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HomeMy WebLinkAbout1995-01-10 TranscriptionJanuary 10, 1995 Budget Work Session Page January 10, 1995 Budget Work Session 6:00 PM Council: Horow, Baker, Kubby, Lehman, Nov, Throg, Pigott (6:30 PM). Staff: Arkins, Helling, Karr, Yucuis, Mansfield, O'Malley. Tapes: 95-6, Side 2; 95-5, all; 95-7, Side 1. Budget Discussion 95-6 $2 Atkins/ All set .... I would like to spend a good part of this evening doing an overview .... We gave you a separate document, Financial Trends Monitoring and many of the things I want to talk about tonight have to do with our analysis from a historical perspective of some of the financial trends that we have experienced and then we will try to do some projections based upon those trends .... indication of where I thinkwe will be going in the next few years. First of all, the budget as proposed, there are a number of assumptions ..... 1-Assumes no freezes at least during the next three year period. 2-We will lose Machinery and Equipment revenue in accordance with some sort of a state plan ..... Kubby/ So, minus the 698 that we are losing plus some factor of the reimbursement .... Atkins/ We make the assumption that it will be phased out over a period of time ..... 3- We have assumed that there are no new general revenues from any source. Dealing with the sources that we have available to us .... We will discuss the Police Personnel Grant...later on ..... We have made no assumption that there is any other major new general revenue that are available to you other than those available through referendum Throg/ ..... federal funding is going to decline. Might for us to assume some reduction...with regard funding. it be wise to federal Atkins/ The federal funding that I see going away...likely to be the Federal Transit Operating Subsidy. We have it budgeted at the full amount..have to make decisions on that. We have not figured into o~r operating budget federal monies eubsfdizing any of our other operations ..... Aide ...... (4)- We assume no dramatic change in the Road Use Tax although the Governor had called for and directed a review of that fund ..... That fund is very healthy ..... (5)- We Thisrepresents only areasona~oly accurate ~ans=lp~on of thelowa CIW coundl mee~ng ofJanuarylO, 1995, WS011095 January 10, 1995 . Budget Work Session Page 2 assume no change in tax policy by the state. Roll back, tax rates, assessment policies and procedures we assume will remain in place....... (6)- We have assumed that there will be no major changes in pensions, s.s., public employee retirement systems and that we adjusted for costs because these are payroll related numbers ..... (7)- We have not assumed..that the Tax Payers Rights Amendment will likely be up in front of the legislature .... The Senate has already passed it ..... I have no idea ..... important thing .... The Tax Payers Rights Amendment limits all revenue, not taxes, but revenue ...... If the Tax Payers Rights Amendment will to be approved as it now stands it would allow us to increase revenue and thereby spending that you might have in accordance with population growth or inflation if it goes down ..... Something we have to keep an eye on. I have to factored that into this .... (8)- Most services are maintained at the current level of service, staffing and support services-the costs. We continue to apply technologywherever we can ..... alternate to hiring additional staff. (9)- Use of our cash reserves during the three year plan for the purposes of balancing the general fund budget. You will notice the declining cash position during the three year life of this budget. I am not overly concerned about that .... But there is declining cash position. That has probably a greater bearing upon bond ratings .... (10)- All of our estimating is made with the assumption that we will continue to negotiate opening and reasonably with our employee groups ..... Note of caution with respect to the benefit costs .... page 24 of FTMS .... benefits are growing disproportionate to the cost of our payroll and it is something that we have to keep an eye on. That percentage is growing. Kubby/ At one point I know that we had talked about .... where people from the bargaining unit and management come together... Arkins/ Labor Management Committees. Kubby/ For us to call a meeting to talk about ideas for cost containment...health care benefits...bargaining unit has some specific ideas .... Let us initiate that discussion to help contain those .... Arkins/ ...our health care costs this year are going to be better...than they have been for a long long time... reserves are healthy... experience has been good...that is a big hunk of the fringe benefit cost ..... Our reserve positions with respect to our employee benefits remain healthy .... Your This represents only a reasonably accurate tronsc~Ipt~on of the Iowa City council meeting of January 10, 1995. WS011095 January 10,. 1995 . Budget Work Session Page 3 taxing authority...do have unlimited taxing authority with respect to employee benefits ...... you have a limited amount under the taxing authority under the 8.10. You can't afford to hire but you can afford to pay the benefits ..... Our long term historical trends are generally very satisfactory ...... However we are beginning to experience some short term problems. The recent history is not as good as the long term ..... EXPENDITURES.(SEE CHART #1). Your expenditures...are controlled by eight factors. 1. Inflation ..... 2. Private market influence.... 3. Collective bargaining ...... 4. Cost of benefits ..... 5. Services you choose to extend .... 6. Services you have no choice .... .issues of ADA ..... new school ..... obligation to improve road .... new expense in your budget ..... 8. Debt is mostly your control. . Bottom line question with respect to expenditures is how ~' we fulfill our public expectation within the resources that are being made available. Kubby/ Will you go through benefits that we self insure .... Atkins/ Workers compensation is a state law and we self insure. Police and fire pension is a state law and we are now operating from our reserve position ..... over a period of time. We have actuarialy taken care of our police and fir pension obligation and therebywe do not have to tax for that now and we are using that reserve to pay our over a number of years ..... It is not considered self insured. IPERS is not self insured. Social security is not; life insurance is not. Health insurance is. We pay a third party to administer for it but we are self insured .... Two biggies with the greatest exposure... is health insurance and workers comp ..... BC/BS administers it for us. 7. Services in the general fund. That is simply...fund that is most restrictive. You do not have the taxing authority of a tax base to generate sufficient revenues in that ..... You take your tax base times your tax cap, you know what your available revenue is. Don't go any higher. Kubby/ Why do we choose not to have more of our debt paid from the debt service le~y so that it frees up more general fund money? Atkins/ Our debt is from the debt service levy. We do certain projects by cash.. .... Kubby/ So all of our GO bonds are paid from the debt service f~nd. But that is from the debt service levy? Thlsrepreson~ only oreasonab~ aCcur~o ~ons~don of ~elowa CIty coun~l meedng of Januaw 10,1995. WS011095 January 10, 1995 . Budget Work Session Page 4 Arkins/ Yes, which is restricted ..... Kubby/ Nov/ I think we don't do all the worker's benefits through the benefits levy ..... Throg/ Just as a point of argument .... reduce size of local government ...cut staff ..... presumably it is within our prerogative to cut services if we wanted to. Atkins/ Oh, absolutely ...... REVENUES.(SEE CHART #2). Revenues, those that are available to you. It is primarily limited in what you have to choose to implement and those are substantially because of state law regulating the taxes that you choose to levy. The tax base is also regulated by the state...property tax is by state law, sales tax is by state law....fees and charges .... must have a direct benefit relationship to for what you choose to put that particular fee and charge of. 3- Growth in revenues, notably the base, is limited by some state authority .... have to ask with respect to growth in revenues is does it grow at least with inflation, does it grow with service demand ..... your own policy interest ..... 