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HomeMy WebLinkAbout1996-01-08 TranscriptionJanuary 8, 1996 Council Work Session-Budget 6:30 Council: Nov, Baker, Kubby, Lehman, Norton, Thornberry, Vanderhoef. Staff: Atkins, ¥ucuis, Karr, O'Malley, Mansfield. Tapes: 96-3, all; 96-4, Side 1. Nov/ Let's get this show on the road. [Tape Problems] Atkins/ Been on the council more than a year, know what I am planning to do is take you through a general overview of the budget proposals as I have presented them to you. I will depart a little bit and I would encourage new council members... wave your hands and we will explain to you further. Kubby/ Will you introduce staff .... Atkins/ Deb Mansfield, our Budget Analyst; Don ¥ucuis you know; Kevin O'Malley ..... The review will be by fund ..... What I would like to do so we can isolate on some of the issues that you have to deal with ..... based on a particular fund. General Fund being our largest .... Other funds: Transit, Airport, Water, Waste Water will be dealt with sort of like a separate compartment ..... When we prepare the budget we make certain assumptions .... In this case we have assumed that the state legislature, at least during this three year plan- We budget three years at a time as opposed to one year at a time. During the next three year period there will be no new freezes or dramatic change in state budget or tax policy. That assumes that the state will not expand its control through the budget such as changes in rates .... roll back would remain .... tax values .... assessment process will remain and our investment program will substantially be the way that it has been ....... I also assume that the state will not reduce its current fiscal aid program ...... I think we have to assume the unpredictable nature of the state legislature will continue ..... I don't know how to predict it anymore than anyone else. We make the assumption that the M & E, Machinery and Equipment Tax which was part of the General Fund in accordance with the state plan will be in place and that is basically a ten year declining reimbursement ....... That is about 3.75% of our tax base ..... Cedar Rapids is 8% ..... Waterloo is 7%, Mason City is 10%, Burlington 10%, Ames 2.5%; Des Moines 3.5%. You can understand it is rather dramatic change in our General Fund financing ..... There are This represents only a reasonably accurate transcription of the Iowa City council meeting of January 8, 1996 WS010896 January 8, 1996 Council Work Session-Budget Page 2 likely to be some tax policy issues... that are going to be at least debated by the state legislature. The Governor has indicated that he wishes to see out Road Use Tax .... reviewed ...... We use ours substantially for street maintenance, traffic engineering, traffic signals and our capital projects. Our Road Use Tax Fund is very sound. We attempt to maintain ... $1 million balance in there. Long term policy ..... / (Can't hear). Atkins/ I suspect he would disagree with some of the financing on our street maintenance activities .... His beef is more with IDOT itself ..... Nov/ There was also some discussion about whether or not the state highway patrol should be financed by Road Use Tax and they kept saying they didn't have enough money in the General Fund ..... Atkins/ ..... They screamed up a storm that is not what that is intended for .... Highway patrol is back in the General Fund. 1/20th of the fund is also earmarked for state aid to transit systems ..... Understand... Road Use Tax is a pool of money .... It is done on a per capita basis. Take our population estimate times $62.00. I forget the number exactly ..... simple formula. If our census would indicate that we had more people, our share of the pie goes up. Somebody else's goes down ..... The Governor is also- Norton/ Do they really specify in great detail. For example, you would use it for street trees? Atkins/ Yes. It is fairly well spelled out in the law ..... The Governor has also indicated he is interested in some kind of property tax review ..... That makes me real nervous ....... In all of my career I have never dealt with a more complex set of property tax law than we have here in Iowa .... The Iowa League of Cities is going to press the matter of attempting to freeze the rollback number at some level that allows us some ability in the system to capture some of the increase in value ...... I do not see any major changes in the revenue sources from the state. I do not see the state ever granting the city the broad tax base they enjoy: income, liquor, sales, inheritance, fuel, tobacco .... In our budget planning we have assumed no major changes in the pension, social security, other than those in accordance with the increase in payroll costs. Certain changes in IPERS is being discussed and it is a defined benefit plan. Thisrepresents only areasonably 8ccur~etranscrlptlon ofthelowa City council meeting of January 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Page 3 It is extremely well funded ...... There is a separate Police and Fire Pension Fund .... The state took that away from us a few years ago ..... Thornberry/ Who is the IPERS Fund invested with? Atkins/ They are basically an independent agency of the state. They have full discretion to invest .... I don't know their pension management ..... We have no say over that. The state now controls all public employees pension funds ..... We do expect some changes in social security and medicare. Congress is considering some changes in requiring coverage of certain police and fire employees ..... I did not factor anything in with the Tax Payers Rights Amendment. It must pass two legislatures and it then goes to a public vote ..... I can do a whole presentation on what that thing is all about, not tonight .... Budget balancing, here is what we did. When we balance the budget we try to avoid major fluctuations, spikes. That is why we use the three year plan ..... examples .... computers .... level that off, probably replace that equipment over a two or three year period ..... levels out our spending ...... Budget balancing also varies by fund. Water and Waste Water, the policy there is an accumulation of cash ...... Parking Fund., all of the expenses associated with parking are directly from that fund. There is no property tax subsidy ..... we do accumulate case. Each fund has a little bit of a different flavor to it when it comes to budget balancing. The General Fund is the most sensitive because it is the property tax base. All of the others are user fee based except Transit and Airport which both have tax subsidies. We try to maintain a consistent sustainable policy ...... In this budget n,ost of the services are at or about the current level except for Transit and our fixed route system. We applied a factor this year in budget balancing where we have reduced the payroll by 1%. While we would normally budget 100% of a full compliment of employees. We budgeted and then subtracted out 1% which is a recognition that during the course of the year we will have some turnover. Each payroll budget is reduced by that amount of money. That is about $180,000 to $200,000 .... We continue to encourage technology. The cost of benefits which have ..... is growing in a disproportionate rate to our other personnel expenses. It has slowed...somewhat dramatically this year ...... Out Health Insurance and our Health Insurance Reserves are very healthy ..... The Health Insurance Reserves have allowed us to change the General Fund Policy and our Fire This represents only a reasonably accurate transcription of the Iowa City council meeting of