HomeMy WebLinkAbout~Master - Special Meeting of the Ames City Council 01/30/2015 M INUTE S OF T HE S P ECIAL M EE TING
O F T H E A M E S C IT Y C O U N C IL
A M E S, I O W A JAN U A R Y 30, 2015
T h e A m es C ity C o u n c il m e t in sp e c ial sessio n at 2 :1 3 p.m . o n Ja n u a ry 3 0 , 2 0 1 5 , in th e C o u n c il
C ha m ber s of City Hall, 51 5 C la rk A ve nue , pursuant to law w ith M ayor A nn C a m pbell pre siding and
the follow ing C ou ncil m em bers present: A m ber C orrieri, T im G artin, C hris N elson and Peter
O razem . C ou ncil M em ber M atthew G oo dm an arrived at 3:10 p.m . C ou ncil M em ber G loria arr ived
at 3 :23 p .m . Ex officio M e m b er L issa n d ra V illa w a s ab sen t.
GT1 RETURN-TO-SERVICE PROJECT: Moved by Corrieri, seconded by Nelson, to adopt
RESOLUTION NO. 15-055 setting February 19, 2015, as bid due date and February 24, 2015,
as the date of public hearing.
Roll Call Vote: 4-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
COOLING TOWER REPLACEMENT PROJECT: Moved by Corrieri, seconded by Gartin, to
adopt RESOLUTION NO. 15-056 approving preliminary plans and specifications for Cooling
Tower Replacement Project; setting March 4, 2015, as bid due date and March 24, 2015, as the
date of public hearing.
Roll Call Vote: 4-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby
made a portion of these Minutes.
F Y 2 0 1 5 /1 6 B U D G E T O V E R V IE W: City M anager Steve Schaink e r told the Cou nc il that the FY
20 15 /16 bu dg et he w as r ecom m end ing totaled $25 7,905 ,21 6. H e repo rted that the recom m end ed
b u d g et reflec ts an o v era ll p ro p erty tax ra te d ecre a se o f 2 .5 % fro m $1 0 .8 6 /$1 ,0 0 0 o f tax a b le
v alu atio n to $1 0 .5 9 /$1 ,0 0 0 o f tax ab le v a luatio n .
Mr. Schainker reported positive indicators of an economic resurgence. Demand for additional
industrial, commercial, and residential development continues to increase as Ames experiences
further growth in Iowa State University enrollment as well as in the number of new jobs created.
That growth in development is substantiated by the fact that FY 2014/15 reflects an increase in
building permits by 18% over the previous year's total. Due to the upturn in the local economy,
$61,471,000 worth of new property valuation was added to the tax rolls. Local Option Sales Tax
receipts are projected to increase by $362,250 in FY 2015/16 (5%) over the prior year's adopted
level.
It was noted by Mr. Schainker that the property tax rate decrease reflected in the proposed
budget is intended to mitigate the impact of the increase in the state-mandated rollback
percentage from 54.40% to 55.73% for residential properties and the 2.5% increase in property
valuations due to reassessments of existing properties as the result of an improving real estate
market. Expenditures to finance the operations supported by the General Fund are budgeted to
increase by 3.3% in FY 2015/16. City Manager Schainker credited City staff members for their
efforts in that regard. He said that, as a result of their hard work, the relatively small increase
in expenses will require only an additional $292,291 in property tax revenue to balance the
budget and maintain a 23.4% available balance in the General Fund.
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Mr. Schainker brought the Council’s attention to the fact that the FY 2015/16 budget reflects
funding of $1,040,035 from the State government to meet their obligation to replace lost
property tax revenue as the result of the new state legislation that now applies a 90% rollback
on the assessed values for commercial and industrial properties.
