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HomeMy WebLinkAbout1996-01-09 TranscriptionJanuary 9, 1996 Council Work Session-Budget 6:2 ~ Council: Nov, Baker, Kubby, Lehman, Norton, Thornberry, Vanderhoef. Staff: Atkins, Helling, Karr, Yucuis, O'Malley, Mansfield, Fowler, Logsden, Dollman. Tapes: 96-4, Side 2; 96-5, all, 96-6, Side 1. Budget Overview 96-4 S2 Atkins/ Enterprise Funds this evening .... Parking, Transit, Water, Sewer, Refuse, Landfill ..... I will need to know from you is what night you would like to have the boards and commissions come in .... 22nd and 23rd... 23rd would be better ..... Like to get a letter out to... the boards and commissions. Nov/ Tell me why the 23rd is better than the 22nd? Atkins/ 22nd... we will have an overview of capital projects for you. I was hoping 23rd .... agenda is more open for you all to question of on things of interest. Also circulated is the sign up sheet for the elected official thing you asked me about (Walk of the Stars). It shows the times ..... You can kind of go anytime you want. We have a booth... City has a Public Works booth. Encourage council members to come down to that one also ..... Nov/ I am encouraging council to go to the CVB meeting on Friday ... We are all invited to come and have out pictures drawn. Atkins/ If you can get that filled out for me tonight .... keep it in mind. Parking Fund. Begin with Joe Fowler, Director of Parking and Transit ..... Bill Dollman .... Ron Logsden who is the Transit Manager. We will begin with the presentation to you on the Parking Fund and than Transit. Kubby/ Would you go over again... about p.h.? Atkins/ ..... Under the federal law, when you make a substantial change in service and or increase fares, you have an obligation to have a p.h. We have interpreted that to be a p.h. separate from the regular budget hearing... where you specifically entertain testimony from the public about any proposed changes. Tonight we encourage you to listen .... Better you do not make any decision on Transit tonight until Thisrepresents only areasonably accuretetranscription ofthelowa City council meetingofJanua~ 9,1996. W$010996 January 9, 1996 Council Work Session-Budget Page 2 you actually have that specific hearing ...... You are required to have a special hearing on Transit. Kubby/ ... you can have it the same day? Atkins/ It can be the same day. I think I want to talk to you a little bit about it ..... Kubby/ What happened in .... '85 it started so late... people had to leave .... catch last bus home. I want to make sure there is enough time for people .... I almost prefer not to have it the same night as the budget hearing .... I have a feeling there will be a lot of people. Atkins/ Joe Fowler/ We have put together some different information to night to give you background on the Parking system and budget and some decisions that need to be made in the next few years. The top graph that you have tonight shows the hours of paid parking (Schedule of Parking System Information - FY90-FY95). That is deceptive because that is the hours that are paid in meter parking and in ramp parking. It doesn't include your permit parking ..... $400,000 increase in revenue from 94 to 95. A lot of that is represented in the parking permits we sold. 245 parking permit across the street times nine hours a day times five days a week times 52... factoring the 180 permits in Dubuque Street. There is a lot more hours of parking. These are just the hours that are paid for one hour at a time. Down below is the history of rate increases in parking. Most recent one was in 92 (reViews rates). Our policy up to this point is to run at the minimum revenue that we needed to continue operations in a healthy manner. That is the reason we didn't increase the outlying meters last time .... Kubby/ When is the last time we raised permits? Fowler/ Been in 92. Next chart shows our proposed budget for the next three years (Parking Operations Proposed Budget For ¥Y97- FY99). Our operating costs have remained pretty constant .... don't anticipate any over the next couple of years. As the parking ramps... continue to age and equipment gets older. Most of that equipment in both of those facilities is original. So we could see some increases in our operating budget over the next few years. We don't anticipate anything major at this time ..... Dubuque and Capitol both are basically all original equipment. Thlsrepresentsonly areasonably accuratetranscription ofthelowa City council meeting of Janua~ 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Page 3 Baker/ Dubuque is still at $.45 per hour? Fowler/ Yes, Dubuque is still at $.45 per hour ....... Baker/ (Can't hear). Fowler/ In addition to covering the operating costs, the Parking system also raises enough funds to cover our own debt service, the long term maintenance, the reserve account for new construction ..... A transfer is made to the GF and that is all the money that is generated from the $3 parking tickets that are issued d.t. That money is in this account for bond coverage and bond guarantee and at the end of the year it is transferred into the GF if it is not needed. All the $5 tickets immediately go into the GF ..... Thornberry/ What percent of parking tickets issued are paid? Yucuis/ I don't have a percentage. But with the change to the ticket escalating, we have a much better payment record. A $3 ticket after 30 days will go to $10. Once you get to $50 worth of tickets you get on a tow list. That seems to be happening a lot quicker .... getting more payments in. Baker/ (Can't hear) ..... 75%, 50%, 80%? Yucuis/ Over time, over the 80% mark ..... Norton/ Good relative to New York City. Nov/ We have gotten improved payments since we have them escalating ..... Yucuis/ Also when people pay the payment goes to the oldest dollar amount outstanding and we get quite a few complaints on that. It is a revenue ...... Have had several people that have really squawked at it and we have stood firm on it. Kubby/ If you have a couple of tickets and one has escalated and you have got $3 and you come into pay, it doesn't go for your new $3 ticket... That money goes to the oldest ticket. Yucuis/ If you have got $10 and get a $3 ticket .... Kubby/ It is a crime. Fowler/ In addition, the last transfer that is currently being made Thts represents only a reasonably accurate transcription of the Iowa City council meeting of January 9, 1996. WS010996 January 9, 1996 Council Work Session-Budget Page 4 out of the Parking Fund is $90,000 a year to Transit. Baker The ending balance just keeps dramatically dropping. What is the ... explanation for why that keeps going down? Fowler/ That is kind of back here on the next chart. (Parking Renewal & Improvement Reserve Proposed Budget For FY97-FY99). This is our Renewal and Improvement Reserve Fund and this is the fund that we set aside money in to do our long term repairs and our future construction. In 96 we are making a rather larger transfer over into this account for future planning. That is part of the reason our ending balance is going down at this time. Baker/ Fowler/ What we are doing is we are getting to the end of our bond issues and go back to our next chart and that is what we are talking about. We are getting into this critical time. A decision time here and that is based on that bottom line continuing to decline. (Pending Policy/Fiscal Issues in Parking) In 97 we think the Old Library Parking Lot will close ...... We will be losing 75 parking places. In 98 we have to reach a decision on what we are going to do with the impact fees that we have collected so far... the Breese/Bell fees. Vanderhoef/ The which fees? Fowler/ Breese/Bell. That was the initial development south of Burlington Street. Atkins/ Breese/Bell built the project. They were the first major payment of an impact fee. We call it the Breese Bell fee. Kubby/ We have a seven year time limit on it. You have to spend the money- Or five. Baker/ Two years left? Atkins/ Yes. Fowler/ In 99 if we decide to go ahead and spend our impact fee we need to look at if we build a new ramp how we are going to go ahead and finance that. In 97 and 99 we have some ramp and maintenance repairs scheduled. We are looking at a possible revenue shortfall from now until we get to 