January 8, 1996 WS010896 January 8, 1996 Council Work Session-Budget Page 4 Department physicals .... we will now pay from our Health Insurance Reserve and it saves the General Fund about $55,000. We will watch it very carefully... costs have begun to level off a tad bit .... We have aging employees. We have little turnover. We brought on six new police officers .... We have more and more ... career employees. Therefore we do not have major turnover with our employment. We are a good employer also. The General Fund .... (Handout: General Fund Revenues To Total) In the General Fund you are very limited in your revenue selection. The taxes and the fees are very much set by state law. The tax base in the General Fund is limited .... If you do seek any major new revenue, the only one that is available to us right now... is sales tax... requires referendum. The income tax was available to us at one time. It is not available any longer to cities although used by school districts. It is estimated in the General Fund that about 83% of the revenue in our General Fund budget is subject to some state regulation ..... So we can't easily make changes in the General Fund. Property Tax is the most significant portion of the some $28 million, $14- The state sets the rate, state sets the base, state sets the rules and regulations .... Employee Benefits, same thing .... regulations are all the state. The Road Use Tax I have explained to you. State sets the base and how much will be distributed. Federal government, Crime Bill, that is where we are financing our police officers. We do have flexibility in our charge back, that is our internal charges... we have the ability to set the rates and apply the rules. Fines, permits, as you can see, those are substantially our ability. Recreation fees, building permits. Thing such as parking fines are set by the state as a maximum. Magistrate court, same thing, and food and liquor. Our contractual services where we negotiate with other governments ..... Fire contract with the University. Hotel Motel Tax, state sets the rate .... Interest income, the rates are determined by the private market but we invest within the state guidelines .... So the bottom line is of that $28 million, about 17% of it is your choice and your choice alone. The rest of it has some state or federal regulation that governs that. Have Don come up and we have sort of a series of presentations. Overview of our revenues, M & E, tax rates, residential roll back, some of our pensions ..... Have Don do those. Thisrepresents only ereasonably accuratetranscription oftbelows City council meeting of January 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Page 5 Kubby/ Steve... M & E... $700,000 a year that that is 3.75% of the total General Fund or of our total budget? Atkins/ Total tax base, yeah. Baker/ That overhead you just used, is that in this? Atkins/ No, I will get a copy of it for you though. Don Yucuis/ I wanted to start at the end ..... Give you a little more history on some of the General Fund revenues and just to show at the bottom the grand total revenues by FY: 6%, 8%, 7%, 8%, 2% .... 6%... (Handout: General Fund Revenue to Total-Grand Total Revenues). They are dramatic increases but they are increasing which is good for us ..... The handouts that I gave you are showing the General Fund Revenue by category... also showing how much that revenue type is compared with the total revenue. 1) Property Tax, 2) Transfer; Employee Benefits Levy are really two property tax line items ..... We have unlimited tax for benefit but you are maxed out on the 1) Property Tax line which includes the General Levy, the Transit Levyand the Library Levy. The General Levy is at $8.10, Transit Levy is at $.95 and the Library Levy is at $.27. The Library Levy went into affect in FY93 and was passed by a referendum... We apply that money directly to the Library Department. The Transit Levy... we are required to put that money into the General Fund and we transfer it all out as we get it to the Transit Fund ..... Putting the revenue into the General Fund and transferring it out as an expense out of there and putting it into the Transit Fund ..... Property Tax... FY92 you are at $10.6- FY93 at $12.1- That big jump was mainly due to the Transit Levy going from $.54 to $.95 and also the first year of the Library Levy .... Employee Benefits Levy is a revenue source that is transferred in from the Employee Benefits Fund and pays for the employers share of costs in the General Fund. Social Security, IPERS, state pension plan, health, life and disability benefits and also Police and Fire Retirement ...... Kubby/ What percentage of the total benefits do we get from the Benefits Levy? Yucuis/ We get approximately everything but $200,000. I pretty much levy everything except $200,000. Kubby/ I thought we weren't taxing as much as we could ..... Yucuis/ I will take that back. One other source that we decrease Thisrepresents only a reasonably accuratetranscription ofthelowa City council meetlngofJanuary 8,1996 W$010896 January 8, 1996 Council Work Session-Budget Page 6 the Employee Benefits Levy is in the Public Safety Reserve. The was another reserve that was set up when the state take over the Police and Fire Pension Plan .... We had to remit to them a certain amount of assets .... Whatever was leftover, we kept and that went into a public safety reserve .... $3.7 million. We have been using that to decrease the amount of property taxes we levy in the Employee Benefits Fund for Police and Fire Pension ..... Keeping the tax levy a little lower than what it should be. Kubby/ So when will that reserve fund be depleted? Yucuis/ We are looking at about 2003 (Handout: Public Safety Reserve) and if you look at FY92 that is $3.3 million that we kept and we remitted approximately $19 million to the state ..... to take over that fund. Norton/ Don, is there anything in principle that keeps you from having that setting that levy high enough to cover all the benefits? Yucuis/ No. If you look at the expenditure line item on there, Transfers, those are transferred into the Employee Benefits Fund and those are the dollar amounts we have been spending to keep the property taxes for Employee Benefits down ..... Kubby/ That means after the year 2003 .... Yucuis/ I want to point out that one of the investments that we were able to hold onto was a group annuity contract and the interest income in FY94 and interest income in FY96 are quite a bit higher and that is when those investment contracts came due and it was money that was invested back in 1995 at 12.4% ..... That really boosted this fund. In January 2 we received $1.5 million on an investment of $500,000 back in 1986 .... now that money is invested in today's rates and today's market. We are restricted to CDs or government securities. Thornberry/ What is the rate of return on that? Yucuis/ We are less that 6%... going out about 10-11 months, invest out funds out that far. We do a daily cash flow analysis that allows us to know what we have on hand plus how far we can invest our funds out. We ladder our investments. Atkins/ .... Important element... was putting together that insurance contract .... State... has taken away from us the This represents only a reasonably accurate transcription of the iowa City council meeting of January 8, 1996 WS010896 January 8, 1996 Council Work Session-Budget Page 7 ability to negotiate those insurance contract ..... we work very hard to negotiate those insurance contracts to come up with the kind of interest rates that we have and because we were riscally healthy we put those into those ten year