehman, Norton, Thomberry, Vanderhoef Staff: Atkins, Helling, Karr, Dilkes, Franklin, Yucuis, Craig (left 4:00 PM). Library Board of Trustees: Greenleaf, Singerman, Martin, Traw (left 4:00 PM). Others: Gelman. Tapes: 97-93 Side 2; 97-94, all. Library Discussion 97-93 S1 Nov/Library, is Susan coming? Thornberry/This will be quick. Council/ Nov/We will start with the multi-use project, Library/Cultural facility, etc ..... We have a potential ballot issue vote on tomorrow's agenda. We can vote to put this on as stated. We can amend the date. We can defer indefinitely. We can defer without amending the date. Does anyone have a starting plan on this? Norton/I figured we need to get some operating resources identified before we can take a plunge .... Nov/It is a matter of identifying this is how we are going to support such a facility or is it a matter of having a vote on a particular issue? How do you mean identify? Norton/It just seems to be a little tough to go ask to pass a bond referendum when you can't see for sure how we are going to support the operations that are entailed in that .... We know we can handle the capital costs in principle .... and we know what that does to the tax picture ..... We almost have to look at city finances before we are in quite a position to say go .... Kubby/... First we need to know if there are people who are willing to make the commitment to the library and cultural center and that way we know what our goals are .... Norton/I was assuming I made that commitment .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Cotmcil Work Session page 2 Kubby/I mean by voting for the referendum... as stated .... Norton/Do you think that is realistic in the face of the other uncertainties...? Kubby/I think it will held focus us on what we need to to do. Norton/ Kubby/It may be a range ..... I wouldn't mind saying instead of 3 f.t.e.s, maybe get 2 or 2 1/2 and design it with that .... That helps create our goals .... Baker/I want to get clear what you are really advocating. That we vote on the resolution for the special election with that date specifically? Kubby/Yes, with November 4. Baker/Then try to figure out before then how we are going to sell it to the public in terms of long term operational finances? Kubby/We need that .... Baker/I want to make sure...I don't want to talk about resolving budget issues to satisfy the library obligation. That we have other concerns as well .... we ought to be able to go to the voters on a library/cultural facility with everything else in place ....I am not comfortable with that date specific ..... Kubby/ ....By saying yes to the referendum, you know that has got to be part of the formula .... Baker/I am quite willing to put it on the ballot and enthusiastically support it as soon as we resolve these other questions. Kubby/We are not going to do that in the next three months. Baker/You are right and that is why I don't think the November 4 date for a special election for a library/cultural center bond issue is a realistic date .... Norton/ Lehman/I guess I would like- Is there any comment from the Library Board? This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 3 Charles Traw/I can't really comment for the Library Board because we haven't met as a Board to discuss what has transpired in the last couple of weeks but I think that we are not unrealistic. Realistically we don't anticipate this project could pass muster in November in light of the financial issues that the city is confronted with .... Nov/We are talking then about a vote on a date other than November? That is what I hear. Vanderhoef/That is the direction I would go. Norton/I would like a different date .... Kubby/ Baker/ Lehman/I really think .... I would much rather not see us put it on the ballot than see than see it resoundingly defeated .... As far as delaying it, I don't know ifI would be willing to set a definite date. I think that depends on how we are able put our finances together .... I think there are a lot of things involved here ..... I don't think it would be approved .... I think we really have got some homework to do .... Until .... we feel we have a project that we can sell .... I don't think we have a reasonable possibility at this point .... Baker/Would spring '98 be realistic for you? Lehman/I don't know .... We could have a target date, I have no problem with that .... Baker/What Karen is waiting for is a more concrete commitment... I don't have any problem setting an extreme date... We can always pull it .... Vanderhoef/ ....I don't know what is more reassuring the commitment, the Library Board ....to set a date and... move it if we are not comfortable ....Or saying yes, we are still interested in putting this on the ballot and we will put it on when it appears that we have our house in order .... Baker/... a date specific is realistic in the spring .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 4 Norton/How do you respond, Larry, Karen's concern .... if we go ahead working to solve this financial puzzle ....finite way to proceed ....I think we need to straighten out the finances before we go and ask do you like this .... the library. Nov/Is there an interest in having the architect go ahead and do more specific plans? ..... Is there an interest in saying we are going to modify the proposed project? ..... Baker/ .... Library Board and cultural people .... I would like to hear from them about whether this issue... proposal needs to be modified as far as the voters are concemed. Nov/The only thing that could be modified... postponed and added later is the auditorium. Kubby/Because capital is not what part of the conversation was, we can handle the capital .... Some of the operating costs for the auditorium are connected to the other cultural center aspects of it ....doesn't seem to be a big savings... It seems to take away too much. Vanderhoef/...Auditorium... more difficult and definitely more expensive to do later. I am not sure that I am interested in breaking the project a part in that fashion. Nov/In terms of later, the whole project becomes more expensive because of inflation .... Norton/ Nov/ Norton/Whether you got to a franchise fee or a sales tax or either, both of those have to go to a referendum .... I guess even a cultural levy. Kubby/Franchise fee does .... That is a huge thing... long time negotiating... Norton/You see us going to the voters twice, in other words, is what I am trying to ask? Nov/I am not sure the franchise fee has to go to the voters. Baker/ Nov/That would go when the franchise is renewed .