4- Stability of the revenue. This is the assured level of funding that you might have available to you. I did a q~ick calculation of your general fund and 83% of the money in the general fund is subject to some type of state or federal regulation with respect to the rate, the base and the growth ..... have about 17% discretionary revenues where you can legitimately make the choice .... Kubby/ At some point...where that 17% is. Atkins/ I can show you....most of it is going to be recreation fees, minor things .... TOTAL ASSESSED AND TAXABLE VALUATION. (SEE CHART #3). I am going to spend the time on the trends, kind of where we are going. I think it is important for us to all understand these numbers. (Refers to chart) ..... First column,...total assessed valuation for that particular FY, includes new construction. In the 11 FYs including the projection year, F¥96, that assessed value has grown 58.32% for annualized growth rate of about 4.7%. Commercial utilities .... about 61% residential, 39% is commercial values ..... grown 48.57%, annualized increase of 4.26%..... commercial/industrial is taxed at 100%. Thlsrepresente only 8reasonebly 8ccur~e ~8neg~don of ~elowa City council meeting ofdenuerylO, 1995. WS011095 January 10, 1995 . . Budget Work Session Kubby/ Page 5 Atkins/ Next column is residential value at 100% .... grown 65.1% for an annualized growth rate of about 5%. Does include new construction. Take Iowa law re: roll back. Do we all know how it works .... ? Horow/ ...prefer to go through it .... Atkins/ Assume your home has assessed value of $100,000. State has a policy on the rollback of values...rollback factor is based on two things: 1-agricultural land values statewide and a growth factor artificially imposed bythe state, 4%. They then send us a number and the number this year is ...... take that number times the assessed value and you get the taxable value. You take the taxable value times the tax rate...let's say is 10, that house is going to pay $675.00 in city tax. Remember of the property tax bill, 40% city, 40% schools and 20% county in round numbers. $100,000 ..675074 67,500 X 10 $ 675, Nov/ And this rollback factor applies to everybody?. Atkins/ Only residential. Nov/ Atkins/ We get that number eventually from the county ..... Throg/ Are these numbers in constant dollars or current dollars? Atkins/ These are all current dollars. Throg/ I take that to mean taxable value of land in Iowa City has in fact been declining or at best remaining essentially stable in constant dollars. Atkins/ Stable ..... Throg/ Even though the amount of taxable stuff has been growing- Atkins/ ..... In Fiscal 90 on your chart the rollback was at its This represents only a reasonably accurata transcription of the Iowa City council mestlng of January 1 O, 1995. WS011096 January 10, 1995 . . Budget Work Session Page 6 highest in the 11 year period ..... see fiscal 90...rollback was .806384 ..... For fiscal 96 we are at .675074. We are at a 11 year low for rollback. The concern is that the rollback is a trend is declining more rapidly than the offsetting growth in new construction and value for our community. Horow/ ...why did Karen say she wanted a higher number and why is it bad to be at the 11 year low? Atkins/ ~100,000 house- Kubby/ ...you multiply the figure by 80% so rollback is a weird term. Arkins/ Your taxable value instead of $67,500 have got a higher number ..... generates $675. is $80,658 when you $806 in revenue not Kubby/ Atkins/ In Iowa law, it is all done in aggregate...total values .... Lehman/ Have seen property values increase to counter balance .... Arkins/ I don't agree with that anymore .... they are increasing and we are losing ground fast .... The residential taxable value (See Chart 3) has grown 53.8%...annualized rate of 4.67 .... close to total assessed value. The total taxable value has increased 53.4% ..... annualized rate of 4.7. During last 11 period inflation has averaged just...under 4% ..... all you are doing is keeping pace. The concern is that our growth and taxable values are Just keeping pace with inflation, slightly ahead. But OUr growth and taxable value involved new construction ..... if we were not having growth...we would begin to fall behind... When you combine this with tax caps, rollbacks, and proposed reduction in our tax base, M & E, plus the state aid is now flat lining you can understand my caution. Long term we are not bad. But it is the short term that I have some concerns about. I want to talk about the rollback specifically now. It has declined steadily since fiscal 90 ..... now at .675 ...... It has declined by 19.5% in value since that period of time...the ability to provide for a tax base. That trend is Just a hair short of 3% a year in decline .... your growth is automatically wiped out by way of rollback ..... if our assessed value is This represents only 8 reasonably accurate tranacdptlon of the iowa C;ty council meeting of Janumy 10, 1995. WS011095 January 10, 1995 . Budget Work Session Page 7 growing the way it is, we are financially healthy but discretion with your ability to fund other programs and policies is really severely limited. Note...trend in rollback. F¥93 it lost 8.1%. F¥95 it lost 8.4%. Those were revaluation years ..... this year...decline...1% ..... My concern. My concern is F~97. Horow/ Steve, why is that, the Jump year? Atkins/ First we had a revaluation. We revalue every two years ..... If you don't teassees the state will come in' and apply an equalization factor for you which I think is unfair because then you are just across the board ..... We are making the assumption in FY97 that we are in for another glitch year ...... I am assuming we are going to have about a 7% decline in the rollback factor in FY97. Kubby/ Atkins/ Same house...taxable value this year .... 675 .... it will drop to .626. Nov/ Arkins/ We are going to have a revaluation year in there ..... Our 11 year average in residential growth has been 5%. Look at residential value in FY96...assume at %5 at 11 history ..... out $20 million Nov/ Arkins/ 5% on that year .... look at the trend in short term...values growing...7% per year. I did the same arithmetic and it comes out a wash. We gain no ground in residential tax value for next year. To calculate it we have to grow 12.7% (in residential values) FY97 to have 4.6% growth factor with the rollback and all of that ..... Kubby/ Atkins/ Remember what that 12.7% does for you, it only keeps you current. Kubby/ Nov/ This represents only 8 reasonably 8ccumte tronscdpt~on of the Iowa City council meotJng of Januarf 10, 1996. WS011055 January 10, 1995 o Budget Work Session Page 8 Arkins/ Are you with me.... Nov/ Is your message then we have to go out and grow in commercial and industrial property? Arkins/ J am going to talk to you about that...state wants you to do that .... M & E. (SEE C~ART #4) State wants to take M & E out of our commercial and industrial. Call this...facts about M & E. M & E by definition you think of the big stuff. I have a list of all the M & E in town .... Press Citizens printing press is $1.3 million in value. There are some others .... definition ...is also subject to some q~estion because it may include computer equipment. Everybody has got computer equipment. Our current value for M & E is $53.6 million...taxes generated for the General Fund are $693,000 a year or about 3.75% of the General Fund tax base is M & E. Assuming a growth value .... in ten year ...annualized number of close to $1 million if current law ..... Cedar Rapids is 8.2% of their value ..... we are kind of bunched together...Des Moines 3.5% ..... Governor's proposal is to reduce over six years the M & E. They say they will reimburse us on a declining schedule (See chart). Several concerns. Will the state fulfill its commitment? They have not to date on others. Kubby/ Could be something that is put into law but not funded. Atkins/ Absolutely. Nov/ Atkins/ I got some information from Secretary or Commissioner Lyons .... here is the states thinking...as M & E is eliminated, Iowa wilt become more attractive for commercial and industrial property and they believe commercial and industrial property purchases ..... will expand ..... State predicts there will growth in commercial and industrial property purchases to offset 2/3's of the money that is lost and the state will only have to make up 1/3 ..... Pigott/ Growth in what? Atkins/ Commercial and industrial property. Throg/ How does that result in increased state revenues? This represents only a reasonably accurate transcription of the Iowa City council meeting of Janumy 10. 