contracts and as you can see we reaped the benefits from it. The state has now taken that away from us. It is going to be much more difficult on interest income in the future. Nov/ Atkins/ You cannot do those insurance contracts any more. Nov/ Could you buy a government bond which has a ten year payback? Atkins/ I suspect we could- No, Kevin says no. Kubby/ Rate of return is much different. Nov/ Yucuis/ We are not only restricted by what we can invest but also the length. In our operating funds... average maturity cannot exceed 398 days. We are not anywhere near that. We are investing out 11 months but the average is probably more like 4-5 months ..... The restrictions are there. This is what we have to live with. The Road Use Tax Transfer is used for Public Works Departments, Streets and Traffic, Engineering Divisions and also we started a transfer this last year to fund a Forestry employee that we have assigned directly to the trees in the r.o.w. That is a new funding into the General Fund. We hired a new employee and also funded it from Road Use Tax. Kubby/ Do these totals include the $1 million reserve? Yucuis/ No, no. In your budget book (Three Year Financial Plan FY97-99), page 115, is Road Use Tax Fund .... look at the ending balances, that is what we are talking about the $1 million ..... Move up to the Transfer line item, you see in FY96 we have $6.6 million in transfers. $2.6 of that is to the General Fund and the balance of that is for capital projects ....... There are quite a few projects that are either on-going, in progress or have been completed this year or will be started this FY. Baker/ Don, you said part of the money is used for a salary? Thisrepresents only areasonably accurate transcription ofthelowa City council meeting of Janua~ 8, 1996 WS010896 January 8, 1996 Council Work Session-Budget Page8 Yucuis/ It is a General Fund transfer but it is earmarked to pay the salary and benefits of a Forestry employee. Baker/ Yucuis/ Transferred from the Road Use Tax Fund into the General Fund. Baker/ Yucuie/ We do that right now for Public Works .... also Traffic Engineering. Norton/ Don, where did you find that 2.6 number out of the 6.6 you said was total expenditures? ..... Yucuis/ If you go up to top of page 116. Take the Transfer General Fund-Streets, Traffic Engineering, Forestry. Those three numbers should equal that. Actually the first two numbers $2.673 million. That number looks like we have the transfer in for the General Fund Forestry employee in a different line item so that needs to be corrected. It should be part of that Road Use Tax Transfer. It is in the General Fund, it is just in a different line item. The State/Federal Funding line item. The first two, State Aid and Personal Property Replacement and actually the last line Bank Franchise Tax are subject to annual appropriations. State aid is based on a per capita distribution. Personal Property Replacement Tax is a straight annual appropriation from the state ...... And Bank Franchise Tax... this last FY95 shows a receipt of $957 and we had a timing problem with the state .... didn't receive it until the 3rd of July .... It is going to show up in FY96... closer to $198,000 to $200,000 and that will be adjusted before we go to final budget ..... State... cut back .... Personal Property Replacement Tax ...... We are not completely confident we will receive those ..... The FY92 amount of $216,472 was IDOT grant ...... starting setting up separate capital projects outside the General Fund to do those. Any grant money will be showing up in the capital project itself, not in the General Fund. The $249- and the $66 are FEMA reimbursements ... that is just the General Fund portion. The other funds have some dollar amounts showing up in Water, Waste Water, Transit, Landfill ..... City Park ..... Those are one time... not expecting to have another flood. The Chargeback Of Services. That is a-includes General Fund Thlsrepresents only areasonably accuratetranscription ofthelowa Ci~ council meeting of Janua~ 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Page 9 costs associated with processing or managing certain areas of Parking, Water, Waste Water, Refuse and Landfill and that chargeback includes overhead costs also. Staff time in treasury for processing bills... get charged back .... Public Works we charge back some of the administrative time to Water and Waste Water, Refuse and Landfill and those funds come back into the General Fund. It is a pretty consistent revenue. Not growing dramatically. Those cost will show up most likely in the Enterprise Funds ..... Thornberry/ Where does the administrative expense in the City Attorney for the chargebacks-where do they get their money from? Yucuis/ We started in FY95 to charge back some of the time directly to the Enterprise Funds and also to CIP for when they did land acquisition of r.o.w. or whatever .... with processing the legal paperwork and they track their time and monthly we go back and charge back each one of those funds outside the General Fund that they have done work with .... Lehman/ It really lsnt a separate source of income so much as it is reallocation. Yucuis/ In a CIP case those might be funded from bond proceeds... Waste Water or Water Operations or Road Use Tax and we are able to get a chargeback from a different fund to help increase the revenue in the General Fund ..... Fines, Permits, & Fees. Most of these-some of these are reviewed annually. P/R Commission reviews fees annually and recommends increases annually .... also includes the school contract for Mercer Park Pool where we charge back part of the cost. This year was 25% of the Mercer Park Pool cost are charged back to the school district... $60,000 this year. That is the lowest that that percentage can go. CHANGE TAPE TO REEL 96-3 SIDE 2 (Building Permits and Inspections) HIS and how construction projects were valued and by changing that valuation process that resulted in increased revenues partially due to that revaluation... more housing starts in '94. That is a consistent revenue right now. The parking Fines-S5 tickets are received directly in the general fund ...... I was going to jump to Housing Permits and Inspections where we also had a fee increase in FY95 that increased fees by about 25%. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 8, 1996 WSO 10896 January 8, 1996 Council Work Session-Budget Kubby/ Why did Police Services projected go down so much? Thornberry/ $153- to $53- Yucuis/ I will have to check that, Karen? Mansfield/ I will double check but there is a grant that the Police Department applies for annually and it is with the state and we have no guarantee of getting it each year so we tend not to budget that in the future. Kubby/ Yucuis/ We have been getting it. Atkins/ I think there are three grants. One is the Traffic Grant, $26,000 a year for our Traffic Enforcement Officer .... Second is the Narcotics Task Force Grant, $55,000-60,000 a year and there is a third one. Nov/ Foot patrol in Broadway area. Atkins/ We had a specialized grant of $10,000 a couple of years ago but there is a third one .... We did get another grant for seat belt enforcement a year ago .... I think it is substantially state money ..... Kubby/ I think it is a good policy to assume that we don't get it and budget that way. Yucuis/ We budget for the position but we don't budget for revenue. So if the grant doesn't come in... find a different source .... Kubby/ Atkins/ If you were to receive the grant, that would open up that budget position .... Norton/ Kubby/ I don't remember us talking about this .... Nov/ ... Thornberry/ I also