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 5 Norton/ .... look at some stretch outs or delays, have you decided if those are going to meet the gap .... I think personally not without some additional source .... Seems to me we may be going to the voters twice. The question is at what sequence and what separation. Franklin/Can I try a scenario? That you pass a resolution that has a date... in 1998 for the bond referendum .... In November '98. Kubby/That is going to be a big election ....Recorder's issue ....supervisor election .... Baker/ Karr/I am wondering if the Auditor's office, because that is different precincts and different requirements because it is a different election. Susan Craig/(In the audience). You can do it ..... Karr/I understand... I can report back. Franklin/Assuming that we can do it with the county election, then you would have between now and next spring .... period of time in which to allow a campaign committee to get together and actually sell this project if it is going to pass ..... You would also have that time to address the financial issues and one of the revenue sources that you have talked about, the sales tax. If you do decide to pursue that, that is going to have to go to special election anyway and coordinate that with the election of Linn County ..... You have time then to know whether you are going to have that other revenue source or not .... Baker/Refresh my memory, a sales tax election cannot be on the city election? Franklin/That is right. Kubby/Can it be on a primary? Franklin/It can be- Nov/It is a general election or a special election. Franklin/It can be on a special election which a primary would be .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 6 Kubby/...looks like there is going to be a primary in District B which only District B votes .... confusion .... Nov/You can have the issue of sales tax in every precinct and then just have an extra ballot... Franklin/It would be a special election but it would be at the same time as the primary .... Norton/Coordination... Cedar Rapids .... Franklin/...if you wanted to, you would have that option... Otherwise... two special elections .... Karr/I wanted to clarify that what you can't hold it with is the school because the districts are different. Franklin/You cannot hold it with a school election, no. Vanderhoef/But if there were a primary for this fall and only in B? Karr/B would have two questions and the rest of the ballots would have one? Vanderhoef/ Karr/If you lived in B, you would have two issues to vote for potentially. If you lived city wide, you would have one. Vanderhoef/As a special election .... Franklin/The cultural facilities tax can go on a city election. You can do that in November. Nov/I wasn't able to find the cultural facilities tax in the current State Code Franklin/It is in 384.12. Karr/And 24. It is in two spots. Franklin/And you have to look back for procedures to a subsection at the beginning of that section. It is confusing. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 Jtme 16, 1997 Special Council Work Session page 7 Nov/They didn't take it out? Karr/No, they did not take it out. Nov/ Franklin/That is a much narrower revenue on what you can spend it on. Nov/Are you fairly sure that can be on ballot before the cultural facility exists? Franklin/Not positive but I think so. We will have to look at that. Nov/I will have to look it up again. All right, what do people think about a cultural facilities levy? Vanderhoef/I really hadn't thought about it because I understood that we could not have a levy until after we had a building. Nov/At least a bond issue for a building .... at least know that there is a cultural facility on which to put this levy. But I am not sure .... Norton/ Kubby/ .....could you see the cultural facilities levy be part of a bigger picture? Norton/I could if you weren't going for sales taxes. My problem is the number of demands is considerably larger than just the cultural center and the library .... Baker/ ....I can't see us putting that out early and then considering a sales tax and then considering the bond issue itself. You are going to have to deal with the bigger financial picture... expanded revenue source. Vanderhoef/ .... look at what the property tax owner's bill is going to be .... I would have to think twice after looking at what the property tax rate would be. Norton/We can get those figures pretty well in hand .... Vanderhoef/ .... might be two years until we got to the time of a levy... what the total property tax bill would be .... Baker/What do people think about the 1998 date that Karen suggested? This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 8 Vanderhoef/I think that is the earliest we could do that. Norton/Sounds reasonable to me. Lehman ... I don't think we should limit that .... There may be variations or whatever .... Library Board .... concerns .... Most of the comments that I have had have not been anti-library. They have been anti-this size of bond issue .... Nov/ Kubby/ .... I feel like we have left people in limbo for awhile .... I like the idea of a goal for a date... even if it is by spring that we are going to set a deadline in March of '98 to decide when it is going to be on the ballot ....It is really difficult for people to have faith in us... and to move forward. Council/(All talking). Norton/...don't blame us for getting caught in a bind here. Lehman/I don't think the voters are nearly as concern about how we are going to finance the operations of this as we are... They are far more interested in what they are going to get .... They look at what they are getting and what kind of services they provide to the community... They look at cost benefit... figure out how we are going to fund the operation. Norton/Ernie, when that first came to us as just the library only .... now for 1/3 more, you are getting a hell of a lot more .... It is an absolutely virtuous proposal .... broader constituency... more investment in the downtown .... I think that is still the case. Nov/I think we ought to somehow try to make a decision. We have a request for proposal for private development and the proposal .... 