Fina nc e D ir e c tor D uane Pitcher pre se nte d a sum m a ry o f the ove rall budg e t. H e s tated that the
C ity’s le vy m a ke s up 33 .65% of a prope rty’s tota l ta x bill: the Sc hool D is tric t m akes up 44.48%
(if in the A m es C o m m u n ity S ch o o l D istric t); 1 9 .8 3 % is th e C o u n ty ’s sh a re (inclu d e s th e C ity
A ssessor); and 2.04 % go es to D es M oines A rea C om m un ity C ollege. M r . Pitche r gav e a
com parison of C ity Pr operty Tax V aluations and T otal L evies to be collec ted for fiscal year
20 14 /15 for the 1 3 largest cities in Iow a. A m es has the secon d-low est total city tax levy per
$1,000 va lua tion. Finance D irector Pitcher pres e nted a bre a kdown of the ta x le vy, inc luding
G eneral, E m ployee B enefits, and T ransit. T he levy rate per $1,00 0 w itho ut debt service equ ates
to 7.098 N et debt s e rvic e adds 3.490. The change in do l l ar value e qua tes to a change in the
dolla r va lue of the le vy of 1.33% ($103,650). H e note d tha t, w ithout Local O ption Tax, the levy
w ould b e $1 2.43.
F in a n c e D irecto r P itch er p rese n ted an an a ly sis o f ch a n g es in tax a b le v a lu e for res id e n tial,
co m m erc ial, in d u strial, an d u tilitie s (n o t in clu d in g u tilitie s su b jec t to ex cise tax ). H e sp e c ific a lly
not ed that the total change in ta xa ble value w ill be a n inc reas e of 3.94%. The ne t cha nge on
existing residen tial prop erty w ill be $9 2,83 0,4 4 1. T he n et chan ge o n ex isting com m ercial
property wi ll dec reas e by $3 9,082,350 a nd industria l prope rtie s w ill decre a se by $6 ,701,640 due
to the rollba c k.
T h e P o lic e an d F ire T ru st F u n d w as e x p lain ed b y M r. P itch er. Fo r F Y 2 0 1 5 /1 6 , th e tax rate is
estim ate d to b e 0.7119 8. A c c ording to Finance D ire c tor Pitc he r, it is assum e d that the
con tr ibu tion rate w ill con tinu e to d ecrease.
T h e D eb t S e rv ice co st allo catio n for 2 0 1 5 /1 6 w as rev iew ed by M r. P itch er. H e reiterated that,
for FY 20 15/16, the D e bt Servic e Le vy equate s to 3 .49%. The 20 15/16 C IP G ener a l O bliga tion
issue w ill equ ate to a total of $1 3,89 2,99 0. H e nam ed the p rojec ts f or w hich the C IP G eneral
O b lig a tio n B o n d p ro ceed s w ill b e u sed . O f th a t to tal a m o u n t, $2 ,0 0 0 ,0 0 0 fo r th e E a st L in c o ln
W ay S ew er E x ten sio n w ill b e ab ated b y S ew er R ev en u e; $2 ,9 3 8 ,9 9 0 for th e IS U R esea rch P ark
Im provem ents w ill be abate d by TIF R evenue, and $943,000 for the A irport Te rm inal w ill be
abated b y Airport Revenue. M r. Pitc he r no te d the sum m ary of curre nt and propose d total de bt
se rv ice from 20 1 4 /1 5 to 2 0 1 9 /2 0 , w h ich w a s c o n tain ed in th e S p e c ial R ep o rts h an d -o u t.
M r. Pitche r gave a deta iled ana lysis of do llar va lue and pe rcenta ge c ha nge of total levy by
prop erty typ e. R esiden tial increased b y 6 .57 %, C om m ercial decreas ed b y 6 .57 %, Ind ustrial
d ecre a se d b y 6 .6 0 %, an d U tilities d ecre a se d b y 8 .2 3 %. S a m p le tax ca lcu latio n s fo r res id e n tial,
co m m erc ial, an d in d u strial p ro p e rtie s w ere pro v id e d b y M r. P itc h e r.