01 and 03. In 01 our first bond issue is retired which will increase our ending Thlsrepr~ents only amasonsbly 8ccumtetranscriptlon ofthelowa City council meetin9 ofdanuary 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Page 5 balance $164,000 a year. In 03 we retire a second bond issue which will add $424,000 a year to our ending balance. So we are looking at a period here from 98 to 01 of a possible revenue shortfall. At the bottom we have looked at preliminary items .... to increase the ending balance and these are all directed at the outlying metered area .... Meters into two areas: CBD meters ..... and outlying meters ..... Possible rate increase that we have suggested here for you .... would be affected only in those meters ..... Gave you two different scenarios on the monthly parking permits, $35 to $40 and $35 to $45. And then projected out some revenues at the end for you... last time the meters in the outlying area were raised was in FY86. They missed the last rate increase. Baker/ How come you didn't list Dubuque Street as a possible option? ...... Fowler/ We were just looking at the area that had been the longest without having a raise and the Dubuque Street Ramp makes it all the sense in the world to get it the same as the other one. Nov/ Joe, what do the permits cost in the CBD? Fowler/ $45 and $55 a month...$45 in Dubuque Street and the lot next to the library and then $55 in Capitol Street Ramp. Nov/ ... what does it cost.. Chauncey Swan? Fowler/ It is $35 now... that is a major generator of outlying. It would be the Chauncey Swan Parking Lot, the Rec Center Parking Lot, the Civic Center Parking Lot and there is just one or two permits on the Market Street lot. Norton/ Fowler/ Kubby/ We also directed staff last year to create some kind of incentive program so that people came in without just a single driver, that they got a cut rate and we have not seen anything. Fowler/ That is not reflected here. We have prepared a preliminary report on that. Kubby/ I want to go back to the second page on this ..... FY98 & 99 Thisrepresents only e reasonably accur~etrsnscrlptlon oftbelows City council meeting ofJanuary9,1996. WS010996 January 9, 1996 Council Work Session-Budget Page 6 ... Total receipts and there is only $5,000 difference and I am looking a total expenditures and there is $90,000 difference but there is a much bigger difference in the ending balance. What isn't showing up in those columns? ..... Yucuis/ Your 97 revenues, less expenses, decrease you cash balances. There is $172,000 more in expenses than revenue in FY97. Revenues in 98 & 99 are projected to be flat.. difference is interest income ..... Transfers stayed pretty much the same but your operating expenses increase and that is where your... your revenues are flat and your expenses are growing more so there is greater deficit in 98 and 99. Kubby/ So why don't the numbers reflect that? Thornberry/ Your beginning balance is larger ..... Vanderhoef/ Kubby/ Yucuis/ Your beginning balance, plus your receipts, plus expenses will be your ending balance and the ending balance becomes your beginning balance the next year ..... (reviews figures in chart). Kubby/ The expenses are that different. Yucuis/ But your receipts are always lower than expenses in each case. Each year that grows even bigger which is why the cash balance is going down so quickly. Kubby/ I will just have to look at the numbers. Fowler/ The last page- Kubby/ What is it that is causing that difference? Atkins/ Total receipts, FY97-$2.9 million. Total expenses-S3.1 million. You began the year with $900,000. That is figured as a receipt. What you are doing is this shows how when you balance with cash, it doesn't accumulate, it begins to chew it out. The $811- goes back up, so you get $2.9 million and the next year your expenses are $3.2. That is going to lower that because you are using your cash as a revenue .... At the rate of about $200,000 a year, it gets chewed up real quick. Thisrepresents only a reasonably accuratetranscription ofthelowa City council meeting of January 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Page 7 Kubby/ ... what is the difference that is causing that ending balance to go down? Atkins/ Personnel costs are projected to go up at the rate of about $60,000 a year .... Transfers run fairly flat and your revenues are fairly flat. Kubby/ Is this an increase in personnel? Atkins/ No... Notice... receipts of $2.9- that goes out. that began in FY96 where you had total Expenditures were $3.6- big slug of cash Kubby/ Do we have to have a reserve...? Arkins/ There is a formula that you have to have .... We fully fund all of our maintenance costs with cash. We don't do any borrowing. So you will have certain spikes in there ..... (Refers to Pending Policy/Fiscal Issues in Parking) As Joe pointed out, you have that 2-3 year revenue shortfall. The Fund recovers right after that and you begin having a cash accumulation assuming all things being equal ..... Your shortfall occurs at just the time your facilities are aging the most and you want to build a new one .... We also added a new expense in FY99... additional transfer to Transit. NOV/ Can you predict the life of a ...parking ramp? ..... Fowler/ 30 years. Arkins/ 30 year life. We really do a very good job of maintaining. We keep putting money into those ramps. Lehman/ Life of ramp would be somewhat indefinite as long as they are maintained. Arkins/ The heart is intended to tick forever, it is the rest of the body that falls all apart and you finally die ..... If the structure of the thing remains sound, your right, it is an indefinite life .... Nov/ Does it depend at all on how many cars that go in and out? Fowler/ ...biggest affect on the parking ramps are this time of year.. salt... One of the major things is to get that salt cleaned out .... yearly .... We have very little wire that you Thisrepresents only a reasonably accuratetranscription ofthelowa City council meeting of January 9,1996. WS010995 January 9, 1996 Council Work Session-Budget Page 8 can see when you go in. Final page (New Ramp South of Burlington Street) is a list of decisions that you will have to face in the next couple of years... walk you through what options and choices there are .... I think the major point that we need to address in the next few years will be the parking impact fee and whether we will go ahead and spend that within the time line that has been established. Kubby/ I think the time frame and the decision tree is very helpful. Fowler/ Any questions over the parking ..... ? Nov/ If we decided that we have a site and we are ready to build a ramp south of Burlington, is this a new bond issue? Fowler/ Yes ..... Kubby/ Only difference... is in services and charges .... Basically, you have gotten what you have requested. Fowler/ ... in travel... Kubby/ In terms of any policy decisions for next FY. It is really status quo? Fowler/ Unless you want to adjust the issue of potential cash shortfall in the ending balance... and... beginning construction south of Burlington Street. Thornberry/ Kubby/ In terms of the rest of the system and how it operates. Atkins/ You can adopt this budget, based upon these proposals and feel quite comfortable the next couple of years .... You don't have to do anything. Norton/ But you have to look at these rates related to Transit. Arkins/ That is sort of your policy decision. The critical elements .... when you run out to year 03 .... not a disaster. We do have a short term problem. What we need to get back to you with .... I think you need to devote a work session on making certain decisions for us is pursuit of the ramp, are Thisrepresents only areasonably accuratetranscription ofthelowa City council meeting of January 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Page9 you going to build that new ramp and if the answer is yes, that triggers- Kubby/ It wouldn't be a parking ramp. It would be a public facility that includes parking. Atkins/ Thank you ..... I tried to summarize for you that we are using cash to balance the fund. We are making all of our transfers ..... There is cash available to transfer if you choose to use some cash for the construction of the new ramp. We could postpone some of the maintenance activities .... You