15th of August....not even going to put this on the ballot until November '98. I don't think we are going to hold onto anybody in terms of private development if we are going to put that kind of date on it. Baker/... I don't have any problems with saying tomorrow night... (can't hear) 1998 is the date for the ballot election. I would talk about the wording... description of what we are putting on the ballot .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 9 Kubby/We can't vote on the resolution for $98,000 based on this tomorrow night, can we? Does it have to be within a certain window of time? It could be a message to the community. Franklin/You can vote on the resolution whenever you want to. You certify it with the Auditor's Office 45 days- Karr/We were just talking about. I can double check that tomorrow. That would be my plan is not to certify it until that time. Norton/ Franklin/You can pass another resolution to change it. Council (All talking). Karr/It is not certified. So we just repeal it and amend it. Norton/ Franklin/What the resolution does is it sends a message to the community that the council is committed to this project and that you have a date specific in which it is going to be before them and allows people, like this group, to plan for that whole event. Kubby/I would like to hear from the Library Board... how you feel... the difference between a special election where this is the only item on the ballot versus the general election .... Traw/We have not but we can bring it up in our meeting. Nov/We need to think about what kind of architectural plans we want to have ready before this issue is on the ballot also?... Rather see it on the ballot in the spring if we can manage it that way. Kubby/A ballot item like this has more community discussion and the more people voting for it, the better .... Baker/Politically I think fall '98 is a better date for this kind of ballot issue .... It is more likely to pass with that election than with a special election ....Fall '98 1 think it is better .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 10 Norton/... Any virtue in trying any kind of architectural work before that? Refining the plans any further? Baker/They could continue to talk. Nov/We have often had a picture... before an issue like this goes on the ballot. Part of this vote .... to commit ourselves to this kind of architectural picture .... Baker/Let's vote to put it on '98, figure out the funding question for the whole city budget and spring of '98 start selling the project. Vanderhoef/ Norton/ Kubby/You are saying to start the architectural design in the spring? Franklin/There are two pieces that are pending right now .... anticipating fall of '97 referendum. 1- To have a consultant do a refined estimate on the expense and income for the cultural center auditorium... something more precise... Other was to have architectural drawings down of the pedestrian bridge .... and a rendering of the auditorium outdoor space there .... pieces that people could see to get some sense... Not have complete architectural drawings of the entire building .... The economic part of it for the cultural center auditorium was going to take a month to complete .... cost us $5,800. To do the drawings, I don't have a price on that but the architects were ready to do these drawings if it were to come up in November .... need a couple of months .... If you are doing complete architectural drawings, that is a whole other ball of wax ....We hadn't contemplated doing that until after the bond referendum passed. Nov/So I am at least concerned that we have something before people vote. We don't need complete architectural drawings. Vanderhoef/... Look to the Library Board .... backing up from a November '98 date, at what time would you want architectural drawings? .... Traw/Six months and a day. Vanderhoef/So after the first of the year ....bring us what you would like .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 11 Thomberry/Until we get a positive RFP back from a private developer, I don't think there is any reason to go forward with the project ....I would be willing to expand the current facility as much as possible .... Nov/You may find that you have a developer... comes to you in August... then this issue is not on the ballot until November '98... put some money into the current library... roof repair... carpet replacement. Vanderhoef/I could even consider filling in the second floor on the library with the roof.... Nov/ Norton/When would you make that decision? After seeing the RFP? Thomberry/I think that needs to be done in any case. Norton/ Thornberry/Expand as much of the facility as we can at this point... new roof... new HVAC .... Baker/ Thomberry/Because the private component isn't there, I would work diligently to try to defeat this bond issue. Nov/Private component may to may not be there. Thomberry/ Baker/That is not going to stop me from supporting the library expansion project .... Thomberry/It will me. Susan Craig/A point of information about the roof.... The Library Board doesn't even know this .... We are going to have an insurance adjustment because of hail damage to the roof that we have and it was Kevin's and my assumption that we shouldn't spend 1 O's of thousands of dollars repairing a roof that we are scheduled to replace in a few months. We are going to expedite the replacement of This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 