see magistrate court going down from $152- to $110. This represente only a reasonably accurate transcription of the Iowa City council meeting of January 8, 1996 WS010896 January 8, 1996 Council Work Session-Budget Kubby/ As the fines seem. to go up. The minimum fines in magistrate court have gone up ..... Yucuis/ I am not certain of that .... The magistrate court is a hit and miss. We can't project real accurately on it. The City Attorney's Office is the one that takes care of magistrate court... It is whatever we can get people to pay. Contractual Services. University Fire Contract is based on square footage of U. of I. properties. Total square footage of property in Iowa City includes costs associated with Fire Department and also administrative overhead and equipment replacement .... They pay a share of that. The Johnson County Contract line item includes the Senior Center and library budgets. Norton/ How often are those negotiated? Yucuis/ The Senior Center hasn't been negotiated in a while. That has been 20% of the budget, whatever is finally budgeted. The library was renegotiated two years ago and they changed the base on how that was determined. We are taking the three years of prior actual usage of Johnson County residents to the total usage and based on that percentage there is an average and that times the library budget is what the Johnson County contract is ..... Norton/ And the University fire contract, how does that work? Yucuis/ Annual billing. We bill them end of July... base it on actual costs ..... Nov/ Percentage of square feet of University property as to compared to- Yucuis/ Total Iowa City properties. We get that from various sources ..... Atkins/ Thornberry/ ... includes the rental houses and rental apartments that the University owns? Yucuis/ I believe it does. Nov/ It includes Mayflower .... Thisrepresents only areasonably accurate transcription ofthslowa City council meeting of Jenusry 8,1996 W$010896 January 8~ 1996 Council Work Session-Budget Kubby/ The library contract, is it automatically renewed every year or what is the date? Yucuis/ It is automatically renewed. I don't think there is a sunset on it. Interest income is based on the amount of money that the city has, the interest rates that are applicable at the time we invest the funds. Strictly case basis. CEBA Loan Proceeds is one time. We receive the money from the state through us, We record it as a receipt. We have an expense in Economic Development showing the expense out to Moore Business Forms and NCS. Parking Fines Transfer to General Fund. Has increased recently... change in policy where we are allowing fines to escalate. $3.00 fines go to $5.00 after ten days of issue and then they go up to $10.00 after 30 days of issue and that has generated quite a bit of revenue. Kubby/ How come that number is different than on the other page? Yucuis/ There are two different parking fine line items. The $5 tickets... on second page... and this is the fines that are receipted directly- These are $3 fines that are receipted into the parking fund and they are transferred to the General Fund at year end. If the city complies with the bond covenants where we have our debt coverage and we have been able to transfer fines every year to the General Fund from the Parking Fund at year end. We have a debt service requirement- Thornberry/ What is the difference between a $3.00 fine and a $5.00 fine? Council/ (Two dollars). Yucui$/ It is a different violation .... Thornberry/ A meter is $3 or $5? Nov/ $3 Loading zones are $5. Yucuis/ ...$50 fine for handicap is state law. Vanderhoef/ But the city gets that money? Thisrepresents only areasonably accurate transcription ofthelowa CtW council meeting of Janua~ 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Yucuis/ Yes. Fire Replacement Transfer. We stopped in 94 because of the state property tax freeze. We continued it in 95 and we are proposing to discontinue that again throughout the three year plan and we would finance our... fire vehicles through either a loan that would be repaid from property taxes or include it in a bond issue. Kubby/ That would be a change in policy. Lehman/ You just said our contract with the University includes replacement. Yucuis/ Yes ..... I can show you that we are separating those funds to make sure we use it- We would use it to pay for part of the cost of the vehicle. That is located on- Thornberry/ But we are earmarking it- Yucuis/ Page 125 has a Fire Equipment reserve and that shows the amount of money we are estimating to get from the University Fire Contract ..... We will show an amendment to use these funds to pay for part of that vehicle. Mansfield/ When the University pays us for vehicles, they do that through an amortization. So we don't charge them the full cost of whatever capital item we buy in one year. It.is allocated throughout a ten year period or whatever the life expectancy is. Thornberry/ Is this an additional piece of property that we are looking at or a replacement piece? Yucuis/ The vehicles that we are buying are replacement of existing. Thornberry/ Then you will have an income from the sale of the old vehicle, is that right? Yucuis/ We do it two ways. One we look at a straight trade in ...... we will send out another bid for the sale of the vehicle outright ..... Atkins/ It is a replacement. We don't expand the fleet. We turn them over. Kubby/ Didn't we talk about increasing a van ..... Thisrepresents only a masonably 8ccur~etranecdptlon ~ theIowa Citycouncil meeting of Jenu8~ 8,1996 W$010896 January 8, 1996 Council Work Session-Budget ~ 14 ! Atkins/ Yes... to be decided .... Yucuis/ Hotel Motel Tax. We distribute those funds to five different areas: CVB, Police Patrol, Mercer Park Aquatics, Parkland Acquisition and Parkland Development. The last four are all in the General Fund. Parkland Acquisition and Parkland Development are a reserve within the General Fund. CVB... whatever amount of money we get in quarterly, we pretty much write a check that same day and send it off to the CVB. FY93 we had half year of rate of 7% ..... at that time that we broke out the Parkland Acquisition into two areas, development and acquisition. Kubby/ With the proposed budget the CVB percentage actually goes down because of that $15,000 to local festival. Yucuis/ Right, that was a change in policy .... take $10,000 off the top .... take $2500 a quarter .... Kubby/ Wasn't a change in policy.. last year a one shot deal. In the meantime we did figure out some other discussion .... Atkins/ Wendy will be back. Kubby/ One shot deal and we did not fulfill our obligation ourselves to figure out what should happen this year. to Vanderhoef/ You said $15,000 and I am hearing $10,000 from Don. Nov/ Norton/ $5,000 goes to Friday Night Concerts, too ..... Atkins/ $15,000 total. $5,000 Jazz Fest, $5,000 Arts Fest from Hotel Motel Tax. $5,000 Friday Night Concert, General Fund. Nov/ KuDby/ Steve in the front of this it is stated correctly. Council/ (All talking). Yucuis/ State Rollback. Handed out three sheets. Pg 16 of Budget Book... highlight state rollback. Until last year the rollback applied only to residential property and in the current FY96 ...... there was a rollback on utilities of .972. What we have done in FY97 is we have assumed that commercial and industry Thisrepresents only ereasonably accurate transcription ofthelowa City council meeting of January 8,1996 WS010896 January 8, 1996 Council Work Session-Budget and utilities will have a rollback of .97 ..... Appears there is going to be a rollback in those areas. The big one ... residential rollback .... From 1992 to 1997 residential assessed value has increased 61.5%. Taxable value has increased 20.5% or approximately 3.5% per year. The state rollback factor has decreased from 1992 of .794636 to .593 and that is a change of 25.5% over the five years. That is a big drop in the amount of taxable value that the city could utilize. Kubby/ What is the percentage again in the change of the assessable value? Yucuis/ Straight 100% assessed value was 61.5% .... 