have a whole series of options .... Ramps are beginning to age. They are requiring some maintenance activities that are demonstrated in that time line. Same time you are faced with policy decision of time to build a new ramp .... Question becomes how to pay for all of this .... Not one easy simple decision... series of decisions .... I can bring back a parking ramp proposal .... Kubby/ Does our resolution that says money from the Parking Fund can be transferred to Transit budget? Does that outline all the ifs and ands and buts about that? Our intent was first subtract out debt service, maintenance, little bit of money to pay for the next facility and then when there is money left over that gets transferred. Atkins/ It is a January memo of '94 and it is pretty well outline. It indicated that you were to transfer $90,000 every year for three years. We have added a fourth year to this budget, FY99. By your policy position when this was adopted, it was intended to be 96, 97, 98. This budget we have added 99. So that is another $90,000 being taken out of Parking Fund. Baker/ If we decide to go ahead with the ramp for the South Side, it triggers a series of other decisions .... Those other decisions are triggered only by that decision? ..... Atkins/ You still have to face some- That is sort of the big one that gives us impetus to this debate. But yes the financial condition can worsen .... In 01 and 03 binds, do we have reserves to pay the last years principle and interest? Yucuis/ Yes we do. Atkins/ ...We have that .... Norton/ Thisrepresents only areasonablyaccurate ~anscri~lon ofthelowa City council meetlngofJanua~ 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Atkins/ It was a requirement of the original issue. Lehman/ Dramatic improvement. Atkins/ ...By year 2000 you might have a zero balance. Until that 01 you would be in the hole by $200,000 although you have one bond issue that would go off... improves it... following year it is going to drop again... assuming fairly flat revenues... they are flat .... revenue is flat. Vanderhoef/ I am confused which year are we going to retire these if we have already got the reserve fund there? Atkins/ In 01 that bond goes away and that is $164,000 payment you do not have to make. In 03 it is a $424,000 payment. Vanderhoef/ The last payment is made in the year 2000 and we already have the money for that one? Atkins/ July 1, 01. Our expenses, out of pocket, will improve by $164,000. We also have available last years payment of approximately that same number. I don't want to count it twice- It is there .... We are not uncomfortable with our three year plan ..... we can pretty well project what those things are going to be ..... I look at trends... The hours of paid parking doesn't change .... operating expenses... bump along .... Only so many meters and so many cars .... Kubby/ F¥90 is $230,000 more than FY93. There weren't more parking spaces then...fewer. Are people driving less? ..... Bike racks? Atkins/ ...important thing is when we present this to you is understand the trends...revenues begin to flatten out on these, you begin to use cash ..... (refers to Parking Renewal & Improvement Reserve Proposed Budget For FY97-FY99) o The ending balance in the Improvement reserves are good. It is not that we don't have money. Our Improvement reserves are in good shape. But your operating balance is beginning to change. You can adopt a budget come March but this has got to come back to you for a discussion about ramps, rates, do you want more meters .... Is there anything else about parking?... I do think... some acknowledgment of you didn't have any trouble of us adding that FY99 because that will have some bearing on that Transit Transfer. That extra $90,000 ..... Kubby/ In terms of your memo that you gave us last night about other things... You should be adding parking rates and Thlsrepresent$only a reasonably accur~etranscriptfon ofthelowa City council meeting of Januew 9,1996. WS010996 January 9, 1996 Council Work Session-Budget facilities to this. Atkins/ Transit. Fowler/ We have prepared a lot I .... A little background last- of documents for you ..... Ron and information on Transit. Over the Atkins/ This is one that has to be decided because of the tax subsidy on the thing. That you will have to make decisions on this one... Not tonight .... Fowler/ Background... Transit ridership over the last number of years has been relatively flat at 1.3-1.5 million riders every year... positive signs in the last few years. Able to add the East Side Loop in the last FY that ran six months as a full time route. This year it is running as a half time route and we did that both times without any additional budget funding ...we lowered the operating cost of Transit slightly over $4.00. The current operating cost in $44.70 per hour and we anticipate we will bring that down even lower operating costs this year. Kubby/ How do you do that? Fowler/ Our maintenance costs have dropped pretty substantially in our bus maintenance .... new buses is part of that. We are very cost conscience over repairs and suppliers. We have been searching out additional suppliers... maintenance staff. Atkins/ Also made on key management decision. We split our equipment maintenance operations. We have the generalized equipment maintenance assigned to Public Works. Transit... is now under Joe and Ron's direct supervision... a lot more day to day contact with the individuals maintaining the buses .... Fowler/ A couple of the negatives that have occurred. Recently is reduction in federal operating assistance for Transit ..... It will go down 25% this year. Within three years it will be totally gone and the other item... Our Para Transit costs continue to rise. Preliminary figures from JC SEATS for para Transit... combined with cab... operating costs for Para Transit next year at $641,000. An increase of $165,000 over this FY. Expense history over our major items over the last few years. (Refers to Transit Operations). Bus parts, between 94 & 95, This represents only a reasonably accurate transcription of the Iowa City council meeting of January 9, 1996. WS010996 January 9, 1996 Council Work Session-Budget dropped that $50,000 and we hope to hold that down at about that level. Our Aid to Agencies .... they have continued to grow. Personnel costs haven't been too much out of line .... increase in 92... Plaenview Route .... Gasoline costs... not much we can do to control that. Capital outlay.. our major purchases, our bus purchases and bus shelters. Kubby/ Are you assuming feds are going to go to 50-50 from 80-20? Fowler/ CHANGE TAPE TO REEL 96-5 SIDE 1 Logsden/ We are anticipating out share will be greater in future years. We are proposing to pay that from either a loan or include it in a bond issue for our share for future bus purchases. Vanderhoef/ This figure in 96 an 80-20? Fowler/ That is 83-17. They went with an extra 3% for ADA equipment, for lift equipment. They gave extra funding to get that equipment in place Our bus purchases, the price of individual buses from 91 to the present has gone up approximately $75,000 per bus ..... We area attempting to apply for and get as many buses as possible to get them in the fleet before federal funding is completely depleted ..... lower our operating costs. Thornberry/ The increase in the price of buses... is part of that due to the fact that it has got to be handicapped accessible. Fowler/ Part of that is but not the total. Thornberry/ What percentage increase is that? Fowler/ .... federal government... 