12 the roof this summer because we have some major damage.. leaks... The roof will be taken out of the picture by the end of the summer .... The roof will be fixed. Thornberry/Is it cool in there today? Craig/It is after we got our air conditioner fixed last week. Nov/ Craig/The air conditioner got fixed so it works. It still means it is 70 degrees in one place and 85 in another. Nov/We had better to something with HVAC. Kubby/Some people were talking about... private entity.. says I need to move now, it doesn't mean we have to move now. It may mean that we have to forgo that particular entity if we are not ready .... Nov/ Kubby/I heard other people say we might need to hurry up and go ahead and do it if the private entity wanted to go. Nov/No, I think if you get a proposal and it is a decent proposal, it is contingent on having the rest of this bond issue pass .... Council/(All talking). Nov/There could be some kind of time line in here ..... I would like us to move along a little faster. Kubby/So you are still advocating a spring ballot date? Nov/ Franklin/If there is not a firm commitment on a part of the majority of the council to go ahead with this project, it will have an affect on whether we get responses from the private sector or not because this RFP went out... In the newspapers... stories have been is it going to happen? Someone is not going to invest your dollars and their energy into putting together a proposal to submit to us to a project that they This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 13 don't know there is going to be any bottom. I think the most important thing is for the commitment to be loud and clear. Norton/Commitment to the bond issue is one thing .... still subject to the voter's approval. Franklin/That is clear in the RFP, this is all subject to the voters. Kubby/ Lehman/I think I hear what Dean is saying .... I do believe our chances of selling this project to the public are significantly enhanced if we have a viable proposal from a private developer. Kubby/We have all agreed to that. Lehman/ Baker/ Thornberry/If the developer is on line, I won't work to defeat it but I won't support it. Council/ Thomberry/ ....I want to be riscally responsible ....knowing where the moneys are coming from year after year ....ongoing expenses ....with that whole project and with a private developer on board .... Norton/We want a little more than that. Thomberry/It might be a good project .... Baker/There is at least six people who want the project to go forward regardless of the private component .... Thornberry/I understand that ..... Nov/We will have a resolution on tomorrow's agenda and this resolution will say we want this on the ballot. Do we want to put a date on that resolution that is November '98? .... first Tuesday after the first Monday .... Lehman/Can we defer it indefinitely? .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 14 Nov/No, let's put a date on it. Baker/Let's put a date on it. Nov/ Kubby/Can we say not later than November of '98?... outside date certain. Baker/... I suggested the spring ......Politically... chances are better with a November election ..... Nov/Are there enough people... who want to say November? Vanderhoef/Yes. Norton/I want to say not later than November. Kubby/Not later than November .... gives us... flexibility ....Let the Library Board a chance to decide what their preference would be .... get our financial situation figured out .... Norton/And we will see what the RFP's look like .... Kubby/Not later than November (can't hear) if that is the right date ....First Tuesday in November. Nov/Okay. Baker/Any interest in changing some of the lines to make it a little more generic? .... Lehman/I think that ....may be several changes... Franklin/If you want to change the question... we can change that any time between now and November of '98... as long it is at least 45 days before the election. Dilkes/The resolution will also have to be restructured too because it is not going to be calling a special city election. It is going to be expressing your intent to do so prior to November of '98. Karr/If you are not date specific, then that is not calling a special election. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 15 Franklin/That is just semantics that we can work out. Karr/ Franklin/We will come back to you with a specific resolution when you decide on the specific date. But what this will say is that you have the intent of doing this and asking this question as it is phrased here. No later than November 3 .... Lehman/... expense .... Franklin/I don't know what the figure is for that ....large is relative ....talking about a broad brush sketch .... CHANGE TAPE TO REEL 97-94 SIDE 1 Franklin/Find that out, what that number is. Lehman/ Norton/The sooner the better, yes. Franklin/I am going to take this as the community is going to take it as a commitment that this is going to be on the ballot at least by November of 1998 if not sooner. No later than. So we can go ahead and get this work done now. Nov/Okay, so we will modify the comments and the resolution that it will basically say the date for the selection is no later than November 3, 1998. Kubby/Good. Nov/Then if we decide to do it earlier, we are still okay. Is there any other comment on this issue? Thornberry/You just have to be specific as to what they are going to be voting on 45 days prior to the election. Nov/Right. Thomberry/ This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 16 Kubby/We know what the plans are .... majority of us .... Nov/We have a majority... and we are going to put a bond issue on the ballot. The description says to exceed $22 million ....This particular resolution is going to be as accurate as we can be today. Kubby/Should we leave the money part out of it because of inflation? .... Lehman/Why would we put numbers in it at all? Nov/This is the way the resolution is currently written. Kubby/Because we are talking about intent, we don't need the number, do we? Franklin/Approximates... intent language. Norton/No secret. Thomberry/ Nov/I think it ought to be as descriptive as we can. Okay, any other discussion here? We want to go into finances. Kubby/So the other things we might be asking the Library Board to get back to us... thoughts about whether they would like to have a special election .... general?... I would really like to hear what your thoughts are on it. Thomberry/What difference what they think, Karen? Kubby/It makes a difference as to how many people participate .... Nov/Does the lower turnout mean the voters are more likely to be in favor or it or more likely against it? Kubby/... better sense at a general .... Traw/I would like to be able to answer any questions you have. That we will take up .... Lehman/I would just like your general reaction...thoughts... We need to know your perception... timing... bond issue... package .... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 17 Nov/The library will discuss these things .... Traw/We will discuss it... I would like to respond to anything anybody might want. Nov/Okay, you are asking if there are other specifics. Baker/Any thoughts of some components- all these components being part of the package or at some point, what are you most comfortable with? Traw/ Nov/ Kubby/If the Library Board's answer is we would like to have an election earlier than the general... I guess I would like to know when you would think would be the best time .... Norton/ .... As I read over the materials that were presented to us detailing this, I get a little mixed up over the exact amount of space... multi-use exhibition and meeting center... That is in addition... to the space in the galleries... Confused as to what that space requirement was. Nov/That is a question for Karin .... Franklin/Is the multi-use exhibition space separate from the galleries? Yes, it is a larger space. Norton/ ....What is the largest meeting room? We have no idea yet? Franklin/No Nov/We haven't gone into these details. We have assumed there will be a meeting room larger than the current large meeting room at the library and it will be smaller than a 500 seat auditorium. Franklin/That is probably a good range. Norton/... total square footage wasn't there... I will get it from you. Kubby/I know some of the cultural center folks couldn't be here. So, Karin, if you could relay our discussion to them. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 18 Franklin/I will. Norton/Are we going onto finances? Nov/Well, we talked about this bond referendum and Karin answered all these questions .... Norton/Are we going on now? This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 19 City Finances 97-94 Side 1 Nov/Sure, other things. Go back to our list of discussion items. We had gone as far as #13. We were starting to talk about property taxes ..... A vague references to moving some expenses from the General Fund to other levies .... We had ended with #12. We were talking about starting here with #13. [Novick's June 10 memo re: City Finances - Discussion Outline] 13. Property taxes -move some expenses from general fund to other levels. -some type of goal for increases -tie only General Fund levies to a goal Norton/One of the points that was made there was there might be some of the current enterprise projects .... from the General Fund? .... Is it true that some of the enterprise projects have some of their debt service coming from General Fund? Nov/No... there was some GO bonds that were issued then repaid with enterprise funds. Vanderhoef/ Norton/Some are the other way, aren't they? Don Yucuis/The only one that could be that way would be the airport... small amount in '85 or '86 GO bond issue that we charged the debt service to the airport and part of that is funded from the General Fund or fees. But all of your enterprise fund projects that we issued GO bonds for that would be repaid from fees out of the water or sewer or parking fund. Norton/... I thought there were a few places because of the rate we got- Vanderhoef/We chose to do that but we don't have to. Norton/ Nov/We chose to issue a GO- Norton/But we might want to chose otherwise. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 20 Nov/We then repaid the GO out of the fees that we were collecting from the enterprise fund. Norton/Okay. Vanderhoef/It isn't General Fund moneys paying that off. Nov/It is just the general bond position. Vanderhoef/We have one on the books for tomorrow night, Dee .... going to be a GO. Norton/Did we set a goal for increase and staying with inflation on property taxes? Nov/No, we didn't do anything under #13 under property taxes .... we did not set a goal ..... Thomberry/What would be some of the expenses that could be moved from the General Fund to other levies? Kubby/Health insurance. Nov/Employee benefits levy, tort levy. Thomberry/ Kubby/Employee bennies. Atkins/From the General Fund to other levies? Tort liability .... a certain capital projects in the form of cash... transferred to debt levy .... We are putting together some thoughts. We currently finance all of our police vehicles .... from the General Fund because of the short life cycle and we are discussing lease agreements and or switching it to some sort of capital loan note with a short term pay back and then put that on the debt service levy also... amounts to about $100,000 a year ....police cars good for about 18 months ....they put about 70,000 miles on a year ....Did any of them get a bunch of damage from the hail? Atkins/Yes, many of our vehicles are damaged. The whole parking lot .... What we would do is...borrowing... 