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HomeMy WebLinkAbout2002-02-04 TranscriptionFebruary 4, 2002 Special Budget Work Session Page #1 February 4, 2002 Special Budget Work Session 3:00 PM Council: Lehman, Champion, Vanderhoef, Wilbum, Pfab (3:07), Karmer (3:14), O'Donnell Staff: Atkins, Mansfield, Severson, Herting, Helling, O'Malley, Karr TAPES: 02-18 BOTH SIDES; 02-19 SIDE ONE Atkins: What we have, I believe, for today are human services, community events you need...and that's pages 34 and 35 in your budget. And there are two issues, some miscellaneous issues we need to go by but there's two things that have recently occurred that I want to get you briefed on. First one is the issue of overlapping debt. I'm trying to make a little chart somewhere, kind of give you a feel for this. We're about to sell 30 million dollars worth of debt, library, a number of other projects. That's City. Well, I've been reading newspaper accounts and it appears the school district is also considering anywhere from 28 to $32 million worth of debt for school projects. And in fact the issue was raised slightly by the county. I bring this to your attention because when it comes to credit analysis the same group of taxpayers pays all of this and it could, at least on the surface, be a rather extraordinary demand on the property tax, that being our primary source of revenue. So you understand the term overlapping, that we happen to be in the Iowa City School District. So for example, we may make decisions as a city and I'm just picking numbers that say this kind of debt cost the property taxpayer $200 a year. Well the school district goes out and does something similar to it. Now they're a bigger base but it still amounts...and I'm just making these numbers up. It may be another 150. And then the county chooses to do something also. Point to you is that the property tax payer, the same group of property taxpayers, ultimately bears the responsibility for all of this debt. So the actions of other government have a direct impact upon our credit analysis. And I say that to you just simply as heads up. I don't know what we can or can not do about but it certainly has a beating upon our financial position. Champion: Steve, is the... Atkins: Connie? Champion: ...one million, is that the jail? Atkins: No, I just picked a number. Honestly, it could be anything. It could be $20 million dollars, which is the jail. I just picked a number... This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #2 Champion: Oh right, that's why (can't hear) Atkins: ...and I was really low balling it here because I suspect we'll see a j ail issue sometime in the future but I don't see it in the near... Champion: And the school's is that package they came out with a couple years ago? Atkins: That is the package I read about I read 28 to 32 million for a couple of new schools and some other... Champion: But I think realistically you can look at that as a school don't you think. I mean, don't you think they'll just eventually go for a school? Atkins: Oh this? Champion: Yeah. Atkins: Yeah but the point still remains, it's debt. Vanderhoef: It effects our bond rating. Atkins: It effects our bond rating, what they choose to do. What they're going to do, Connie, I don't know. You know, any more than they have the level of detail on what you plan to do. I mean they...everyone know that the $18 million is for the library. But I wanted to point that out to you that this overlapping debt does have.., is of some consequence to US. Champion: The other question I wanted to ask you, and I meant to the other day, is if we bond 18 million for the library and lets say the library comes up with $2 million, how do we pay that to the bond if they're giving us to pay the bond off?. Atkins: Okay. What we're likely to do on that bond sale is roll it all together into one, 18 plus the other. So as was mentioned at the meeting, and I've talked to Susan about it, we need to get something in writing so there's an understanding. If the library project came in and when it was all said and done it's 18 million and we've sold 18.4, well it'll be rolled into the rest of the bond...to another bond in order that you could have the flexibility of paying that off, use for other purposes... Champion: Okay that's my question. Thanks. Atkins: Yeah. We'll build reasonable flexibility...it's the face value of that one huge project. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #3 Champion: Because I just thought that you couldn't use library money for roads and so I was trying to think how you would... Atkins: The bond...the official statement, the bond prospectus whatever you want to call it, will have spelled out to construct and new library, to build a road, to do this, to do that, and you do not have to identify specific amounts. Now the bond folks that review us will ask us in general terms how much of but the perspective itself is intended to be flexible enough to allow you to do what you were suggesting. Yes? Lehman: Well, just for my own clarification, if we borrowed 18.4 and the library pays us back 2 million, does that mean that a future project just gets bonded for 2 million bucks? Atkins: Yes. It can also...yeah, you can do that. Lehman: That's all I wanted to know. Atkins: Yeah, we'll build as much flexibility into that. If for some reason things went gangbusters we'll put a call provision in the bond issue that alter a number of years we can call them, buy it down, refinance it. Lots of things you can do. Champion: Okay. Atkins: We'll try to build as many of those things into the thing as we can but the important thing... Vanderhoefi What typically... Atkins: ...is the schools and somewhat, you know, you can make this 20 if you want it. And if you read across, 30, 30, 20, that's a mountain of debt for a county. And the county being...having the city. Now this is any city, any city experiences this, any city that would go out to sell debt. You know there's questions...you know, Coralville's out to be borrowing lots of money. I don't know how they're going to finance this but this thing gets laid on top of it. So it does effect your credit. Vanderhoef: And...yeah, and our bond rating... Atkins: Yes. Vanderhoefi ...if that's the piece. Typically when we go out for bonds, how soon could we pay back off... This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #4 Atkins: A call provision...like a call provision? Vanderhoef: Yeah. Atkins: Well maybe five years, Kevin, something like that, usually about five. Most folks that were buying bonds want some reasonable assurance on what kind of income they're going to have, cause a call provision cost you something. I mean there's a little piece in the bond that's saying that I may have to bump it just a tad bit on the interest cost. Lehman: But if we were to get good rates on the library bond why wouldn't we take that low cost money and apply it to another project? Atkins: You can. Lehman: Yeah (can't hear) Atkins: You can as long as it's spelled out...if you sold just the library bond that's all you could use it for... Champion: Right. Atkins: ...but we will sell a bond issue that incorporates the library and other projects. Lehman: Right. Champion: I have one... Pfab: Okay but also if say we don't have...the call provision doesn't start up until later, are there other debts we could pay off? Other bonds? Other... Atkins: Yeah, I think you can.., go ahead, Kevin. O'Malley: Irvin, we're looking at...last year Steve and I brought to you maybe five or six issues that were ripe for refinancing and I got word just today that they're very good right now and we'll be using those funds to free up some debt service. Atkins: Okay, good. Champion: I have one more question... Atkins: Is that the report that I haven't seen that you just laid...that we just got. Good. Good. Okay. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page//5 Champion: I have one more question. Atkins: Yeah. Champion: The money from the sale of the peninsula project.., land, does that go to the cash reserves? Atkins: Yes it does. Champion: Thank you. Atkins: Yes, that's where we paid for it. Lehman: Okay. Atkins: Okay, that's overlapping debt. Now, the second item I want to bring to your attention ifI can find it here, senior center. I got a call late last week, I believe it was Thursday or Friday, as a heads up. County Board has instructed the County Attorney to draft a resolution and that the resolution would be to reduce by approximately $50,000 the amount of money that by contract that we have with the county for operating the Senior Center. Now legal staff is looking at it. Our first blush is that the agreement calls for 20% of the Senior Center budget to be financed by the county. The county's position, at least now, is that they will provide $100,000 period. Now that pokes a rather large whole in the budget. I did speak with Jay Honohan briefly about it. He was made aware of it. This resolution is to be on the County Boards agenda on the 7th for review. They would not vote on it until the 14th. O'Donnell: Steve, is that to be a permanent figure? Atkins: Mike, those are all the questions I don't know. You're right. Champion: How do you get (can't hear) Atkins: And that would be...and that would be a concern because if we go and reduce the budget, which we'd have to do unless you want to go to some other services, we don't want to reduce them and then just have to reinstate them later on. So what their policy is on this I simply don't know but it appears that they're prepared to reduce it substantially. Champion: Can you reduce a contract, this by... This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #6 Atkins: Well, that's...there's certainly a difference of opinion on the part of the county and our legal staff. I...it calls for 20% of the budget. It doesn't say anything about lump sum payments or anything such as that. It does say 20% of the budget. O'DonnelI: Steve... Atkins: I'm just giving you a heads up. O'Donnell: Do you feel, Steve, that's directly related to this (can't hear) advantage program? Atkins: I couldn't tell you, Mike. You know the county has...seems to have said that their primary reason for being in the Senior Center was the senior dining program but those are all political questions that we're going to have to nose around and find out. But this is a heads up that we may already have a hole in the budget and we haven't even approved it yet. Vanderhoef: Okay and since Heritage took over... Atkins: Heritage always has had it. Elder Services. Vanderhoefi ...Elder Services excuse me, took over the senior dining it would seem to me that if the rational is that they're cutting their portion to upkeep on the Senior Center that they would be passing that along with the senior dining. And it still wouldn't be our... Atkins: Dee, I simply don't know. I just don't know. Vanderhoefi I know you don't know but... Atkins: I'm sorry. Vanderhoef: That's what strikes for me, that it's some rental space for that activity to happen. Atkins: Well I did talk to Jeff over in their budget officer and Jeff said as soon as he got a copy of the resolution he'd ship it over to me. Until we know what the resolution calls for we're...we just wait. I don't know what else to tell you. In fact, nothing may come of it. Lehman: Steven? Pfab: Go ahead. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #7 Kanner: For strategy in regards to the budget, I think for this year we have to assume that they're going to continue payments and that we have to closely examine that legal document that we have with them. I would assume that it would go for a fiscal year. Lehman: No, I think the term of that...(can't hear) you tell me that it could be cancelled by either party... Atkins: 120 days notice. Lehman: 120 days notice. Atkins: You can cancel the agreement. Kanner: So that's four months, which actually would be close to the end of the fiscal year anyhow. So maybe we could assume that for this year we're going to continue to get the money... Atkins: They've agreed to this year. This is...this would be for July 1. Vanderhoef: So this would be... Lehman: We're talking... Vanderhoef: ...four months into 03 budget. Atkins: This is for the new budget. Kanner: New budget. Atkins: Right. And we have proposed, I believe, 150,000... Lehman: Yes. Atkins: ...in the budget. That would be reduced to 100,000. I'm trying to understand the county's thinking, folks, and I don't want to be disparaging but I don't understand it. Champion: Don't even try to think (can't hear) Atkins: Well but it's... O'Donnell: I think those of us that have sat on that... Champion: Right. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #8 Atkins: Okay. O'Donnell: (can't understand) agreement understand it pretty clearly. Kanner: As someone who worked for senior dining and for the county, I can understand that's a big part of, I think, what they feel they're getting for their 20%, a significant portion of it. And so it is...it does make sense and it makes sense that we go after Elderly Services for talking about what if fair market rate and if we want to subsidize that or not. They do... senior dining is a good program, it helps a lot of people in our City and we want to know...what we negotiate with Elderly Services knowing what fair market rate is for that, in 03. I can sort of...I can see where senior dining is coming from. For 03 I think we have to talk about then a reduction from them. Atkins: Okay. Those are all things you'll have to put on the table for yourselves. Lehman: That's why he brought it up. Atkins: Yes, sir? Pfab: Okay, can anyone explain or does anyone have any more knowledge than I do about why the county is no longer doing that and Elderly Service is? Atkins: No. You know as much...I mean, I've read the press accounts. O'Dormell: Heritage just took it away. Heritage just no longer (can't hear) Pfab: Well, did they get the tail with the hide? Get the bills? O'Dormell: Irvin, I have no idea. Pfab: I know. I just... O'Donnell: But I know knowledge is (can't hear) Atkins: Is that the same as the camel thing? I don't know, Irvin? Kanner: They...one of the things that I...my investigations, Irvin, is that they weren't satisfied with the cost per meal and that was a significant issue for them. So I...and they're hoping that also with Elderly Services that they can get more grant, that they would be eligible for grants that Johnson County perhaps would not be eligible for. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #9 Pfab: So they probably have $50,000 worth of grants then...or that they could...are up in the air. Kanner: Well they might not have it now but it is possible... Pfab: But by the end...for the next fiscal year. Vanderhoef: But those wouldn't necessarily be ongoing grants because grants are grants and a lot of times those are for one year. Pfab: But I mean, you know... Lehman: Now the question is are we going to make some sort of allowance for that at this point in time or are we going to wait until that materializes? I think you gave us a heads up. Atkins: I don't know what you can do. Lehman: I don't know what we can do other than know the possibility is coming tip. Pfab: I think we better plan that they aren't going... Atkins: Well you also need to plan...I mean, you need to plan whether it's 50,000 or whether it's 150 because someone could argue the agreement has been terminated because of the none 20%. Pfab: That's (can't hear) Atkins: But 150 our of a $700,000 is... Champion: Quite a bit. Atkins: ...a big hit. Champion: That's a lot of money. Atkins: Yeah, you know, that's 25% of the budget. Champion: I think (can't hear) Atkins: Okay. Lehman: All right. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #10 Atkins: Okay. Now, next item is...I had two things for you to consider, human service agency funding, you have the proposal which was in your...and it's in the budget and community events which you had hearings on the other day. Both of those issues have to be decided. Pfab: Do you have a page on those? Atkins: In the budget book it would be 34 and 35. Lehman: Right. Vanderhoef: Which do you want... Kanner: What was the second thing you said? Atkins: Human service agencies and community events, you know, jazz rests, that stuff. Wilburn: Could we do community events first? Lehman: Sure. Atkins: You want it up above to help you? Vanderhoefi Yes. Please. Thank you. Atkins: To give you a read on it, the 02 budget and 03 with just a slight adjustment from 466. Vanderhoef: No. Atkins: I was reading the wrong one. Vanderhoefi Yeah. Atkins: Okay, excuse me a minute. The budgeted amount of 61,000 is shown in the last column. The requested amount, approximately the same. I would note and when we do our projections we based it upon a previous completed fiscal year. It has the effect of being almost overstated by $20,000 because you made a one-time contribution two years ago to the Devonian... Lehman: Right. Atkins: ... fossil folks, whatever they call themselves. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #11 Vanderhoef: That's in the 63? Atkins: And that would be in that 63. That's correct, Dee. Vanderhoefi Okay. So then that is why we went back down to basically 42... Atkins: That's right. Vanderhoef: ...in 02. Atkins: You have requests of 60. Traditionally you were spending in the neighborhood of 40. Kanner: Before we continue, I'd like to...I know this affects Ross because of his connection with the Crisis Center. I'd like to talk about this whole budget in a universal sense. That we don't separate that there's a possibly of taking some funds from community events possibly to other human service funded agencies. Atkins: Okay. Wilbum: Okay. Then I'll have to... Kanner: Well that's just me, I mean, I want to hear what the rest say. Vanderhoef: Well I think I could talk about just these requests and let Ross stay in because I would like his input, just in general, on community events. I've been thinking about this and thinking about the lack of new dollars and quite possibly continuing on for another year or two. So I was looking at probably going down, keeping it the same as what we had in 02 or very minimally going up on that. I see we have one new requrest for $1,600 and if they were here I...it flew over head but I don't know anything about that. Atkins: They didn't appear. Lehman: Well there's more than that. There's a 1500 for the Mormon Trek Heritage Festival and also a 5000 for the dance marathon are also new requests. Atkins: That one...that one... Lehman: And the 1500. Atkins: ...and that one. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #12 Champion: Well I'll speak to that. Vanderhoef: Okay. Champion: I mean ! agree with Dee, I don't think we have any fight to be giving any increases in these things this year. I'm not interested in sponsoring the U of I Dance Marathon. I think that's a wonderful thing and if we were flush I would do it but they made a fortune this weekend and I don't think they need our resources. The other one that I...not...well, what was another one? What was the other new one? Vanderhoef: The Mormon Trek. Lehman: The Mormon Trek... Pfab: Yeah. Lehman: ...Anniversary Heritage Festival. Champion: And I guess at this point in time I'm not willing to budget anything for that either. I'd be glad to help them out in some in kind rental if we had something they wanted to use. But I think that there's a lot of resources with the Mormon Church and I think once that gets going that's where those funds will come from. Pfab: I also think we may have a... Vanderhoefi Steve? Pfab: ...we have another issue here supporting the Mormon Church in that sense, separating the church and state. Champion: That's a good point, Irvin. Pfab: I mean that...the more I listen to that the more...nothing against them but I think that's a...we're getting close to the edge them. Champion: I think you're right about that. That is the church's heritage. Pfab: All right and I mean it's...there's some... Atkins: There is one correction too, a minor one. This should have been carried forth at 260 dollars that was just our mistake. We've traditionally done that. That was just got skipped. Vanderhoef: Okay. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page # 13 Pfab: Is that come up... Lehman: (can't hear) Pfab: Does that change the totals? Atkins: Just $200. Vanderhoef: But if we... Pfab: Show me again which one it is. I think I know but... Atkins: Disabilities Awareness Day. Pfab: Okay, fine. Atkins: Right there. That should read 260. Kanner: And it should be called Abilities Awareness. Atkins: Yeah. We changed the name of it too. Lehman: I don't have a problem with keeping the funding at the same level for the same agencies. I don't know how we can (can't hear) Vanderhoef: I don't either. Atkins: Right here? Lehman: Yes. Atkins: The 41.97 Vanderhoefi Uh-huh, and not fund the three new requests this year. Atkins: Okay. Well that's...that would be that number. Lehman: Right. Champion: Uh-huh. Pfab: Dee, I'm going to ask you just...did we look at possibly backing offa little on a couple of those or not, did we not have to do that? Vanderhoef: We didn't look at these. The... This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #14 Pfab: Okay. All right. Vanderhoefi The...this is a whole Council. Pfab: Okay. Champion: The other thing is is there anything that anybody's willing to cut? I mean, we did cut the pubic art monies and I guess, you know... Pfab: I'm...before we get to that I'm going to have...I'm going to be really upset if we have to do that. I'd start shopping someplace else. O'Donnell: This Week of Welcome, did anybody... Lehman: Week of Welcome is a tremendous activity between the City and the University... Champion: Yeah, it is. Lehman: ...and it's a small item but it's a big event for them. Champion: It is. Wilbum: I think also if you look at, you know... I guess, Connie, I was looking at the Dance Marathon too in terms of not funding them. If it were a year when .we had some funds... Champion: Oh absolutely. Wilburn: ...I would look at a token amount to show support that the students were doing something there. But the other thing in that piece that I was looking at is, you know, we do the Weeks of Welcome in terms of an activity that promotes community with the University community. And so that's why I continue to support the Weeks of Welcome and was not looking at the Dance Marathon so much. Lehman: Welt, and... Vanderhoef: The Week of Welcome we also, in their packets and so forth, we do put some information in... Atkins: We are very active participant of W~eks of Welcome. Transit information, housing, provide all that. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page # 15 Vanderhoef: Yeah because they learn...students get information from us about the City and what we have to offer and some expectations... Pfab: Do they got...are there in kind contributions also? Atkins: I've got to believe they have them, Irvin, just given the size of the event. They must get it from...I think merchants kick in, there's a lot Karmer: The electricity probably would... Atkins: Yeah. Pfab: What about the City? I mean is... Kanner: What? Atkins: Well the 2000 is ours. Pfab: Over and above the 2000. Kanner: Yeah, electricity... Lehman: Sanitation I'm sure. Atkins: Sanitation will have to do some clean up. Lehman: Police. Pfab: Police. Atkins: Policing. Pfab: Street cleaning. Vanderhoef: Uh-huh, so... Champion: Okay, I agree with... Pfab: I... Vanderhoef: I just had one quick question. Atkins: Well where are you...excuse me. Vanderhoef: Remember our band shell, the mobile one? This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #16 Lehman: Yeah, the one that Coralville maintains for us? Yeah. Vanderhoefi That was the one piece, I don't know what it rents for or anything but if the Mormon Trek group wanted to borrow that for a nominal amount, something like that... Atkins: Would you make a note of that. We'll inform that gentleman that that's available. Yeah. O'Donnell: Connie, you mentioned that. That's a good idea. Vanderhoef: I wouldn't mind... O'Donnell: Good idea. Aktins: Okay. Vanderhoef: ...them using that if it's not scheduled for something else within the cities. Lehman: Steven? Kanner: First, I want to emphasize again I'm acceptable to keeping it at the 41,000. I'd like to use some of the savings of what's budgeted in human services. That's the proposal that I would make. And so I'm willing to talk some more about that but for specifics... Pfab: Steve? Kanner: ...just to address the Mormon Trek... Pfab: Could you back up? I missed what you...what did you say wanted to address what? Some difference? Kanner: What I'm saying that 41,000 is what's budgeted for 02 and I'd be comfortable with that... Champion: I think we need to discuss that when Ross isn't here. Kanner: But that... Lehman: Well it's all right for now. Kanner: I think this is...that's why I brought this up before that some of this money that we're budgeting to go to human services. And the other This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #17 thing is, for specifics, Mormon Trek I agree this year perhaps we can't fund it but I don't agree that it's too intertwined with the religious aspect. I think this is...there's a lot of religious things that are historical and the possibility of thousands of people coming here for a historical event in the future, which I think is pretty exciting. And just the historical aspects of the Mormons passing through. I think that's what that emphasizes. And it just happens to be supported in a large part by the Mormon Church. Pfab: Welt I think...then I think you have to take a close look at what they do. Lehman: Well we aren't going to get into a discussion (can't hear) funding this year. Pfab: Yeah, they aren't going to get...So all right. Lehman: I agree with (can't hear) Atkins: Can I... Pfab: I mean...I think it has a lot of potential. I think it's a very... Lehman: All right. Steve, I think we agree on this. Now we're going to get into the discussion on human services. Atkins: Here's what I put... Pfab: But I think, Steve... Steve, had something that he was going to say. Did you...what did you say? Lehman: He says he would like to go to human services so we can discuss where we can discuss where we might take some of this. Karmer: Irvin, I...yeah, I think I'm comfortable. Pfab: All right. Kanner: And it sounds like everyone else is with the 41,000... Atkins: Okay, we're going to leave this number as is. Lehman: Right. Atkins: That means that you have that budget 20,000 to the good. This represents only a reasonably accurate transcription of the Iowa City budget *vork session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #18 Kanner: Oh, I did have a question though before we go on. Lehman: Yes. Kanner: What is the Eleatic Society? Did we get...we didn't get a presentation on... Champion: No. Atkins: No, we didn't. I don't know what it is. Kanner: Does anyone know? Champion: I've never heard of it. Atkins: He's laughing, he must know. Karmer: Do you know, Tom? Widmer?: No. Kanner: Does anyone in this room know? Atkins: Is it an Irish thing? Widmer?: No. Kanner: All right, so it's good that we're not funding it I guess. Champion: Since we don't know what it is. Kanner: And we didn't get a presentation. Atkins: I'll see ifI can find anything in there. Lehman: Okay. Kanner: Thank you. Atkins: Okay. O'Donnell: Where do you get Irish out of that? Lehman: I didn't. Okay. O'Donnell: Irish is like O'Donnell. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page # 19 Lehman: Human services funding. Steve, you want to get that. Atkins: Do you want to know...Do you want to know what the Eleatic is? Lehman: Not really but I think we're going to find out. Atkins: No. Kanner: Have you got it? Champion: That was easy. Atkins: The Eleatic was sponsored by Carolyn Barrientes. 100 people. The activities of the day are cooking demonstrations and a workshop followed by art exhibit of a great muralist of Mexico. So it has some Hispanic...This is a...it's an art exhibit... Lehman: Okay. Atkins: ...dedicated to showcasing the work of work of Midwestern Hispanic artist. Pfab: Do we have anything that's geared toward Hispanic... Atkins: Well if you all go to the Latino conference, sure. That's something we're working on right now. And you just...we gave $500 for that. Pfab: Okay. Lehman: Okay. Atkins: Okay. Lehman: We're done with that one. Atkins: Now the next is...it's really sort of Dee and Irvin's show from here on. Lehman: Right. Wilburn: I'm going to back away from the table for... Lehman: Do you have that sheet... Atkins: Just so you remember you are 20,000 to the good in that budget. What you choose to do with it's up to you. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #20 Lehman: We could just not spend it. Champion: Right. Vanderhoef: Well our... Lehman: Would you like to put up the next (can't hear) Vanderhoefi Our reserve fund could handle having that money for whatever... Pfab: I would suggest that goes to community art. Vanderhoef: ...comes along. Lehman: Okay. Vanderhoef: And hopefully nothing. Lehman: Okay, Dee. Vanderhoefi Okay. Shall I start? Pfab: That's fine. Vanderhoef: Okay. I just handed out a memo that is hopefully readable. It's what I had suggested a couple of weeks ago or so. And I put it down into numbers that the human service agency funding now and in the future will be capped at $455,000 per year. And then down below I list the categories of where those dollars are going to become.., coming from. I had truly thought it was an appropriate place to move into using some enterprise funds for services that all of these or most of these agencies...there's three or four of them that have in kind utilities funded for them because it's in the rent or the space that they use, so they don't use it, our City utilities. But I think this is a way that we can spread out the cost, protect the general fund for the time being and there's always been a little bit of confusion about the $10,000 contingency and how that figured into the total figure. So you'll see the 465 number there and that is including the contingency. And what I was suggesting was that there would be a policy that the human service agency contingency fund of $10,000 shall be established annually. The unspent fund balance will be carried forward and the fund replenished to it's $10,000 maximum. That way it isn't money that gets spent out and it isn't on that accumulates 10,000 every year. We'll keep it at 10,000. If we have a request for a true emergency This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #21 we'll spend it out because it has to come past Council anyway to be spent out. Champion: I think the idea of capping the contingency fund at 10,000 is good. I however am not interested in capping the allocation for human services. Lehman: We can't cap it anyway. Any future Council can do as they choose. Pfab: I think you were just talking contingency fund, fight? Champion: No. Vanderhoef: No. I'm talking both. If you'll read the...look at the list. We don't have the money right now in our general fund to be spending more and we have actually...it's a time that we need to be pulling back and that will come up in some other discussion. We certainly have been dropping back on all of our other services and the dollars into those funds. So in my mind this is one place where no new money should be spent, therefore the cap. Champion: I think this is not time to cap human services. They're being cut from the state. They're being cut everywhere. And of all the groups that spend as little money as possible I think this is it. And I'm really...I'm not so sure they should all get increases but I really think we should not think about cutting their budgets any more than they've already been cut. Lehman: I don't think this is any cutting to speak of. Vanderhoef: No. Lehman: But I think number one though we can just take off this because we can't cap anyway and the recommendation is for 455 this year, right Dee? Vanderhoef: The 455... Lehman: Is that your recommendation? Vanderheof: ...total. 105 from CDBG. Lehman: Right, but that's the recommendation from you and Irvin. Vanderhoef: That's the recommendation. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #22 Lehman: And because we can't cap future ones number one probably isn't relevant. If we choose to accept your recommendations that would be the amount for this year. Vanderhoefi Well I think we could cap it. Lehman: You can't cap every Councils. Champion: But we're not... Vanderhoefi But if it were put into a resolution form it would take action to change. O'Dormell: But anybody could do it, Dee. Vanderhoef: I understand... O'Donnell: We can't...we can't... Kanner: Well that's like any resolution or ordinance can be changed but we still do it to give a sense of the body. I don't ...I could agree with part of what you're saying and discuss that. But Ernie, I do agree it can be put down in resolution form, just like we say 25% of the general fund, we shouldn't exceed 25% for debt. Lehman: Policy, right. Kanner: That's the policy that we have and to overturn that we have to do something extra. Champion: Is there anybody else willing to cut it? Lehman: We don't on that because it's policy. Vanderhoef: Yeah, but... Karmer: Well we could over... Lehman: Yeah, we could make a resolution that would require an action but as a policy we don't have to do anything with that. Champion: Well we could end this discussion by seeing if there's anybody else interested in capping it. Vanderhoefi The point that's happening for everybody's budget is that everyone is, whether it be the county whether it be the state, whoever, they literally don't have the money to do it. And that I think is the case that I'm This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #23 trying to make right now is our general fund does not have money to do it. Pfab: I'm sure once all our new developments and the taxing bodies in our commercial and industrial developments kick in there'll be a big surplus. Champion: That'll be the day, Irvin. O'Donnell: After we pay the rolls. Vanderhoef: After the roll back takes it away from us again. Pfab: Not until... Vanderhoef: Yeah, so... Lehman: Well, lets talk about... Pfab: No I think the cap is...I... Lehman: Let's talk about the recommendation from your committee first and let's just see where we come out on that. Vanderhoef: Okay there really were only four agencies that were changed as far as funding allocations from what Irvin and I put together. How I looked at it personally was I was looking at the general grouping of agencies. And the groups that I looked at were housing, which I saw DVIP and Emergency Housing Project with some of MECCA's also being for housing. For health care, straight out health care, Free Med. Clinic was the only one that feel into that category. Special populations, there are several of those, the I-CARE, the Rape Victim Advocacy, the DVIP, the MECCA. Those are real special populations. Emergency management, I put Red Cross under here. They are not typically into giving the medical care as much as they are assisting in the disaster piece. Youth Programs, there are four of them. And one of them, Big Brothers Big Sisters, I see that as one of the major preventative groups. Even though they have a very large name nationally and have funding that way this program, in my mind, is very positive in that it helps in the prevention of problems before they happen. The other youth programs are UAY and Mayor's Youth and Employment Services which is another piece that as we all know we've been looking at employment and job training and so forth in our economic development. So I...and fully support that one. And the one that seems to be making a huge impact I think in our City is the Neighborhood Centers. And this is the one agency that gets to the This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #24 needs of the very young children where the Big Brothers Big Sisters, Mayors Youth and UAY are targeted more for older youth. I only have one in the category of elderly and that is Elderly Services. And I think they are a very broad range of services and I see them as being important in our community. And then for all ages and ail kinds of support there is only one that stands out in my mind that's on our list and that is Crisis Center. Irvin and I both agreed that... Pfab: That Crisis Center, you're not talking Crisis Center. Emergency Housing. Champion: No, Crisis Center. Vanderhoefi Crisis Center for all ages. Pfab: Okay, all fight. Vanderhoef: We agreed that we were not interested in funding new agencies so we struck those from the list before we talked about it. I guess where I was coming from, and I'i1 let Irvin speak for himself on this. When I made some changes in the allocation of dollars I felt we needed to continue with the Free Med. Clinic and give it a bit more support in that they are coving all ages of our population. And the Emergency Housing Project has a unique kind of housing that is different than our special population housing, which is DVIP and MECCA. So I felt that perhaps they should have more dollars. Other special populations where we chose to reduce the funding was from I-CARE and RVA so these are special populations that have other kinds of state and federal monies that come in to them. And I felt they were the ones who could go with reduced funding. So that's why I came down in making two increase to Emergency Housing and Free Med. Clinic and reducing funding to... Lehman: Okay Council. Champion: I like some of your ideas. I have problems with...I personally have problems with this decreasing I-CARE since aids is again on the up- rise and a lot of...they do a lot of education and if we're ever going to get control of this disease it's got to be though education. Plus I think people with long term chronic disease like that run out of personal monies pretty quickly and because of the nature of the disease they're also sometimes vacated by their family. And they really do depend on I-CARE for just basic subsistence and physical care. So I personally would not think of cutting them and then giving the Emergency Housing Project a 50% increase. I have...I guess I have problems This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #25 with that. I don't know how other people feel but I would not be willing to cut I-CARE especially in this day and age. Lehman: What you're suggesting is a $2,350 increase for Emergency Housing and leave this alone. Champion: It's a $5,000 increase. Lehman: No because you're suggesting... Champion: Oh yeah, right. Lehman: Right. That's what I... Champion: That'd be fine. Lehman: ...thought you said. Vanderhoef: Do half that amount of increase? Kanner: Well I think we need to use... Pfab: It...does everyone have a copy of this? Kanner: ...some of the $41,000 from the coinmunity events for these things. I like your idea about I-CARE. Let me ask Irvin and Dee, Emergency Housing has been talking about a new facility for a few years. Are they moving in that direction and getting a new facility? Vanderhoef: We met with them, Irvin and I did, with their board of directors by their invitation and they indicated that yes they were getting ready to move forward on a fund raising campaign but I don't have a date when that will happen. Karmer: Have they applied for a CDBG funds for that? Pfab: Yes. Kanner: For housing.., for a new facility? Pfab: That was my hope. I was the one that really pushed on this one. And so to figure out where to come up with some way to help fund that I think that the emergency housing problem that we have...or project, is until they get a facility big enough to handle the people they need, I think we have to support them. Now I was kind of, in the back of my mind, thinking this might go towards that. Well this can't go towards This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #26 that. But there is a real push. I know they're looking at a specific project...a specific building, a specific location. And I think that they're.., if they were to be faulted that they weren't aggressive enough. And I think they finally come around to that realization that they have to really advocate for that building, the facilities they need. What they have up there is just...it's... Kanner: It is very inadequate. I think we need to support them as much as we can. To move along...and what they're doing now and also (can't hear) Pfab: I mean, what they're doing now is not efficient so that's where they need the funds and... Champion: The other thing, Irvin, that might...I'd just like add... Pfab: Okay, that's fine. Champion: I...since we don't really have money to give anybody increases and this is a year when everybody needs an increase, I am willing to consider Dee's idea for one year of a stipend from our enterprise funds to aid some of these agencies with utilities, for one year, until we see what happens with our budget next year. That way they get some help but not out of our general fund. I don't know how the (can't hear) Pfab: Well, how...would you propose that we take $5,000 for Emergency Housing out of our enterprise fund? Champion: No, no. That isn't what 1 said. Pfab: I mean...I want specific... Champion: All agencies could benefit from the enterprise funds. Pfab: I don't know if anybody had (can't hear) Champion: It would give us...I mean your suggestion here is $35,000... Pfab: (can't hear) Champion: ... so that would be distributed among the different agencies. Sothe people could get an increase without using our general fund. Lehman: No, what Dee's suggesting is that you use the 35,000 to reduce the 455. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #27 Champion: No, I'm not willing to do that. Vanderhoefi No, it's to reduce...right now we have $350,000 coming from our general fund. And what I'm saying is... Champion: 300 and what? Vanderhoef: 50,000 from the general fund. 105 from CDBG. So of the 350,000, that's what I'd put on the recommendation, why I gave the example... Champion: Right. Vanderhoef: ...that we would only take 315,000 out of the general fund and we'd take 35,000 out of enterprise funds. Therefore, the 35,000 could sit in our cash reserves... Kanner: What was budgeted... Vanderhoef: ...and general fund. Kanner: What was budgeted for the...by the City Manager for 03 was 473,000. Gross you want to reduce that fight off the bat. Vanderhoef: I'm not reducing. I am keeping it exactly the same. Karmer: No you're putting it at 455,000. Vanderhoef: But that includes the 105 from CDBG. Kanner: Right, right. So you...that's reducing it by 18,000. Then you want to reduce... Vanderhoef: I'm not... Kanner: ...direct cash grants even further by35,000 and replace those with enterprise. Now I would propose that we keep that 473 and add 35,000 in enterprise in kind donations through water and sewer. I think that would have a very good impact and we'd be keeping within this budget. And we can use at least 10,000, what we saved from community events, and we'd still be up 10,000 from the community events. Champion: Excuse me, what figure are you using as the basis of 4657 Kanner: 473, if you look in our notebook here... This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #28 Champion: Oh, I'm looking at this. Karmer: This human service agencies... Pfab: Which page are you...are you on a page? Vanderhoefi Yes, he's on page 35... Kanner: Page 35. Vanderhoef: ...of our budget book. And that was... Pfab: I don't see that nu,..oh, Kanner: 473, Pfab: Over on budget 2003? Vanderhoef: Uh-huh. Karmer: And I would say keep that figure... Champion: I forget that's what we actually... Karmer: ...and add 35,000 from the enterprise funds. And so that would give us approximately 508,000 of which... (End of side one, 02-18) Kanner: ...CDBG. And then 35 would come from out enterprise fund, which would be charged to all the other water users, divided by 14,000 people. Champion: I'm willing to keep our budget at the 02 actual but add 35,000 in enterprise funds. Lehman: I'm not willing to take water fund money and increase the budget 35,000. Champion: Okay. Lehman: I mean, I have no problem with maintaining the level that we had in 2002 but the only interest that I would have in using enterprise funds is if we could use that to reduce the burden on the general fund. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #29 Vanderhoef: That's...that's the only way I would use enterprise finds also is to reduce and help our cash reserve position. Lehman: Our...my concern, and I firmly believe that if we were to take the 2002 budget add the 35,000 from enterprise funds, we have just determined a new base for next year. We're never going to go back to this base. It's always going to be...and we have said okay one time only we're going to use enterprise funds to help this out. Well it's not a one time only, now it becomes the base. And next year we take that amount out of the general fund and go back to the enterprise fund. O'Donnell: That's right. Lehman: And I think that is really not good direction. Pfab: Okay let me ask you this. Everyone now has this sheet? Lehman: Right. Pfab: Okay. I would like to...if you could just follow through that, I just passed it around (can't understand) everybody. I would like to go and start on the outside column where the zeros, the changes. And the Emergency Housing that was a $5,000 raise or 50%, which is...looks a lot there. Free Medical Clinic was small, that was what they requested. And the HACAP, we kept that the same. The reason for the I-CARE was the City and the community gives an awful lot of in kind support. We have some really big fundraisers here and everybody pitches in on that. And aids is...it's not...I think that they are probably as close to not in big danger at this point with their budget. And I'm not saying that should be something every year but it's...if we're going to look for a way to increase the Emergency Housing and not raise it, I think that's one of the other ways. And the other was the Rape Victim Advocacy. Now this I think is something I think publicity has finally caught up with the very strong need that there was. There's a lot of other ways it's coming in, judicial districts and what not. And those...that was the reason that I went to those. That was my reason and I would feel very comfortable with these. And other than that I'm open to suggestions. Champion: I don't mind the Rape Advocacy Program being cut a little bit because that's a University sponsored...isn't~ it? Pfab: No. Well it's all over. It's... Vanderhoef: Well it...they get their housing and their utilities from the University because... This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #30 Kanner: I thought they moved out of there, that they're no longer getting that. Pfab: No, they are. They're still there. Vanderhoef: No, they're still there. What happened was they changed the other folk that share that old house with them? And their concern a year ago had been the privacy issue with lots of coming and going from the other agency that was in that building. And that has changed now so there's basically not the problem any more because they're aren't a lot of people coming and going into those other office. So they're okay with that at this point. Champion: Well, I'm not willing to give money to the... 50% increase and cut another agency that I think is really important. (Can't understand) local charity (can't hear). I'm not willing to do it. Kanner: Let me ask you folks about MECCA, not MECCA, Mayors Youth Employment. The get a pretty big chunk. And what do you think about the program they're doing? I also put it in context of comparison to Neighborhood Centers. I think that's one of our strongest organizations. And if there's any group that we can see if we could increase funding at all I think that would be... Pfab: That was the same questions that we struggled with too. They were right on what we were looking at here. Vanderhoef: Okay, one of the things that has happened to Mayors Youth in employment training is that it has been cut from the federal level big time. So yes there are a few dollars that come through Workforce Development but not very many anymore. And that...they're taking a huge hit and they're trying to figure out how to restructure. So I think that that employment and training component is unique to that program that isn't in any of the other programs. So I was willing to leave it at its present funding. Champion: I just want to throw out one more thing and then I'm going to keep my mouth shut. We give 41,000 to Big Brothers Big Sisters...our big...I mean, that's a lot of money. And what really bothers me about our budget this year, and I'm not willing to change everything because it bothers me but we have what I consider an emergency year for emergency situations for people who are going to need food, who are going to need shelter, who are going to need care, who are going to need a lot of things. And prevention is wonderful but because of the state budget cuts to those social services we're going to have some emergency situations. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #31 Pfab: Okay we addressed that and the way we addressed it was this. And this was kind of...this is where I resisted by finally gave in. I said the 62,000 we sent to the Red Cross that...I was willing to draw zero to Red Cross but Dee and the other people fought like hell to keep it because what you're saying, the emergencies. And that's why I went along with it. Otherwise I would have drawn a line through it for this year. Okay, so I mean, so your concerns were being addressed. And now the other thing on I-CARE, they are now...I think their building has been paid for, their facilities down there, there was a big capital improvement...big capital fundraising. So I think that, you know, they're sitting as comfortable as anybody on this list here. And then to go back to the Rape Advocacy, I think this is a good budget and it wasn't to pick on anybody. It was a difficult decision and we agreed on. I would strongly recommend that you do it but it's...I'm not married to this. Lehman: Well you know, most of these organizations if I'm not mistaken derive most of their funding from the private sector or from... Pfab: Grant. Lehman: Well from grams and also from... Champion: County. United Way. Lehman: United Way. I mean, I don't' know that it's...I mean we are very generous as a City in funding these sort of things. I'm willing to accept the recommendation. I mean I don't think it is the responsibility of the City. I do think that it's good for us to indicate our interest in human service agency and do what we can but in a time of tight budget I'm willing to accept the proposal from Irvin and Dee. Certainly if things are tougher and tougher the private sector generally steps up to the plate. I'm not sure that the City can afford to step up to the plate any more than we have. O'Dormell: I'm not...I agree with Connie. I'm not willing to cut I-CARE and take Emergency Housing up 50%, maybe a split in that. Vanderhoef: That's not... Lehman: My suspicion is Irvin is right. I think that they do have more adequate funding than Emergency Housing does. Pfab: Yeah, I mean its...and that's not that the need isn't there but there is a const...over a period of time they have built up a pretty good This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #32 fundraising organization and a fair...the community is quite support of them. And that doesn't say that they don't have needs but it's when you look at their situation and look at Emergency Housing or Free Medical Clinic I think you'd have difficulty comparing them as equal. Lehinan: What's your pleasure folks? Champion: I think we just need to ask if everybody's willing to cut I-CARE to see if there's support. Lehman: I'm willing to accept the recommendation the way it's made here. O'Donnell: I'm not. Champion: I'm not. Kanner: I think keep funding at what it was in 02, at 5,000 for Emergency Housing and add the enterprise 35,000. Lehman: I will absolutely not favor adding 35,000 out of the water bills... Vanderhoef: Uh-uh. (negative) O'Donnell: No. Lehman: to fund this. I think that is really, really a poor direction to take. Champion: Well what about... Vanderhoef: Yes, I won't support that, Steven. Kanner: Why is a poor direction? Lehman: You're just going to set a new base next year for coming out of the general fund. We have a problem this year making even...even doing what we did last year. You're going to add another 35,000 to next years? I don't think so. Vanderhoefi That's... Lehman: If we're flush next year we can come up with the bucks but to take it out of water bills and sewer bills to put it onto this to me is inappropriate increase. Kanner: I think this is... This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #33 Vanderhoef: The 35,000 is far more than what we even recommended in our budget. If my figures are correct the increase that was even suggested in our budget is $6,128 for the difference between the budget for 02 and suggested budget for 03. So when you talk about 35,000, no way. I mean, that's putting us way up there and we can't af/brd it. So I'm with Emie. I thought this was a possibility and I would be willing to do it because I felt that taking some from the enterprise funds right now, since we are protecting our low income folk by giving them reduced rates, that the impact there spreads it out more than the property tax. And I think that was an appropriate as long we're taking care of the folks that have trouble paying their water bill. Champion: Well I could support it if we... and I think Dee thought it was acceptable to her if we kept I-CARE at its old budget and just decreased the increase to Emergency Housing by that amount. Vanderhoef: So you want to split that... O'Donnell: Yeah, (can't hear) Lehman: Can we get agreement on that. Vanderhoef: I could do that. Champion: Okay. Vanderhoef: Okay? Lehman: Do we have four people who... Vanderhoefi Is that okay, Irvin? Lehman: ... would do that? Pfab: I didn't hear what you said. Vanderhoef: Instead of... Pfab: Okay, go ahead. Vanderhoef: Okay, instead of decreasing the I-CARE amount we'll just decrease it half that amount. Pfab: That's fine. Vanderhoefi And then Emergency Housing will get that much less. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #34 Pfab: No, I don't...I'm not comfortable. Vanderhoef: Well there's no other...unless you choose to... Karmer: Well there is other money. There is community events money that had been budgeted, there's other places in the budget. I don't think we can afford not to invest strongly in these serviges. This is our future. This is what cuts down costs in the future. I think when we put...we need to put more money into Neighborhood Services to cut down on police expenses and to cut down other social service expenses in the long run. We can not afford to be skimpy in these areas. Pfab: I would...what I would be willing to do is if you wanted to increase the I-CARE to where it was and then leave it go at that, that I would support. But that's about the only change that I'd be in... O'Donnell: What we just said. Pfab: No, no. You said take it off of Emergency Housing. Vanderhoef: Well that was how we were balancing it. Pfab: Well I...no, if we...then if we're going to increase I-CARE, put them back whole, then I think we have to up the budget. O'Donnell: But (can't hear) Vanderhoefi Not all of it. O'Donnell: We need to make a decision on this. Vanderhoef: We're just part of it. Lehman: All right. O'Donnell: I think there were four that said they were willing to do that. Lehman: That proposal... Pfab: To do what? Lehman: The proposal is to take...change the Emergency Housing Project from an increase of 5,000 and make it 4,000 and to change the decrease from I-CARE from decreasing it 2650 to decreasing it 1650. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #35 Pfab: That's okay. Lehman: That's acceptable to you? Pfab: That's...it's not acceptable but I think it's reasonable. Lehman: I mean, is it a fair compromise? Pfab: Yeah, I think... Lehman: You would support that? Pfab: Yeah. Vanderhoefi Uh-huh. Champion: Yeah, that's okay. Lehman: Are there...? You would support that? Vanderhoefi That's fine. Atkins: Okay EHP is up 4 not 5. Lehman: Right. Aktins: I~CARE is down 1650 not 2650. O'Donnell: Now wait a minute. I thought we were going to leave I-CARE where it was. Lehman: No, we j ust...we took $1,000 out and that's what you understood, right? Champion: That's...well that's wasn't what I... Vanderhoefi We subtracted a 1,000 back out... Champion: ...said but I don't have any problems with that. I can accept that. Lehman: That's what we got, Steve. Atkins: Okay. O'Donnell: Wow, a decision. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #36 Atkins: Didn't change your bottom line any. Vanderhoef: No, we didn't change the bottom line. Champion: We do keep emergency money (can't hear). Lehman: Now the other question that we just as well address while we're here, yea I think, yea I think this is a philosophy question. Are we interested in supplementing what we are taking from the general fund with money from enterprise fund namely giving some of these agencies reduced, well not reduce, applying some of their funding to the utility bill or giving them, whatever, what it amounts to is using part of the utility bill instead of general fund money. Pfab: I don't think I would be this year there might be such a thing as a something to work out in the future as a way to if we're, if the city is selling a utility service and hopefully it's more than a little bit of a break even, if we could go to these entities, agencies and say we would be willing to sell those services at a break even say at a 10 percent discount or whatever it would be, that I would consider but then at it across the board I'm not willing to try to figure it out at this point. Vanderhoefi Well isn't a matter of figuring it out, the 10 percent idea remember Irvin was the fact that it would be unequal for the various agencies because some agencies do not pay us for water and sewer because of their other contractual agreements and so the only way to fairly do it is to take it out of the gross amount that we're paying and subtract out the whatever figure we come up with, a suggested was 35 for this year and then let staff work out the arrangements of how that is, paid out to which agencies. Pfab: I don't think that I'm willing to break the agreement that we have with the people that use those and develop those funds without a longer explanation at this point and as long as we got to a compromise on this other I would say forget this. That's my suggestion. Lehman: Well the suggestion Irvin for example, Domestic, or no let's take Emergency Housing Project, if they pay us for example $20,000 a year in utilities and we're funding them to the tune of $14,000 that we might take instead of paying them $14,000, we might forgive them $7,000 of their utility which means they don't pay us the $7,000. Pfab: Okay, your just talking bookkeeping. Lehman: No it's not just bookkeeping because one of them is from the general fund which is what we're talking about here, using a revenue fund to This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #37 put actually what you'd be doing is using a revenue fund to subsidize the human services. Champion: We always. Pfab: I (can't hear) for it. Vanderhoef: The whole point is the $35,000 can go in cash reserves for general fund spending rather than into reserves for enterprise. Pfab: But it's still, we're taking from Peter to pay Paul and Peter may not like it, right. Champion: Right. Pfab: It might not be fair to Peter. 0'Donnell: But Paul's crazy about it. Pfab: Yea I know. Champion: Steve the enterprise fund, I mean like all the bus passes and things we give to these agencies, those are paid out of the revenue fund? Atkins: No. Champion: How are they paid? Atkins: We provide bus passes directly to the agencies on request, the overriding philosophy has been that these folks get back on their feet their going to be using the bus anyway, they'd be paying customers so it was more. Champion: We just give them to them. Atkins: Yea we just give them to them, yea, now some of the agencies do have bus passes and we do charge them. There's really, there's no hard and fast rule Connie we've kind of made it pretty flexible and I know that folks like at EH]? maybe. Vanderhoefi So the bottom line on the bus pass program that we feed into all the agencies is $12,660 and DVIP happens to run the program for the furniture project, it isn't part of their funding stream, they had just said they would coordinate it so that's more dollars that we get from the solid waste fund. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #38 Champion: Right, the fund. Pfab: But the other thing the bus passes really aren't a out of pocket costs to the city because the bus is probably going to run anyway, so they hop on so there's one less. Vanderhoef: But you can make the case. Pfab: But water and sewer you process it, that's cost for you. Vanderhoef: Okay but Irvin if they didn't have the bus pass and that was the only transportation they had they would have paid for it or not ridden the bus and so it dollars potential dollars probably not that full amount but potential dollars that go into the bus system, so we as a city I think can be very proud of the amount of dollars and services that we provide for our community and I think it's time to take credit for some of these programs that we run that no one seems to know much about except Council. Lehman: All right, is there interest in using revenue funds to help fund Human Services? Vanderhoef: Yes. Kanner: Ernie I think if you cut back like your proposing, it's the same kind of precedent that your talking about the other way, this is saying that there's going to be less from general fund and so I would not agree with the cut back like that. Vanderhoef: It isn't a cut back. Lehman: I think it would start a process where part of the funding would always come out of, it wouldn't have to obviously any Council can change their mind but I think your right I think it would set a precedent for funding Human Services partially out a revenue fund. Kanner: I think we need to look at that on a year by year basis and also discuss how taking cash where there's more flexibility versus just their utility funds affects them because many of the other grants that these agencies get they don't have any flexibility so we're saying we're taking away an obligation perhaps of utilities and that frees up other cash but that's not necessarily always the case. Lehman: No, no but the net total would be exactly the same as the budget, if you had a Human Service agency that used no utilities of any kind, they would receive full funding, those few agencies that use utilities might This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #39 receive, we would pay them less cash, they would pay us less cash, the difference would be (can't hear). Kanner: What I'm saying is that our giving them utility in kind contribution instead of cash perhaps give them less flexibility that they. Lehman: No they have to pay their utility bill. Vanderhoef: They have to pay those anyway Steven and that was part of the reasoning that when I put out this memo I said the use of water and sewer enterprise ftmds I said would be capped at $35,000 and staff will coordinate with the agencies to allocate those funds so we make sure that they get their full, if their given $1,000 this year as their total amount and they use $200.00 worth of utilities always to us, then I make they have to pay that one so it's not a matter of having the flexibility because if you look through each of the budgets of these agencies. Champion: Right. Vanderhoef: They have that in there and they have to use dollars that aren't out of the grant dollars, these funds that come from the city are for anything. Kanner: Well see that's what I question, I think they do use some of those other grant dollars, it's budgeted in and part of it goes to utility costs. Vanderhoefi And. Kanner: And before it gives them less flexibility. Vanderhoef: And if that is the case Steven Champion: (can't hear). Vanderhoef: If that is the case then they would say when staff called and they'd say okay my utilities cost me $200.00 t his year and I get $50.00 from this grant for utilities and so I will only use $150.00 of your dollars, it can be worked out, it's not a problem. Pfab: Dee I'm going to speak against your thing and I'll tell you why, and before I came to City Council I worked with a number of agencies that helped fund these types of things and a grant tells a lot more than a payment in kind, because a grant is a vote to these organization that so and so sponsored and was willing to put up hard dollars and they can leverage that, it was brought up very nicely by the person who came to us who spoke the other night about putting money in for art, This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #40 whatever amount of money we put in they leverage the heck out of that. This utilities funds you can't leverage. Vanderhoefi Well it would show up though as money given by the City, the grant people do not need to know where the funds are coming from in the city, which city fund, all they know is that their getting that dollar amount and so the leveraging is the same no matter where it comes with it. Champion: And Dee I think is trying to be very flexible Irvin and I think most of the time Human Services Agency have trouble getting money for utilities and heat and building space, grants are usually for some service that they provide, they pay for personnel, and I think the problem they have I could be wrong is paying for water, electricity, telephone and (can't hear) so she's talking about being very flexible, like if they don't pay any utilities, that's not what we're going to give them (can't hear). Pfab: If we can get by with the budget that we presented and we agreed on, it isn't broke, I don't think we should fix it. Kanner: Yea, then discuss, yea I would say go with what we have, I think people would be willing more willing to pay out of their water bills and sewer bills if they knew that they were doing this minimum amount at least and then using the money in an extra fashion for extra need of services, I find it difficult cutting back though. Vanderhoef: But there's not a cut back, you keep saying there's a cut back and there's no. Lehman: Is there an interest in using revenue funds to help CDBG? Vanderhoef: Yes. Champion: Yea. Kanner: At what level are you talking? Vanderhoefi Maximum of 35. Lehman: Up to. Kanner: So to cut back from $466 or. Vanderhoef: No it's not cut back. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #41 Karmer: But to cut back from $361 general funds to $35,000 less. Champion: You might not be able to use all the $35,000, if they don't need the utilities we're not going to give it to them. Kanner: But I just want to clarify, so basically a maximum would be $35,000 from $361 from the general fund but those funds made up with revenue funds. Vanderhoef: Not it's 35 from $350. Lehman: It would be $350,000 worth of (can't hear). Vanderhoefi If you look at this it tells you exactly. Kanner: Well you don't include contingency fund which we're including. Vanderhoef: Well contingency fund is a separate fund. Karmer: Well no it isn't, we're. Vanderhoef: It always has been a separate fund and. Kanner: That's a general fund, why don't we, $361 is what we just agreed to I thought, wasn't that $3617 Vanderhoef.' We're talking about what we're paying out and then there's a separate fund that is a contingency fund. Atkius: Uh hum, 361 is the number, (can't hear). Kanner: That's what we had agreed to was the same as 02, it includes the contingency fund Vanderhoef: But you subtract out the $105. Karmer: Well that's already subtracted from $466, general funds is $361 is what we just agreed to and your saying then take another $35,000 off of general fund to bring it down to about $326 and replace it with possibly $35,000 water and sewer fund. Vanderhoef: That chart isn't going to change, all that's going to change is which two funds we take the dollars from. Kanner: Dee, right. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #42 Vanderhoef: The dollar amount. Kanner: I'm not saying it changes, I just want to clarify for the record that it's $361. Lehman: $326. Kanner: From the general fund.. Lehman: For a contingency. Atkins: It's 316, Dee's number is 315. Kauner: But we're keeping the contingency fund in there. Lehman: Right if they need it. Kanner: If it's, but it's in the budget, it's accessible. Lehman: Right. Vanderhoef: But it's two separate funds. Kanner: It's not a separate fund Dee, it's general funds. Vanderhoefi Well we look at it differently. Lehman: It's unallocated though. Vanderhoefi It's unallocated. Champion: When we did that $20,000 does that come out of our contingency fund? Atkins: Yes. Champion: And we had $28,000 at one time in that contingency fund? Atkins: Linda's nodding her head yes, yes. Vanderhoefi It had been growing is what had happened. Champion: That was really a lot of fun distributing that that one year, everybody got what they were asking for. Vanderhoefi Thanks a lot. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #43 Atkins: Linda's nodding her head yes so sounds like your on board. Champion: So why don't we erase that, why do you cap it at $10,000 because it doesn't seem like a lot of money. Lehman: If they need more they'll come to us. Vanderhoefi They'll come when there's a real specific but why I capped it at 10 was so that it didn't keep growing and not be used. Champion: Why didn't you cap it at 30? Vanderhoef: Well this past year for instance there hasn't been that emergency so there has been no request and it couldn't come at a better time as far as I'm concerned with the general fund situation that that can sit in the reserves. Champion: Steve in your past history is that $10,000 always been able to cover emergencies that came up. Atkins: I think generally speaking, Linda, yes or no, yes. Severson: (can't hear). Atkins: There was a number of fires that required us to draw upon that several years ago, okay. Vanderhoefi It seems like we (can't hear) a big refrigerator or some such, a motor burned up or something four or five years ago. Lehman: Well there's always the ability to. Atkins: The question was whether a refrigerator burned up or not and Linda doesn't remember. Lehman: All right we. Champion: Okay. Lehman: All right. Atkins: That's left. Champion: And we're done. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #44 Atkins: No we're not done, that's what's left. The first one was a strategy question you asked us to consider health insurance as part of future negotiations. Lehman: Steve I think your going to have to develop a. Atkins: Oh this needs some work, yea. Lehman: Well I realize that and it doesn't need to be done now but (can't hear), that's a direction that we need to at least do some work prior to the next negotiation. Champion: Otherwise we could have our, that fund we tax people for benefits. Atkins: Employee Benefits Levy. Champion: That could be exorbitant you know and it's. Atkins: It's up there. Champion: It's way up there. Atkins: There's pensions in there, state changes, remember state changes the pension law and that also goes in there and they did that last year. Kanner: On other issue to look at is regional health payer, a regional health payer such as the city and the school, and the county which have similar health care packages and so if we spread the risk over more people the assumption is we pay less. Champion: I think you probably, but the idea that I like when you talk about that is that you could afford to hire your own administrator and you wouldn't be paying a 15 percent surcharge to Wellmark, that might be the answer to that. Atkins: Could be, when we heard, we intended to communicate with the other large employers in the area and public employers and just to see if. Champion: Yea, that's what could save money on that Steve. Atkins: We'll find out more about it. Kanner: Well there's a number of different options to look at for possible savings. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #45 Champion: Good point, but I don't think we, it would take, I mean this is a whole other discussion, isn't it, this is not part of this years budget. Atkins: Well there are two issues here, you want, you the Council indicated that health insurance needs to have a higher profile on the labor negotiations because of the dramatic increase in costs and secondly you wanted us to consider are there other means such as broaden the group involved such as the schools, and the county and the city and the answer is yes we'll take a run at that and see what kind of interest level we have on that. Champion: Well the reason I like the idea of including all of this as part of negotiations is that you get a more realistic view of the increase that your giving and that's what I think is a real asset of a whole package negotiations. Since health care has risen so much even though we might be giving our employees a three percent raise they might really be getting 12, 13, or 14 percent raise or maybe only a three percent raise but I think it's just important that we know what we're spending on employees and that's the only way to get a handle on it. Kanner: When we were talking at the previous session which lead to this, we were talking about options for the union to say okay we have only $2,000 available, let's say how do you want that in cash or in insurance? I'd like to bring up that perhaps we broaden that to the, what do they call it cafeteria plan. Atkins: Cafeteria plan, we talked about that. Kanner: Maybe we did talk about that but I want to emphasize that again that there's some people that don't want health insurance and maybe they want to take it as child care to help pay for child care or they want to take it as an extra personal day, I think we need to put that all in. Champion: When you do whole package salary negotiations that's included, all that's included in that Steven. Lehman: All right, that's something we'll get in, you work on and we'll get into that later, that's not necessary for budget discussion. Pfab: Okay but doesn't when you went to the labor or is it union negotiation is that the right term? Atkins: Yea. Champion: Yea. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #46 Pfab: Okay are not all of those things part of the mix, I'm looking at Dale right now when I ask that? Atkins: Yep. Lehman: Dale will be but we'll get into that. Pfab: Okay so. Lehman: It's not a budget item. Kanner: Well I will throw something that is in the budget and probably have Kevin and Steve address it was basically our deductible, we have our deductible going higher essentially for medical coverage, and I was wondering if could just talk to that a minute, it's going to save us some money in the budget but I just want to be clear that that's the direction we want to go. And that (can't hear) we can go even higher and risk that. Do people follow me? Lehman: I do but before he answers Steve the deductible does that come out of the employee benefits levy? Champion: No, that would be the employees. Atkins: Does the deductible come out Lehman: The deductible. Champion: That would be the employees money. Atkins: I'm trying to understand that. Lehman: No I know that but as far as the city saving money on changing the amount of deductible. Atkins: If we were to increase our deductible we could likely lower our. Champion: Levy. Atkins: Premiums which in turn would lower the levy. Lehman: Right. Atkins: But then as Steven pointed out that also is a greater risk. Kanner: But Ernie's asking does that come out of the employee benefit? This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #47 Atkins: No the employee has full coverage right now. Lehman: I know. Kanner: No the benefit levy. Lehman: But does. Atkins: Health insurance is budgeted in the employee benefit levy. Lehman: It's all funded through the employee benefit levy. Atkins: Employee benefit levy. Lehman: Regardless of the deductible and whatever the cost is a levy. Atkins: That's right, it comes out of that levy. Lehman: Which does not affect the budget. Kanner: Well no it does affect the budget. Atkins: Oh it does affect the budget. Kanner: As far as the total levy to our citizens but it could lower their total property taxes bill. Lehman: That's tme. Atkins: That's correct. Champion: And that's the problem I have with this levy although I totally support it is that it does, it's a never ending thing and when do you say hey you know what, do we need all, are our benefits out of hand, and all of a sudden you might be getting more benefits than your getting paid, the tax (can't hear). Atkins: Most of our benefits Connie we don't really give them, pension is set by the state, social security is set by the Feds. Champion: Right. Atkins: Our health insurance is in our labor contracts, we will have to change that, most of that is experience related so I mean it is a very costly item, a good bit of which is well beyond your control, and finally the This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #48 thing that makes you the craziest is it's market driven. When the health market starts to do it's thing we pay. Champion: Well I'm not telling you how to do it, I don't have (can't hear). Atkins: No I understand your point, Kevin you wanted to comment for Steven on the health, or the deductible. Kevin O'Malley: Well I was just going to say that last fiscal year in 01 we went from a $50,000 self insured retention for each employee to a $100,000 to save on premium costs, but Steven your right there's a risk that we could have more exposure, more claims and the savings could (can't hear). Last year we were fortunate enough that we saved $66,000, we didn't have the exposure, the claims come in, but you never know with our population anybody could get sick. Pfab: Well back to answer your question, next year have we made a decision what we're going to do with deductible? Kevin: Steve, the City Manager and looked at going to $125,000 and the premium difference was not worth the risk so we're going to stay at $100,000. Pfab: Okay. Champion: That's a lot of (can't hear). Kanner: So we went from $50,000 which means that we pay for anything up to $50,000 and this other insurance we buy pays for over $50,000 in the past. O'Malley: That' s correct. Karmer: And now it won't kick in until over $100,000. Atkins: That's right. Kanner: And how much are we saving by going to that from $50,000 to $100,0007 O'Malley: Well last year we saved about $100,000 in premium but we had about $40,000 in extra costs so it netted to about $66,000 savings. Pfab: Out of the total bill how much? O'Malley: Out of the total about $3.1 million. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #49 Pfab: So percentage wise. O'Malley: Pementage wise. O'Donnell: Two percent. O'Malley: Not that much but. Pfab: Okay the other point is there no other way to have this administered without paying 15 percent? Atkins: Sure we could do it ourselves, that was one of the principles we were talking about on the regional, yea. Pfab: Yea is that something that we could do regionally? What has happened? I mean that's a pretty nice cut. Atkins: Yea. O'Malley: I'm not sure we could probably do anything, I'm not sure if there's going to be a cost savings. Pfab: Probably not as just a single entity as a city but do you think there's a possibility of combining like county, the school. Champion: Well they're going to look into that Irvin. Pfab: That's part of the. Champion: That's part of the. Atkins: That's what you wanted done, we'll do that. Pfab: Okay. Champion: But you've got to wait, it's all negotiated anyway. Pfab: Oh no, I know, it's, and the beginning it's a risk, it may cost you more than that doing the 15 percent if you do it yourself. Atkins: Just so you understand from a bargaining position, the employees feel very strongly obviously about their health insurance to the point that it's written into their contract. Champion: Oh sure. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #50 Lehman: Well I think we feel strongly that they should have it too, I mean that's. Atkins: That makes us a good employer. Lehman: Well and I think that's right, all right that's a discussion that will take place. Atkins: There's a memo coming out on the deer kill, you'll see that in your packet later on this week, you just ask if we skip a year what happens. I read the memo, I'm not sure what it means other than the birth rate will go this and they'll move here, and you'll do this and instead of 85, it was, that's why Tony DeNicola has a PHD in something or another and we will it give it to you in your packet. My interpretation is that we just couldn't afford it and that's why we made a change. Champion: No leave it out. Lehman: We are, are we on line for next year? Atkins: On for next year, off for the following. Lehman: This spring, we are in line to harvest this year. Atkins: Yes. Lehman: We're talking about not harvesting deer next year. Atkins: In 04 right. Lehman: 04. Atkins: Right. Vanderhoef: So it's in the budget and if we choose to take it out of the budget. Champion: This is (can't hear) in the budget. Pfab: 01 right now. Atkins: No. Pfab: Or 02 I mean. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #51 Atkins: You are in fiscal year 02 so we have budgeted for fiscal year 03 which your working on now, skip 04 in 05. Vanderhoefi And if we choose we could skip. Lehman: Move it. Atkins: Oh you could call to a screeching halt anytime you want. Vanderhoef: Yea, so. Pfab: Didn't we just do it two years in a row? Why isn't it time to skip a year? Vanderhoef: That's what we asked the memo for, or I wanted (can't hear). Atkins: Yea, yea. Pfab: But this will be the third year to shoot. Lehman: Third year in a row, that's right. Pfab: Okay why can't we skip the fourth one which is 03 right? Atkins: We are. Champion: We are. Lehman: We are. Champion: That's the year we're skipping. Vanderhoefi We're skipping 04. Atkins: You are currently in fiscal 02, that deer kill is over, we have budgeted for 03, which is what your working on now. Pfab: Okay, why do we need to budget? Atkins: Your asking too many questions too fast. Pfab: Go ahead. Atkins: So we budgeted for 03, we have skipped 04 added in 05. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #52 Pfab: I'm more interested in skipping in 03 because didn't we have kind of a low, didn't the deer's all have a good remember of seeing that guy around before and decided (can't hear). Atkins: Well please read the memo you can always schedule it for a work session, you can make that decision anytime you ~vant. The memo discusses the acorn population and if you get a lot of acorns you can get more deer. Now you think I make this up. Champion: Well we'll cut down all the oak trees in town. Lehman: Water the oak trees. All right. Atkins: That has something to do with feeding them. You think I make this up. Vanderhoef: No. O'Donnell: You know a lot about deer. Atkins: More than I ever wanted to. Vanderhoef: Ever wanted to know. O'Donnell: Well maybe when we do cut it that one year we can get creative and do something like Coralville's doing, do some bow hunting. Lehman: I doubt that strongly, go ahead. Kanner: Steve where's the memo on the deer? Atkins: Just got it today, it will be in your packet on Thursday, I'm sorry. Kanner: Okay. Atkins: I read it quickly and I'm just relating it to you, you'll have it in your packet. We were asked about the PCRB clerk, we don't have one. Pfab: I keep getting a designation as a clerk, is that a perfilious title? Atkins: Whatever the title would come under. Champion: Did Marian request that or did you? Atkins: You did, Marian didn't and ! didn't. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #53 Kanner: No I brought up the issue because. Atkins: Steve did, Steve brought it up. Karmer: We had concerns that we were adding, we heard concerns that were adding work load for the clerk's office without adding staff and I wanted to find out how that was working and see if we need to do something about that, lessen the work load or increase the staff. Pfab: And so what's the out? I keep seeing it says PCRB clerk. Karr: I didn't put that on, you put that on. Atkins: I put. Pfab: No, no, no, on the information that comes through that's signed by Kellie, PCRB clerk, or something to that affect. Vanderhoef: Kellie works for. Atkins: Kellie works for. Pfab: But she has a title that shows as a title of the clerk. Karr: It's PCRB staff, we've never changed any other information, yea it's PCRB staff. Kanner: So the question is to Marian and/or to Steve. Atkins: To Marian. Karmer: How is that affected you, that's what I wanted to hear information and do we need to do anything about that? Karr: Well I think there's two ways of looking at that, number one we've absorbed into it the workload and that's minus the forums which you have made that change in the ordinance. It will depend a great deal on the complete cycle, and by that I'm saying how the complaints taper off, don't taper off, the number of meetings required because of that. Kellie will also be going on an absence and so we'll be down to three people, so I'd rather report back to you in a years time and have that complete cycle and see what the ramifications of the new ordinance are. I still have my concerns but I also realistically have sat through just as many budget hearings as you. Champion: Lucky you. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #54 Vanderhoef: Being very realistic thank you very much. Kanner: In your opinion then. Vanderhoefi A year's time is appropriate. Kanner: It's a strain now but your saying you can do it, that's what at the current level. Karr: At the current level yes. Pfab: Or hopefully a lesser level. Karr: That would be wonderful. Pfab: That's what your betting on. Lehman: All right. Champion: What else do you have? Atkins: I put a memo in your packet, part time water clerk, that was also raised by you all, that's in the, part of that staffing plan. Vanderhoefi To increase it. Atkins: Yea. Pfab: Is that because of or in spite of the different ways we're starting to read the meters? Atkins: No it has nothing to do with that, it's in house, office. Pfab: Oh isn't that stuff that they're reading electronically coming in? Atkins: Yes and you'll be getting a report on that shortly where we start from the change over, where we read from the street. Pfab: But is that going to change the way that (can't hear) comes in? Atkins: That I don't know. Champion: Is the water clerk paid for by water revenues? Atkins: Yes. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #55 Lehman: But is that a position that. Vanderhoef: That is. Lehman: That is not a position that you had recommended in your budget. Atkins: No it is a position that I recommended in the budget. Lehman: It is. Atkins: Yes. Pfab: What is bringing this on? I mean I'm. Atkins: Increased number of calls, it's more office related work. Pfab: Are we not able to automate that anymore? Kanner: Well I think that's the concern I have, I think that perhaps in some sense it's needed but water rates have gone up tremendously and actually we're going to go up a tiny bit more with the plan we just had and I think we can get by without this clerk that we're going to have more efficiency in automation with a number of different procedures and even though they mention to cover the reception area out at the water plant I think we can make do with the old system. We're not getting new customers per se with our new plant, we're going to service the same amount of customers and I think it's one of the areas in an austere budget we would want to hold off on and give the water payers a break, a bit of a break. Pfab: Okay now can not buy cable connections and what not fiber optics, is there not a person that's working out there at the desk do some of the work that would be done in here is there? Atkins: It's not here, it's going to be out at the new water plant, it's intended to be a contact person at the water plant. Champion: When does that opening? Atkins: I beg your pardon. Champion: When is that opening? Atkins: Hopefully in the fall. This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002. February 4, 2002 Special Budget Work Session Page #56 Pfab: Okay, there probably isn't going to be a mad, I mean they're probably not going to stand a line a block long. Atkins: I think we'll get a big rush at first because of the technology and everybody's going to want to be part of what's going on there and I suspect. Champion: (can't hear). Lehman: People who need to change their, make their water deposit, change meter and water, they can still do that here? Atkins: Yes. Lehman: What will the person out there do? Atkins: Just more customer contacts out there, we expect to see that, it's just more exposure to the thing. Folks this wasn't a real heavy hitter. Champion: We can always add it if we need it. Atkins: It was only a half timer. If you would like to postpone it we can bring it back in more detail later on. Vanderhoef: Let's postpone it. Champion: I think Steven's right. Adjourned: 5:05 PM This represents only a reasonably accurate transcription of the Iowa City budget work session of February 4, 2002.