3% .... Fowler/ Do you have an exact figure, Ron, on how much it adds? Ron Logsden/ I don't think anybody has ever really figured out exactly- The lifts run about $5,000... to $10,000 depending on what type of lifts you use ...... Norton/ How fast were you going to get them all that way? Logsden/ 2000 but if we don't retrofit the O'Brien buses it would This represents only a reasonably accurate transcription of the Iowa City council meeting of January 9, 1996. WS010996 January 9, 1996 Council Work Session-Budget be 2001 before we would have a complete fleet ADA accessible. Thornberry/ Are you looking at buying all the same size buses? Logsden/ Yes. Kubby/ ...one set of parts... instead of different kinds of vehicles. Fowler/ We have three different kinds of manufacturers right now we specify as much as possible identical from bus to bus... so we can keep less equipment on hand ..... Thornberry/ Does one bus manufacture make more than one size of bus? Fowler/ Yes .... Well, they make large all the way up to the articulating ...... and small down to SEATS van ..... Some manufacturers do the full spectrum .... Thornberry/ Fowler/ Kubby/ For routes like Towncrest... increasing our capacity ..... Thornberry/ Norton/ That night business is going to be tough. Thornberry/ Fowler/ ... Buses we are getting are getting a little bit better fuel mileage .... Next page ( Transit Fund Selected Revenues as % of Operating Expense) shows some selected revenues and their percent of operating expense .... We wanted to give you some history as to what has occurred with bus fares and how much of the actual cost of operation they are covering .... Transit Levy in FY93 .... General Transfer Levy... Out state grants have been pretty consistent. Our federal grants were fairly consistent and transfer from the Parking Fund that have just started .... to help cover expenses. (SEATS Ridership/Cost FY87-97) Just to give you another cost comparison... SEATS ridership and how much it has cost us per Thisrepresents only areasonably accuratetranscdption ofthelowa City council meeting of January 9,1996. WS010996 January 9, 1996 Council Work Session-Budget year here, the number of rides and cost per ride. Kubby/ The new SEATS contract reflects a percent use of time versus a per ride figure. Is there a way we can reformulate even a couple of years back ... see how those costs are changing. Burnell Chadek/ Assistant Director of JC SEATS. The formula that you are referring to, the projected formula, based on time and minutes for the service was based on a survey that JCCOG and SEATS did jointly for a weeks worth of rides for date for FY96 contract ..... We used a week to come up with this formula and this allocation ..... There would be no way to actually guarantee accuracy... for those previous years. That we could estimate what this formula would have come up with for an allocation for those years versus the actual contract .... was. Norton/ What is the formula that you are referring to? Chadek/ Combination of combined cost of the time and the operational costs and then applied the number of minutes by each entity to the total cost of the operation. The formula was presented in a document to Joe and Ron, City of Coralville, City of UHts. Also our Board of Supervisors ..... Just an accurate way of assessing ridership figures, ridership times current in allocating expenses as accurately as we could ..... This newer analysis takes into consideration .... trip length in time and also number of passengers per trip which varies .... Nov/ Chadek/ Pretty labor intensive work .... tours .... being the ridership on a vehicle with overlap .... added together all those passengers minutes... on board the vehicle .... vehicle time .... I would be happy to reproduce the report. Norton/ Stop times are a little different. Fowler/ The answer is no, we can't go back and give you accurate information ..... Nov/ Kubby/ Joe, do you figures assume that if night time service stops at 7:00, that Para Transit service would follow the fixed route schedule would stop at 7:00? This represents only a reasonably accurate transcription of the Iowa City council meeting of January 9, 1996. WS010996 January 9, 1996 Council Work Session-Budget Fowler/ No, there was no change in the Para Transit costs based on the fixed route costs? Kubby/ Arkins/ We propose.. that fixed route would- was the cost burden this time around .... and that SEATS would remain substantially unchanged. Bakers/ SEATS ridership figures from FY87 to 97, those are the total SEATS service, county service? Fowler/ Those are the Iowa City rides, yes. Nov/ If we were to increase the fare on the fixed route, then increase the fare on Para Transit as well? Fowler/ We could. That would be an option up to council. It can be twice that of the fixed route. So we were faced with funding dilemma for the coming year. Our initial response was to increase fare revenue and to do that by increasing fares from $.50 to $.75 a ride and monthly passes from $18 to $25 or $27 a month. This was based on the fact that the last two fares increases that occurred in Transit... 1985-$.40 to $.50 and monthly passes were increased to $16 month and Saturday service remained at $.40. 1987 the Saturday service was increased $.40 to $.50 a ride and monthly passes were increased to $18 ...... We are projecting there would be a 17% decrease in ridership based on new fare increase. We are basing this on elasticity figures that we have been able to get from JCCOG... For each 3% increase in fare there will be a 1% decrease in ridership and we projected that this decrease would come from the riders that pay per ride rather than the monthly pass holders ...... Baker/ The monthly riders would continue at the same rate .... ? Fowler/ My assumption... monthly permit holders were very strong Transit supporters and would continue to use the service. Baker/ Fowler/ A decrease in the monthly as opposed to a decrease in per ride would probably have left affect on our income .... They make up about 35% of the ridership and 65% coming off of pay per ride. Thisrepresents only areasonably accuratotranscrlptlon ofthelowa CIw council meeting of Janu~y 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Thornberry/ What percentage of monthly permits are paid for individually or by company? Fowler/ The majority are paid for by individuals ...... program... offer half price discounted permits to businesses and I believe 22 businesses took part in that ....... Some businesses are encouraging their employees that way. Kubby/ Mercy Hospital ..... Fowler/ This is another table (Transit Fund Fare Revenue Compared to Total Transit Expenses). This is ... percent of operating expense that is covered by fare revenue and just another piece of information. Baker/ Talk about this rate increase proposal. of ridership and increase of income for revenue of $187,0007 You project a loss a net increase of Fowler/ Yes. Baker/ I assume you also projected out other possible rate increase between $.50 and $.75. Norton/ Like $.60. Fowler/ I did do several different ones, yes. Projecting out getting to $.75 in steps of .10, .10. .05 to spread it out over a period of time. Ron talked with Ames and Ames tried a similar program and their suggestion was take one big step because there is such a negative impact each time you take one .... One of the things that helped us make our decision to just go with one increase. Baker/ I would still like to see what the figures are .... Fowler/ If the elasticity figures are correct over a period of time if you get to $.75 in smaller increments there is less affect on the ridership, less of a loss in riders due to the smaller percentage of increases ..... ridership and revenue are just kind of tied together. Additional funding that we needed to raise due to the slight decrease in the transfer from the General Fund and to projected increase in Para Transit service, the budget proposal calls for he elimination of night service. We determined that this was the segment of service that was least This represents only a reasonably accurate transcription of the Iowa City council meeting of January 9, 1996. WS010996 January 9, 1996 Council Work Session-Budget being used and we would be able to eliminate with the least impact on the overall system... this service was added in November 1977, six month trial basis... ridership had to average 300 a night to continue service ..... It has been under 300 per night for the last 3-4 years .... For first five months this year it is averaging approximately 263 riders per night from 6:30 to 11:00. Kubby/ Are they concentrated on a few routes? Fowler/ (January-December Route Ridership Figures) Yeah, I have got these numbers for you over the last few years ..... Thornberry/ Are they concentrated by days? Fowler/ That information I don't have with me. We would have to go back and do a comparison by day .... five. Stops at 7:00 on Saturday. That is kind of the model that we went for cutting back