1995. W8011095 January 10, 1995 . Budget Work Session Page 9 Arkins/ Jim, that is one of the arguments ..... if you are going to do this property tax exemption, then do it byway of a state income tax credit ..... They are simply saying property tax is the most onerous tax, we are going to take it away .... your communities will grow .... State says that we as cities will experience a net increase in tax revenues in the first five years. I don't believe that... Kubby/ Go back .... Atkins/ Only 30% taxed now. Kubby/ ...look at next five years...did that happen in our community ..... Use this as a case study ..... Atkins/ The question...do you want more commercial and industrial growth in your community ..... We have a shortage of industrial land. How do we pursue industrial land purchases for the very revenue the state wants to restrict ..... The grand plan ..... is that the state, through its tax policies, is clearly dictating how we will grow in accordance with their plan. I don't have any doubt in my mind. The loss of M & E troubles me but it is a greater loss over control , self determination disappears. What if we don't want to do that ...... Throg/ I don't understand...why we would want to encourage new land purchases that would ordinarily result in additional M & E revenue but now won't? Atkins/ The state is saying...we want commercial and industrial to grow and that the M & Eo..you gain benefit of that big new building as a property tax base, commercial tax and that is at 100%. What a great thing we are doing for you. The biggest beheficiary, we gain certain property tax .... state gains the most, income tax and sales tax ..... By lifting out that M & E, they say this is what will happen ..... we are in a bind..... The question that you will eventually have to answer is what ar~ you going to do about commercial and industrial development as a matter of policy. The state says M & E will be made up by other classes of property ..... CHANGE TAPE TO REEL 95-5 SIDE i Atkins/ As long as they keep applying rollback factors you don't gain anything. Kubby/ This represents only e reasonably accurate transcription of the Iowa City council meeting of Januaw 10, 1995. WSO 11095 January 10, 1995 . Budget Work Session Page 10 Atkins/ I don't see how those numbers can work out .... as a city council you are losing control over the ability to make decisions on what you want the development character of your community to be ..... Kubby/ ..... Repeat why you have come to the conclusion ..... Atkins/ State takes away M & E tax. The state says that we are going to take that revenue away from you ..... you will still generate the tax income from those buildings. How do you make up the difference in that loss? The state says you will have more commercial and industrial development occur, less the M & E portion of it, it will consume the land and you will be able to tax it at 100%. Pigott/ You have to follow that principle to make up for the loss revenue .... choices are excluded? Arkins/ For residential purposes...just to stay current if M & E goes away- we would have to build in the next ten year period 1,100 new homes at $100,000 each. You would have to build 100 homes a year just to keep current ..... Kubby/ Cost of services gets higher and higher... Arkins/ Schools, police, fire...that is the states plan. I don't think much of it. Kubby/ Arkins/ We have built in a 3% growth factor. If they take away M & E .... your growth rate would have to go up even more to keep current. Kubby/ Can we put those numbers together when the M & E went from 100 to 30...the five years after that. Document the two years before and the five years after so we can see changes ..... Nov/ Arkins/ Additionally what has happened is the state...who says they are going to reimburse us for M & E .... STATE POPULATION ALLOCATION (SEE CHART #5). The state population allocation F¥88 was $632,000. FY96 same thing ...because they are not giving you the money. The state has subjected all of these things to appropriations .... throws the This represents only a ~easonably accurate transcription of the Iowa City council meeting of January 10, 1995. WS011095 January 10, 1995 . Budget Work Session Page whole thing up for grabs every year ....... take Personal Property Replacement ..... Total revenues for the state, as a percentage of your General Fund budget use to be 4.9. We 'estimate 3.7 .... our General Fund budget ..... Trouble with their policy of telling local governments how they should grow through tax policy, promising certain reimbursements, and then it doesn't happen. TAX LEVIES AVAILABLE (SEE CHART #8) Take you through... revenues ...idea of what we currently use .... 8.10 levy, $8.10 per $1,000 in taxable value. You can use that for any legitimate government purpose. It is the primary levy of the General Fund ..... grows by way of increase in taxable value. It is a maximum, can't go beyond unless we declare an emergency need .... you can initiate the levy, that is your call. Transit, can only use it for transit .... grows byway of taxable value. Employee Benefits, no upper limit, council initiated, pays for employee benefits, the employers share, you must be at the 8.10 before you can exercise that option. Kubby/ How much more would that levy be if we used that for 100% our benefits? Arkins/ ...close to that except for police and fire .... Transit Levy is .95 ..... police and fire...we don't have to levy that ..... Horow/Are we allowed to use reserve that we built up for something other than this? Arkins/ No. Horow/. Arkins/ Kubby/ Do we have to give them money every year to just that one time? Arkins/ We.pay eve~ year...about 18% of payroll. Don Yucuis/ Police and Fire, the employer contribution for that is actuarialy figured and currently it is about 18.4 and the new rate is about 17.66 starting July 1. Kubby/ So we had a big cash reserve .... Atkins/ ...We had to pay the state a whole bunch of money and we This represents only a ransan~b~y accurate ~'anscrlptlon of the Iowa City council meeting of January 10, 1995. WS011096 January 10, 1995 . . Budget Work Session Page 12 had to send them basically our investments .... we had a 12% insurance contract, we kept that ..... Kevin and Don deserve a lot of credit for it. Yucuis! The employee benefits, we tax for about 93.5% of the general fund employers share of the contribution...IPERS, health insurance, life insurance. Kubby! And other 7% comes out of the general? Yucuis/ Correct. Kubby/ Do you'know what that dollar amount of that 7% is?... Why aren't we doing 100% of the benefits...? Atkins/ Have to leave a little in the 8.10 to keep it at 8.10 ..... Yucuis/ That is the way we have been doing it. Been a declining amount over the years. Kubby/ ..... 7% is additional discretionary moneys .... Atkins/ As well as your Tort Liability Levy .... we will be talking about that later. Yucuis/ Numbers are approximately $185,000. Atkins/ Library levy grows by way of taxable value, maximum levy, must be voter approved, used to support library operations. It is at .27 Debt Service grows by way of taxable value, upper limit is determined by property value, you cannot tax beyond 5% of assessed value. We are well within that. Council initiated and can only be used for debt payments. Horow/ Atkins/ ¥ucuis/ Our max is about $~0 million. Atkins/ I think we are out about .... 