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HomeMy WebLinkAbout08/17/1988 - Workshop Minutes City Council MINUTES CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 17, 1988 3:00 P.M. COUNCIL MEMBERS PRESENT: Mayor Ringer, Councilmen Birdwell, McIlhaney, Brown, Gardner, Haddox COUNCIL MEMBERS ABSENT: Councilman Schneider STAFF PRESENT: City Manager Ragland, City Secretary Jones, City Attorney Locke, Police Chief Strope, Director of Capital Improvements Ash, Assistant to the City Manager Piwonka, Personnel Director Dickson, Budget Director Schroeder, Finance Director Harrison, Municipal Court Clerk Choate, Assistant Director of Parks and Recreation Cisneros, Fire Chief Landua, Public Services Director Miller, Public Utilities Director Woody, Public Infor- mation Officer Calliham, Budget Assis- tant Barnett, Council Coordinator Hooks VISITORS PRESENT: See guest register. Mayor Ringer called the meeting to order. The Council concurred to cancel the workshop meeting on August 24th. Councilman Birdwell stated that he will attend the reception at the Hilton honoring the new airline by Continental Express. Agenda Item No. 1 - Discussion of FY 88-89 Budget. City Manager Ragland presented an overview of the budget. He began with the goal of the budget dilemma. First, he addressed the desires of the Council. This included the thirty top priority issues, establishing written budget policies, a move towards cost of service, and move individual funds toward self-supporting and emphasis shifts. Mr. Ragland reviewed the six tools available to balance the budget. No. 1 - Cut Expenditures, No. 2 - Reduce Services, No. 3 - Eliminate Services, No. 4 - Improve Productivity, No. 5 - Shift the Burden, and No. 6 - Raise Revenues. He explained detailed factors relating to each tool. '-06845 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 17, 1988 Page 2 Mr. Ragland referred to the National League of Cities Annual Sur- vey of Financial Conditions and what cities have done to adjust their budgets. He pointed out that the largest adjustment has been to increase fees and charges. Finance Director Harrison explained that he looked at some of the areas which indicate growth and demand of city services: utili- ties, police, and parks and recreation. Mr. Harrison showed graphs depicting these areas. Budget Director Schroeder explained that the increase in person- nel positions during the FY 88 included three positions in the MIS Program and 2.5 positions in the Police Grant of the Selective Traffic Enforcement Program. Mr. Schroeder showed graphics relating to personnel positions in the general fund, sanitation fund, and utility fund. He noted that several reclassifications were made during last fiscal year. He also indicated that salaries and merit increases (4.22% of the general fund basic budget increases) totaled $508,725. Councilman Haddox asked for the total amount of merit increases. Mr. Schroeder replied $130,000. Mr. Harrison added that the merit increases take effect on the employee's anniversary date. Mr. Schroeder showed graphs relating to the salaries as a percentage of total operating expenditures in the general fund, utility fund, and sanitation fund. Mr. Schroeder continued his presentation by showing charts depic- ting the decision packages submitted for new programs and replace- ment equipment in each fund. The Council was provided a handout listing all decision packages submitted for the general fund, utility fund, and sanitation fund. It also included increased requests by outside agencies from the general fund. Mayor Ringer commented that one of the Council concerns is to look at maintenance and replacement of capital equipment and facili- ties. The council has directed staff to address these areas. For instance, the street maintenance programs where streets are being prioritized to maintain and upgrade the streets. Also, the facilities maintenance program has been reviewed. Secondly, he pointed out that the staff has responded to Council's request for priorities and programs; therefore, the Council should seriously consider supporting the staff in their requests for decision packages in order to carry out the concerns of the Council. CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 17, 1988 Page 3 Many key staff personnel were present to respond to Council's questions. Mr. Harrison indicated that staff's recommends 13 new positions in the overall budget. Councilman Brown asked for an explanation of the six new positions in the utility fund decision packages. Public Utilities Director Woody replied that the Utility Depart- ment has 102 employees. The six new positions are needed because of redirection towards infrastructure maintenance. The plans are underway to maintain the wastewater collection system. One additional senior foreman is needed for this area. The City has also added a new wastewater treatment plant, Lick Creek, and a change in sludge management; therefore, additional operators are needed in this capacity. Mr. Woody continued to explain the department's need for additional personnel. Mr. Ragland described to Councilman Haddox the decision package ranking process by staff for Council's review. Mr. Ragland indicated he would like to see the general fund New Programs be increased to Item 16, the replacement equipment should add all decision packages through Item 19, and the requested funding from other funds remain the same as recommended by staff. He remarked that these additional monies would be approximately $300,000. Councilman McIlhaney inquired about the decision package No. 24, fixed asset inventory. Mr. Ragland replied that the goal in accomplishing this package may be looked at another way. Police Chief Strope explained to Councilman Birdwell about the need for a parking attendant in the Northgate area. He explained that this position would pay for itself based on the current fines. Councilman Haddox inquired about the Narcotics Task Force Vehicle. Chief Strope explained that the problems arise when one officer is occupying a car and another officer is without a vehicle in an undercover assignment. He added that the car will be used for but not limited to investigations, undercover opera- tions, etc. Councilman McIlhaney asked about the dispatcher/jailer position, Item No. 7. Chief StroDe stated that this position is very crit- ical and needs to be addressed in the near future. He noted that the centralized dispatch proposal for