on service. When you look at the numbers that are on this graph... Court Hill-Manville route has very low ridership compared to the other routes ..... Main night service are on Court Hill Manville is Forest View Trailer Court. Baker/ Fowler/ That is how many total rides each month on probably 20-22 nights of work .... this is from 6:30 on... for the month .... The areas that have large concentration of high density dwellings do better than our other areas and we have estimated that we could save approximately $200,00 a year in operating costs by eliminating the service at 7:00 PM. Baker/ Did you analyze keeping certain routes? Fowler/ No we did not. Baker/ Is that practical? Fowler/ No. This was based on how do we get our operation to fit in the budget figures. Kubby/ Atkins/ What we do is we calculate available revenues ..... and then we calculate the departmental estimates based upon the proposals they have put forth. I then go through and make selective reductions based upon my judgements ..... avoid new Thlsrepresents only areasonably accurate ~anscrlptlon ofthelowa Ci~ council meeting of Janua~ 9,1996. WS010996 January 9, 1996 Council Work Session-Budget positions... avoid lay offs .... maintain technological applications .... We still get down to the point where we are out of balance. Joe then shows me the dramatic changes in his particular department, not his fault. Loss of federal money... We work it out together collectively... this is where we ended up... Our judgement. The expenses associated with Transit, while the service provided is flat, we are growing disproportionately to other services. And that is how we ended up where we are. Kubby/ It seems that in every category... sharp decrease in ridership between 94 and 95, in every category. Nov/ Fowler/ Transit is very often weather dependent .... nicer the weather... the lower the ridership ..... hope for really lousy winter .... Kubby/ If we added all these numbers up... would we see any trends? Or look at it through the fare box? Fowler/ They are basically flat. There are some areas with slight increase... decreases. No real major dramatic changes over time ..... Norton/ Clarify exactly where and when the federal cuts are coming? Fowler/ No .... They have told us that it would be cut 25% this year and it would be gone in three but we have not seen them pass that in the legislation. That has been what has been approved by the committees in House and Senate... It is not finalized. Norton/ Fowler/ We factored in what they had told us it was going to... One advantage that Iowa City has over most over Transit systems is we are one year behind in our funding. The money goes through JCCOG and is set out a year later ...... We have a year to plan .... Cedar Rapids cut a lot of routes .... We got here a list (Hours of Service and Fares For Iowa Transit Systems) that will show you the hours of service that everybody else is providing... present fares... proposed fare increases that they have got for upcoming year. Baker/ ..... 97-98-99 fare revenue projections are based on $.75? Thls represents only a reasonably accurate transcription of the Iowa City council meeting of January 9, 1996. WS010996 January 9, 1996 Council Work Session-Budget Fowler/ Yes .... Kubby/ Go back to the revenues of the Transit Fund (City of Iowa City Transit Fund FY97-FY99) .... decrease in federal moneys, still saying $250,000. Fowler/ I think that number is high. Norton/ Kubby/ We know we are going to go to zero in three years. Fowler/ $250,00 in this one, budget B, C, and D are all this same year. They are options. $250,000 might be a little high by the time they finish with us. Kubby/ What does this mean in terms of positions? How many positions in terms of night service? Fowler/ Three full time drivers would go back to part time drivers and five part time positions would be eliminated for 3 1/2 total full time equivalents. So five part time positions would be eliminated under this proposal. Baker/ Does Ames have a Cambus? Fowler/ They are basically the same as Cambus. They service the city and University both. Nov/ They have a single system... Ames. Kubby/ So it is five part time employees that will be totally eliminated and then there is some full time people , they will go to part time? Fowler/ Yes .... There are three full time night runs that would have to go back to part time runs. Kubby/ .... talking about eight people? Fowler/ Yes, it affects more than five. Point out some of the negatives that these changes will be .... Some people o.. Transit dependent... Could have affect on some workers... choose to take the bus to work... Some of the outlying multi family areas would become less desirable as a place to live ..... Another factor that would be considered, Thisrepresents only areasonably accurate transcription ofthelowa City council meeting of January g, 1996. WS010996 January 9, 1996 Council Work Session-Budget 1~ approximately 400 additional trips per day would be made to the CBD by another means of transportation .... with fare increase .... total impact of the package ..... Nov/ If somebody works until 9:00 .... find another way... Baker/ No way to really quantify how or who specifically would be affected of that ridership? Fowler/ No... could survey the night ridership ..... Baker/ Fowler/ We could do a survey within the next couple of weeks. Would be best to wait until after the 15th-16th when the students are back in town .... Kubby/ I would like .... are you transit dependent. Does your work end after 7:00 ..... I am hearing from people ..... developmental disabilities who have jobs... who don't have another choice... Para Transit.. cost per ride will increase Fowler/ Survey... include how often do you ride, purpose of the trip... did that kind of information earlier this year for the system as whole. Norton/ Throw in both lack of night time and rate increase are proposed or contemplated. Fowler/ Okay. We can put something together. Nov This ridership for night time looks like we really need to evaluate our routes .... may need another loop kind of system. Fowler/ Court Hill has a very high ridership to the CBD and to University Hospital.. at peak times. Nov/ Peak times only .... eliminate nights is not enough. we have to reevaluate the system. Fowler/ I will be more than glad to do whatever you want us to. Kubby/ Do we want to do a survey? Nov/ Yes. This represents only a reasonably accurate transcription of the Iowa City council meeting of January 9, 1996. WS010996 January 9, 1996 Council Work Session-Budget Norton/ ..... if we are going to do it, we have to give it real thought. Fowler/ We could put together a sample survey, bring it to you and let you decide if it is asking what you are looking for. Norton/ Baker/ Norton/ Nov/ Did anyone get a hold of Hamilton, Ohio today? Fowler/ Ron- Logsden/ I talked to the manager of Hamilton Transit today and got a few questions answered. Basically what they did was- It is a town of about 61,000 people .... different .... Their ridership in FY95 was 102,000 and ours in 1.5 million. There are some things that they can do that we can't ...... What they did... fixed route system consisting of 8 buses. They sectored off their city into zones, six zones, and had a bus going in each one of those zones .... demand response, people call in .... reservations... 1 hour... In each zone they had 2-3 points, major destinations .... They give fixed times at those locations per hour .... Transfer point d.t ..... all meet d.t. once per hour .... everybody that calls in. I think we would have a real hard time doing that during peak ..... Night time service .... Nov/ Logsden/ ..started out on low ridership routes .... ended up expanding it to entire system .... they did experience some loss in ridership in doing this ..... Difference...can't run 40 foot buses on some of the cul de sacs... double fleets, double expenses .... questions you guys would have to deal with ..... Their fares are $1.00 .... 