1992 to 1997. What impact that has on residential property taxwise is actually favorable. Although we had an 18.3% increase in our taxable valuation, there was a decrease in the rollback of 12.16%. So we have a net taxable residential increase of just under 4%. In this proposed budget we are proposing that the tax rate decrease from 12.992 down to 12.638. That is another decrease and that will be applied to the property tax bill and what that means that on a $100,000 or 150,000 or 200,000 residence, we did a calculation... If you valuation increased 15.5% from the Assessor's Office .... your taxes aren't going up 15.5% ..... If your assessed value went up 15.5%, you are going to pay less than you did this current year for city taxes. I can't vouch for any of the other taxes .... Norton/ Yucuis/ It is very beneficial for the residential properties. Within that 18.4% increase, 15.4% was revaluation of existing properties, 2.9% was new houses that came on the tax rolls or remodeled. New growth would include new houses and remodeling. Kubby/ If we are decreasing the city tax rate, how come we are still at the max on everything? ¥ucuis/ I have another chart .... will explain why the tax rate can go down. Kubby/ What I am hearing is it has to come down otherwise we will be over out maximum. Yucuis/ We are only levying the maximum rates in the General Levy, the Transit Levy and the Library Levy. Those are the only three we are levying at the max. The other two, the Debt Thlsrepresente only areasonably accurate transcription ofthelowa City council meeting of Janua~ 8,1996 WS010896 January 8~ 1996 Council Work Session-Budget Service Levy and Employees Benefits. Although Employee Benefits is going up, Debt Service is dropping quite a bit .... John Kirsch/ Explain the (can't hear). Yucuis/ The general concept of the rollback is there is one area within the state law that says residential property can, state wide, can only grow at a 4% growth. That is all ..... Other part of the law which says the rollback factor is based on the increase in agriculture values and in this case my assumption is the agriculture value decreased 12.16%. So the rollback factor would be decreased based on that valuation, statewide, all the ag land decreased. Atkins/ In simplest terms, agriculture values in the state drive the value of residential property. That is the state law. Thornberry/ It took you an hour to say that about a month ago. John Kirsch/ (Can't hear). Yucuis/ In this case the first column, 100% value, $1.136 million. The taxable value on that is the second number .... $767,120,000 ..... 67.5% of assess value and if your house is valued at $100,000, your taxable value would be $67,500. Atkins/ $100,000 X 59.3 $ 59,300 X taxable rate Value of the house, the rollback, the rollback times the value ... times the tax rate. That is how we generate the income. Kubby/ Atkins/ Yucuis/ We had 415 housing units add to the tax rolls for F¥97 at an average value of almost $80,000. Atkins/ That is all housing units, multiple family ..... number appears to be lower. Norton/ Tax rate at 12.6, that is our choice though. This represents only e reasonably accurate transcrlptlea of the Iowa City council meeting of January 8, 1996 WS010896 January 8, 1996 Council Work Session-Budget Atkins/ 12.6 is your choice up to a cap. You can't go beyond the ~ cap. ' Norton/ Atkins/ 12.6 is your tax rate... You could lower that rate. You can raise the 8.10. Nov/ Norton/ Yucuis/ I want to show Commercial Values .... Almost 13.5% increase in value from 96 to 97. We are applying 97 percent rollback. Taxable commercial, industrial value is 10%. Applying our tax rate and using an average valuation of commercial industrial... Average in FY96 was $422,000. The average in FY97 was $460,000. A 9% increase in taxable value. Applying the rates and the rollback, we are looking at about a 6% increase in property taxes on the average. Norton/ What do you say about the .97? How firm is that? Yucuis/ Usually if we hear it, it is going to happen. Mansfield/ (Can't hear). Yucuis/ Deb had said the Auditor's Office has it and it is locked in. So that is a given then. It will be at 97% of value. Kubby/ Did that have to be a change of state legislation? So that happened last session. Atkins/ I am not real sure how all of that happened ..... We were a little bit surprised ourselves. Nov/ Just utilities? Mansfield/ I believe it said railroads. Only the railroads in the utilities are at 97%. The rest of the utilities are at 100% and commercial is at 97% and I think that the League is saying this is like the first time in ten years that commercial has been roll backed. That they are paying less than 100%. The residential rollback also took a substantial decrease. Nov/ Thisrepresents only ereesonably accuratetranscription ofthelowa City council meeting of Janua~ 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Mansfield/ When they say utilities, it means essentially assessed properties throughout the state and yes that does cover electric companies, telephones, all of the companies that basically have interstate boundaries and they have property throughout the state and so the state bases their property taxes on them having to submit their income taxes. So it is based partially on their revenues and their values .... Norton/ Rollback on all commercial and utilities of railroad? Is anything excluded in that rollback? Mansfield/ We have basically two rollbacks. Residential is rolled back at 59%. Railroads are rolled back at 97% and commercial property rolled back at 97%. So what is left at 100% is other tha~'~ailroad property and industrial property. Norton/ Yucuis/ We do a pretty good guess on our property taxes for the following FY ..... I believe we put in the budget 3% increase in FY98 ..... 98 to 99 is a revalue year, another 5% ..... Machinery and Equipment Valuation Phase Out. Another handout. ...revenue from M & E .... going back six FYs. Current FY is a nice jump. FY97 and on we start applying the new Senate File 69, 1995 Legislative Session rules and regulations. And the phase out of M & E is suppose to occur completely in year 2006. In our case we are looking at probably be phased out in FY2003 .... part of State Senate File 69 ... supposedly a State M & E reimbursement ..... changes down the road ad we will probably not see any reimbursement from the state ..... Our M & E for next ...four FYs, 97 through 2001 will be about the same or a little higher but that includes reimbursement from the state. In 2002 and 2003 it drops dramatically. We will be factoring these numbers into our three year plan .... shouldn't impact what we are doing right now .... FY2003 we are going to see a decrease in our M & E. Kubby/ Same year we deplete the fund for Public Safety .... Baker/ ...you should know by 1998 and 1999 what the state is going to do. Yucuis/ We hope so... we will know if our interpretation of the law is correct. Kubby/ Thlsrepresents only areasonably accuratetranscription ofthelowa City council meeting of Janua~ 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Thornberry/ Why would it jump that high for state reimbursement... 