20-23% of that. we are well within. Hotel Motel Tax .... growth based on room rates of local hotels, maximum 7%, voter approval...referendum you define what you want to use the moneys for....any specific purpose you want. Your call. Kubby/ .... how long are we obligated to live under those Thisrepresents only areason~ly accurate ~ans~p~on of ~elowa ~tycoun~l meeting of Janua~ 10,1995. WS011096 January 10, 1995 . Budget Work Session Page 13 percentages, either ethically or legally? Atkins/ Legally...I would have to ask for an opinion on that because I don't recall that being on the ballot ...... Kubby/ You should check on that and what that means to us. Atkins/ About $400,000 a year. TAX LEVIES NON-VOTED (SEE CHART #6) Other things that are out there for you. Current law, 8.10. if you want to have a contract for use of a bridge...pretty straight forward One that I will mention to you later on...is the Avia;ig~ Authority.. .... now a general fund...need to think about some option for that .... all of these involve increase of property tax but they do give you a few options. The Liability, Property and Self Insurance Tort .... also explain that. Then you have a Non-Voted Special. If we have an emergency we may levy up to .27 in addition to the 8.10. Pigott/ What constitutes an emergency? Arkins/ I am not sure .... Yucuis/ I contacted the state on that and there is really no definition of how that can occur. There is no rules that say you have to define an emergency...I was told it can be done at your discretion. Atkins/ TAX LEVIES VOTED (SEE CHART #7) Finally, the voted levies .... Support for the library .... Horow/ Between the tax levies voted and the tax levies non-voted, whole concept of flood mitigation and river basin planning ..... along with state, other states, multiple counties within the state, to look at the Iowa river. Where would that money come from. Atkin~/ General Fund right now. Horow/ Arkins/ I doD't see anything up there that will do that for you under the voted. Yucuis/ I don't think there is anything there, Susan. This represents only a reasonably accurate trarlscdpt]on of ~e Iowa City council meedng of J~nuary 10, 1985. WS011095 January 10, 1995 . Budget Work Session Page 14 Horow/ Emergencies....is mitigation. Arkins/ I will give you more details. I found this out late this afternoon...letter for the Corp and the Corp now wants to do a study...The study will cost about $800,000, they want $400,000 from us. .... They are going to contact other communities ..... That generally su/~marizes revenues and I want to move to expenditures.....overview .... The short term trend that I am most concerned about is your discretion is continuing to close and the state is closing the window to allow you to make local decisions and yet they have an expectation of a state wide economic policy that they want ..... communities to fulfill ...... you are trapped .... Throg/ Atkins/ I don't have any doubt it is a very deliberate policy on the apart of the state .... Throg/ Kubby/ So is there any talk about income tax again. Atkins/ NO..oincome tax...schoo1 districts .... Overview...Budget Policy Memo...summarizes a lot of the issues...something to thi~kabout .... Page 49 in your Budgets, our total General Fund Expenditures from F¥95 to FY96 are proposed to increase 2.4%...$25,852,000 and $26,586,000. Our expenditure proposal for the General Fund is 2.4%. F¥96-97 6.5; 97-98 3.7% ..... Generally speaking we try to keep those at or about inflation ..... Not off by more than 1%. Kubby/ 1% equals $80,000? Atkins/ I am doing expenditures...for each penny of property tax is $14,000 ..... F¥96-97 there is an aberration that you need to be made aware of. During that year we will have 27 pay periods. We operate on a cash basis. Every seven to eight years that occurs and it just happens to occur in that F¥. We pay by hours worked. When we submit a payroll for an employee ...8 hrs. per day...paid every two weeks .... a year is made up of 52.14 weeks, add a couple of leap years in there and you get 27 pay periods ...... NOTABLE CHANGES IN GENERAL FUND EXPENDITURES (SEE CHART #9) Most notable new items in the General Fund budget ..... I have This represents only a reasonably accurate transcription of the iowa City coundl me.ting of January 10, 1999. W8011095 January 10, 1995 Budget Work Session Page 15 listed on the chart. Personnel for the monthly billing is about $100,000 ..... General Fund Subsidy to Transit is growing dramatically and it is taking up your available revenue at a more rapid pace than your other services. Risk Management position is proposed to be financed out of our reserves ..... PCD Administration...Near South Side .... Forestry has a new position... Police Crossing Guard ...... We cannot get people to serve as crossing guards ...... Dramatically proposing to increase the compensation ..... We have $30,000 to repay the Weather Alert Sirens .... Mercer Park Pool contract with the school district..... each year for the last five years they have exercised their right to decline the use at Mercer Park Baker/ Atkins/ They have now reached the floor .... every year .... Pigott/ Atkins/ The accumulative affect is now $40,000. This year is another $10,000. Nov/ How are they using fewer hours at the pool and teaching more children to swim? I know the population of the school has gone up. Atkins/ Terry reviews that .... We will make a note and check with Terry on how he accounts for that. Parks and soccer equipment .... Library.... General utility increases .... and the state has changed the protocol on our communication center dispatch which means new software which means we have to spend $60,000. ..... This one is a state mandated .... Throg/ Unfunded mandates .... Atkins/ Kubby/ Will you say those numbers again for our utility rate increases? Atkins/ Water, sewer, gas, and electric is about $75,000 in the general fund. Postage, telephone, about $75,000. We charge ourselves for water and sewer. Kubby/ We need to start conserving water .... This represents only a reasonably accurate lzanscrlptlon of the Iowa City council meetlng of January 10, 1995. W8011095 January 10, 1~95 . . Budget Work Session Page 16 Atkins/ Our conse~vation program last week .... Kubby/When we talk about Transit increases in the subsidy it would be helpful to me if they were split apart on para-transit and others ..... I would like that separated out. Arkins/ Okay, we will pull that out. I will make a note of that. Kubby/And maintenance charge back would be interesting to look at for transit ..... Arkins/ %-INCREASE BY PROGRAM F¥95 TO FY96 (SEE CHART #10). This is the increase by program...your budgets will show that .... Clerk has an election ..... Treasury, monthly billing. Risk Management we are paying back our reserve .... PCD Administration is the $50,000 consultant fee .... Neighborhood Services is $25,000 projects to neighborhoodsgrant program we are working on ..... Crime Investigation, I don't know. I will have to check for you. Kubby/ Atkins/ Community Development Non-Grant is the moneys that we contribute to the General Fund for the operation of the CDBG Program and last year...flood money...part time staff .... Nov/ What is risk management? Arkins/ $200,000 transfer which causes it to almost double. Experience in payout in risk management in the las~ couple of years drew down that cost. We need to replace those moneys. Kubby/ What' about HIS? Arkins/ I will check that one ..... Don, make a note on HIS Administration. Baker/ Nov/ We added inspectors. Atkins/ Housing Authority. That is Assisted Housing. That is not shown on this. Forestry is a new position. Park has a lot to do with soccer fields .... Baker/ Thlsrepresen~ only areasona~ly accurate ~anscdp6on of ~elowa Clty coun~l mee~ng ofJanuan/lO, 1996. WS011096 January 10,. 