6:00 Am to 6:00 PM ..... Norton/ Kubby/ Do they have a Para Transit system as well? Logsden/ No, they do not ..... they have a $1.1 million budget also. They are saying they are running at about 80% their original budget ..... Thisrepresents only a reasonsblyaccuratstranscrlptlon ofthelowa City council meeting of Janua~ 9,1996. W$010996 January 9, 1996 Council Work Session-Budget Nov/ Kubby/ I would be interested in collecting information to find out how much it would cost per route... to keep one night route .... Fowler/ ...we just took our hourly operating costs... $44 an hour for number of hours per bus that you wanted to extend service. That would be easiest way to get a quick ballpark figure ..... total operating cost .... Nov/ Vanderhoef/ What does the University offer right now for evening service? Fowler/ University runs until midnight? Logsden/ (Can't hear) .... after 6:00 it goes to 15 minute service...after 9:00 it goes to half hour service .... Fowler/ I prepared a whole bunch of budget scenarios (City of Iowa City Transit Fund Proposed Budget to City Council for FY97~ FY99) ..... trying to give you as much information as possible in this decision process ..... Top budget is the budget as it was prepared in the budget manual and that is with a slight increase for the Para Transit Service in JC with a rate increase schedule to go in January and elimination of evening service... in July ..... Kubby/ Fowler/ This is the original budget in the budget manual. We received the SEATS figure after the initial budget manual... Bottom... General Fund Transfers ...... Second budget is same with increase in SEATS Service to- CHANGE TAPE TO REEL 96-5 SIDE 2 Fowler/ No additional transfer from the General Fund and the affect that has on the ending balances in FY98 & FY99. The options begin on Schedule A which is the third page (Schedules A, B, C, D) ...... Increase for the Para Transit, increase from the General Fund, increase in the fee and eliminating night service. Bottom right hand corner is the additional funding necessary from the General Fund to .... continue the day time service. Schedule B would be the affect of a fare increase, Thisrepresents only areasonably accuratetranscription ofthelowe City council meeting of January 9,1996. WS010996 January 9, 1996 Council Work Session-Budget continuing service at the current level and it reflects the fare increase. Schedule C would be no fare increase with the elimination of evening service ..... differ out as you get into 98 & 99. Kubby/ When you figure that 17% decrease in ridership that is based on the amount of fare increase, right? Fowler/ Yes° Kubby/ Do many communities increase fares and offer less service? ..... Double whanlmy... shouldn't we double whanlmy that ridership decline .... two big changes in services. Fowler/ Our estimate is decline in ridership would reflect the current night time ridership figures. That it wouldn't have an effect on people using it to and from work .... Kubby/ Fowler/ It didn't factor out any loss of revenue for the night time riders. Kubby/ Don't we need to adjust those figures to offset any of those night riders? Fowler/ That would have an impact, yes. We could go back and look at the night time revenues ..... The rides are broke down by the method of payment ..... We do have the different break down of ridership at night. Kubby/ If we get information about how many people who are currently using night service who will need to use SEATS, then we can also figure out those increased costs as well .... Norton/ Fowler/ Asslime some of the people currently using elderly and disabled waiver for fares would go... additional people who have monthly passes who would call a taxi. I would think we would have to look at the survey to come up with exact number. Schedule D looks at what would happen if we do not increase fares and leave service at the current level. Again, the General Fund transfers are reflected in bottom right hand corner ...... (Refers to Transit Fund Selected Revenues as % of Operating Thlsrepresents only areasonably accuratetranscription ofthelowa City council meeting of January 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Expenses- Options A, B, C, D)) ..... you can see what the different affect of each of the options would be .... all on one page. That pretty much sums up the information on our budget. Ron did put together some additional information (Para Transit SEATS Service Information For Iowa Transit Systems) .... why is our Para Transit costs so high compared to everybody else. Ron did surveys throughout the state... Kubby/ Where do we go with this.? Norton/ I was just going to ask about this survey thing... not only night time riders. You are going to have to talk to some others, right? Fowler/ We just surveyed this fall...500 surveys from monthly pass holders... ask them about frequency of service... Norton/ Fowler/ They were given to them with returned them to us ..... We had with the service. a return envelope and they some that were not pleased Norton/ What percentage of them came back? Fowler/ 21%. Thornberry/ Norton/ Fowler/ We gave people that bough a monthly pass because we thought they were the most consistent users of the system .... frequency, conditions of the buses... just a general survey. Nov/ ...how people would behave if there were no busses at night. Norton/ Time frame for drafting this, reviewing it... not making too big of deal out of it .... Fowler/ Jeff Davidson is out of town... Jeff will be back Friday. See if the JCCOG interns .... do some on board survey. I don't think it would cost anything because the interns are salaried ..... cost of the printing .... Thisrepresents only areasonably accuratetranscription ofthelowa City council meeting of Janua~ 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Thornberry/ Could write down the answers ..... Kubby/ Write questions to get information and you don't lead someone to an answer. Thornberry/ If you give them a survey at night and they are riding the bus at night and you indicate there might not be service at night, what are the chances of them saying okay? Kubby/ Find out basic information... what other options are available to you ..... Norton/ ... I would be glad to help .... Your point is also well taken ..... Thornberry/ ... When do we need to know? Atkins/ You have to decide by budget adoption time .... The survey is a minimal expense ..... Don't be concerned about actual cost of survey... Share your concerns about doing it right .... Kubby/ I personally don't want to see the p.h. about changes happen the same night as the budget meetin~ .... Transit hearing the same night as the budget hearing... unfair time frame. I would like to see that happen sooner .... advertising the hearing on the buses ..... Fowler/ There are guidelines that were adopted by council for p.h. and these are- These comply with the Federal Transit Administration Guidelines. Any fare increase will require p.h.; any service change involving 25% or more of route miles will require p.h.; time and place of said p.h. will be set by Parking and Transit Department and authorized by city council; notice of the hearing will be published in the newspaper general circulation not less than 4 or no more than 30 days in advance of the hearing and notice of the hearing will be posted on the board of all city buses for a period of at least one week prior to the hearing. Baker/ We need to decide on a date soon. Kubby/ Do a separate night when there is no other business .... Council/ (All talking). Kubby/ .... a lot of people who want to speak .... I would like us to do a separate night. This represents only a reasonably accurate transcription of the iowa City council meeting of January 9. 