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The costs of City se rvic e s for 20 14/15 pe r r e side nc e fr om prope rty ta xes (based on a $1 00,000
h o m e) w ere su m m arized , as fo llo w s:
Streets/Traf fic $ 144
Polic e Protection 135
Fire Prote c tion 88
Li brar y 76
R e c reation and Parks 52
Trans it 36
G enera l Supp ort Ser vices 2 4
Pla nning 10
S torm Sew er Sy stem 5
R eso u rce R eco v ery 6
A nim a l Control 5
F acilities/C em etery/A irpo rt 6
Inspections/Sa nita tion 3
TO TA L $ 590/$100 ,000
C ity M anager Sc hainker r e view ed the Full-Ti m e Equivale nts (FTE s) re c om m e nded for 20 15/16.
The M a na ge r’s recom m endation f or 2015/16 is to ha ve a 3.25 incre a se in FTEs . An inc rease of
1 .5 0 F T E is re c o m m e n d e d fo r tran sit d rivers d u e to incre a se d se rv ice lev e ls th a t are req u ired to
m eet the an ticipated riders hip increase. F or P ub lic W orks E ng ineering , 1.75 FT E w ill be need ed
to as sist w ith the inc rease d w o rk lo ad d u e to c a p ital im p ro v e m en t p ro jects an d sto rm w a ter p erm it
activ ities.
M r. Sc ha inke r a ls o brough t the C ouncil’s atte ntion to the m ode st inc reas e s being proposed for
Pa r ks a nd R e c reation a c tivities, a c ha nge in the Police D epartm ent fees a nd c ha rges, and a
change in the Storm W ate r Pe rm it for FY 20 15/16. Council M em be r G ar tin said h e w ould like
to discuss the fees charged for using the C ity A ud itorium . H e adv ised that he had b een told that
th e fees are b eco m in g to o p roh ib itiv e for so m e o f th e sp o n so rs o f th e p rog ram s.
P rojected U tility R ate S u m m ary . M r. S ch aink er rev iew ed the p rojected utility rates, as fo llo w s:
W ate r 4% incr e a se in 2 015/16; 0% in 2 016/17 and 2017 /18; and 4% in 2 018/19 and
2019/20
Sa nita ry Sew e r 5% incr e a se in 2015 /16; 0% in 2016 /17 and 2017 /18; 7% in 2 018/19; and 0%
in 2 019/20
El e ctr ic 0% in 2015 /2016 and 2016 /17; 4% in 2 017/18; and 0% in 2 018/19 and
2019/20
S to rm S ew er 0 % in 2 0 1 5 /1 6 ; $.2 5 p e r E R U in 2 0 1 6 /1 7 ; 0% in 2 0 1 7 /1 8 ; $.2 5 p er E R U in
2018/19; and 0% in 2 019/20
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C ity M anag er Sch aink er caution ed th at staff is no t recom m end ing an increase in E lectric rates
in 20 1 6 /1 7 , b u t a 5 % in c rease is estim ated in cu sto m e r b ills d u e to an E n e rg y C o st A d justm e n t.
Co u n c il Me mb er Goo d ma n arriv ed a t 3 :1 0 p .m.
Fina nc e D ire c tor Pitc he r provided a brief s um m ary of changes in the tax asking for 2015/16. The
tota l cha nge in the G ener a l Le vy w ill be $2 92,291, Em ployee Benefit Le vy w ill decre a se by
$1 0 2 ,6 4 8 , T ra n sit L ev y w ill b e $4 7 ,1 0 8 , an d D eb t S erv ice L ev y w ill be $1 0 3 ,6 5 0 . T h is resu lts
in a tota l cha nge in tax asking of $340,401.
C a rry -O v ers. F inan ce D irec to r P itc h e r rec a lled that there are available funds from the prior year that
have accumulated either because expenditures came in less than budgeted or revenues received
surpassed the appropriated totals. H e explaine d that the C ity M anager re c om m e nds that the
ad d itio n a l fun d s b e u se d fo r o n e -tim e ex p e n se s th a t ar e c o n ta in e d o n P ag e 2 0 of the C ity
M a nag er’s letter. M r. S ch ain k e r ex p o u n d ed statin g that the City Council could take advantage
of the additional funds by applying them to reduce property taxes. However, because this excess
should be considered "one-time funding", he believes the wiser approach is to apply them to
specific one-time projects where continued funding will not be required.