1995 . Budget Work Session Page 17 Arkins/ These are estimates .... this is FY95-96. So if you were comparin~ what we are doing now to what we are proposing to do HorQw/ How did we decrease 19% in landfill? Arkins/ Probably because we are not going to build a landfill cell this year... Baker/ FY96...more consultant work done? Atkins/ ...... I didn't put anything in for it. They are'going to have to ask you if they want more money. Baker/ Arkins/ ...... You can check on what my reductions were. They also asked for several staff positions. I took those out .... Have to pull the notes on that one ...... Baker/ (can't hear) Atkins/ If you are going to put money into that. I am going to tell -you when the Library time comes, that even if the referendum were to pass I don't know how you are going to staff it .... Kubby/ HIS Administration... Yuouis/ HIS Administration..... We had one of the secretarial positions originally budgeted in Housing Inspection and Doug moved' that position to HIS Administration.... Atkins/ Reassigned an employee...We will pull that and give you a better number on the thing. ¥ucuis/ Percentage wise it is going to be different percentages .... Arkins/ We will prepare that for you. Yucuis/ Landfill...in F¥95 we had some transfers to CIPs and in FY96 we just have transfers to the reserve .... which is why there is a reduction in that budget. Kubby/ How come Wastewater is so low? Atkins/ Bigger base. This reproseats only a reasondoiy accurate trmscrlptlon of the Iowa City council meeting of Joaumy 10, 1995. WS011095 January 10, 1995 Budget Work Session Page 18 Spend a couple of minutes explaining this to you and how you can use this thing. The FTM is to assess our overall financial strength ..... and allow us to use that historical information to our advantage .... What I would hope to accomplish at some time in the future is that we will give you this document and then we will trend what we are proposing to you so you will be able to see that oh, that is not out of thequestion .... some sort of a spending pattern... Tell you where you are doing okay and alert you to your problem areas...(FTMS) Page 9-10 Intergovernmental Revenues...area we have concerns about .... We state there is a positive trend in University Fire Contract .... Road Use Tax we do fairly well at .... Kubby/ Would it be worth our while in 95 to get a mid census count? Arkins/ We t~lked about that. It is an expensive proposition, $50,000-80,000 ..... I would like to have it for a topic of discussion sometime but I am not so sure .... State Aid... is a negative .... Intergovernmental Revenues, of our total net revenues, is declining. That means it has to be made up somewhere else. Kubby/ .... t~inking hard about when there are opportunities like when there is a Crime Bill to make sure that our policies aren't dictated by that .... Atkins/ ...I think we made a mistake several years ago by using federal revenue sharing to subsidize that operation because that just compounded our problems .... Arkins/ (Fire) Contract was put together is late 50s or-it is an old contract and it is a square footage contract...formula .... easy for them... University, what they do that we don't. You have a double obligation...to tax and to spend. University goes to the state to secure appropriation for their operations. The tax policy is not something they have to discuss .... has a great bearing on the kinds of decisions that you all have to make ..... Kubby/ As our city grows won't that formula with the University be less of a percentage .... Arkins/ Might .... ¥ucuis/ Part of the percentage involves city owned buildings and Thlsrepresen~ on~ areo~oneblyaoour~e ~ansorlp~onof~elowa CIHcoundl me~g d Janua~ 10,1995. WS011096 January 10, 1995 . Budget Work Session Page 19 square footages .... and if we don't build city owned buildings in bigquantities then the percentages stay about the same .... It is city owned buildings and University owned buildings and you have total tax exempt square footage .... Arkins/ About 25% of Fire Department budget. Nov/ Why is it Just city owned buildings? Atkins/ This one definitely ain't broken. Horow/ Took out FEMA...increase in 94 would be still sizable or.... Arkins/ I would have to go back and calculate that for you but it would be down...important thing about this number is the trend. It is declining. That is the thing you have to watch. Kubby/ You suggest we don't put money into the Fire Equipment Reserve and I am concerned about that .... Arkins/ In year 2008 we are going to have to replace that aerial truck .... We can't afford to set aside that kind of cash .... We will borrow. We have plenty of borrowing capacity... Kubby/ Costs us more in the long run. Atkins/ Yes .... Transit we do it also .... you can buy a fire truck on your initiate. But busses .... makes it subject to referendum ..... We have expenditure indicators (page 18) .... Page ~2, Employee Per Capita Baker/ (Can't hear) Arkins/ I don't know if any other cities keep the records the way we do this.... Waterloo is a town of similar size. Waterloo has 120 police officers. We have 59. They have a transit system is probably half of what ours is ..... We provide a far superior transit service than the City of Waterloo ..... I don't want us to be held to that standard ..... Important thing is if you will look at the trend, it has not changed 'dramatically ..... Benefits, Page 23...trend is the growth .... biggest thing is the jump in the proportion of our .personnel costs .... Kubby/ We should take the initiative and say let's sit down and brainstorm...contain costs. This represents only a reason~ly accurate b'ansc~ption of the Iowa City council meeting of January 10, 1995. WS011095 January 10, 1995 . Budget Work Session Page 20 Arkins/ We have that underway right now with Firs .... Kubby/ This is something...working together .... high motivation on both parties.... Atkins/ It is going to helpful to USo.. ¥ucuis/ Page 37, typo, 2rid paragraph, end of first sentence, 1995 should be 1985. Kubby/ Page 27 about Fund Balances ..... What percentage do we need in F¥96 to meet this need? What percent or dollar amount? Atkins/ The dollar amount chart in your budget- ¥ucu%s/ Page 27 of the budget. CHANGE TAPE TO REEL 95-5 SIDE 2 Kubby/ Shortfall in receipts. Yucuis/ That is it. Kubby/ What else have we spent this money on ...... In the past five years what is the dollar amount we have spent above and beyond that fourth quarter payroll. Do we have that? Is there anything else we spent out of that...? What else do we spend from this cash balance? We are doing the first quarter of next FY payroll. What else over the last five years have we spent this money on? Arkins/ The flood .... Yucuis/ The remodel.... Atkins/ The third paragraph of fund balances in the FTMS. Restricted fund balance is the total of the cash balances of debt service, employee benefits, Road Use Tax, and Federal Revenue Sharing as well as a number of other smaller accounts. That is unrestricted because you pay those moneys into it and you can use them for other purposes...We have traditionally, by our own policy, restricted how we use them..... Kubby/...I am suggesting that we work backwards .... on average of last five years we have spent X amount of money out of that cash balance for .... and create what we want that cash balance to be. Thls represents only a reasonably accurate trens~ptlon of the Iowa City council meeting of January 10, 1996. W$011096 January 10, 1995 . Budget Work Session Page 21 Atkins/' . .... Go back to Balances .... it will balance the budget. Page 26 in your budget...under Fund decline because we are using cash to Kubby/ Is the Pure Fund Balance the same as the Unrestricted Cash Balance....? On Page 26 do those figures include the next's years first quarter? Yucuis/ No. The Pure Fund Balance is after we back out reserves for park land acquisition, fire equipment reserve-all of those reserves ..... And using that Pure Fund Balance, that cash balance, we say we are going to be able to have that on hand to pay the first quarter amount revenues less expenses. It is not factored into this number yet .... Nov/ Why are we allowing this to go down this far because that won't cover your shortage of funds by the time we get to FYP8 Atkins/ One of the reasons we are allowing it to go down is to pay for that aberration in the payroll ..... 