20017 Mansfield/ They are reimbursing us for machinery and equipment value at whatever our current property tax rate is and so the dark line, 95-96 is our base year and we are projecting a decrease in M & E value by 8% each year and so the state should be reimbursing us for that decrease at about whatever that current year's property tax rate is. As you are phasing it out the stake will be picking it up more which are the four years of credit there. but then they link it to real property after that and our commercial and industrial real property I think will eliminate the credit for us immediately the first year they start doing that. So that is what we have got. Nov/ They are also not paying any reimbursement on new machinery. Mansfield/ This is just depleting the base that we have and ... This year our M & E went up ...... Nov/ Mansfield/ Yucuis/ Anything more on M & E? Property Tax Dollars. Start at bottom... Property tax Levies and where it shows, General, Library, Transit. Those are all maximum levies that we can not exceed and each one of those is what we have actually levied in those FYs. The 8.10- the .27 came in FY93. Transit Levy went from .54 to .95 in FY93. Been at about the 9.32 ...... The rates that do adjust or do fluctuate are the Employee Benefits and Debt Service rates and that is based on need. We can levy up to the dollar amounts that we need for employee benefits and then based on those dollar amounts requested we kind of back into the rate ..... In FY97 we are showing an increase and decrease in FY98 and slight increase in FY99 for Employee Benefits ..... Debt Service Levy is based on also need... based on what we are levying for bond issues and our debt schedules. Kubby/ Is all of our debt paid through fees or the debt service? Yucuis/ Yes. It is either property taxes or Water, Waste Water, Parking fees. Kubby/ Why would we use property taxes to pay for a GO bond? Thisrepresents only areasonebly accurate transcription ofthelowa Citycouncil meeting of Janua~ 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Yucuis/ Storm sewers, streets, bridges. Kubby/ Why couldn't debt service? .... All of our debt is paid out through the Debt Service Le~ or when appropriate through a revenue or Enterprise Fund through fees? Yucuis/ correct. If you look at FY96-F¥97 in the dollars,we show the General Levy... Transit and Library increasing by about $800,000. We show Employee Benefits Levy increasing by about $425,000. And we show the Debt Service Levy decreasing by over $600,000. That is the reason why the rate is going down. The main reason is the Debt Service Levy is dropping more- Norton/ That includes all the projected debt with water and sewer and so fourth? Yucuis/ No. The Debt Service Levy is only for those debt that will be repaid from property taxes which is the Debt Service Levy. The Water and Waste Water and Parking all come out of their own funds. The major issues for the drop is we have had a couple of bond issues that ended and we are not issuing a sizable bond issue this calendar year and that would affect that property tax rate. Norton/ But if you go GO for some of those Water and Waste Water Projects, mightn't that affect this? Lehman/ Yes. Yucuis/ It will only affect it if we make the decision that we want to repay it from property taxes. Kubby/ Our policy now is those Enterprise Funds are paid for by those Enterprise fees. Council/ (All talking). Kubby/ We should be advertising this tax decrease. Yucuis/ That is all I had on my presentation ..... Nov/ (Can't hear). Atkins/ I want to point out one- CHANGE TAPE TO REEL 96-4 SIDE 1 Thisrepresents only areasonably accuratetranscrlption ofthalowa City council meeting of Jenua~ 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Atkins/ (Page 43-Budget Book) In the General Fund ...... FY96 Estimate you see the number $6,372,706. That is 23.5% Fund balance ...... proposed budget FY97 that drops to 21.8%. F¥98 $5,750,000-19.6%, F¥99 16.3%. That is the important one, F¥99. Thornberry/ (Can't hear). Arkins/ FY96 ending balance is 23.5% cash balance .... way down at the bottom, $6,372,706. The in F~96, $6,267,438 is 21.8% of receipts. FY98, $5,750,442 is 19.6% In FY99, $4,870,933 is 16.3% balance. Why I am flagging that for you-In our last bond analysis we were commended for our cash balances ..... ratings specifically pointed to the fact we maintain our reserves at or about 20%. While 16.3% in FY99 is not a dramatic problem, it could be if left unattended. So I have assumed that we will have sold the peninsula and we turn $1.3 million worth of cash to that reserve. That will return that in FY99 to 20.6% which is the sale of the peninsula which we paid for by our cash reserves. Lehman/ These reserves are actually surpluses for the year? Atkins/ Not for the year. This is not an accumulative number. This is our working capital. Don't add them all up. Working capital ...... Important thing.. I am making the assumption that within the next two years of this three year plan we will have sold the peninsula... and $1.3 million is what we paid for it .... Take $4,870,000 plus 1.3 million, you will see that that trends out at about $6 million across. Nov/ Atkins/ You are going to sell the upper portion. The lower portion was paid for by the federal government .... That is going to have to be a topic of discussion. Thornberry/ With that sale, that would bring that percentage up to what, Steve? Atkins/ 20.6% ..... Baker/ Steve, do you remember what the Fund Balance was when you got here? Atkins/ Little less than $1 million ..... 4-5%. I am a good squirrel. Thlsrepresents only a reasonably accuratetranscription oftbelows City council meeting of January 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Baker/ Is this comparable to other cities? Atkins/ It is comparable in a sense that it has a great deal to do with our credit rating. That is why I mentioned that .... Des Moines is probably lucky to have $1 million in cash. Percentages. 20% is a good comfortable number. I am very comfortable with that. Kubby/ When we just had that 4-5% we had a AAA bond rating. Atkins/ Yes we did. We didn't have near the debt and all the other exposure ..... whole package. Vanderhoef/ Where would it drop... what percent for how long? Atkins/ Anytime you slip into the single digits you are going to have trouble ..... Norton/ Atkins/ There is a cashflow that shows the kind of money that we need to operate .... In FY95, three months receipts, expenditures, shortfalls .... shortfalls are made up by the use of that cash ..... Kubby/ Even though in your budget summary in terms of your little chart that is numbered 1- 40 something, number 39 says the sale of the peninsula. You are not assuming that decision is made? Atkins/ No. This budget is balanced with the numbers you have under the three year plan. I would feel better if it was back up in the 20% range ..... Kubby/ There is some other policy decision about land trusts- Atkins/ Important... there are a wrath of policy decisions for you all to think about and I did not want us to be stampeded into that policy process ..... Gives us a couple of years to put together a policy .... I think we can allow you time to do the kind of things you want to do on the site. Page 24-25. Going to spend a few more minutes on Debt Service. The Debt Service Fund is a property tax levy and here is how it works. It pays the principle and interest on GO debt. That is are best full faith and credit debt. AAA. We have the highest bond rating. The reason we do well in our bond rating Thisrepresents only areasonably accuratetranscrlptlon ofthelowa City council me~ing ~ January 8,1996 WS010896 January 8, 1996 