the 911 Emergency Co~munica- tions District will possibly be in conjunction with this position. .6847 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 17, 1988 Page 4 Councilman Birdwell asked about the Vibratory Pad-Foot Roller, Item No. 8, Replacement Equipment. Mr. Alfred Miller, Public Services Director replied that the repair costs on this machine have been over $19,000. The Council recessed for a five minute break. The Council returned and continued discussion on the general fund budget. Councilman Birdwell referred to page 16 in the proposed budget manual. He stated his concern that the base budget in producing the same level of service as last year has increased significantly in spite of the fact that the city has faced slow economic times along with other similar factors. He also believes that the revenues are estimated too conservatively. The Council was provided with a copy of a memorandum regarding the effective tax rate calculation. Mr. Schroeder explained the calculations which would be published in the newspaper if the tax rate remained the same. Mr. Ragland explained the reasons for a new position of an Admini- strative Assistant in the Administration Department and the Administrative Secretary position in the Parks Department. Councilman Brown indicated that he will not support a tax increase. Councilman Birdwell reported that he would support a tax increase if there are further reductions in transfers. He added that the drainage surcharge should be included in the gen- eral fund rather than the sanitation fund; he commented that he does not see the justification to raising taxes to continue existing city business. Mr. Schroeder explained the transfers from the Utility Fund to the General Fund. City Attorney Locke explained to the Council her reasons for requesting an additional Assistant City Attorney. Councilman Haddox indicated that he agreed with the City Manager's recommendation to increase the decision package requests an addi- tional $300,000. He asked if there are any funds available to utilize without raising taxes. Mayor Ringer commented that the only revenue sources available are from the general fund which are CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 17, 1988 Page 5 sales tax, property tax, franchise tax, etc.; and sources from the utility fund. He noted that the Council could transfer monies from utilities and not give a large reduction to utility custo- mers. Councilman Haddox suggested that the electrical savings be divided in half to accommodate the staff needs. He also suggested that the water, sewer, and sanitation rates be increased to obtain self-sufficiency. Mr. Harrison clarified that there are 13 new positions within the budget. He stated that if the line was extended under new pro- grams, 6 new positions would be requested. Mayor Ringer noted that in last year's budget, 30 positions were deleted. He feels the Council should provide the staff with support to carry out the programs the Council has directed them to do. Further discussion was held by the Council on the issue of taxes. Councilman Gardner inquired about the salaries for sanitation workers and the planning assistant position. Councilman Birdwell asked if bond funds can be utilized in replacing equipment. Mr. Harrison replied that bond funds can be utilized for specific programs, such as replacement of sewer lines. Councilman Haddox asked staff to explain the debt service reserve. Mr. Schroeder replied that the debt service reserve is 20% of debt service requirement; ending balance in reserve is $1,476,000. Mr. Schroeder explained to the Council the council's five-year projection of debt service reserve. Councilman Birdwell expressed his concern about the base budget and the large Dercentage increases in certain divisions. Mayor Ringer asked for the Council's opinions of the base budget of the general fund. Councilman Birdwell remarked that he would like to see the base budget reduced $150,000. Councilman McIlhaney replied that she is supportive of staff's recommenda- tions. She added that if council feels certain changes should be ~ITY COUNCIL WORKSHOP MEETING JEDNESDAY, AUGUST 17, 1988 Page 6 made, then the staff could work on these changes during the next budget year in preparing for next year's budget. The council recessed for a five-minute break. Mr. Harrison suggested to the Council one way to accomplish the idea of funding additional $300,000 in decision packages. He noted that the departmental budgets are figured on the basis that they will use only 97 percent of money they are allocated. The staff's recommended that the percentage drop to 96 percent, this will free about $150,000. Another possibility is to increase sales tax revenues to $3.65 million, generating another $150,000. Councilman Birdwell remarked that he is in favor of the staff's recommendation. Yet, he is not in favor of spending the money on new programs. Mayor Ringer proposed to draw the line at Item No. 19 of Replace- ment Programs allocating $419,020 and draw the line at Item No. 16 of New Programs, $306,651, in the general fund. Councilman Gardner agreed with the Mayor's proposal, but he added that he would like to see the replacement cardioscope added. Mr. Harrison explained that this is not a critical item. The first response units are supplied with operational cardioscopes. Councilman Haddox, Brown, and McIlhaney agreed with the Mayor's proposal. Councilman Birdwell commented that he agreed to fund the decision packages for replacement equipment, but not certain items of the new programs. The Council continued their discussion on the Utility Fund Departmental Requests. The majority of the Council approved these packages. No remarks were made about the decision packages for the sanitation fund and the utility billing fund. Mr. Schroeder pointed out that a public hearing on the budget has been scheduled for the next regular meeting, August 25th. He also noted that the public hearing for the tax rate increase has been tentatively scheduled for September 8th. According to the statute, this is the only item which can be placed on the agenda. The Council concurred to meet at 6:00 p.m. on Thursday, September 8th. Mayor Ringer noted that no workshop meeting will be held on Wednesday, August 24th. 06850 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 17, 1988 Page 7 A~enda Ite~ No. 2 - Adjourn. The Council adjourned at 7:10 p.m. ATTEST: D--~ 'Jones APPROVE May o r~-~r~ y