2-During the course of the FY we spend 98.5%. We will be making adjustments during the course of the year that we can anticipate. We budget 100% of payroll, our turnover rate is about 5%, those are means by which we replenish the reserve ..... We know that in the course of next year that about 30 employees will quit....I have those 30 employees budgeted fully. Secondly, we know from experience that wh~le we budget 100% of an expenditure our internal controls are such that we will probably spend closer to 98.5% ..... another savings. At the end of the FY that is transferred immediately to the fund balance ..... These numbers are our best estimates...but I suspect a tad bit low... Kubby/ ...... Is that the Pure Fund Balance or do you have another contingency fund? Atkins/ We have a contingency account of $250,000 that is strictly for contingency .... and that usually involves....$140,000 for Police cruisers but those came in at $145,000. We are still going to buy the police cruisers. We will transfer when the time comes $5,000 out of the contingency to cover that .... .$50,000 to fundthe Library architect study .... We trend these things and track these things ..... some of the accounts we will spend more than 100% and in May of every year we do a comprehensive budget adjustment ..... I just authorize those on my own ..... The budget number we don't exceed the bottom line. This represents only a reasonably accurate t~mtscrlption of the Iowa City council meeting of Janumy 10, 1996. W8011096 January 10, 1995 . Budget Work Session Page 22 Lehman/ Atkins/ .... Just two weeks ago we just finished the final flood paperwork ..... And we have reimbursed ourselves for those expenses. Nov/ My concern. o.percentages are going down ..... I am concerned. I don't think 10% (in the Pure Fund Balance) is enough. Atkins/ I think that number will probably be closer to 12%. I am not overly concerned about that ........ F¥97 is going to be an oddball year...big hit we are going to get on the taxable value. Kubby/ F¥98 proposed Pure Fund Balance of 2.9 and you subtract today's shortfall in receipts because of that first quarter...you don't end up with much of a cushion .... Atkins/ Probably have to...other reserve accounts and use them temporarily .... We have to pay them back .... We will have to go to those .... moneys will be replenished ..... We don't want to break up investments either .... Baker/ (Can't hear) Arkins/ ..... 110% policy internally. Marian needs to buy a new desk .... we authorize her to purchase that desk but from within her operating budget she has to put up another $100 from somewhere else .... If for some reason she cannot cover that expense and that rarely happens .... we will take it from contingency .... That rarely rarely happens .... and that contingency is almost invariably a new item ..... Baker/ (Can't hear) Atkins/ The departments manage their own budgets. We track them for them..... Baker/ Arkins/ Our budgeting is such, we prepare the budgets for the departments by way of our own computer projections. The departments, then, amend them ..... based on trends ..... The departments are all on-line .... .we print everything up for them .... they put together the amendments. Kubby/ I had a question about Page 29-30 .... liquidity. Does this This represents only a reasonably eccurate trmmcrlptlon of the Iowa City council meeting of January 10, 1995. WSO 11099 January 10,-1995 . Budget Work Session Page 23 mean we are having less money in long term investments .... ? Yucuis/ What it is showing you...we don't have a lot of liabilities. We really don't have that many payables out there that affect the city .... Atkins/ ..... Kubby/ I don't understand this overlapping debt. Atkins/ Overlapping debt is an issue that applies to the community in general ..... If there were significant debt on the part of the county and the schools, it overlaps our debt. The bond rating house would say wait a minute .... Kubby/ ..... Atkins/ They evaluate all of the debt in the community ..... Horow/ ...TIF that Kirkwood has .... Arkins/ Yucuis/ Where the TIF shows up is our taxable value is decreased by the amount of the TIF value and that is a pretty significant number. I think it is $11 million in FY94 and the city has a part of that TIF .... Horow/ Arkins/ That was an operational issue ..... Nov/ Elastic Tax Revenues...Hotel Motel Tax belong on that page? Page 11- Arkins/ Page 11-12. I guess it could be because the base is determined by room values which are subject to increases in cost of that particular industry .... It could be. I can't think of a reason why it isn't ..... Kubby/ You outline in here that one possibility is a sales tax .... Atkins/ A wheel tax is usually a flat fee... Kubby/ What are other possibilities? Arkins/ An income tax is an elastic revenue. Sales tax- This represents only s reasonably accurate tranecdptlon of the Iowa City council meetlng of January 10, 1995. WS011095 January 10, 1995 . . Budget Work Session Page 24 Yucuis/ Utility tax...In Illinois it is a tax on telephone, electricity, gas. It is a significant local revenue source. Kubby/ Franchise Fee with IIGE.... Horow/ Atkins/ You have existing r.o.w agreements with IIGE ..... That was in '86 that that was passed. If fiber optics wanted to use our r.o.w., can we charge them that fee to use that. We could probably charge them the fee for use of the r.o.w. but nothing based upon the income generated from that. That is what you w~nt. Horow/ What I wanted to know is could we charge them for use of the r.O.Wo Atkins/ Franchise with cable .... Horow/ Helling/ Telephone companies, we are doing some research on that ..... because of pending federal legislation on telecommunications that is kind of iffy. What we have done some checking .... I don't know to what extent we can add a franchise fee but feds are right in the middle of that .... Kubby/ We should remember that...next franchise with IIGE and demand at least 3%.... Baker/ (Can't hear) Atkins/ I assumed that you wanted that (sales tax) scheduled as a separate item. I can certainly roll that into the budget .... would rather have you get through the budget and deal with that later on ...... Nov/ I want to talk to the county, Coralville and everybody Arkins/ There is nothing built into this budget that has any bearing on the sales tax... I just need to take some time to prepare that. The law has been rewritten and I just need to bone up on it. Anything else on FTMS- Next thing I want to do is go to your budget document and step you through our Enterprise Funds. Page 97, Parking Fund. I am just going to do a cursory analysis review of these things Thlsrepreson~ only areasonably accur~e ~,z$cdp~onof ~elowa City coun~l mea~ngofdanuary10,1995. W$O11095 January 10, 1995 Budget Work Session Page 25 keeping in mind that you all will recall we need to get the General Fund decisions kind of behind us because that affects our obligations to the state ...... We need to have the General Fund nailed ..... When it comes to enterprise funds you have far greater time and flexibility. Kubby/ HOW come proposed budget isn't on parking? There isn't a line for what the proposed budget...from the department. Atkins/ Probably because they didn't change anything. Kubby/ Is that true throughout the whole document? Yucuis/ The Enterprise Funds are a little don't have that in these Enterprise requests~ bit different and we Funds, the department Atkins/ I can.pull those up for you and we can run- Kubby/ We used to get those. Atkins/ For some reason we pulled those out and I don't have a good reason for you. Kubby/ I would like to look at those. Atkins/ We will print up something. Parking Fund..revenues are flat. We don't see any dramatic change in the receipts. There is a decline in the operating reserve position ..... Page 98 Improvement reserve in the middle remains very hea'lthy... a little growth built into that. That money is available to you...question...wi11 be how much cash, if any, do you want to put towards the next parking project. That is your call ..... Kubby/ Is it legitimate to use this kind of balance for encouraging increased riders...? Atkins/ .... other than in some extreme cases, you have broad latitude to do pretty much what you want. Your discretion in the General Fund is very limited .... as long as you meet...the legal obligations you hawe to debt .... Kubby~ Atkins/ The bond reserve of $951,000 meets the bond covenants. Yucuis/ Yes it does on the existing revenue bonds. Thlsrepresen~ only areasonablyeccumtetmn$cdptlon of thelowa CtW ooun~l meot~ng of Januaw 10,1996. WS011096 