Council Work Session-Budget is a howl variety of factors: cash management... general management of the city's finances .... state of economic activity in the city .... tax base growth .... we use a very short term retirement for our GO debt. Ten years ..... That is always looked at very very favorably. Generally speaking we have proposed bond sales in 97 of $6 million; 98-$7 million; 99-$4.8 million. That is general compliance with the CIP that council went through many moons ago .... The state law allows the city to have debt in the amount of 5% of the assessed value. If you look at this chart (page 25)... F¥97 we estimate the property for debt service purposes: $1.9 billion. We have an allowable debt of $96 million. We have debt of $27 million which is a 29% margin. Then we project in 98 and 99 ..... that with the debt we have planned in this budget that will grow to 32% and 35% ...... If you were to choose to use GO debt for water or sewer projects, it is credited against this ..... Thornberry/ Which would make this number higher. Atkins/ ...... you still have a limit ..... You always want to have some margin in there. We have a very comfortable margin. The important thing ... is we have used our debt very judiciously over time ...... Norton/ Does it scare you to get closer to 35%? Atkins/ 35% does not scare me. 50% I get nervous ..... What it means is that is all GO debt. You have a library bond referendum pending. That is not figured in here. That is $10 million. Lehman/ Even if we were at that 50% of allowable margin, that is still very healthy. Atkins/ Property taxes are going to go up ..... Lehman/ But this is very healthy. Atkins/ We have as a city our own policy .... whereby our debt service will not exceed 25% of the total levy. That is our policy. In FY97 is 9.5% .... 10 year average is 14.3%. So we have always been well within that policy .... If library referendum is passed, that will push that number up. If you were to choose to use GO debt to finance water and sewer, that will push that number up ..... violation of our own policy if you go past 25% .... I will do that analysis for you .... long standing policy .... This Debt Service Levy does not affect the 8.10. It is a separate levy. The 8.10, the maximum general Thisrepresents only a reasonably accuratetranscription ofthelowa CI~ council meeting of Janua~ 8,1996 WS010896 January 8, 1996 Council Work Session-Budget levy for the General Fund, $8.10. This is separate ..... 5% ...is a good way to manage the debt. It requires communities .... demonstrate .... growth and capacity to pay that debt. It will also have an affect on your bond ratings. Keep in mind when you do capital projects .... if the library expands, they are going to want more staff. The staff come out of the 8.10 ..... When you renovate the airport, they may want more staff. That comes out of the 8.10. So you assume an operational obligation for certain capital projects ..... Thornberry/ You don't want to have no debt? Arkins/ Well managed debt is healthy. If you have zero debt, you are not investing in your municipal plant ..... keeping your facilities current ..... eventually that is going to erode the very base under which ..... We want to go through all the other funds. Tomorrow night... Parking and Transit because there are very significant issues. We are not going to do that tonight ..... Nov/ While we are on Transit, I gave everybody an article (An Innovative Approach Saves Hamilton's Bus Company) from 1993 about a city that revised their whole Transit system and think about it... read it .... I have asked Steve to call the city to see how it is working .... Atkins/ I would like to take on some of these Enterprise Funds .... Cable, page 109 (Budget Book). The Cable budget... is substantially unchanged but there are a number of issues that are pending... you will have to decide .... The franchise fee of 5% is shown ..... $294,000. We received a $200,000 one time payment from TCI. We deposited that directly in the reserve for cable .... Made the assumption that we could repay the cost of negotiation .... That still allows a fairly nice reserve for cable television ..... Second issue is you have the discretion to enact a $.50 pass through. The BTC Commissions has indicated that $.50 pass through which will generate $96,000 per year ..... prefer seeing sooner than later. That requires specific action on your part .... Schools, Library, Senior Center are all going to want a p~ece of that money .... want a staff person to coordinate the community programming efforts for all of these folks. A side issue... that $96,000 could go a long way to the purchase of property whereby ...... PATV could be moved out of the library, cable could be moved out of this building... have their own facility. It is just a Thisrepresents only areasonably accurmetranscrlptlon ofthelowa City council meeting of Januau 8,1996 WS010896 January 8, 1996 Council Work Session-Budget thought .... But you have to make the decision to enact the $.50. Drew made an interesting observation for me, he said keep in mind, cable companies are always willing to press the edge of the envelope on their fees. The sooner you get your $.50 better off you are because the subscribers look at the total ..... Norton/ Atkins/ They charge a monthly fee .... push, push... If you get your $.50 in... that is factored into making that decision .... My point to you is if you are going to do this, step in sooner than not. Kubby/ It was kind of an assumed thing... never talked about timing. Norton/ ~ saw that $.50 somewhere. Atkins/ It has not been approved. It is available to you, you have to act on it ..... My understanding is that I think community groups have some sense that we would take advantage of that .... You may want to think about that sooner than later. Vanderhoef/ This would be put onto the monthly fee so we would have a monthly income come off of it? Atkins/ Yes... 5% of the gross revenues and you put the $.50 pass through on the thing ..... Baker/ Do we have to designate how it is going to be used before we enact it? Atkins/ No, it is your call ...... It is available to you .... Baker/ Atkins/ ...discussion-debate... think about what you want to do it... ought to have the debate sooner than later .... Kubby/ Atkins/ I will give you this memo tonight ..... Don't have to worry about it tonight but you got to have a discussion on what you are going to do .... Nov/ This represents only a reasonably accurate transcription of the Iowa City council meeting of January 8, 1996 WS010896 January 8, 1996 Council Work Session-Budget Atkins/ $.50... If you get more subscribers, you get more money... subscriber driven .... Baker/ Cable franchise fee itself...static for next three years out... Atkins/ I think those are pretty conservative numbers .... Thornberry/ How does the rate schedule for Iowa City for cable compare to other cities of comparable size? Kubby/ We do have some local control over rates... consultant... Are the rates for the services they are providing for this size of community equitable compared to other communities... they were ..... Thornberry/ ..... I can only see the weather channel half of the time. Kubby/ You should call the cable company. Thornberry/ They say that that is interference from University Hospital. Norton/ council/ (All talking). Atkins/ The question is where the $200,000. The $200,000, when TCI assumed ownership of this cable company, we believe they did it improbably by not notifying us and the city challenged them ..... During the course of negotiations, they said okay .... you pay us $200,000 one time and all is