Mr. Pitcher advised that carry-over funding for FY 2013/14 and FY 2014/15 totals
approximately $1,700,000. That unusually high total is attributed to: [1] $1,123,266 in additional
revenue (building permit fees - $598,467 and Local Option Sales Tax receipts -$524,753) and
[2] $623,436 from a reduction in expenditures.
B udge t O ff icer N ancy M a ste ller outline d the Fund Sheets be ginning w ith the G ener a l Fund. She
stated that the en ding b alance of the G eneral Fu nd w as su b stan tially h igh er than w hat w as
anticipated: $9 ,33 0,63 8 w as the A ctual for F Y 20 13 /14 ; ho w ever, $6 ,55 5,99 0 w as the A do pted
for 20 14 /15 . M s. M asteller no ted the C ity’s policy o f retaining a 20 % m inim um fun d b alance;
that w ould e qua te to $5,948,475, w hic h yields a n Unr e se rved Fun d Balance of $9 92,192.
M s. M a ste ller co n tin u ed th e ex p lan a tio n o f F u n d S h eets, in clu d in g S p e c ial R ev en u e F u n d s [e .g.,
L o cal O p tio n S ales T ax es, H o tel/M o tel T ax , R o a d U se T ax , P u b lic S afety S p ecial R ev en u es -
forfe itures, grants, A nim al Shelte r do nations, and m isce llaneous; C ity-W ide A ffordable H ousing,
C o m m u n ity D e v e lo p m en t B lo c k G ra n t, T ax In cre m en t F inan cin g , E m p lo y ee B e n e fit P ro p e rty
T ax, F ire/P olice Pen sion R etirem en t, F E M A /2 0 1 0 W in d an d F lo o d, P arks and R ecreation Sp ecial
R eve nue s, D on a nd R uth Furm an Aquatic Cente r Cons truction, Libra ry Friends Foundation,
Li brar y D ona tions and G ra nts, U tility A ss is tance, Public A rt D onations, D e ve lope r Proje c ts, and
E co n o m ic D ev elop m en t (R ev o lv in g L o an s an d F o rgiv ab le L o an s)]. A lso d escribe d b y M s.
M asteller w ere Perm anen t Fu nd s (C em etery P erpetual C are T rust and Fu rm an A qu atic C enter
Trust), D ebt Se rvic e (payme nt o f p r incipal and intere st o n G e neral Obliga tion Bonds, ISU
p articip atio n in th e rep ay m e n t o f b o n d s issu e d to fu n d F ire c a p ital acq u isition s), C a p ital P ro jec ts
- Spe c ial A ss e ssm e nt, - Street Cons truc tion, - A ir port Constr uc tion, - A m e ric a n R e c overy and
R einv estm en t A ct E n erg y B lo ck G ran t, - V ario u s C o n struc tion G ran ts, an d - B o n d P roc eed s.
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Co u n c il Me mb er B e tch er arriv ed a t 3 :2 3 p .m.
E nterprise F un ds w ere sum m arized b y B ud get O fficer M asteller for the W ater U tility, W ater
C on struction (accou nts for proceeds receiv ed from the S tate R evo lving L oan Fu nd ), W ater
Sink ing , Sew er Utility, S ew er Improv ements, Sew er Sinking (a c c ounts for State Revo lving Fund
lo an p ay m en ts fo r sew er utility p rojects), E lectric U tility , P ark in g O p eratio n s an d Im p rov em en ts,
T ran sit O p e ratio n s, G S B T ran sit T ru st, T ran sit C ap ita l R e se rv e, an d T ra n sit In term o d a l F acility
(fo r co n struc tio n o f th e F acility ).