January 10, 1995 Budget Work Session Page 26 Arkins/ So the cash you see under FY96 is truly cash that you can use it for other projects. Your policy has been for years that Parking will pay for itself and you have chosen recently to subsidize Transit through that .... Baker/ ...physical improvements on the ramps .... advertising .... is that included? Arkins/ That would come out of that Parking Renewal and Improvement Reserve. We have a schedule ..... In the next three years we normally would have transferred $260,000 per year, I am r~ading from an old memo to you all...to substantiate the $90,000. If you read down under Transfers, $170,000 a year is going into the Improvement Reserve. $90,000 is going into Transit subsidy. Joe says that in the next-We have $500,000 is repairs scheduled...over next 5-6 years for Transit .... for parking ramps.... Yucuis/ We use that fund. Every other year we do the major repairs at the existing ramps. Arkins/ We did about $200,000 last year ..... Baker/ (Can't hear) Arkins/ It is not included to me knowledge. Joe did not put together a budget for that item specifically. Kubby/ If we want to do it we take it from the ending balance of the Parking Renewal and Improvement- Atkins/ Take if from there if you like .... I know exactly what you are talking about...do some things in the ramp to spiff it up. We will have to check. I don't recall what Joe's budget was to do that ..... Lehman/ We talked about it .... Atkins/ You certainly indicated your interest in the thing.... It is not something that cannot be accommodated fairly easily .... I am summarizing these Enterprise Funds for you. Wastewater, Page 100 ..... only have the one rate adjustment. There is an accumulation of cash .... that grows from the FY95 estimate ...to almost $3 million in FY98.... That improves that cash balance by about $1 million. We did not put any other major adjustments in that one or Page 102, Water. This represents only a reasonably aCcurate transcription of the Iowa City ~ounc[I meeting of January 10, 1995. WS011095 January 10, 1995 . Budget Work Session Page 27 Kubby/ How many years do we have left '85 $40 million bond? Atkins/ '86. 20 in round numbers. Yucuis/ (Year) 2012. Kubby/ Concerned about that kind of a trend... Atkins/ We can only refinance once and we are done ..... and we did that and we saved about $3.5 million .... Throg/ Karen's q~estion has to do with overlapping funds. Arkins/ We are done with that. That schedule is fixed .... The point at which you choose to overlap it with some new debt is a call strictly that you will have to make .... Horow/ Don't we look at the overall amount? Arkins/ ...water and wastewater debt is not governed by General · Obligation standards .... Horow/ Wastewater Treatment Operation. Where do we now see the charges this department must charge itself when it uses the City Atty's office? A~kins/'I am sure that is...in Services and Charges .... Personal services are people. Commodities are commodities and Services and Charges are the things that we contract for and we charge ourselves. City Arty-we can give you those numbers. Capital Outlay is capital outlay.... One thing we want to correct at bottom of Page 102- We show endinq balance in Water Depreciation & Improvement Reserve. That-is a separate reserve ...See $56,515- across the board you need to add $1.146 million because we didn't show that transfer where we pay ourselves back. Yucuis/ We used some of this money in this fund to pay for the ~ondemnation. $1,146,100 oa~e out of this fund and- Atkins/ Important thing is you can read your operating position in FY98 is at $2 million and your Improvement Reserve is going to be at $1.6- So your cash position within the Water Fund is excellent ..... where it says $464,5- That should read $1.6 million. So you add the two together you have a better perspective on the cash positions on the Water Fund. Okay. Thlsrepresen~only areasonably accurate ~mmcdpfionof ~elowa CIW councllmee~ngofdanum710,1996. W$011095 January 10, 1995 . Budget Work Session Page 28 Yucuis/ On Personal Services in the Water, we show two meter readers and that is going to be corrected to 1.5 if we do in fact go with the monthly billing ..... should only be 1.5 being proposed .... Arkins/ Page 103-104 Refuse and Landfill Operations. Throg/ Hold on-If we are showing such a large ending balance in both of these...Why would we want to hire new staff and pay for them out of user fees? Why no draw down on the ending balances? Atkins/ You may do that...I heard you say...accumulate cash... If you wanted to finance some of the staff from these numbers, the answer is yes, we can do that and that would reduce those numbers .... Your observation is correct- Throg/ What we see in front of us does not include paying off new debt for the water system? Atkins/ No. yucuis/ Not the big one. It includes some in there to reimburse us for the money for the condemnation. That is in there. Atkins/ We only built in what we knew we had obligated ..... Refuse and Landfill (Page 103-104) have similar issues .... have a lot of pending things out there ..... Refuse...got a rate adjustment built in ..... .cardboard...I need to give you all of that...a package. Landfill is financially secure except...is this transfer station business that is kicking around by a private hauler .... DNR..not being aggressive enough. They don't have rules and regs to govern this independent transfer business which would divert from out landfill loads of volume... That means the whole landfill operation is going to have to be readjusted .... I don't know all of those implications until the DNR decides something. On the 17th we have a meeting in Des Moines to try to figure out what is going to happen...We are part of the ECCOG's Plans that governs how we are going to run the landfill ...... We have a private hauler who wants to build a transfer station and he wants to go out and market the transfer station. The transfer station will be marketed to all the other communities that use our landfill ..... If those com~unities chose to go to that transfer station, he intends to take their garbage, charge them something and take that garbage out of state to another landfill. That means our landfill which has an annual volume This represents only a reasonably acmJ~ate h'anscdptlon of the Iowa City council roasting of January ~0, 1996. WS011095 January 10, 1995 o . Budget Work Session Page 29 of say 70,000 tons will drop in accordance with our loss of customers. The DNR says we are still obligated for the reduction in percentage at the landfill ..... you are obligated for what goes to that transfer station because you are part of the regional plan .... baloney...not fair to us .... If we are going to be held obligated for it then...think...about policies...to govern the landfill ..... We have said...we will assume the liability for the landfill in the future if you will pay us to protect our interest .... What happens..if they decide they want to come back again. They cantt just come back and forth and back and forth .... Kubby/ Double whammy ..... private hauler .... Why have a plan...if communities are diverting waste from our landfill to another landfill ..... and hauler doesn't have to have a plan...if people can leave the plan whenever they want...? Arkins/ I don't know a whole lot more until we find out about what the DNR is going to choose to do. Nov/ Arkins/ Recent Supreme Court decision says we can't issue flow control...gets more and more complex .... Kubby/ ..... say if you come back you have to pay a big fee .... indirect flow control measure .... Atkins/ It is going to be messy for awhile. Airport, Page 107. Want to make sure we all understand each other on the Airport. We are now beginning to spend money out there .... We have new investment. The FAA says they will fund · it at 90/10...Once the Master Plan is approved ..... $1 million ...we are going to have to come up with to fund this thing .... keep in mind we are talking some pretty serious issues. We may be buying another mobile home park ..... We may be buying bowling alleys...land .... they may be paying for it. Keep in mind that this decision to keep it where it is has