forgiven but don't do it again. And they have paid that. Kubby/ So what is the consultant fee and the attorney payback charge? Atkins/ It is about $100,000. I will get you that number exactly. This went on for almost four years ..... I will get you that number... protracted negotiation .... Are we all set on Cable? Council/ (All talking). Atkins/ Tomorrow night we want to do Parking... Transit and... we know there is some interest on your part on... Water issues... Waste Water. I think Refuse and Landfill will go very quickly. Thisrepresents only areasonably accuratetranscHption ofthelowa Ciw council meettng ofJanuaw 8,1996 WS010896 January 8, 1996 Council Work Session-Budget If I can wrap up Airport tonight ..... Kubby/ So none of this means we have made any decisions? .... Atkins/ One of the things I want you to think about for tomorrow night is that I will need for you to give me a night so that Boards and Commission can talk to you ..... At least one evening where you just beat it around yourself. We will have finished most of our presentation work on the funds tomorrow night and I need one other to brief you on CIPs and then it becomes a little more unstructured where you kind of tell me the thing you want me to present to you. Norton/ We have how many total sessions scheduled? Atkins/ We have 8th & 9th; 22nd & 23rd. We need adoption of this by last part of February. When we present Transit, you can discuss it but don't decide anything. Transit requires a separate p.h ...... But you do have to have a p.h. on Transit whenever you increase fares or change service. That is a federal requirement. So just tuck that away. Norton/ Do you think we are going to get it done in four sessions? Atkins/ Might or might not ..... Nov/ Atkins/ Airport. Page 107 of the Budget. Council/ (All talking). Thornberry/ Can we have a forum at the Airport tomorrow... I mean four of us? Nov/ No .... Council/ (All talking). Arkins/ Airport. Fortunately there are no major significant... changes operationally. However, this is somewhat similar as a policy concern of mine for you. They now have in place a Capital Plan .... $10 million range. If FAA okays it and finances their share of it, we are talking about $1 million worth of city cost, 10%. I would like to suggest to you and I have it in my misc. things to think about, is that if your policy is no new airport, it won't be moved, the sooner you Thisrepresents only ereasonably accurate transcription ofthelowa Citycouncil meeting of January 8,1996 W$010896 January 8, 1996 Council Work Session-Budget wrap up and sustain that policy, the better off you are going to be. I would suggest that we talk about someway of implementing that Master Plan sooner than later. Cost and also to reinforce what I have understood your policy to be. We are not moving the airport and that we are going to renovate it to meet whatever the FAA standards are ..... There is still a thought process, I am convinced, that we will move that airport some day. And I think the sooner you lock it up and decide ..... I was impressed by the Master Plan... I think you need to give direction to the Commission on what you want done with that airport ..... The budget... the general tax support under Transfer General Levy runs about $100,000 a year. We project that. That does not include .... any additional debt that might incur .... Kubby/ This doesn't really show.. any increase in rentals. Does that mean you don't have that second new hangar? Atkins/ It is not in there. Kubby/ Goals... to become more self sufficient to raise more money. Atkins/ ..... Realistically.. we are fronting their capital cost of those. More concern that we are putting money into that airport .... Think we need to do it in accordance with the Master Plan .... Got to do this.. right. We need to do it sooner than later .... Lehman/ The proposed Master Plan indicated the Airport property could be sold for commercial use. Would the income from the sale of that property be used to retire debt? Atkins/ Yes. You own the airport. The Commission represents your interests and there is a separate body of law that allows them a lot of latitude like similar to the library. Lehman/ Atkins/ Important thing is it was difficult enough to make the decision... get going and get it settled. Also in the things to think about is that we have looked at the site for the Public Works yard which is eventually going to have to be relocated. The Airport Commission I think expects to be paid for that site. I happen to disagree with that. That is something for you all to think about. Thornberry/ .... When you move the bus barn .... that area .... Thisrepresents only areasonably accur~etranscrlptlon ofthelowa City council me~lng of January 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Arkins/ A number of folks have talked about purchasing the property. Thornberry/ ...first little square if worth a whole lot more money. Arkins/ My point being we have got to make those kinds of decisions ..... Let's lock this thing up and let's get going with it. Thornberry/ You don't by any chance have a picture of that one? Atkins/ I can get you one. It does change with the relocation of that one runway. I have got a photograph of it, too. Vanderhoef/ A small one to put in the notebook would be real helpful. Arkins/ Remainder of the issues... Water, Waste Water, Parking, transit... tomorrow evening. Refuse Collection and Landfill .... most of the policy decisions have been made and we are implementing them .... updated on that... memo I have to hand out. Baker/ When are we going to talk about library? Atkins/ Anytime you want. That is on my list. Thornberry/ As part of the Landfill .... private trash guy gave me a box in my dumpster area to put in cardboard and I effectively reduced the amount going to the landfill by 50% Atkins/ One of our policy... going to go weekly .... Thornberry/ If the ~ommercial guys did it ..... Council/ (All talking). Nov/ This is an option for the individual business owner ..... Arkins/ Refuse, we are as a community... we are not that tough .... We are not tough ..... particularly from a commercial industrial perspective .... eventually that is going to have to change. Lehman/ Didn't Cedar Rapids... prohibiting cardboard .... ? Thisrepresents only 8rsasonably accuratetranscrlptlon ofthelowa CiW council meeting of Janua~ 8,1996 WS010896 January 8, 1996 Council Work Session-Budget Atkins/ Ernie, I haven't heard that... I don't know. This represents only e reasonably accurate transcription of the Iowa City council meeting of January 8, 1996 WS010896 January 8, 1996 Council Work Session-Budget Council Time 95-4 S1 1. Kubby/ Reminder for people on JCCOG. Meeting, Wednesday, January 7, 4:00 PM, Senior Center ..... Nov/ Housing Collective is having an Open House on January 17 .... 200 S. Summit Street. 4:30 or 5:00 ..... proclamation, did you plan on that? Kubby/ They asked me to write one. I said they should write it. Nov/ ...have to have it before the end of this week ..... Give information to Lorraine ..... Speeches at 5:30 ...... That is social... reception, open house .... Kubby/ The name of the group is River City Housing Cooperative. 3. Kubby/ I did have one thing... Informal meeting on 15th. I just absolutely hate to have city employees come in on a major holiday. I will be here under protest out of respect for our city employees ..... Nov/ 4. Nov/ I went to a Policy meeting this morning... Board for Juvenile Crime Prevention [Tape ended prior to adjournment] Adjourned 9:10 PM Thisrepresents only areesonably accuratetranscription ofthelowa Ci~ council ms~lng of Jenua~ 8,1996 WS010896