18 month pay back cycle .... Thomberry/Could we keep those vehicles longer? This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 21 Atkins/Most of them we life cycle, Dean. We are in pretty good shape .... demonstrate to you they have reached the point where they are not economical for us to operate .... We usually participate in the state bid. Yucuis/We have been transferring money from the General Fund to fund a library computer replacement and that could be a lease purchase. Borrow money and put that on the debt levy. That is another option. Kubby/Are we doing a reserve fund for computers out of the General Fund? Yucuis/We have a replacement in each department into another fund .... cash ....all funds but there is a large number from the General Fund. Norton/That could be stretched out a little? Baker/We have two goals... to stabilize the General Fund crunch....that is coming in 3-4 years, the 1% crunch .... Are you saying that if we just shifted around expenses, we could shift stuff out of the General Fund, do other levies? Atkins/Yes. Baker/Would that get us close to resolving that problem? Atkins/It would get you on your way but not resolving it .....I don't think it would be half way. Police cars are $100,000 a year. Baker/I guess what I need, Steve, is here is all the items that can be transferred out and here is what you would save. You still have to pay for it in some form but the General Fund problem will be partially resolved by this kind of transfer. Atkins/We are back to the guidelines issue. If you find that acceptable... do things internally. It doesn't change the tax asking, it shifts it from the 8.10 .... Baker/That projected shortfall is in the General Fund. Atkins/That is right. Norton/The debt levy is in the General Fund. Atkins/No, it is not. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session Norton/When you talk about the overall tax levy- Atkins/The overall tax levy, the debt levy is involved- 8.10, .95, .27. Norton/Those three .... Debt service, when you talk to the tax payer, you are at 12.8, fight? Includes the debt service? Atkins/Yes ....aggregate versus individual .... Nov/If we tie increases to inflation or any other goal, does it include all of our property taxes which includes all of the bond levies or does it include just the General Fund? Norton/I don't know whether it should or not. Nov/Well, that is the question that we are here to discuss. Atkins/We can put a dent in the General Fund problem by transferring some of these expenses to there levies. That can be done. Baker/Before we start talking about increasing city services .... we have to resolve the projected shortfall problem .... That is what I want to get clear... resolve the shortfall problem .... The current source of funds ought to be our first source of funds to solve the shortfall problem. Council/(All talking). Kubby/ Baker/ Kubby/ Baker/I said without looking for an additional source of revenue. Vanderhoef/ Baker/...then debate, we want these other things and how do we pay for them. Norton/I would like to get an estimate of what we can-... reductions and efficiencies .... What realistically can we .... expect to get out of efficiencies in operations? page 22 This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 23 Atkins/I think I can get as much as you are willing to allow me... I can't pick a number. Give me a goal. Tell me what you want done. Norton/1% would be $380,000. Baker/Part of which can be resolved by transfers. Atkins/Yes. Council/(All talking). Atkins/But it does not reduce property taxes .... We didn't write the laws of property tax laws in Iowa and it allows us to do some switching around .... Can I open up in the 8.10 levy room for covering expense reductions .... yes, it will transfer that cost to the debt service levy or tort liability levy in some instances which pushed property taxes up anyway. I need to know if you want to reduce expenses, are those transfers acceptable .... Norton/... suppose you cut ICAD, suppose you cut DARE... consolidate some TV operations. Atkins/My point is what are acceptable guidelines for you? I will give you a list of proposals. Kubby/ Atkins/Give me a goal- Norton/I am looking for 1/2%. Nov/Why? Norton/... would be $160,000 or something. Thomberry/Why 1/2%, Dee? Norton/I don't know. Because I just kind of looked over what I thought I could cut .... It would have to involve a whole lot of different aspects ....whole combination of things. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 24 Nov/So you are saying within the General Fund user fees? .... Norton/I am talking about user fees in the cemetery and airport, for example .... Nov/P/R kind of user fees? Norton/Possibly. Atkins/We have a whole series of fees. Norton/... part of it is selling services .... Atkins/Do you want me to start recording guidelines? Nov/All right. Norton/Stretching out a few projects. Nov/One proposal .... cut expenditures by 1/2%. Kubby/... Is it about $160,0007 Atkins/Yes. Kubby/I think we should go for 1%. Thomberry/I do, too. Baker/ Kubby/He will give us a list of options ....on how to reach that 1%. Norton/I want to cut expenses .... Thomberry/To cut expenses, I don't think 1% is unreasonable. Kubby/See what the list is and we may find that 1% is not acceptable to a majority of us .... He was arguing for 1%. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 25 Lehman/Is it possible .... if we could show we could reduce our total expenditures without raising any taxes .... Then contain those expenses .... We should be able to eliminate that proposed negative cashflow .... Kubby/... What are we willing to cut to do what you are proposing? Lehman/ Norton/How would this work over a period to time? Atkins/All I want is guidelines .... Baker/... Without additional source of revenue, how do you resolve the projected shortfall. Norton/1/2%... if you started that cut in '98 .... that would have a cumulative affect of considerable consequences by year 2000 ..... How much of that shortfall would that deal with, I am not quite sure. Atkins/$1.4 million in your face shortfall in the year 2001. Spread it over the next four years .... trim down cash balance .... Norton/We were talking about needing $367,000 a year for 4 years. Atkins/$367,000 a year for 4 years. Norton/If we can start that even earlier- Atkins/If you started in'98 ....improves your position, absolutely ..... Kubby/ Atkins/You are still targeting the $300,000 plus a year .... accumulative affect for four years .... I need a guideline .... Norton/... Let Steve try. Atkins/I need to have a feel for what is acceptable and what is not .... Are there items... that don't touch? .... I would avoid as much as possible a reduction in personnel .... don't shift it around... very difficult... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 Jnne 16, 1997 Special Council Work Session page 26 Thomberry/If we just shell game it around, it is going to catch up with us. We are trying to find efficiencies and reductions .... Atkins/These are all projections .... Kubby/1%... is not even one year's worth of reductions... So we may have a goal of 1% but we still going to need to do some shifting .... Norton/I am talking about 1/2% per year. Kubby/I am talking about 1% a year ..... either a new revenue source... Norton/General Fund and property tax burden... consider debt service. You have to worry about that, too. Thomberry/ Kubby/ Norton/Some of it has got to some out of efficiencies and reductions .... and I am trying to look for detail things... going to have to come out of additional resources .... I think we should get some out of stretch-out. How does that figure in this thing, Steve? Kubby/Didn't we already agree to that guideline? Atkins/I haven't seen you agree to much of anything. Thomberry/You can get some out of that .... Norton/For example, we got some trail projects in front of us ....airport projects that might be stretched a little bit .... Atkins/That allows you the ability to do some shifting from the debt... Baker/Is there a majority of council that wants to see Steve prepare that list of shifting? Thomberry/Absolutely. Baker/And that is a viable option for subtracting this shortfall? This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 27 Kubby/ Baker/There is a distinction between a shortfall problem in a specific area of the budget and a shortfall problem in the budget. You still have the ability to pay for some of the shortfall... in the present budget and the capacity to generate funds for it .... Nov/We have done this kind of thing back and forth .... Atkins/That is why you do a three year budget .... Nov/If we had a policy that said all fire equipment is going to be bond issue and we are not going to ever have it in the General Fund again, we have freed up some money. Atkins/But you also transfer the cost from the 8.10 to your debt. Lehman/I think we got to be able to pay for what we intend to do without increasing the total amount of tax .... the present budget, things we do now .... Baker/...Funds that are currently available are taken away from us .... Lehman/Property owners are going to see it as an increased tax. Nov/Property owner has already seen the decrease in tax because of the rollback .... Baker/Ernie... if your goal is don't increase your taxes locally, you don't do this shifting. What you have done is cut your taxes locally. Kubby/ Norton/Are we still looking for broad guidelines for Steve...? Kubby/I thought we did the equipment replacement schedule being stretched out. I thought we agreed to that. Thomberry/If he is just looking for guidelines .... policy guidelines .... give us a list if proposals .... That is his job .... Baker/How much money can we take out by shifting it out? .... Thornberry/They don't know until they can look at it. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 28 Norton/Where are stretch-outs? Are they there? Atkins/I think stretch-outs have an affect on your debt service levy .... Norton/I think we should be looking at some of those .... Thomberry/Why don't you let him propose that .... Just do the guideline, let him do his homework. Baker/My guideline would be very simple. Steve, you tell us how much we can shift out of the General Fund over these other sources of revenue we currently have available to us ..... Thomberry/ Baker/Within the General Fund we can talk about ICAD and DARE .... and whatever. Vanderhoef/ .... I want... how does that impact the tax payer's bill .... I may choose to not take all the shift-out .... Baker/My gut feeling is we are not going to get that 1% by cuts. Thomberry/Are you ready to give proposals on where we can cut? Shifting is a given .... Norton/Have you considered... anything more can be gotten out of reserve funds? .... Atkins/Use the reserves, you expand your risk. What you do is calculate your risk. Council/(All talking). Norton/ ....I think we might want to re-consider how much we got salted away. Nov/We did say that we wanted reserves to be around 20% of the General Fund. Atkins/I think what Dee is suggesting is the insurance reserves, health insurance .... Lehman/ Kubby/ This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 29 Lehman/You have to maintain a certain level .... Norton/ Atkins/So far .... operating budget appears to be okay... I think the stretch-out would probably be the most significant policy change for you where somebody's project is not going to get done .... Kubby/Add on that list 1% of cuts per year .... Norton/Put 1/2% there .... At some point this discussion... I want to look at overall property tax thing. I need to know at some time that the capital costs, your projections that you did a couple of weeks ago ..... Atkins/Let me give you an example, in that $10 million you have the Wolf Avenue Bridge, $287,000 .... Sunset Street Storm Sewer, $300,000 .... Sycamore South Regional Detention, $800,000 .... replacement of gym floor... That is the kinds of things you need to know we are not going to do that every time you pick a project .... Norton/I am talking... you showed an increase from '98 to '99 in the debt service .... Atkins/In FY99 we would propose to sell $7 million in debt. Norton/Let me get the numbers, Steve .... Arkins/$5.2-, $10-, $20-, $7-, $4-, $3.5- touchdown. That is the way the list should read. Norton/Just a minute. I will come up with it, Steve. On Schedule #4 .... debt service as percentage of total levy. FY98 debt service is 1.6 .... went to 3.9. That included library multi-use project and a number of other projects. Atkins/$10 million worth of other projects. Norton/That was a jump. That moved property