some consequence and when you buy things up you also lose tax base. Kubby/ $200,000 hangar, are the rental fees on that hangar going to reflect the real cost of the interest...building .... maintaining? Atkins/ The numbers that I saw, no they did not. Kubby/ I think they have to. This represents only a reasonably accurate trenscrlption of the Iowa City council meeting of J~nuary 10, 1996. WS011095 January 10, 1995 · . Budget Work Session Page 30 Atkins] You mean it has to pay its way. Kubby/ ...... Atkins/ The General Fund subsidy begins to increase in the airport and it is primarily because their revenues are flat and they are beginning to incur some new expenses. I Just wa~t you to be aware...we have got to get a handle on the budget of that place pretty quick. The Master Plan will have a lot to do with it...You can have a single purpose aviation authority which .... broads powers...and they can levy the .27 which is about $400,000 a year ..... Turning over a great deal of authority to them but you would be making them very independent .... That is your call. They may come back to you and ask for additional money any time they want. I have only done basic research on an aviation authority ..... If you do have an aviation authority, you can levy at .27.o.for the operations of an airport ..... It is something Just to think about ..... Right now you won the airport .... Horow/ Master Plan does have to look at land use .... Throg/ Does the Master Plan look at sources of revenue? Arkins/ I doubt it...you would have to give a specific charge to the Commission. Throg/ We haven't had conversations with the Commission for at least 6 months...wise to ask them to recommend sources of revenue to help defray the costs of improvements...involve them in the process. Arkins/ I have no trouble with that .... opportunity there.... with it goes the loss of a great deal of authority that they are then going to enjoy. Yucuis/ What doesn't show on the specifics on the Airport is they have requested improvement to a terminal building and asphalt around the T-Hangars...$114,000 CHANGE TAPE TO REEL 95-7 SIDE i Yucuis/ Look at FY97 there is a $40,000 transfer. .... repay for the hangar....internal city fund... Kubby/ Thlsrep;esents o~y area$onab~ accur~e ~aftsodpfionof ~elowa Clty councilmeeGngofJanuary10,1995. W$011095 January 101 1995 . . Budget Work Session Page 31 Atkins/ Pigott/ Terminal building and what else? Yucuis/ Terminal 'building and it is listed as ADA requirements ...$45,000 Kubby/ ...where is that laid out...? How do we know what each department has asked for and what they have received and what you have proposed in terms of specific kinds of equipment or services? Atkins/ ...everything they are doing now they continue to do. Nothing dramatically different in the General Fund budget. Kubby/ Like with the Airport thing. I want a line that says included in this budget is terminal improvements... Atkins/ We will prepare that for you. Throg/ Airport really applies to Enterprise Funds... Atkins/ I think we can do that. We already funded contracts for tuckpointing...new roof. I am just saying we are just starting spending money out there. We will prepare a little more detail on that Airport Budget. Page 108, Transit. You have asked for some additional information and I will prepare that for you. Critical things...General Fund subsidy is growing dramatically, population served is not changing, ridership remains pretty flat. I express caution in additional routes. Those are big hits .... may face the loss of the federal aid, $260,000...8% of the. budget...Not indication that we will lose the capital assistance which is about 80/20 federal/city ..... Final one is in 97 .... we will be purchasing a number of buses .... system · .. good shape... Kubby/ .... Atkins/ Going to have to begin making operations decisions...risk by extending the life of some of these things..... SEATS... what you wanted, we will have to split those costs out .... have no trouble doing that .... Lehman/ Atkins/ Our maintenance charge backs are high..... Our rolling This represents only a reosonably accurato transcription of the Iowa City council meeting of Januap/10, 1996. WS011095 January 10, 1995 . Budget Work Session Page 32 stock is excellent. .... My big concern in Transit is it is eating up available GeneralFund money and the population that is being served is not dramatically changing ..... Horow/ Rolling stock...Page 10 ..... Rolling stock...term for the computer equipment as we build up towards our GIS program... Atkins/ No...could we set aside computer replacement reserves...we have normally not..technology changes pretty quickly .... Horow/ Investing in the mapping study of the county .... basis for our GIS system. Atkins/ We couid...new expense in the General Fu~d then. Nov/ $25,00'0 a year just for the Library computers .... Arkins/ You are right ..... Nov/ What are we spending for the rest of us? Arkins/ Not setting any aside...is out of pocket .... how many stand alones...150 Kevin says .... Rolling means wheels ..... Computers meaning t.v.s that you do something with .... Horow/ ...shouldn't we create- Atkins/ Could we, the answer is yes. Are you willing...have to decide...Kevin could probably calculate something and give us a number and we will do that. Let's see what that number is- Throg/ Horow/ My point is we have invested in this mapping expedition .... for...GIS system .... and there is no reserve for the equipment and I would like us to consider that...new point to the reserve policy... Nov/ ...still a lot of reserve policy missing in this budget. Horow/ Atkins/ That takes you through the overview. Two other issues .... New Capital Projects ..... A number of budget policy issues which would include Police Staffing, the federal grant .... Industrial Park ..... message to Library about their expansion ..... Cultural Center Arts folks ..... some of these are outside Thlsrepr~en~ only are~sormb~ accurate ~t$~lp~onof ~elowa Clty ooun~l mee~ngofJ~nuaw10,1995. W$011095 January 10, 1995 . . Budget Work Session Page 33 budget issues....Cemetery needs to be discussed .... that is basically it...do both of those items at the next meeting .... Should give us plenty of time for just general discussion. Meeting 21.February is a waste .... have 7th scheduled. May have to think about ..another ... ' Kubby/ Make sure we have time amongst ourselves to hash through things... Atkins/ If I can have about an hour on the 23rd or a little more...plan to stay..should give a couple of hours...put some of these items on your informal work session... Going to do parking .... Kubby/ Are you planning .... another prioritization on CIP? Atkins/ I need to know that from you. Kubby/ We should. .... Atktns/ That is your call ..... Just so you understand, we have the CIP at least generally financed ..... You can do them a little independently of the thing. This repressnts only a lessonably accurate t~a~$c~lptlon of the fowa City council meeting of Januim/1 O, 1995. WS011095 January 10, 1995 . Budget Work Session Page 34 Council Time 95-7 S1 1. Kubby/ I have a couple things I want to ask council about ..... Santa Rosa .... Horow/ She called Darrel .... Kubby/ Arkins/ .... Darrel called me...its raining .... City of Santa Rosa has not gotten wacked .... suggested a letter.. Kubby/ A resolution from the council.... Arkins/ She did call, she is no longer on the council .... both mayors. Okay- Kubby/ We got a letter from .... Free Medical Clinic ..... tours .... they have requested $5,000 from us .... They haven't gotten a call from anybody. Encourage you...to go down and tour...during clinic night .... A reminder. I encourage you to go down and see what happens there .... 3. Nov/ Let everybody know I have a list of water and sewer rates from Portland, Oregon...complex document. I want everybody to look at it ..... quarterly billing...monthly billing by request .... 4. Horow/ Larry, you will be at JCCOG tomorrow. 5. Atkins/ We have a Citizens Summary prepared...being mailed out to all board and commission members .... Adjourned:'8:45 PM This represents only a reasonably accurate transcdpt]on of the Iowa C;ty council mee~ng of January 1 O, 1995. WS011096