1996. WS010996 January 9, 1996 Council Work Session-Budget Baker/ Not have a separate night .... Nov/ One hearing on the 13th for Transit .... full budget hearing on the 27th ...... Norton/ ..... Baker/ Middle of February a reasonable time to have a Transit hearing ..... Kubby/ Nov/ Norton/ You are trying to avoid a special meeting in other words? Council/ (All talking). Norton/ A special meeting, a unique constituency .... Nov/ Separate meeting? I think it should be. Thornberry/ Arkins/ Nov/ How about doing this on the 12th, it is a Monday. Start the hearing first, 6:00. And then start the informal after the hearing ...... Lehman/ I would rather see us have our informal 6:00 to 7:00, stop the informal and have the p.h ..... Nov/ Norton/ Also assimilate the results of the hearing. Council/ (All talking). Kubby/ Okay, 7:00 the 12th of February. Atkins/ We will put that down and bring that back to you to kind of confirm that. Kubby/ The General Budget p.h. would be at our regular formal meeting on the 27th. Thisrepresents only 8reasonably accuratetranscription ofthelowa City council meeting of Janua~ 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Arkins/ 27th adoption ...... Ready for a new topic? Norton/ How about a quick break? [Council Break-reconvened at 8:35 PM] Atkins/ Water. The history of this project to date. As a note, the waste water is the same thing. There are no dramatic operational changes. The biggest issue for you all is the rates for those two services. It also reflects cash accumulation project schedule. We did file under Wastewater under DNR a follow up hardship letter... We sent another. We have not heard from them .... We have 37 months, they reduced it by 22, we wanted to add another... year on the thing. And that is for the Wastewater. The water project we have more latitude. That is those two budgets .... We prepared it in accordance with that specific policy ..... We do need to deal with these rates ..... We would have that first ordinance, the first reading is scheduled for the 16th. Informal discussion on the 15th ..... Lehman/ Even if we decide the 20% is not right ...... We do know we are going to have a substantial increase in water rates? We can change those things at any time before the next rate increase, can we not? Atkins/ You have full discretion to change the rates at anytime you want except after we have sold debt, there is an obligation that you must be able to demonstrate to the bond holder that you have in place the rate structure that will pay the bills for that debt ..... Lehman/ Will the proposed rate increase that we have here cover the amount of debt that we are going to issue in the next 12 months? Atkins/ The upcoming one, yes. Lehman/ ...if it is going to take a fair amount of time, if we rethink some of this... We should go ahead with the increase that we know we have to have anyway and some time during the upcoming year, take a look and see if there are options that we want to look at. Norton/ .... Give ourselves time to think .... This represents only a reasonably accurate tranecriptlon of the Iowa City council meeting of January 9, 1996. WS010996 January 9, 1996 Council Work Session-Budget Atkins/ When we sell debt, one of the first things the rating house will do is do you have in place a rate structure that will generate sufficient income to run your Wastewater and Water plants and pay principle and interest on these bonds? Norton/ Arkins/ If you sell debt .... you may choose, on the next bond issue after that ...... You have to go through the same process to demonstrate that your fund is financially sound. Norton/ Arkins/ The policy has been 20% accumulation, a project schedule and we will incur debt as needed to satisfy that project schedule assuming that we are going to be paying 20% of those costs through cash .... Lehman/ With this rate increase we will cover any bonds the next 12 months? Atkins/ Yes. Lehman/ So we are financially riscally sound? Atkins/ Yes ..... Thornberry/ It would be like going to the bank and getting a business loan... they give you a rate .... Atkins/ And then they rate the bond .... We believe we should get an A rating for our revenue bonds which is the best you can get ..... Everything must be in order ..... Norton/ When will you know whether you are going Revenue or General? Atkins/ That is pretty much an analysis of the market at the time. We have authorization now by council to do both ..... We monitor the market ..... Norton/ Atkins/ The bond holder... telling the GO Debt and I will pay it out of revenue .... If you are going to pay it out of property tax you are going to get a different rating, a superior rating. Thisrepresents only ereasonably accurate transcription ofthelowa CiW council me~ing of Janua~ 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Nov/ Restrict the bond issue... put some of it in each category? Atkins/ ...make that call .... We can do short time financing .... We try to go in and do fairly short term... GO ... ten year issue .... Get best deal .... Vanderhoef/ If you go GO, try to keep them ten years? Atkins/ That is our thinking right now .... maybe into 15 year .... do well with short term payback ..... Thornberry/ Would 15 year be more expensive than a ten year? Atkins/ Yes. Kubby/ Arguments .... When we voted on a 40% rate increase, I voted against it even though I believed in the projects... because we didn't have the technical aspects or financial aspects worked out... unfair without having a plan. If we do this again, I want us to commit to the beginning of the plan ...... Lehman/ I think what we have here is exactly what we told the city we wanted. So this is the plan. This is our plan. If we decide that we need flexibility, we always have that flexibility .... I hate delaying the rate increase .... the longer we go before we have rate increase... longer we are going to have to go and higher... wise and fiscally responsible to get the increase in place... take another look .... Thornberry/ Once we have sold the bonds .... Lehman/ Atkins/ .... Norton/ I understand the consequences of dropping those rates a bit Lehman/ The plant we are talking about, 20 years, the sewer plant before we need any modification or whatever. 20 year plan... that is our best estimate. I hate to see us carry that thing 28-30 years. Norton/ Kubby/ You can make an argument.. investments in accumulating money... people have been getting a real good year for 20 Thisrepresents only a reasonably accurate transcription of thelowa Ci~ council meeting of Janua~ 9,1996. WS010996 January 9, 1996 Council Work Session-Budget years... rates fairly flat .... way of balancing out .... Norton/ Atkins/ Also... Water and Wastewater are very different .... Norton/ Water side is the only place I saw any flexibility .... Kubby/ Trying to balance... public health issue... clean water .... and ability to pay for it. Norton/ Atkins/ We have a low income policy that we are preparing for you and we have that drafted. If there is direction that you want new numbers for us to prepare for you. On Monday night the 15th you will have your first reading on for Tuesday. If you wish to debate that, change it, do whatever, you can express that in the form of your vote. But if you need more information, the sooner you tell us the better off you are. Nov/ I ask Don last week for more number crunching. Can we get an estimate of how much this increase is due to normal inflationary costs? .... And how much of it is due to the actual new construction? Kerr/ You have that continued p.h. on the Water rates that we continued from December. So you will have that plus this. Nov/ We have a continued hearing and a first reading. At one point somebody told me ... would like a special meeting on the 23rd for a few minutes to do a second reading rather than collapsing. Does anybody have any feelings about that? About the Water rates. We need three readings .... Do three readings instead of collapsing. Kubby/ We should have three readings on a big issue. Norton/ Arkins/ We would like to have it done by the March billing, March 1 is our goal .... Bond sale we are preparing. We are not ready to go to market yet. But we have a billing cycle in March .... Naomi, to answer your question. We have a schedule that shows the average which is operating costs and that is which is applicable to operating costs and that which is applicable to debt service. We have to do some more analysis... (City of Thisrepresents only area$onably accuratetranscriptlon of ~elowa City council meeting of January 9,1996. WS010995 January 9, 1996 Council Work Session-Budget Iowa City Schedule of Average Residential Monthly Water Bill) In FY95, the average residential monthly cost was $14.98 .... As we get more in debt the numbers change. Nov/ If my bill is going up 30%, is it safe to say I have 25% out of that is actually due to new construction. Atkins/ No, that is a separate question. If you want us to show .... went up $5.51, how much of that was debt and how much of that was operating. We would have to go back and calculate that for you .... We can