taxes... from 12.8 to 15.2. Atkins/That is right. Norton/It raised my taxes $170 a year .... I want to be sure that what that covered... where was the Public Works building? Was that involved? I am looking at other things that are in our hopper. This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 30 Kubby/You are asking if that included all the things that we had kind of made tentative commitment to. Norton/Yes... what did it include? .... Atkins/Civic Center third floor is '99. Norton/That is what I want to see .... a number of things that were going to come in at that point and we got to decide whether those should all stay there in that same time frame. Atkins/Or stretch them out .... Norton/I want to look at operating costs that are going up .... I need to review again the new operating costs that we are facing .... We were talking about library costs... cultural center costs... central maintenance ....Mercer Park gym ....police in CDB... PCRB. Atkins/Remember I asked you make a list of things that don't cut it and want to add it later back on .... Norton/That list for me came to around $600,000 .... I want to be sure that I am clear about what I am trying to accomplish... I have to cover this shortfall you are talking about .... $360,000 for four years. But I have to cover $600,000 in additional operating expenses that I can see. Atkins/That is assuming you get your colleagues on council to buy into each one of those programs .... community policing .... Norton/ Kubby/ Baker/First things first, shortfall. Do we know where we are going with that? Kubby/We have got that list of guidelines. Atkins/I am going to propose to you based upon a shifting, replacement strategies- CHANGE TAPE TO REEL 97-94 SIDE 2 This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 31 Atkins/Reserves and I am not real sure about the 1%. I am assuming .... working with that as a goal... Kubby/1% is less than the goal of $367,000. Norton/1% is $380- That would do the whole thing. Kubby/ ....$320- Council/ Atkins/I will give you some calculations .... keep in mind what is on that list you made the other day .... understanding that I wouldn't propose... doing away with community policing that we currently do that you want to maybe expand later on. Baker/You got to give us a list .... Atkins/We have made proposals in the past... What I want from you is a sense from you the things you want to see done. We will get there. Baker/We want that problem solved with the least amount of personnel being lost and that only through attrition. Council/ Thomberry/The sooner we do that .... Norton/Did you include in that list ....did you jot down user fee changes? Atkins/An acceptable one. Norton/I hate to do much... Thomberry/... may be more tolerable to one than another .... Norton/Selling services, for example, is another aspect .... Nov/It is possible that we can institute new fees .... Thornberry/We ought to look at cutting instead of adding more revenue... This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 32 Atkins/Is new revenue out of the question? Thomberry/It is not out of the question. It is one of the options. Baker/User fees... new revenue. Atkins/ Thomberry/ Lehman/I don't think new revenue is acceptable to meet present obligations .... Nov/I am talking about new user fees... stormwater .... should this be a utility fee .... I am saying this is something that we should consider .... Thomberry/ Norton/Any additional impact fees .... Atkins/That is new revenue .... ought to put everything that is new revenue on the table .... sales tax .... user fees .... Nov/Let's move to new revenue... Thomberry/I don't think we can add until we show we are willing to do some cuts. Kubby/If all of these things add up to the 1% then there are no cuts .... I would like... 1/2 of the $367,000 per year comes from reductions... in operating costs .... efficiencies .... Norton/I will buy that. Kubby/So that $160,000 is a minimum per year that we get for our goals .... 1/2 of what we get are from efficiencies. Norton/I would like to try that. Council/ Baker/ This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 33 Kubby/There is a perception out there that there are different ways to provide... that will cost us less... Vanderhoeff I would also look at privatizing. Atkins/That is a biggie. I need a discussion from you .... Thomberry/It is not a new discussion .... Atkins/Tomorrow night's agenda... privatize... capital projects... Pelling, streets, sewers .... give it to a private contractor... You need to give me a definition .... work me through that one. I have a concept of it .... Norton/I want to go back... I am looking at... trying to deal with shortfall .... then try to deal with that. Then start looking at what we might do for additional resources primarily to meet new demands. Atkins/The challenge you have given us is to go through these basic guidelines and settle the financial problems .... no growth room in that budget .... You are saying let's meet the first one by reductions. Once we settle in on that plan, then you got to think about where do we go from here. Norton/You might not be able to get there .... Council/ Nov/Now do we want to think about new revenue sources. We have sort of overlapped into it. Baker/What is the schedule for the rest of the day here? .... Atkins/Adjourn for dinner at 5:00 PM. Vanderhoef/Let's adjoum 10 minutes early. Nov/Okay, let's adjourn, take a break ....take a break and come back at 5:00 PM. Adjourned: 4:50 PM This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697 June 16, 1997 Special Council Work Session page 34 CHART: Goal - Settle General Fund Position How - Guideline Goal- 1/2 of 1% ($160,000) CHART: Reduction Guideline * Shifting 8.10 to capital budget * Replacement schedules * stretch-out (CIP) * Reserves * 1% of cuts? $367,000 * Sooner than later * User fees * New fees * Sell services * 1/2% must come efficiencies * Privatizing - definition This represents only a reasonably accurate transcription of the Iowa City council meeting of June 16, 1997 WS061697