R e g a rd in g the P ark in g O p era tio n s a n d Im p ro v e m en ts, C ity M a n a g e r S ch ain k er to ld th e C o u n c il
m em b ers th at, at som e tim e in th e futu re, th ey m ig h t w an t to co n sid er an in crease in p ark in g fees.
It is felt that increased p arking m eter fees m igh t also result in m ore ut ilization of the Interm od al
Fa cility. A t the inquiry o f Council M em be r G ar tin, C i t y M ana ger Sc ha inker advised that he
w ould p rovide a report on Inter m odal Facility u tilization. H e pointe d o ut tha t the City does not
m an ag e th e o p eratio n s of th at facility , b u t h e co u ld g et th e n u m b ers.
M s. M asteller con tinu ed w ith ad dition al E nterprise Fu nd s (S torm Sew er U tility, A m es/I S U Ice
A ren a, Ic e A ren a C ap ital R eserv e (acco u n ts fo r co n trib u tio n s from th e C ity an d IS U ),
H o m e w o o d G o lf C o u rse , an d R e so u rc e R eco v ery .
Inte rnal Se rvic e s w e re sum m ariz e d, inc luding Fleet Se rvic e s, Fle e t Rese rve, Inform a tion
T echn ology , T echn ology R eserve, R isk M anag em ent, and H ealth Insurance.
C ity M anager Sc ha inker no te d that inform ation w a s inc lude d with the Spe c ial Reports to the
C o u n c il p ertain in g to the A S S E T allocatio n , C O T A fu n d ing , O u tsid e F u n d in g R eq u ests
S um m ary, P ub lic A rt C om m ission , Prop erty T ax Im pact of U sin g G . O . B on ds to replace
fe de ral/sta te gra nts to fund the G rand A ve nue Exte nsion Proje c t, a re port on the Pa rking Fu nd
S tatu s, a rep o rt on 2 0 1 5 /1 6 In sp ectio n s S taffin g , a rep o rt on th e L e v e l o f M ain ten a n c e o n T ra ils
D uring W inter M on ths, no tes from the T ow n B ud get M eeting , an e-m ail from D ebra L ee
p ertain in g to req u ests fo r im p ro v e m en ts to O ak -to -R iv ersid e N eig h b o rh o o d an d th e co m m u n ity
in gen eral, a req u est fro m th e A m es E co n o m ic D ev elop m en t C o m m issio n related to th e E astern
A n n ex atio n an d its M a ste r P la n , a le tter fro m M a in S tree t C u ltu ral D istrict in reg a rd s to its
funding structure, and a n e-m a il from M er lin Pfannkuch perta ining to the f unc tions and f unding
of the A m es V isitors a nd C onvention B ureau.
C ounc il M e m ber G artin asked to k now if there w ere very many re quests for ass is tance from
Pr oject Share that are not able to b e m et. Fina nc e D irector Pitc he r state d tha t the City d id n ot
h av e th a t d a ta; h o w e v e r, he w o u ld lo o k into ho w th a t d a ta can b e p ro v id e d to the C o u n cil.
C o u n c il M e m b er N elso n ask ed fo r a c o s t a n d b e n e fits an aly sis o f ad d in g P lan n ing staff. C ity
M a nager Schainker com m ente d that a w orks hop on the w ork sc he dule for Pla nning w ould b e
sc h ed u led in the n ear fu tu re. If it is felt th a t th e ex p ected lev e l o f serv ice w a s n o t b e ing m e t,
adding sta ff w ould be recom m ended. M r. Sc ha inke r a ls o n ote d that it w ould h a ve to be
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deter m ine d if the am ount of w ork c om ing in was an a nomaly, w a s only pe a king at this tim e , or
if it is the new no r m al. A dec ision on the add ition of Planning s taff w ill nee d to b e m a de by
B udge t W rap-U p, w hich is s c he duled for Februa ry 1 0, 20 15.
AD J OU RN M ENT: Mo v e d by Gartin to a d jo u rn th e mee tin g at 4 :0 3 p.m.
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D ian e R . V o ss, C ity C lerk A n n H . C am p b ell, M ay o r