do that for you .... Nov/ ... It is not all increase due to new construction and that was the question. Atkins/ ...... We will go back and we will calculate that for you. Nov/ The question is if we had no new construction, we would still have some kind of an increase and what would that have been? Kubby/ Graphics .... have a blue line that says this is the total increase and this much of it in red is for normal operations increase and the rest for construction and these are the different construction things that this 30% increase this year is going to do for us. Atkins/ We know what you want. We will prepare it for you. Council/ (All talking). Atkins/ You need to tell me .... I can't generate 20% cash accumulation with his (Barker's) rate structure ..... Norton/ Nov/ He is also assuming... not projecting inflation... increased operating costs .... Atkins/ ..... Kubby/ Are people right now kind of thinking that the 30% is okay? 30% increase in Water and whatever it is for sewer, to go with ' 9 the 20% accumulation. Thornberry/ Why do we need a 20% down payment? Kubby/ For every dollar we don't bond out we save a dollar. Thisrepresents onlyareasonably accuratetranscription ofthelowa City council meeting of Janua~ 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Norton/ Money up front so you will save debt service .... Kubby/ .... Why should the city buy a multi million dollar water plant without a down payment? Thornberry/ There is a down payment, it is just not quite enough. Norton/ Ernie's point is you can do that in another year. Lehman/ We can always change. I wouldn't be comfortable with trying to change what we have right now in the next two weeks. Kubby/ Norton/ 15% doesn't look bad to me .... spreads it out over a longer time period .... tradeoff .... Atkins/ If you choose to pay 15% capital it means you would have a little borrowing more ...... Norton/ The present council spent a lot of time going over this issue and I am really hesitant to push anything much different than that. Nov/ Whole idea of collecting a down payment was controversial from the beginning... it was a compromise .... Baker/ In the long run ..... higher the down payment the higher the millions of dollars that you save. I advocated a 25% down payment ..... 20% was a compromise. Lehman/ ... according to what we have projected .... not approaching the peak of what this plan would propose. I don't feel I can agree with the 49- The increase from $19 to $24 is minimum when you look at the big picture ..... We know that we are going to need a lot more than this ..... Nov/ .... 2002 it goes down. Norton/ Kubby/ ...that is why we need to have information that shows people what they are getting because everyone will get something for the rate increase .... Norton/ Thisrepresents only areasonably accurate transcription of the Iowa CiW council meeting of Januaw 9.1996. WS010996 January 9, 1996 Council Work Session-Budget I~ Council/ (All talking). Norton/ Is there anything we need in the way of data to complete this discussion on Monday night? Atkins/ ..... Give Don or I a call .... we will prepare any option you want. Nov/ The June 30th numbers that Don gave us showed 5, 10, 15, 20, 25%. If you have that you have all the numbers. Atkins/ You can have that chart again. Norton/ I didn't see that other chart. Nov/ Thornberry/ Nov/ It's the coming back down is a little disturbing. Council/ (All talking). Norton/ Look into Project Aid equivalent... giving options... to pay for somebody else's. Throw five bucks into the kitty .... Kubby/ Nov/ We do have to find a lower income policy. Atkins/ We have one drafted. We simply haven't got it to you yet. Assuming things are going to proceed close to what the previous council adopted, we will have it... by the next meeting for you ..... We already have... a low income policy, for example, for refuse collection. That if you have... other qualifications, we provide that free of charge. Nov/ We also have .... Elderly Services .... Atkins/ We assumed this was a low income question and not an age question .... Norton/ .... consolidating .... Atkins/ We will figure something out for you. Kubby/ I would be interested, if it is possible... pass set of rate Thtsropresentson]yareasonabiyaccuratetranscrlption oftholowa CltycouncllmeotingofJanuary9,1996. WS010996 January 9, 1996 Council Work Session-Budget increases so they get instituted at the same time ..... Atkins/ Don just mentioned to me the policy on low income is by resolution and not ordinance... more flexibility. Kubby/ Atkins/ Time the whole thing so it all peaks at the same moment. CHANGE TAPE TO REEL 96-6 SIDE 1 Atkins/ Is there anything else, Naomi? I just wanted to alert you .... on Refuse and Landfill. Refuse Collection ordinance is in place, done. We are cooking. We are going to start weekly service. We are going to do cardboard and all of that. There is no legislative action necessary on your part with respect to the rate adjustment. Landfill, you have your second and third readings coming up and that is on the $.50. Other wise that is all in place. Not much else to do on those two. Those are ready to go ..... great bids on those recycling bins. Lehman// I got a question on Landfill. We apparently reduce the amount that we are putting in the landfill by 27% and on our way to hopefully 50%. Atkins/ That is where we are suppose to be. Lehman/ I noticed that our personnel services are remaining the same. Atkins/ I am comfortable with that. Nov/ Doing more work in other areas .... Atkins/ By reducing the volumes it becomes almost more labor intensive ...... For example, when we do refrigerators ..... has to go in special bin .... Thornberry/ What do you do with light bulbs? What can someone do with light bulbs? Atkins/ The fluorescent light bulbs, I don't know. I do know they are regulated in some fashion. Kubby/ An individual can put them in the trash but I think a commercial entity that has large quantities has to deal with them in a special waste. This represents only a reasonably accurate ~anscrlpfion ofthelowa City council meeting of January 9, 1996. WS010996 January 9, 1996 Council Work Session-Budget Thornberry/ You are suppose to have to put them in an original container .... shift them to I don't know .... Atkins/ What happens... business perspective .... certain business people .... my response... when did that become my responsibility ..... Point was that if we are going to regulate then we are going to start regulating commercial collection... huge issue. Thornberry/ I thought it was light bulbs produced before a certain date .... current bulbs don't have this stuff in it ....... Atkins/ ..... Folks that is all I get for you this evening. Thornberry/ I have one question on water ..... I had a question today. Owner of an apartment building. You have got two people living in an apartment and the water is under one person's name. they leave, the other person remains. The water bill goes to the landlord. When the person leaves and gets back their deposit and no other deposit has been received, why don't you shut the water off? Atkins/ First of all I would have to know the circumstances ..... If you could do it for me, get me the address and circumstances and Don could look it up specifically and we could tell you exactly what the circumstances are ..... Thornberry/ Lehman/ .... if he does not change it, the bill comes to us. Thornberry/ Arkins/ Usually the landlord has some sort of deposit .... We often... Thornberry/ ..... and city gives back their deposit... no other person that has applied for water for that resident, why couldn't it be turned off at that point? Atkins/ Physically I don't know if we can .... Kubby/ Perfect person to ask that question is Dianna Donahue. Atkins/ ... If you give us names and address ..... Yucuis/ We rarely shut water off ..... Thisrepresents only areasonebly accuratetranscription ofthelowa City council meeting of January 9,1996. WS010996 January 9, 1996 Council Work Session-Budget Atkins/ ...... 1/22 CIP and clean up work ..... Commissions for the 23rd? Council/ Yes. Nov/ Also short formal meeting for 2nd reading on water Adjourned: Boards and This represents only a reasonebly accurate transcription of the Iowa City council meeting of January 9, 1996. WS010996